N-CSRS 1 primary-document.htm
 
UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
 
Investment Company Act file number: 811-23346
 
Name of Fund: BlackRock Variable Series Funds II, Inc.
BlackRock High Yield V.I. Fund
BlackRock Total Return V.I. Fund
BlackRock U.S. Government Bond V.I. Fund
                                   
Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809
 
Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Variable Series Funds II, Inc., 55 East 52nd Street, New York, NY 10055
 
Registrant’s telephone number, including area code: (800) 441-7762
 
Date of fiscal year end: 12/31/2021
 
Date of reporting period: 06/30/2021
 
Item 1 – Report to Stockholders
(a)
   
The Report to Shareholders is attached herewith.
 
(b)
 
Not Applicable
June
30,
2021
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2021
Semi-Annual
Report
(Unaudited)
BlackRock
Variable
Series
Funds,
Inc.
BlackRock
Variable
Series
Funds
II,
Inc.
Dear
Shareholder,
The
12-month
reporting
period
as
of
June
30,
2021
was
a
remarkable
period
of
adaptation
and
recovery,
as
the
global
economy
dealt
with
the
implications
of
the
coronavirus
(or
“COVID-19”)
pandemic.
The
United
States,
along
with
most
of
the
world,
began
the
reporting
period
emerging
from
a
severe
recession,
prompted
by
pandemic-related
restrictions
that
disrupted
many
aspects
of
daily
life.
However,
easing
restrictions
and
robust
government
intervention
led
to
a
strong
rebound,
and
the
economy
grew
at
a
significant
pace
for
the
reporting
period,
recovering
much
of
the
output
lost
at
the
beginning
of
the
pandemic.
Equity
prices
rose
with
the
broader
economy,
as
investors
became
increasingly
optimistic
about
the
economic
outlook.
Stocks
rose
through
the
summer
of
2020,
fed
by
strong
fiscal
and
monetary
support
and
positive
economic
indicators.
The
implementation
of
mass
vaccination
campaigns
and
passage
of
an
additional
$1.9
trillion
of
fiscal
stimulus
further
boosted
stocks,
and
many
equity
indices
neared
or
surpassed
all-time
highs
late
in
the
reporting
period.
In
the
United
States,
both
large-
and
small-capitalization
stocks
posted
a
significant
advance.
International
equities
also
gained,
as
both
developed
countries
and
emerging
markets
rebounded
substantially.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
had
fallen
sharply
prior
to
the
beginning
of
the
reporting
period,
which
meant
bonds
were
priced
for
extreme
risk
avoidance
and
economic
disruption.
Despite
expectations
of
doom
and
gloom,
the
economy
expanded
rapidly,
stoking
inflation
concerns
in
early
2021,
which
led
to
higher
yields
and
a
negative
overall
return
for
most
U.S.
Treasuries.
In
the
corporate
bond
market,
support
from
the
U.S.
Federal
Reserve
(the
“Fed”)
assuaged
credit
concerns
and
led
to
substantial
returns
for
high-yield
corporate
bonds,
although
investment-grade
corporates
declined
slightly.
The
Fed
remained
committed
to
accommodative
monetary
policy
by
maintaining
near
zero
interest
rates
and
by
reiterating
that
inflation
could
exceed
its
2%
target
for
a
sustained
period
without
triggering
a
rate
increase.
Late
in
the
period
the
Fed
elaborated
on
their
expected
timeline,
raising
the
likelihood
of
slower
bond
purchasing
and
the
possibility
of
higher
rates
in
2023.
Looking
ahead,
while
coronavirus-related
disruptions
have
clearly
hindered
worldwide
economic
growth,
we
believe
that
the
global
expansion
will
continue
to
accelerate
as
vaccination
efforts
ramp
up
and
pent-up
consumer
demand
leads
to
higher
spending.
While
we
expect
inflation
to
increase
somewhat
as
the
expansion
continues,
we
believe
the
recent
uptick
owes
more
to
temporary
supply
disruptions
than
a
lasting
change
in
fundamentals.
The
change
in
Fed
policy
also
means
that
moderate
inflation
is
less
likely
to
be
followed
by
interest
rate
hikes
that
could
threaten
the
economic
expansion.
Overall,
we
favor
a
moderately
positive
stance
toward
risk,
with
an
overweight
in
equities.
Sectors
that
are
better
poised
to
manage
the
transition
to
a
lower-carbon
world,
such
as
technology
and
healthcare,
are
particularly
attractive
in
the
long-term.
U.S.
small-caps
and
European
equities
are
likely
to
benefit
from
the
continuing
vaccine-led
restart.
We
are
underweight
long-term
on
credit,
but
inflation-protected
U.S.
Treasuries,
Asian
fixed
income,
and
Chinese
government
bonds
offer
potential
opportunities.
We
believe
that
international
diversification
and
a
focus
on
sustainability
can
help
provide
portfolio
resilience,
and
the
disruption
created
by
the
coronavirus
appears
to
be
accelerating
the
shift
toward
sustainable
investments.
In
this
environment,
our
view
is
that
investors
need
to
think
globally,
extend
their
scope
across
a
broad
array
of
asset
classes,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackrock.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
June
30,
2021
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
15.25%
40.79%
U.S.
small
cap
equities
(Russell
2000
®
Index)
17.54
62.03
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
8.83
32.35
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
7.45
40.90
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.02
0.09
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(4.10)
(5.89)
U.S.
investment
grade
bonds
(Bloomberg
Barclays
U.S.
Aggregate
Bond
Index)
(1.60)
(0.33)
Tax-exempt
municipal
bonds
(S&P
Municipal
Bond
Index)
1.24
4.20
U.S.
high
yield
bonds
(Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
3.61
15.34
This
Page
is
not
Part
of
Your
Fund
Report
June
30,
2021
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2021
Semi-Annual
Report
(Unaudited)
BlackRock
Variable
Series
Funds
II,
Inc.
BlackRock
High
Yield
V.I.
Fund
Fund
Summary
as
of
June
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
2
BlackRock
High
Yield
V.I.
Fund
Investment
Objective
BlackRock
High
Yield
V.I.
Fund’s
(the
“Fund”)
investment
objective
is
to
seek
to
maximize
total
return,
consistent
with
income
generation
and
prudent
investment
management.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
June
30,
2021,
the
Fund
outperformed
its
benchmark,
the
Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index.
What
factors
influenced
performance?
High-yield
bonds
delivered
positive
returns
and
outpaced
the
investment-grade
bond
market
in
the
first
half
of
the
year.
The
gains
were
driven
by
the
combination
of
a
strong
economic
recovery,
rising
oil
prices,
and
continued
support
from
fiscal
and
monetary
policy.
Together,
these
factors
helped
fuel
investors’
appetite
for
both
risk
and
yield.
Security
selection
in
the
independent
energy,
technology
and
healthcare
sectors
contributed
to
Fund
performance.
By
credit
rating,
security
selection
among
B
rated
issues
added
value.
Tactical
positions
in
equities
and
floating
rate
loan
interests
(“bank
loans”)
further
contributed
to
performance.
Selection
in
the
oil
field
services,
automotive
and
midstream
energy
sectors
detracted
from
results.
From
a
credit
rating
standpoint,
an
underweight
position
in
BBs
and
selection
in
CCCs
also
limited
the
extent
of
the
Fund’s
outperformance.
Describe
recent
portfolio
activity.
While
key
positioning
themes
remained
broadly
consistent,
the
investment
adviser
tactically
adjusted
sector-
and
issuer-level
positions
to
take
advantage
of
market
opportunities.
The
Fund
increased
its
allocations
to
the
technology,
independent
energy
and
consumer
cyclical
sectors
and
reduced
its
positions
in
banking,
automotive
and
lodging.
The
investment
adviser
reduced
the
portfolio’s
allocation
to
investment-grade
bonds
during
the
first
half
of
2021,
ending
the
period
with
a
weighting
of
approximately
2.4%
in
this
area.
In
comparison,
the
Fund
had
an
8%
allocation
to
investment-grade
debt
at
the
end
of
2020.
The
remaining
position
largely
represented
issuer-specific
opportunities.
Describe
portfolio
positioning
at
period
end.
The
Fund
was
underweight
in
BB
rated
debt
and
overweight
in
select
CCCs.
With
that
said,
the
portfolio
remained
underweight
in
the
highest-yielding
portion
of
the
market
that
contains
a
larger
concentration
of
stressed
assets.
The
leading
sector
overweights
were
in
technology,
aerospace
&
defense,
and
cable
&
satellite,
and
the
largest
underweights
included
electric
utilities,
finance
companies
and
food
&
beverage.
The
Fund
also
continued
to
hold
a
tactical
allocation
of
about
9%
to
bank
loans,
which
the
investment
adviser
believes
offer
an
attractive
value
versus
high-yield
bonds.
These
senior-secured
assets
experienced
a
recovery
similar
to
high
yield,
but
yield
spreads
remain
wide
versus
historical
levels.
The
Fund
also
held
an
out-of-benchmark
allocation
to
equities
of
approximately
2%.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
June
30,
2021
(continued)
3
Fund
Summary
BlackRock
High
Yield
V.I.
Fund
Performance
Summary
for
the
Period
Ended
June
30,
2021
Portfolio
Information
Average
Annual
Total
Returns
(a)
Standardized
30-Day
Yields
(b)
Unsubsidized
30-Day
Yields
(b)
6-Month
Total
Returns
(a)
1
Year
5
Years
10
Years
Class
I
(c
)
(d)
.......................................
3.60‌%
3.50‌%
3.83‌%
15.28‌%
7.44‌%
6.52‌%
Class
III
(c
)
(d)
......................................
3.36‌
3.26‌
3.84‌
15.00‌
7.18‌
6.26‌
(e
)
Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index
(f)
......................
—‌
—‌
3.61‌
15.34‌
7.47‌
6.65‌
(a)
For
a
portion
of
the
period,
the
Fund’s
investment
adviser
waived
a
portion
of
its
fee.
Without
such
waiver,
the
Fund’s
performance
would
have
been
lower.
(b)
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
(c)
Average
annual
and
cumulative
total
returns
are
based
on
changes
in
net
asset
value
(“NAV”)
for
the
periods
shown,
and
assume
reinvestment
of
all
distributions
at
NAV
on
the
ex-dividend/
payable
date.
Insurance-related
fees
and
expenses
are
not
reflected
in
these
returns.
(d)
The
Fund
invests
primarily
in
non-investment
grade
bonds
with
maturities
of
ten
years
or
less.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
High
Yield
V.I.
Fund
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Variable
Series
Funds,
Inc.,
through
a
tax-free
reorganization
(the
“Reorganization”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
The
Fund’s
total
returns
prior
to
October
1,
2011
are
the
returns
of
the
Predecessor
Fund
when
it
followed
different
investment
objectives
and
investment
strategies
under
the
name
“BlackRock
High
Income
V.I.
Fund”.
(e)
The
returns
for
Class
III
Shares
prior
to
February
15,
2012,
the
recommencement
of
operations
of
Class
III
Shares,
are
based
upon
the
performance
of
the
Predecessor
Fund’s
Class
I
Shares,
as
adjusted
to
reflect
the
distribution
(12b-1)
fees
applicable
to
Class
III
Shares.
(f)
An
unmanaged
index
comprised
of
issues
that
meet
the
following
criteria:
at
least
$150
million
par
value
outstanding;
maximum
credit
rating
of
Ba1;
at
least
one
year
to
maturity;
and
no
issuer
represents
more
than
2%
of
the
index.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(a)
Percent
of
Total
Investments
(b)
A
............................................
—‌
%
(c)
BBB/Baa
.......................................
7‌
BB/Ba
.........................................
36‌
B
............................................
39‌
CCC/
Caa
.......................................
14‌
CC/Ca
........................................
—‌
(c)
NR
...........................................
4‌
(a)
For
financial
reporting
purposes,
credit
quality
ratings
shown
above
reflect
the
highest
rating
assigned
by
either
S&P
Global
Ratings
or
Moody’s
Investors
Service
if
ratings
differ.
These
rating
agencies
are
independent,
nationally
recognized
statistical
rating
organizations
and
are
widely
used.
Investment
grade
ratings
are
credit
ratings
of
BBB/
Baa
or
higher.
Below
investment
grade
ratings
are
credit
ratings
of
BB/Ba
or
lower.
Investments
designated
NR
are
not
rated
by
either
rating
agency.
Unrated
investments
do
not
necessarily
indicate
low
credit
quality.
Credit
quality
ratings
are
subject
to
change.
(b)
Excludes
short-term
securities.
(c)
Represents
less
than
1%
of
the
Fund's
total
investments.
Disclosure
of
Expenses
2021
BlackRock
Semi-Annual
Report
to
Shareholders
4
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
on January
1,
2021 and
held
through
June
30,
2021)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.” 
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds. 
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only,
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Derivative
Financial
Instruments
The
Fund
may
invest
in
various
derivative
financial
instruments.
These
instruments
are
used
to
obtain
exposure
to
a
security,
commodity,
index,
market,
and/or
other
assets
without
owning
or
taking
physical
custody
of
securities,
commodities
and/or
other
referenced
assets
or
to
manage
market,
equity,
credit,
interest
rate,
foreign
currency
exchange
rate,
commodity
and/or
other
risks.
Derivative
financial
instruments
may
give
rise
to
a
form
of
economic
leverage
and
involve
risks,
including
the
imperfect
correlation
between
the
value
of
a
derivative
financial
instrument
and
the
underlying
asset,
possible
default
of
the
counterparty
to
the
transaction
or
illiquidity
of
the
instrument.
The
Fund’s
successful
use
of
a
derivative
financial
instrument
depends
on
the
investment
adviser’s
ability
to
predict
pertinent
market
movements
accurately,
which
cannot
be
assured.
The
use
of
these
instruments
may
result
in
losses
greater
than
if
they
had
not
been
used,
may
limit
the
amount
of
appreciation the
Fund
can
realize
on
an
investment
and/or
may
result
in
lower
distributions
paid
to
shareholders.
The
Fund’s
investments
in
these
instruments,
if
any,
are
discussed
in
detail
in
the
Notes
to
Financial
Statements.
Actual
Hypothetical
(a)
Beginning
Account
Value
(01/01/21)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(b)
Beginning
Account
Value
(01/01/21)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(b)
Annualized
Expense
Ratio
Class
I
..................................
$
1,000.00
$
1,038.30
$
2.88
$
1,000.00
$
1,021.97
$
2.86
0.57%
Class
III
..................................
1,000.00
1,038.40
4.09
1,000.00
1,020.78
4.06
0.81
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
365.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
5
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
June
30,
2021
Security
Shares
Shares
Value
Common
Stocks
—
2.3%
Building
Products
—
0.0%
AZEK
Co.,
Inc.
(The)
(a)
................
346
$
14,691
Chemicals
—
0.3%
Atotech
Ltd.
(a)
......................
1,769
45,162
Diversey
Holdings
Ltd.
(a)
...............
43,691
782,506
Element
Solutions,
Inc.
................
46,820
1,094,652
1,922,320
Communications
Equipment
—
0.0%
CommScope
Holding
Co.,
Inc.
(a)
..........
14,353
305,862
Electrical
Equipment
—
0.1%
Sensata
Technologies
Holding
plc
(a)
.......
9,474
549,208
Energy
Equipment
&
Services
—
0.0%
Pioneer
Energy
Services
Corp.
(a)(b)
........
1,058
15,658
Entertainment
—
0.0%
Live
Nation
Entertainment,
Inc.
(a)
.........
3,672
321,631
Equity
Real
Estate
Investment
Trusts
(REITs)
—
0.3%
Gaming
and
Leisure
Properties,
Inc.
.......
21,702
1,005,454
VICI
Properties,
Inc.
..................
49,443
1,533,722
2,539,176
Hotels,
Restaurants
&
Leisure
—
0.1%
Aramark
..........................
9,944
370,414
Life
Sciences
Tools
&
Services
—
0.3%
(a)
Avantor
,
Inc.
.......................
29,549
1,049,285
Syneos
Health,
Inc.
..................
9,594
858,567
1,907,852
Media
—
0.0%
Clear
Channel
Outdoor
Holdings,
Inc.
(a)
.....
106,359
280,788
Metals
&
Mining
—
0.2%
Constellium
SE,
Class
A
(a)
..............
60,163
1,140,089
Oil,
Gas
&
Consumable
Fuels
—
1.0%
Chesapeake
Energy
Corp.
.............
33,868
1,758,427
ConocoPhillips
.....................
7,985
486,286
Devon
Energy
Corp.
..................
19,263
562,287
Diamondback
Energy,
Inc.
..............
7,748
727,460
Energy
Transfer
LP
..................
39,360
418,397
Enterprise
Products
Partners
LP
..........
18,057
435,715
EQT
Corp.
(a)
.......................
14,430
321,212
Extraction
Oil
&
Gas,
Inc.
(a)
.............
12,996
713,610
Extraction
Oil
&
Gas,
Inc.,
(Acquired
03/05/21,
cost
$263,946)
(a)(c)
.................
7,537
412,132
Kinder
Morgan,
Inc.
..................
8,070
147,116
Plains
All
American
Pipeline
LP
..........
70,925
805,708
SM
Energy
Co.
.....................
26,868
661,759
Williams
Cos.,
Inc.
(The)
...............
5,487
145,680
7,595,789
Road
&
Rail
—
0.0%
Uber
Technologies,
Inc.
(a)
..............
5,600
280,672
Total
Common
Stocks
—
2.3%
(Cost:
$12,618,604)
...............................
17,244,150
Security
Par
(000)
Par
(000)
Value
Corporate
Bonds
—
86.1%
Aerospace
&
Defense
—
3.2%
Boeing
Co.
(The),
5.93%,
05/01/60
.......
USD
1,830
$
2,526,971
Bombardier,
Inc.
(d)
:
7.50%,
12/01/24
..................
277
289,465
7.50%,
03/15/25
..................
58
59,644
7.13%,
06/15/26
..................
1,330
1,392,510
7.88%,
04/15/27
..................
652
676,450
7.45%,
05/01/34
..................
201
215,070
BWX
Technologies,
Inc.
(d)
:
4.13%,
06/30/28
..................
418
425,837
4.13%,
04/15/29
..................
326
331,705
F-Brasile
SpA,
Series
XR,
7.38%,
08/15/26
(d)
.
741
763,230
Howmet
Aerospace,
Inc.,
5.13%,
10/01/24
..
12
13,245
Kratos
Defense
&
Security
Solutions,
Inc.,
6.50%,
11/30/25
(d)
................
516
539,865
Rolls-Royce
plc,
5.75%,
10/15/27
(d)
.......
1,940
2,136,891
Spirit
AeroSystems,
Inc.,
5.50%,
01/15/25
(d)
..
276
293,250
SSL
Robotics
LLC,
9.75%,
12/31/23
(d)
.....
184
203,050
TransDigm
,
Inc.:
8.00%,
12/15/25
(d)
.................
1,715
1,853,058
6.25%,
03/15/26
(d)
.................
8,533
9,002,315
6.38%,
06/15/26
..................
135
139,856
7.50%,
03/15/27
..................
215
228,706
4.63%,
01/15/29
(d)
.................
526
526,184
4.88%,
05/01/29
(d)
.................
590
595,605
Triumph
Group,
Inc.,
8.88%,
06/01/24
(d)
....
1,714
1,906,825
24,119,732
Airlines
—
1.8%
American
Airlines,
Inc.
(d)
:
11.75%,
07/15/25
.................
1,710
2,146,050
5.50%,
04/20/26
..................
1,017
1,076,749
5.75%,
04/20/29
..................
1,570
1,697,497
Delta
Air
Lines,
Inc.
(d)
:
7.00%,
05/01/25
..................
630
735,202
4.75%,
10/20/28
..................
1,161
1,290,751
Hawaiian
Brand
Intellectual
Property
Ltd.,
5.75%,
01/20/26
(d)
................
489
524,995
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
(d)
2,028
2,232,828
Spirit
Loyalty
Cayman
Ltd.,
8.00%,
09/20/25
(d)
69
77,586
United
Airlines
Pass-Through
Trust:
Series
2020-1,
Class
B,
4.88%,
01/15/26
.
97
102,910
Series
2020-1,
Class
A,
5.88%,
10/15/27
.
1,407
1,561,726
United
Airlines,
Inc.
(d)
:
4.38%,
04/15/26
..................
908
939,943
4.63%,
04/15/29
..................
1,179
1,220,265
13,606,502
Auto
Components
—
1.9%
Adient
US
LLC,
9.00%,
04/15/25
(d)
.......
305
335,881
Allison
Transmission,
Inc.
(d)
:
5.88%,
06/01/29
..................
647
708,465
3.75%,
01/30/31
..................
383
376,439
Clarios
Global
LP
(d)
:
6.75%,
05/15/25
..................
911
970,197
6.25%,
05/15/26
..................
1,673
1,782,263
8.50%,
05/15/27
..................
4,385
4,780,527
Dealer
Tire
LLC,
8.00%,
02/01/28
(d)
.......
604
650,810
Goodyear
Tire
&
Rubber
Co.
(The):
9.50%,
05/31/25
..................
332
370,595
5.00%,
07/15/29
(d)
.................
263
275,361
5.25%,
07/15/31
(d)
.................
851
889,295
5.63%,
04/30/33
..................
600
632,820
Icahn
Enterprises
LP:
4.75%,
09/15/24
..................
162
169,290
6.25%,
05/15/26
..................
369
391,509
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Auto
Components
(continued)
5.25%,
05/15/27
..................
USD
869
$
897,238
5.25%,
05/15/27
(d)
.................
512
528,640
4.38%,
02/01/29
(d)
.................
356
354,220
Patrick
Industries,
Inc.,
4.75%,
05/01/29
(d)
...
126
125,213
Tenneco,
Inc.,
7.88%,
01/15/29
(d)
........
92
103,903
14,342,666
Automobiles
—
0.2%
Ford
Motor
Co.:
4.35%,
12/08/26
..................
82
87,843
4.75%,
01/15/43
..................
167
177,437
5.29%,
12/08/46
..................
160
178,701
Tesla,
Inc.,
5.30%,
08/15/25
(d)
..........
582
601,578
Winnebago
Industries,
Inc.,
6.25%,
07/15/28
(d)
210
226,275
1,271,834
Banks
—
0.3%
Banco
Espirito
Santo
SA
(a)(e)
:
2.63%,
05/08/17
..................
EUR
100
16,600
4.75%,
01/15/18
..................
100
16,600
4.00%,
01/21/19
..................
100
16,601
Barclays
plc,
5.20%,
05/12/26
..........
USD
200
228,428
CIT
Group,
Inc.,
5.00%,
08/01/23
........
306
330,863
HSBC
Holdings
plc
(f)(g)
:
(USD
Swap
Rate
5
Year
+
3.75%),
6.00%
.
465
516,150
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.65%),
4.60%
.......................
200
207,500
Intesa
Sanpaolo
SpA
(d)
:
4.20%,
06/01/32
..................
320
327,923
4.95%,
06/01/42
..................
235
243,348
1,904,013
Beverages
—
0.0%
Triton
Water
Holdings,
Inc.,
6.25%,
04/01/29
(d)
230
230,575
Biotechnology
—
0.0%
Emergent
BioSolutions,
Inc.,
3.88%,
08/15/28
(d)
118
115,583
Building
Products
—
1.1%
Advanced
Drainage
Systems,
Inc.,
5.00%,
09/30/27
(d)
.....................
545
565,721
APi
Group
DE,
Inc.,
4.13%,
07/15/29
(d)
.....
277
275,443
Builders
FirstSource,
Inc.,
6.75%,
06/01/27
(d)
.
171
183,184
Cornerstone
Building
Brands,
Inc.,
6.13%,
01/15/29
(d)
.....................
850
911,625
CP
Atlas
Buyer,
Inc.,
7.00%,
12/01/28
(d)
....
659
682,889
Forterra
Finance
LLC,
6.50%,
07/15/25
(d)
...
701
755,327
Griffon
Corp.,
5.75%,
03/01/28
..........
331
351,687
James
Hardie
International
Finance
DAC,
5.00%,
01/15/28
(d)
................
200
211,817
JELD-WEN,
Inc.
(d)
:
6.25%,
05/15/25
..................
245
261,295
4.63%,
12/15/25
..................
99
100,857
4.88%,
12/15/27
..................
30
31,177
Masonite
International
Corp.
(d)
:
5.75%,
09/15/26
..................
45
46,575
5.38%,
02/01/28
..................
74
78,416
SRM
Escrow
Issuer
LLC,
6.00%,
11/01/28
(d)
..
1,765
1,870,900
Standard
Industries,
Inc.
(d)
:
5.00%,
02/15/27
..................
221
228,873
4.38%,
07/15/30
..................
611
630,094
3.38%,
01/15/31
..................
391
374,269
Summit
Materials
LLC,
5.25%,
01/15/29
(d)
...
278
295,356
Victors
Merger
Corp.,
6.38%,
05/15/29
(d)
....
395
397,963
8,253,468
Security
Par
(000)
Par
(000)
Value
Capital
Markets
—
0.5%
(d)
Aretec
Escrow
Issuer,
Inc.,
7.50%,
04/01/29
.
USD
208
$
213,787
Compass
Group
Diversified
Holdings
LLC,
5.25%,
04/15/29
.................
509
529,360
Credit
Suisse
Group
AG
(f)(g)
:
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.82%),
6.37%
.......................
300
334,389
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.89%),
5.25%
.......................
405
428,287
Drawbridge
Special
Opportunities
Fund
LP,
3.88%,
02/15/26
.................
250
258,615
Hightower
Holding
LLC,
6.75%,
04/15/29
...
221
225,420
MSCI,
Inc.:
3.63%,
09/01/30
..................
96
98,176
3.88%,
02/15/31
..................
665
690,110
3.63%,
11/01/31
..................
389
398,997
Owl
Rock
Technology
Finance
Corp.,
3.75%,
06/17/26
......................
240
252,361
UBS
AG,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.31%),
4.38%
(f)(g)
320
326,944
3,756,446
Chemicals
—
1.4%
Axalta
Coating
Systems
LLC
(d)
:
4.75%,
06/15/27
..................
423
443,092
3.38%,
02/15/29
..................
166
162,265
Chemours
Co.
(The),
5.75%,
11/15/28
(d)
....
186
198,977
Element
Solutions,
Inc.,
3.88%,
09/01/28
(d)
..
2,905
2,963,972
Gates
Global
LLC,
6.25%,
01/15/26
(d)
......
574
601,274
GCP
Applied
Technologies,
Inc.,
5.50%,
04/15/26
(d)
.....................
534
549,246
HB
Fuller
Co.,
4.25%,
10/15/28
.........
165
170,532
Herens
Midco
SARL,
4.75%,
05/15/28
(d)
....
888
883,560
Illuminate
Buyer
LLC,
9.00%,
07/01/28
(d)
....
553
616,606
Ingevity
Corp.,
3.88%,
11/01/28
(d)
........
132
131,010
Minerals
Technologies,
Inc.,
5.00%,
07/01/28
(d)
388
403,404
NOVA
Chemicals
Corp.,
4.88%,
06/01/24
(d)
..
81
85,455
OCI
NV,
5.25%,
11/01/24
(d)
............
277
285,504
PQ
Corp.,
5.75%,
12/15/25
(d)
...........
912
935,940
SCIH
Salt
Holdings,
Inc.
(d)
:
4.88%,
05/01/28
..................
774
773,907
6.63%,
05/01/29
..................
354
354,885
Scotts
Miracle-Gro
Co.
(The),
4.00%,
04/01/31
(d)
.....................
515
513,393
Valvoline,
Inc.,
3.63%,
06/15/31
(d)
........
2
2,000
10,075,022
Commercial
Services
&
Supplies
—
3.2%
ADT
Security
Corp.
(The),
4.88%,
07/15/32
(d)
.
724
762,908
Allied
Universal
Holdco
LLC
(d)
:
6.63%,
07/15/26
..................
3,368
3,570,855
9.75%,
07/15/27
..................
1,545
1,701,431
4.63%,
06/01/28
..................
3,354
3,360,011
6.00%,
06/01/29
..................
990
1,003,652
APX
Group,
Inc.:
7.88%,
12/01/22
..................
115
115,431
8.50%,
11/01/24
..................
202
211,090
6.75%,
02/15/27
(d)
.................
455
485,121
Aramark
Services,
Inc.
(d)
:
5.00%,
04/01/25
..................
246
252,150
6.38%,
05/01/25
..................
571
606,687
Brink's
Co.
(The),
5.50%,
07/15/25
(d)
......
114
121,054
Clean
Harbors,
Inc.
(d)
:
4.88%,
07/15/27
..................
233
244,067
5.13%,
07/15/29
..................
199
216,413
Covanta
Holding
Corp.,
5.00%,
09/01/30
...
239
250,950
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
Garda
World
Security
Corp.
(d)
:
4.63%,
02/15/27
..................
USD
715
$
718,575
9.50%,
11/01/27
..................
428
474,010
GFL
Environmental,
Inc.
(d)
:
4.25%,
06/01/25
..................
140
145,816
3.75%,
08/01/25
..................
170
174,675
5.13%,
12/15/26
..................
1,122
1,186,986
4.00%,
08/01/28
..................
985
973,032
3.50%,
09/01/28
..................
310
309,225
4.75%,
06/15/29
..................
821
852,444
IAA,
Inc.,
5.50%,
06/15/27
(d)
...........
274
287,623
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(d)
.....................
273
284,603
Madison
IAQ
LLC
(d)
:
4.13%,
06/30/28
..................
203
205,030
5.88%,
06/30/29
..................
756
769,230
Nielsen
Finance
LLC
(d)
:
5.63%,
10/01/28
..................
1,237
1,306,383
5.88%,
10/01/30
..................
474
515,913
4.75%,
07/15/31
..................
340
340,850
Prime
Security
Services
Borrower
LLC
(d)
:
5.25%,
04/15/24
..................
6
6,429
5.75%,
04/15/26
..................
42
46,396
3.38%,
08/31/27
..................
256
248,320
6.25%,
01/15/28
..................
694
738,243
Stericycle,
Inc.,
3.88%,
01/15/29
(d)
........
254
253,500
Waste
Pro
USA,
Inc.,
5.50%,
02/15/26
(d)
....
1,126
1,162,313
23,901,416
Communications
Equipment
—
1.0%
Avaya,
Inc.,
6.13%,
09/15/28
(d)
..........
2,315
2,477,744
CommScope
Technologies
LLC
(d)
:
6.00%,
06/15/25
..................
1,097
1,120,311
5.00%,
03/15/27
..................
775
793,407
CommScope
,
Inc.
(d)
:
5.50%,
03/01/24
..................
366
376,522
6.00%,
03/01/26
..................
281
296,652
8.25%,
03/01/27
..................
66
70,541
7.13%,
07/01/28
..................
337
365,224
Nokia
OYJ:
4.38%,
06/12/27
..................
187
206,562
6.63%,
05/15/39
..................
107
138,565
ViaSat
,
Inc.
(d)
:
5.63%,
04/15/27
..................
615
641,955
6.50%,
07/15/28
..................
730
778,516
7,265,999
Construction
&
Engineering
—
0.3%
(d)
Arcosa,
Inc.,
4.38%,
04/15/29
..........
701
713,268
Brand
Industrial
Services,
Inc.,
8.50%,
07/15/25
767
779,832
Dycom
Industries,
Inc.,
4.50%,
04/15/29
....
190
191,645
MasTec,
Inc.,
4.50%,
08/15/28
..........
318
334,800
New
Enterprise
Stone
&
Lime
Co.,
Inc.:
6.25%,
03/15/26
..................
99
101,651
9.75%,
07/15/28
..................
131
146,720
Pike
Corp.,
5.50%,
09/01/28
...........
267
277,680
2,545,596
Consumer
Finance
—
1.1%
Ford
Motor
Credit
Co.
LLC:
3.81%,
01/09/24
..................
200
209,126
4.69%,
06/09/25
..................
200
216,500
5.13%,
06/16/25
..................
548
603,485
4.13%,
08/04/25
..................
650
694,681
3.38%,
11/13/25
..................
200
207,390
4.39%,
01/08/26
..................
475
513,000
4.13%,
08/17/27
..................
200
212,156
Security
Par
(000)
Par
(000)
Value
Consumer
Finance
(continued)
3.82%,
11/02/27
..................
USD
200
$
208,324
2.90%,
02/16/28
..................
585
582,227
5.11%,
05/03/29
..................
303
339,202
4.00%,
11/13/30
..................
1,253
1,312,518
Global
Aircraft
Leasing
Co.
Ltd.,
0.00%,
(0.00%
Cash
or
7.25%
PIK),
09/15/24
(d)(h)
......
551
541,639
Navient
Corp.:
6.13%,
03/25/24
..................
176
189,950
5.88%,
10/25/24
..................
49
52,859
6.75%,
06/25/25
..................
103
114,043
6.75%,
06/15/26
..................
138
154,042
OneMain
Finance
Corp.:
6.88%,
03/15/25
..................
227
256,192
8.88%,
06/01/25
..................
4
4,435
7.13%,
03/15/26
..................
819
953,897
3.50%,
01/15/27
..................
638
642,785
6.63%,
01/15/28
..................
155
177,686
5.38%,
11/15/29
..................
61
66,352
4.00%,
09/15/30
..................
8
7,930
8,260,419
Containers
&
Packaging
—
2.1%
ARD
Finance
SA,
6.50%,
06/30/27
(d)
......
2,822
2,963,100
Ardagh
Metal
Packaging
Finance
USA
LLC,
4.00%,
09/01/29
(d)
................
2,162
2,143,785
Ardagh
Packaging
Finance
plc
(d)
:
4.13%,
08/15/26
..................
389
401,642
4.75%,
07/15/27
..................
GBP
100
140,820
5.25%,
08/15/27
..................
USD
1,786
1,821,720
CANPACK
SA,
3.13%,
11/01/25
(d)
........
211
214,468
Crown
Americas
LLC,
4.25%,
09/30/26
....
302
323,895
Crown
Cork
&
Seal
Co.,
Inc.,
7.38%,
12/15/26
78
95,550
Graham
Packaging
Co.,
Inc.,
7.13%,
08/15/28
(d)
356
383,590
Graphic
Packaging
International
LLC
(d)
:
4.75%,
07/15/27
..................
128
138,288
3.50%,
03/15/28
..................
15
15,113
3.50%,
03/01/29
..................
59
58,451
Intelligent
Packaging
Ltd.
Finco,
Inc.,
6.00%,
09/15/28
(d)
.....................
259
269,360
Intertape
Polymer
Group,
Inc.,
4.38%,
06/15/29
(d)
.....................
274
277,848
LABL
Escrow
Issuer
LLC
(d)
:
6.75%,
07/15/26
..................
365
389,356
10.50%,
07/15/27
.................
307
338,468
Mauser
Packaging
Solutions
Holding
Co.,
5.50%,
04/15/24
(d)
................
389
392,890
Sealed
Air
Corp.
(d)
:
5.13%,
12/01/24
..................
20
21,775
4.00%,
12/01/27
..................
143
152,116
6.88%,
07/15/33
..................
31
39,213
Silgan
Holdings,
Inc.,
4.13%,
02/01/28
.....
3
3,113
Trivium
Packaging
Finance
BV
(d)(
i
)
:
5.50%,
08/15/26
..................
1,316
1,382,721
8.50%,
08/15/27
..................
3,467
3,769,323
15,736,605
Distributors
—
0.5%
(d)
American
Builders
&
Contractors
Supply
Co.,
Inc.:
4.00%,
01/15/28
..................
220
225,436
3.88%,
11/15/29
..................
272
270,300
BCPE
Empire
Holdings,
Inc.,
7.63%,
05/01/27
216
221,206
Core
&
Main
LP,
6.13%,
08/15/25
........
2,398
2,445,960
Wolverine
Escrow
LLC:
8.50%,
11/15/24
..................
113
109,610
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
8
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Distributors
(continued)
9.00%,
11/15/26
..................
USD
130
$
126,750
3,399,262
Diversified
Consumer
Services
—
0.6%
Bidfair
Holdings,
Inc.,
5.88%,
06/01/29
(d)
....
1,175
1,192,625
Graham
Holdings
Co.,
5.75%,
06/01/26
(d)
...
105
109,200
Metis
Merger
Sub
LLC,
6.50%,
05/15/29
(d)
...
427
420,531
Service
Corp.
International:
5.13%,
06/01/29
..................
89
96,565
3.38%,
08/15/30
..................
279
273,364
4.00%,
05/15/31
..................
720
734,886
Sotheby's,
7.38%,
10/15/27
(d)
...........
1,743
1,880,261
4,707,432
Diversified
Financial
Services
—
0.8%
(d)
Fairstone
Financial,
Inc.,
7.88%,
07/15/24
...
289
301,283
MPH
Acquisition
Holdings
LLC,
5.75%,
11/01/28
......................
1,000
1,004,910
Sabre
GLBL,
Inc.:
9.25%,
04/15/25
..................
806
958,197
7.38%,
09/01/25
..................
395
429,562
Shift4
Payments
LLC,
4.63%,
11/01/26
.....
636
663,825
Verscend
Escrow
Corp.,
9.75%,
08/15/26
...
2,693
2,837,749
6,195,526
Diversified
Telecommunication
Services
—
6.5%
Altice
France
Holding
SA
(d)
:
10.50%,
05/15/27
.................
3,320
3,689,350
6.00%,
02/15/28
..................
1,263
1,257,695
Altice
France
SA
(d)
:
7.38%,
05/01/26
..................
200
207,986
8.13%,
02/01/27
..................
1,721
1,875,029
5.50%,
01/15/28
..................
900
933,930
5.13%,
01/15/29
..................
614
617,070
5.13%,
07/15/29
..................
2,570
2,582,593
CCO
Holdings
LLC:
5.00%,
02/01/28
(d)
.................
441
462,499
5.38%,
06/01/29
(d)
.................
492
537,805
4.75%,
03/01/30
(d)
.................
657
694,777
4.50%,
08/15/30
(d)
.................
1,621
1,687,808
4.25%,
02/01/31
(d)
.................
1,157
1,178,694
4.50%,
05/01/32
..................
1,130
1,170,962
4.50%,
06/01/33
(d)
.................
741
758,236
Cincinnati
Bell,
Inc.
(d)
:
7.00%,
07/15/24
..................
919
943,124
8.00%,
10/15/25
..................
75
78,843
Consolidated
Communications,
Inc.,
6.50%,
10/01/28
(d)
.....................
1,519
1,634,064
Frontier
Communications
Holdings
LLC
(d)
:
5.88%,
10/15/27
..................
775
830,219
5.00%,
05/01/28
..................
1,762
1,821,608
6.75%,
05/01/29
..................
971
1,032,435
Intelsat
Jackson
Holdings
SA,
8.00%,
02/15/24
(d)(i)
....................
106
109,474
Level
3
Financing,
Inc.
(d)
:
4.25%,
07/01/28
..................
650
659,594
3.75%,
07/15/29
..................
1,292
1,256,470
Lumen
Technologies,
Inc.:
Series
W,
6.75%,
12/01/23
...........
128
141,950
Series
Y,
7.50%,
04/01/24
...........
176
197,560
5.13%,
12/15/26
(d)
.................
2,272
2,360,040
4.00%,
02/15/27
(d)
.................
411
419,220
4.50%,
01/15/29
(d)
.................
1,546
1,508,819
5.38%,
06/15/29
(d)
.................
918
931,205
Series
P,
7.60%,
09/15/39
...........
162
184,275
Series
U,
7.65%,
03/15/42
...........
656
736,360
QualityTech
LP,
3.88%,
10/01/28
(d)
.......
484
517,590
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
Sable
International
Finance
Ltd.,
5.75%,
09/07/27
(d)
.....................
USD
200
$
210,440
Sprint
Capital
Corp.:
6.88%,
11/15/28
..................
2,217
2,843,303
8.75%,
03/15/32
..................
2,115
3,214,800
Switch
Ltd.
(d)
:
3.75%,
09/15/28
..................
635
642,937
4.13%,
06/15/29
..................
460
472,075
Telecom
Italia
Capital
SA:
6.38%,
11/15/33
..................
408
486,540
6.00%,
09/30/34
..................
739
852,621
7.20%,
07/18/36
..................
201
259,290
7.72%,
06/04/38
..................
309
421,251
Telecom
Italia
SpA,
5.30%,
05/30/24
(d)
.....
251
274,770
Telesat
Canada,
4.88%,
06/01/27
(d)
.......
483
466,095
Virgin
Media
Secured
Finance
plc,
5.50%,
05/15/29
(d)
.....................
200
215,000
Zayo
Group
Holdings,
Inc.
(d)
:
4.00%,
03/01/27
..................
2,227
2,211,678
6.13%,
03/01/28
..................
2,451
2,503,084
48,091,168
Electric
Utilities
—
0.8%
FirstEnergy
Corp.:
Series
B,
4.40%,
07/15/27
(
i
)
..........
251
272,962
2.65%,
03/01/30
..................
46
45,815
Series
B,
2.25%,
09/01/30
...........
38
36,435
Series
C,
7.38%,
11/15/31
...........
302
413,592
Series
C,
5.35%,
07/15/47
(
i
)
..........
1,031
1,237,200
Series
C,
3.40%,
03/01/50
...........
346
338,215
FirstEnergy
Transmission
LLC
(d)
:
5.45%,
07/15/44
..................
791
986,975
4.55%,
04/01/49
..................
309
362,415
NextEra
Energy
Operating
Partners
LP,
4.25%,
09/15/24
(d)
.....................
13
13,715
NRG
Energy,
Inc.:
5.75%,
01/15/28
..................
8
8,520
3.63%,
02/15/31
(d)
.................
552
542,450
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(d)
.....................
505
522,776
PG&E
Corp.,
5.25%,
07/01/30
..........
377
380,582
Vistra
Operations
Co.
LLC,
4.38%,
05/01/29
(d)
455
457,275
5,618,927
Electrical
Equipment
—
0.2%
(d)
Atkore,
Inc.,
4.25%,
06/01/31
...........
337
341,314
Sensata
Technologies
BV:
5.63%,
11/01/24
..................
187
207,804
4.00%,
04/15/29
..................
619
628,336
1,177,454
Electronic
Equipment,
Instruments
&
Components
—
0.2%
CDW
LLC:
4.13%,
05/01/25
..................
278
290,510
3.25%,
02/15/29
..................
297
300,920
Sensata
Technologies,
Inc.,
4.38%,
02/15/30
(d)
654
689,213
1,280,643
Energy
Equipment
&
Services
—
0.9%
Archrock
Partners
LP
(d)
:
6.88%,
04/01/27
..................
259
274,864
6.25%,
04/01/28
..................
1,589
1,658,773
ChampionX
Corp.,
6.38%,
05/01/26
.......
298
312,125
Pioneer
Energy
Services
Corp.
(b)(d)
:
(LIBOR
USD
3
Month
+
9.50%),
11.00%,
05/15/25
(g)
....................
418
414,762
5.00%,
(5.00%
Cash
or
5.00%
PIK),
11/15/25
(h)(j)
....................
310
342,512
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
9
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Energy
Equipment
&
Services
(continued)
TechnipFMC
plc,
6.50%,
02/01/26
(d)
.......
USD
632
$
682,412
Tervita
Corp.,
11.00%,
12/01/25
(d)
........
209
234,024
Transocean,
Inc.,
11.50%,
01/30/27
(d)
......
241
257,555
USA
Compression
Partners
LP:
6.88%,
04/01/26
..................
933
977,317
6.88%,
09/01/27
..................
1,238
1,322,531
6,476,875
Entertainment
—
1.1%
Cinemark
USA,
Inc.
(d)
:
5.88%,
03/15/26
..................
232
242,776
5.25%,
07/15/28
..................
236
241,900
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
(d)
.....................
128
134,560
Live
Nation
Entertainment,
Inc.:
2.50%,
03/15/23
(j)
.................
354
494,290
4.88%,
11/01/24
(d)
.................
59
59,944
2.00%,
02/15/25
(j)
.................
287
320,292
6.50%,
05/15/27
(d)
.................
1,782
1,977,664
4.75%,
10/15/27
(d)
.................
169
175,126
3.75%,
01/15/28
(d)
.................
662
664,926
Netflix,
Inc.:
4.88%,
04/15/28
..................
87
101,137
5.88%,
11/15/28
..................
1,004
1,232,340
6.38%,
05/15/29
..................
66
84,299
5.38%,
11/15/29
(d)
.................
314
381,383
4.88%,
06/15/30
(d)
.................
269
319,922
Playtika
Holding
Corp.,
4.25%,
03/15/29
(d)
...
1,343
1,342,073
WMG
Acquisition
Corp.,
3.88%,
07/15/30
(d)
..
191
192,891
7,965,523
Equity
Real
Estate
Investment
Trusts
(REITs)
—
3.0%
Brookfield
Property
REIT,
Inc.,
5.75%,
05/15/26
(d)
.....................
318
334,298
CTR
Partnership
LP,
3.88%,
06/30/28
(d)
....
338
345,139
Diversified
Healthcare
Trust,
9.75%,
06/15/25
356
394,270
Global
Net
Lease,
Inc.,
3.75%,
12/15/27
(d)
...
363
359,278
GLP
Capital
LP,
4.00%,
01/15/31
........
162
174,552
HAT
Holdings
I
LLC,
3.38%,
06/15/26
(d)
....
409
412,068
Iron
Mountain,
Inc.
(d)
:
5.25%,
07/15/30
..................
789
835,219
5.63%,
07/15/32
..................
446
477,363
MGM
Growth
Properties
Operating
Partnership
LP:
5.63%,
05/01/24
..................
79
85,553
4.63%,
06/15/25
(d)
.................
348
371,793
4.50%,
09/01/26
..................
907
968,222
5.75%,
02/01/27
..................
351
390,529
4.50%,
01/15/28
..................
827
874,553
3.88%,
02/15/29
(d)
.................
998
1,013,539
MPT
Operating
Partnership
LP:
5.00%,
10/15/27
..................
51
54,065
4.63%,
08/01/29
..................
913
977,330
3.50%,
03/15/31
..................
1,981
2,000,790
RHP
Hotel
Properties
LP:
4.75%,
10/15/27
..................
916
940,778
4.50%,
02/15/29
(d)
.................
1,224
1,225,003
RLJ
Lodging
Trust
LP,
3.75%,
07/01/26
(d)
...
283
285,830
SBA
Communications
Corp.,
3.88%,
02/15/27
1,406
1,443,828
Service
Properties
Trust:
4.50%,
06/15/23
..................
70
71,750
4.35%,
10/01/24
..................
68
68,476
7.50%,
09/15/25
..................
923
1,045,019
5.50%,
12/15/27
..................
209
223,051
Uniti
Group
LP
(d)
:
7.88%,
02/15/25
..................
188
201,395
Security
Par
(000)
Par
(000)
Value
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
4.75%,
04/15/28
..................
USD
689
$
687,277
6.50%,
02/15/29
..................
1,133
1,135,833
VICI
Properties
LP
(d)
:
3.50%,
02/15/25
..................
292
297,764
4.25%,
12/01/26
..................
1,040
1,081,829
3.75%,
02/15/27
..................
911
926,596
4.63%,
12/01/29
..................
985
1,046,563
4.13%,
08/15/30
..................
1,382
1,419,065
XHR
LP,
4.88%,
06/01/29
(d)
............
128
132,160
22,300,778
Food
&
Staples
Retailing
—
0.6%
(d)
Albertsons
Cos.,
Inc.:
3.25%,
03/15/26
..................
707
717,075
4.63%,
01/15/27
..................
793
829,438
5.88%,
02/15/28
..................
1,088
1,172,206
4.88%,
02/15/30
..................
287
306,088
Ingles
Markets,
Inc.,
4.00%,
06/15/31
.....
78
77,903
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
.
152
163,576
US
Foods,
Inc.:
6.25%,
04/15/25
..................
231
244,860
4.75%,
02/15/29
..................
592
603,840
4,114,986
Food
Products
—
2.2%
Chobani
LLC
(d)
:
7.50%,
04/15/25
..................
1,111
1,155,895
4.63%,
11/15/28
..................
415
430,044
JBS
USA
Food
Co.,
7.00%,
01/15/26
(d)
.....
200
212,000
JBS
USA
LUX
SA
(d)
:
6.75%,
02/15/28
..................
363
397,031
6.50%,
04/15/29
..................
604
678,751
3.75%,
12/01/31
..................
892
912,739
Kraft
Heinz
Foods
Co.:
4.25%,
03/01/31
..................
1,579
1,793,726
5.00%,
07/15/35
..................
189
231,831
6.88%,
01/26/39
..................
414
594,674
4.63%,
10/01/39
..................
129
150,242
6.50%,
02/09/40
..................
280
388,857
5.00%,
06/04/42
..................
125
152,637
5.20%,
07/15/45
..................
481
597,133
4.38%,
06/01/46
..................
718
813,637
4.88%,
10/01/49
..................
2,184
2,651,270
5.50%,
06/01/50
..................
2,662
3,454,618
Lamb
Weston
Holdings,
Inc.,
4.88%,
05/15/28
(d)
20
22,125
Post
Holdings,
Inc.
(d)
:
5.75%,
03/01/27
..................
6
6,277
5.63%,
01/15/28
..................
165
174,900
4.63%,
04/15/30
..................
54
54,909
4.50%,
09/15/31
..................
565
564,068
Simmons
Foods,
Inc.,
4.63%,
03/01/29
(d)
...
568
572,936
TreeHouse
Foods,
Inc.,
4.00%,
09/01/28
...
97
96,273
16,106,573
Gas
Utilities
—
0.1%
(d)
Suburban
Propane
Partners
LP,
5.00%,
06/01/31
......................
335
342,956
Superior
Plus
LP,
4.50%,
03/15/29
.......
96
98,882
441,838
Health
Care
Equipment
&
Supplies
—
0.7%
(d)
Avantor
Funding,
Inc.,
4.63%,
07/15/28
....
1,681
1,774,749
Hologic,
Inc.,
3.25%,
02/15/29
..........
192
190,320
Ortho-Clinical
Diagnostics,
Inc.:
7.38%,
06/01/25
..................
907
973,891
7.25%,
02/01/28
..................
2,003
2,187,777
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
10
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Health
Care
Equipment
&
Supplies
(continued)
Teleflex,
Inc.,
4.25%,
06/01/28
..........
USD
297
$
309,623
5,436,360
Health
Care
Providers
&
Services
—
5.2%
Acadia
Healthcare
Co.,
Inc.
(d)
:
5.50%,
07/01/28
..................
335
357,613
5.00%,
04/15/29
..................
273
284,717
AdaptHealth
LLC
(d)
:
6.13%,
08/01/28
..................
410
436,605
4.63%,
08/01/29
..................
184
186,300
AHP
Health
Partners,
Inc.
(d)
:
9.75%,
07/15/26
..................
639
687,436
5.75%,
07/15/29
..................
575
582,906
Akumin,
Inc.,
7.00%,
11/01/25
(d)
.........
202
209,714
Centene
Corp.:
4.25%,
12/15/27
..................
551
580,617
2.45%,
07/15/28
..................
1,622
1,643,897
4.63%,
12/15/29
..................
2,260
2,485,480
3.00%,
10/15/30
..................
1,439
1,478,256
2.50%,
03/01/31
..................
2,253
2,222,021
Community
Health
Systems,
Inc.
(d)
:
6.63%,
02/15/25
..................
2,601
2,750,531
8.00%,
03/15/26
..................
3,194
3,441,535
5.63%,
03/15/27
..................
877
936,198
6.00%,
01/15/29
..................
727
777,890
6.88%,
04/15/29
..................
354
370,450
6.13%,
04/01/30
..................
532
539,980
DaVita,
Inc.,
4.63%,
06/01/30
(d)
.........
254
261,168
Encompass
Health
Corp.:
4.50%,
02/01/28
..................
117
121,384
4.75%,
02/01/30
..................
807
857,438
4.63%,
04/01/31
..................
369
395,365
HCA,
Inc.:
5.38%,
02/01/25
..................
3
3,384
5.63%,
09/01/28
..................
1,228
1,455,180
5.88%,
02/01/29
..................
280
338,100
3.50%,
09/01/30
..................
1,481
1,577,813
Indigo
Merger
Sub,
Inc.,
2.88%,
07/15/26
(d)
..
817
829,917
Legacy
LifePoint
Health
LLC
(d)
:
6.75%,
04/15/25
..................
289
307,973
4.38%,
02/15/27
..................
127
128,524
LifePoint
Health,
Inc.,
5.38%,
01/15/29
(d)
....
829
808,275
MEDNAX,
Inc.,
6.25%,
01/15/27
(d)
........
231
244,571
ModivCare,
Inc.,
5.88%,
11/15/25
(d)
.......
313
334,910
Molina
Healthcare,
Inc.
(d)
:
4.38%,
06/15/28
..................
674
702,645
3.88%,
11/15/30
..................
495
515,419
Prime
Healthcare
Services,
Inc.,
7.25%,
11/01/25
(d)
.....................
790
855,238
RegionalCare
Hospital
Partners
Holdings,
Inc.,
9.75%,
12/01/26
(d)
................
173
186,191
RP
Escrow
Issuer
LLC,
5.25%,
12/15/25
(d)
...
268
279,725
Surgery
Center
Holdings,
Inc.
(d)
:
6.75%,
07/01/25
..................
1,130
1,152,600
10.00%,
04/15/27
.................
1,060
1,163,350
Tenet
Healthcare
Corp.
(d)
:
4.63%,
09/01/24
..................
406
416,702
7.50%,
04/01/25
..................
459
495,780
4.88%,
01/01/26
..................
1,419
1,471,787
6.25%,
02/01/27
..................
180
187,875
5.13%,
11/01/27
..................
1,636
1,715,755
4.63%,
06/15/28
..................
96
98,803
6.13%,
10/01/28
..................
900
959,076
4.25%,
06/01/29
..................
609
616,612
US
Acute
Care
Solutions
LLC,
6.38%,
03/01/26
(d)
.....................
69
71,298
Security
Par
(000)
Par
(000)
Value
Health
Care
Providers
&
Services
(continued)
Vizient,
Inc.,
6.25%,
05/15/27
(d)
.........
USD
277
$
292,927
38,817,931
Health
Care
Technology
—
0.1%
IQVIA,
Inc.
(d)
:
5.00%,
10/15/26
..................
298
308,430
5.00%,
05/15/27
..................
226
236,735
545,165
Hotels,
Restaurants
&
Leisure
—
5.8%
1011778
BC
ULC
(d)
:
5.75%,
04/15/25
..................
161
170,461
3.88%,
01/15/28
..................
564
571,050
4.38%,
01/15/28
..................
1,207
1,223,596
Affinity
Gaming,
6.88%,
12/15/27
(d)
.......
272
288,660
Aramark
International
Finance
SARL,
3.13%,
04/01/25
......................
EUR
506
606,649
Boyd
Gaming
Corp.:
8.63%,
06/01/25
(d)
.................
USD
514
566,618
4.75%,
12/01/27
..................
454
469,890
4.75%,
06/15/31
(d)
.................
771
799,913
Boyne
USA,
Inc.,
4.75%,
05/15/29
(d)
......
466
480,786
Caesars
Entertainment,
Inc.
(d)
:
6.25%,
07/01/25
..................
2,673
2,833,380
8.13%,
07/01/27
..................
2,635
2,930,647
Caesars
Resort
Collection
LLC,
5.75%,
07/01/25
(d)
.....................
1,552
1,635,420
Carnival
Corp.
(d)
:
11.50%,
04/01/23
.................
684
769,774
10.50%,
02/01/26
.................
1,012
1,178,221
5.75%,
03/01/27
..................
3,051
3,195,923
9.88%,
08/01/27
..................
457
533,547
Carrols
Restaurant
Group,
Inc.,
5.88%,
07/01/29
(d)
.....................
209
206,126
CCM
Merger,
Inc.,
6.38%,
05/01/26
(d)
......
291
305,550
Cedar
Fair
LP
(d)
:
5.50%,
05/01/25
..................
1,733
1,808,819
6.50%,
10/01/28
..................
87
93,742
Churchill
Downs,
Inc.
(d)
:
5.50%,
04/01/27
..................
521
542,912
4.75%,
01/15/28
..................
416
430,439
Everi
Holdings,
Inc.,
5.00%,
07/15/29
(d)
.....
108
108,000
Full
House
Resorts,
Inc.,
8.25%,
02/15/28
(d)
..
124
135,160
Genting
New
York
LLC,
3.30%,
02/15/26
(d)
..
200
201,892
Golden
Nugget,
Inc.,
6.75%,
10/15/24
(d)
....
1,489
1,504,218
Hilton
Domestic
Operating
Co.,
Inc.:
5.75%,
05/01/28
(d)
.................
321
347,344
4.88%,
01/15/30
..................
957
1,021,598
4.00%,
05/01/31
(d)
.................
610
615,411
Hilton
Grand
Vacations
Borrower
Escrow
LLC,
4.88%,
07/01/31
(d)
................
99
98,741
IRB
Holding
Corp.,
7.00%,
06/15/25
(d)
.....
232
250,565
Life
Time,
Inc.
(d)
:
5.75%,
01/15/26
..................
814
843,507
8.00%,
04/15/26
..................
435
463,597
MajorDrive
Holdings
IV
LLC,
6.38%,
06/01/29
(d)
209
208,477
Marriott
Ownership
Resorts,
Inc.:
6.50%,
09/15/26
..................
66
68,557
4.50%,
06/15/29
(d)
.................
316
320,345
Merlin
Entertainments
Ltd.,
5.75%,
06/15/26
(d)
200
209,262
MGM
Resorts
International:
6.00%,
03/15/23
..................
308
329,467
5.75%,
06/15/25
..................
41
45,213
Midwest
Gaming
Borrower
LLC,
4.88%,
05/01/29
(d)
.....................
510
510,637
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
11
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
NCL
Corp.
Ltd.
(d)
:
10.25%,
02/01/26
.................
USD
191
$
222,038
5.88%,
03/15/26
..................
475
497,562
NCL
Finance
Ltd.,
6.13%,
03/15/28
(d)
......
681
713,654
Peninsula
Pacific
Entertainment
LLC,
8.50%,
11/15/27
(d)
.....................
463
497,262
Penn
National
Gaming,
Inc.,
4.13%,
07/01/29
(d)
268
267,665
Powdr
Corp.,
6.00%,
08/01/25
(d)
.........
382
401,100
Raptor
Acquisition
Corp.,
4.88%,
11/01/26
(d)
..
371
376,187
Royal
Caribbean
Cruises
Ltd.
(d)
:
10.88%,
06/01/23
.................
175
199,281
9.13%,
06/15/23
..................
275
301,812
11.50%,
06/01/25
.................
360
414,900
5.50%,
04/01/28
..................
1,252
1,311,220
Scientific
Games
International,
Inc.:
8.63%,
07/01/25
(d)
.................
332
363,540
5.00%,
10/15/25
(d)
.................
395
407,838
3.38%,
02/15/26
..................
EUR
500
594,416
8.25%,
03/15/26
(d)
.................
USD
679
728,214
7.00%,
05/15/28
(d)
.................
256
279,603
7.25%,
11/15/29
(d)
.................
193
217,704
SeaWorld
Parks
&
Entertainment,
Inc.,
9.50%,
08/01/25
(d)
.....................
248
265,980
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(d)
1,506
1,623,016
Station
Casinos
LLC,
4.50%,
02/15/28
(d)
....
392
398,682
Travel
+
Leisure
Co.,
6.63%,
07/31/26
(d)
....
258
292,314
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(d)
......
249
266,525
Viking
Cruises
Ltd.,
7.00%,
02/15/29
(d)
.....
87
90,517
Viking
Ocean
Cruises
Ship
VII
Ltd.,
5.63%,
02/15/29
(d)
.....................
379
382,790
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(d)
.....................
227
235,674
Wynn
Las
Vegas
LLC,
5.25%,
05/15/27
(d)
...
483
518,790
Wynn
Resorts
Finance
LLC
(d)
:
7.75%,
04/15/25
..................
320
344,800
5.13%,
10/01/29
..................
1,691
1,786,119
Yum!
Brands,
Inc.:
7.75%,
04/01/25
(d)
.................
420
456,750
4.75%,
01/15/30
(d)
.................
10
10,825
5.35%,
11/01/43
..................
10
10,625
43,401,517
Household
Durables
—
0.9%
Ashton
Woods
USA
LLC,
6.63%,
01/15/28
(d)
.
116
123,540
Brookfield
Residential
Properties,
Inc.
(d)
:
5.00%,
06/15/29
..................
418
421,135
4.88%,
02/15/30
..................
345
341,654
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(d)
615
659,206
Installed
Building
Products,
Inc.,
5.75%,
02/01/28
(d)
.....................
205
215,762
K.
Hovnanian
Enterprises,
Inc.,
7.75%,
02/15/26
(d)
.....................
521
552,260
KB
Home,
4.00%,
06/15/31
............
198
199,733
LGI
Homes,
Inc.,
4.00%,
07/15/29
(d)
.......
163
163,815
Mattamy
Group
Corp.
(d)
:
5.25%,
12/15/27
..................
246
257,070
4.63%,
03/01/30
..................
299
305,428
Meritage
Homes
Corp.,
5.13%,
06/06/27
....
240
268,200
New
Home
Co.,
Inc.
(The),
7.25%,
10/15/25
(d)
118
125,045
Newell
Brands,
Inc.,
6.00%,
04/01/46
(i)
.....
78
98,842
Picasso
Finance
Sub,
Inc.,
6.13%,
06/15/25
(d)
421
445,102
Taylor
Morrison
Communities,
Inc.
(d)
:
5.88%,
06/15/27
..................
161
182,131
5.13%,
08/01/30
..................
49
53,110
Tempur
Sealy
International,
Inc.,
4.00%,
04/15/29
(d)
.....................
536
542,673
Security
Par
(000)
Par
(000)
Value
Household
Durables
(continued)
Toll
Brothers
Finance
Corp.,
4.35%,
02/15/28
.
USD
22
$
24,145
TRI
Pointe
Group,
Inc.,
5.88%,
06/15/24
....
123
136,850
TRI
Pointe
Homes,
Inc.:
5.25%,
06/01/27
..................
385
417,725
5.70%,
06/15/28
..................
91
100,327
WASH
Multifamily
Acquisition,
Inc.,
5.75%,
04/15/26
(d)
.....................
420
438,522
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
(d)
.....................
538
555,593
6,627,868
Household
Products
—
0.3%
Central
Garden
&
Pet
Co.:
4.13%,
10/15/30
..................
424
433,010
4.13%,
04/30/31
(d)
.................
386
390,343
Energizer
Holdings,
Inc.
(d)
:
4.75%,
06/15/28
..................
43
44,064
4.38%,
03/31/29
..................
31
31,032
Kronos
Acquisition
Holdings,
Inc.,
5.00%,
12/31/26
(d)
.....................
352
357,280
Spectrum
Brands,
Inc.
(d)
:
5.00%,
10/01/29
..................
346
366,760
5.50%,
07/15/30
..................
244
262,910
3.88%,
03/15/31
..................
196
192,595
2,077,994
Independent
Power
and
Renewable
Electricity
Producers
—
0.4%
(d)
Calpine
Corp.:
5.25%,
06/01/26
..................
166
170,773
4.50%,
02/15/28
..................
34
34,680
5.13%,
03/15/28
..................
1,434
1,459,095
4.63%,
02/01/29
..................
421
413,902
5.00%,
02/01/31
..................
420
417,900
3.75%,
03/01/31
..................
4
3,809
Clearway
Energy
Operating
LLC,
4.75%,
03/15/28
......................
308
323,015
2,823,174
Insurance
—
1.8%
(d)
Alliant
Holdings
Intermediate
LLC:
4.25%,
10/15/27
..................
2,251
2,284,742
6.75%,
10/15/27
..................
3,884
4,081,929
AmWINS
Group,
Inc.,
7.75%,
07/01/26
.....
191
202,584
Ardonagh
Midco
2
plc,
11.50%,
(11.50%
Cash
or
12.70%
PIK),
01/15/27
(h)
..........
213
220,450
AssuredPartners,
Inc.,
5.63%,
01/15/29
....
458
458,000
BroadStreet
Partners,
Inc.,
5.88%,
04/15/29
.
377
384,540
GTCR
AP
Finance,
Inc.,
8.00%,
05/15/27
...
584
621,960
Highlands
Holdings
Bond
Issuer
Ltd.,
7.63%,
10/15/25
......................
327
345,914
HUB
International
Ltd.,
7.00%,
05/01/26
....
1,375
1,425,999
NFP
Corp.:
4.88%,
08/15/28
..................
552
560,909
6.88%,
08/15/28
..................
2,312
2,433,866
13,020,893
Interactive
Media
&
Services
—
0.2%
(d)
Rackspace
Technology
Global,
Inc.,
5.38%,
12/01/28
......................
1,084
1,111,100
Twitter,
Inc.,
3.88%,
12/15/27
...........
563
598,188
1,709,288
Internet
&
Direct
Marketing
Retail
—
0.2%
(d)
ANGI
Group
LLC,
3.88%,
08/15/28
.......
411
408,431
Go
Daddy
Operating
Co.
LLC:
5.25%,
12/01/27
..................
82
86,100
3.50%,
03/01/29
..................
252
250,362
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
12
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Internet
&
Direct
Marketing
Retail
(continued)
Match
Group
Holdings
II
LLC:
4.63%,
06/01/28
..................
USD
82
$
85,269
5.63%,
02/15/29
..................
164
177,120
4.13%,
08/01/30
..................
393
399,878
1,407,160
IT
Services
—
1.9%
Acuris
Finance
US,
Inc.,
5.00%,
05/01/28
(d)
..
810
807,457
Ahead
DB
Holdings
LLC,
6.63%,
05/01/28
(d)
.
285
294,844
Arches
Buyer,
Inc.
(d)
:
4.25%,
06/01/28
..................
188
185,885
6.13%,
12/01/28
..................
82
84,460
Austin
BidCo,
Inc.,
7.13%,
12/15/28
(d)
......
124
127,062
Banff
Merger
Sub,
Inc.,
9.75%,
09/01/26
(d)
...
2,509
2,640,723
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(d)
602
598,966
Booz
Allen
Hamilton,
Inc.
(d)
:
3.88%,
09/01/28
..................
882
899,640
4.00%,
07/01/29
..................
779
796,527
Cablevision
Lightpath
LLC
(d)
:
3.88%,
09/15/27
..................
276
272,782
5.63%,
09/15/28
..................
855
870,817
Endure
Digital,
Inc.,
6.00%,
02/15/29
(d)
.....
356
352,440
Gartner,
Inc.
(d)
:
4.50%,
07/01/28
..................
456
481,591
3.63%,
06/15/29
..................
427
433,405
3.75%,
10/01/30
..................
611
625,120
ION
Trading
Technologies
SARL,
5.75%,
05/15/28
(d)
.....................
385
399,720
Northwest
Fiber
LLC
(d)
:
6.00%,
02/15/28
..................
489
490,071
10.75%,
06/01/28
.................
149
167,625
Square,
Inc.,
3.50%,
06/01/31
(d)
.........
1,355
1,366,856
Tempo
Acquisition
LLC
(d)
:
5.75%,
06/01/25
..................
314
330,485
6.75%,
06/01/25
..................
1,325
1,347,366
Twilio,
Inc.,
3.88%,
03/15/31
...........
405
415,631
Unisys
Corp.,
6.88%,
11/01/27
(d)
.........
181
197,804
14,187,277
Leisure
Products
—
0.2%
Mattel,
Inc.:
6.75%,
12/31/25
(d)
.................
184
193,329
5.88%,
12/15/27
(d)
.................
433
471,970
3.75%,
04/01/29
(d)
.................
202
210,080
6.20%,
10/01/40
..................
233
287,172
5.45%,
11/01/41
..................
259
298,498
1,461,049
Life
Sciences
Tools
&
Services
—
0.2%
(d)
Charles
River
Laboratories
International,
Inc.:
4.25%,
05/01/28
..................
336
347,340
3.75%,
03/15/29
..................
66
66,907
4.00%,
03/15/31
..................
196
203,905
Syneos
Health,
Inc.,
3.63%,
01/15/29
.....
792
784,080
1,402,232
Machinery
—
1.3%
Amsted
Industries,
Inc.,
5.63%,
07/01/27
(d)
..
230
242,363
ATS
Automation
Tooling
Systems,
Inc.,
4.13%,
12/15/28
(d)
.....................
188
192,465
Clark
Equipment
Co.,
5.88%,
06/01/25
(d)
....
419
442,307
Colfax
Corp.,
6.38%,
02/15/26
(d)
.........
238
251,328
EnPro
Industries,
Inc.,
5.75%,
10/15/26
....
568
599,013
GrafTech
Finance,
Inc.,
4.63%,
12/15/28
(d)
...
241
247,326
Grinding
Media,
Inc.,
7.38%,
12/15/23
(d)
....
608
621,704
Husky
III
Holding
Ltd.,
13.00%,
(13.00%
Cash
or
13.75%
PIK),
02/15/25
(d)(h)
.........
478
518,630
Security
Par
(000)
Par
(000)
Value
Machinery
(continued)
Meritor,
Inc.,
4.50%,
12/15/28
(d)
.........
USD
122
$
123,677
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
(d)
210
215,800
Navistar
International
Corp.,
6.63%,
11/01/25
(d)
316
326,469
RBS
Global,
Inc.,
4.88%,
12/15/25
(d)
......
152
155,040
Stevens
Holding
Co.,
Inc.,
6.13%,
10/01/26
(d)
.
457
490,133
Terex
Corp.,
5.00%,
05/15/29
(d)
.........
590
615,075
Titan
Acquisition
Ltd.,
7.75%,
04/15/26
(d)
....
906
938,843
Titan
International,
Inc.,
7.00%,
04/30/28
(d)
..
223
233,314
TK
Elevator
US
Newco,
Inc.,
5.25%,
07/15/27
(d)
1,848
1,947,330
Vertical
Holdco
GmbH,
7.63%,
07/15/28
(d)
...
918
996,204
Wabash
National
Corp.,
5.50%,
10/01/25
(d)
..
674
687,480
9,844,501
Marine
—
0.0%
Danaos
Corp.,
8.50%,
03/01/28
(d)
........
205
224,797
Media
—
6.3%
Advantage
Sales
&
Marketing,
Inc.,
6.50%,
11/15/28
(d)
.....................
251
264,177
Altice
Financing
SA
(d)
:
7.50%,
05/15/26
..................
1,592
1,657,750
5.00%,
01/15/28
..................
1,238
1,213,450
AMC
Networks,
Inc.:
5.00%,
04/01/24
..................
27
27,343
4.75%,
08/01/25
..................
71
72,896
4.25%,
02/15/29
..................
242
244,118
Block
Communications,
Inc.,
4.88%,
03/01/28
(d)
231
235,620
Cable
One,
Inc.
(d)
:
1.13%,
03/15/28
(j)
.................
419
426,130
4.00%,
11/15/30
..................
232
232,870
Clear
Channel
International
BV,
6.63%,
08/01/25
(d)
.....................
1,185
1,245,234
Clear
Channel
Outdoor
Holdings,
Inc.
(d)
:
7.75%,
04/15/28
..................
960
1,005,619
7.50%,
06/01/29
..................
1,418
1,468,107
Clear
Channel
Worldwide
Holdings,
Inc.,
5.13%,
08/15/27
(d)
................
3,083
3,160,753
CSC
Holdings
LLC
(d)
:
6.50%,
02/01/29
..................
236
261,394
5.75%,
01/15/30
..................
895
929,681
4.13%,
12/01/30
..................
1,030
1,023,562
4.63%,
12/01/30
..................
2,765
2,712,769
4.50%,
11/15/31
..................
933
938,729
5.00%,
11/15/31
..................
522
524,506
Diamond
Sports
Group
LLC,
5.38%,
08/15/26
(d)
569
368,427
DISH
DBS
Corp.:
5.88%,
07/15/22
..................
131
136,659
5.00%,
03/15/23
..................
1,343
1,405,624
5.88%,
11/15/24
..................
856
919,130
7.75%,
07/01/26
..................
1,152
1,304,640
5.13%,
06/01/29
(d)
.................
1,969
1,944,250
DISH
Network
Corp.
(j)
:
2.38%,
03/15/24
..................
496
480,810
3.38%,
08/15/26
..................
705
719,452
GCI
LLC,
4.75%,
10/15/28
(d)
...........
145
148,407
iHeartCommunications,
Inc.,
8.38%,
05/01/27
69
73,916
LCPR
Senior
Secured
Financing
DAC
(d)
:
6.75%,
10/15/27
..................
896
965,619
5.13%,
07/15/29
..................
1,390
1,436,913
Liberty
Broadband
Corp.
(d)(j)
:
1.25%,
09/30/50
..................
876
881,694
2.75%,
09/30/50
..................
1,472
1,545,481
Meredith
Corp.,
6.88%,
02/01/26
........
248
257,920
Midcontinent
Communications,
5.38%,
08/15/27
(d)
.....................
307
322,350
News
Corp.,
3.88%,
05/15/29
(d)
.........
243
245,430
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
13
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Media
(continued)
Outfront
Media
Capital
LLC
(d)
:
5.00%,
08/15/27
..................
USD
577
$
597,420
4.25%,
01/15/29
..................
235
236,469
Radiate
Holdco
LLC
(d)
:
4.50%,
09/15/26
..................
1,730
1,790,550
6.50%,
09/15/28
..................
2,953
3,102,569
Scripps
Escrow
II,
Inc.
(d)
:
3.88%,
01/15/29
..................
29
28,769
5.38%,
01/15/31
..................
295
294,068
Sinclair
Television
Group,
Inc.,
4.13%,
12/01/30
(d)
.....................
603
592,447
Sirius
XM
Radio,
Inc.
(d)
:
4.00%,
07/15/28
..................
1,137
1,171,110
5.50%,
07/01/29
..................
6
6,538
4.13%,
07/01/30
..................
804
811,140
TEGNA,
Inc.:
5.50%,
09/15/24
(d)
.................
33
33,578
4.63%,
03/15/28
..................
54
56,025
Telenet
Finance
Luxembourg
Notes
SARL,
5.50%,
03/01/28
(d)
................
400
420,800
Terrier
Media
Buyer,
Inc.,
8.88%,
12/15/27
(d)
.
1,294
1,399,137
Univision
Communications,
Inc.
(d)
:
5.13%,
02/15/25
..................
150
153,030
6.63%,
06/01/27
..................
601
651,214
UPC
Broadband
Finco
BV,
4.88%,
07/15/31
(d)
.
882
884,029
Videotron
Ltd.,
3.63%,
06/15/29
(d)
........
752
766,822
Virgin
Media
Vendor
Financing
Notes
IV
DAC,
5.00%,
07/15/28
(d)
................
1,164
1,187,280
Ziggo
Bond
Co.
BV
(d)
:
6.00%,
01/15/27
..................
296
309,320
5.13%,
02/28/30
..................
369
377,668
Ziggo
BV
(d)
:
5.50%,
01/15/27
..................
361
375,079
4.88%,
01/15/30
..................
765
784,125
46,830,617
Metals
&
Mining
—
2.0%
Allegheny
Technologies,
Inc.,
7.88%,
08/15/23
(i)
114
124,973
Arconic
Corp.
(d)
:
6.00%,
05/15/25
..................
371
395,401
6.13%,
02/15/28
..................
578
620,032
Big
River
Steel
LLC,
6.63%,
01/31/29
(d)
....
2,702
2,975,578
Constellium
SE
(d)
:
5.88%,
02/15/26
..................
660
679,602
5.63%,
06/15/28
..................
663
711,067
3.75%,
04/15/29
..................
1,255
1,242,450
Freeport-McMoRan,
Inc.:
4.38%,
08/01/28
..................
252
266,175
5.40%,
11/14/34
..................
66
79,715
5.45%,
03/15/43
..................
2,105
2,572,984
Joseph
T
Ryerson
&
Son,
Inc.,
8.50%,
08/01/28
(d)
.....................
273
303,030
Kaiser
Aluminum
Corp.
(d)
:
4.63%,
03/01/28
..................
447
461,808
4.50%,
06/01/31
..................
258
264,589
New
Gold,
Inc.
(d)
:
6.38%,
05/15/25
..................
77
79,502
7.50%,
07/15/27
..................
1,093
1,185,905
Novelis
Corp.
(d)
:
5.88%,
09/30/26
..................
263
273,587
4.75%,
01/30/30
..................
1,545
1,622,250
TMS
International
Corp.,
6.25%,
04/15/29
(d)
..
210
220,500
United
States
Steel
Corp.:
6.25%,
03/15/26
..................
28
28,862
6.88%,
03/01/29
..................
537
574,590
Security
Par
(000)
Par
(000)
Value
Metals
&
Mining
(continued)
Vedanta
Resources
Finance
II
plc,
8.95%,
03/11/25
(d)
.....................
USD
440
$
431,200
15,113,800
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.1%
Apollo
Commercial
Real
Estate
Finance,
Inc.,
4.63%,
06/15/29
(d)
................
363
357,954
Starwood
Property
Trust,
Inc.:
5.00%,
12/15/21
..................
255
256,275
5.50%,
11/01/23
(d)
.................
50
52,375
666,604
Multiline
Retail
—
0.2%
(d)
Macy's,
Inc.,
8.38%,
06/15/25
..........
804
885,365
NMG
Holding
Co.,
Inc.,
7.13%,
04/01/26
....
782
834,785
1,720,150
Oil,
Gas
&
Consumable
Fuels
—
9.8%
Aethon
United
BR
LP,
8.25%,
02/15/26
(d)
....
892
965,768
Antero
Midstream
Partners
LP
(d)
:
7.88%,
05/15/26
..................
730
815,855
5.75%,
03/01/27
..................
157
163,280
5.38%,
06/15/29
..................
422
439,935
Antero
Resources
Corp.
(d)
:
7.63%,
02/01/29
..................
479
531,690
5.38%,
03/01/30
..................
369
376,612
Apache
Corp.:
4.88%,
11/15/27
..................
329
356,304
4.38%,
10/15/28
..................
141
150,094
4.25%,
01/15/30
..................
487
513,785
5.10%,
09/01/40
..................
647
677,733
5.25%,
02/01/42
..................
143
151,223
4.75%,
04/15/43
..................
477
495,937
4.25%,
01/15/44
..................
60
58,627
5.35%,
07/01/49
..................
123
129,457
Ascent
Resources
Utica
Holdings
LLC
(d)
:
9.00%,
11/01/27
..................
708
978,555
5.88%,
06/30/29
..................
797
797,000
Baytex
Energy
Corp.,
8.75%,
04/01/27
(d)
....
142
143,065
Buckeye
Partners
LP:
4.13%,
03/01/25
(d)
.................
28
29,015
5.85%,
11/15/43
..................
237
235,223
5.60%,
10/15/44
..................
308
298,760
Callon
Petroleum
Co.:
6.25%,
04/15/23
..................
77
77,089
6.13%,
10/01/24
..................
226
222,789
9.00%,
04/01/25
(d)
.................
1,384
1,508,560
8.00%,
08/01/28
(d)
.................
1,182
1,195,297
Centennial
Resource
Production
LLC:
6.88%,
04/01/27
(d)
.................
322
329,280
3.25%,
04/01/28
(j)
.................
160
210,496
Cheniere
Energy
Partners
LP:
4.50%,
10/01/29
..................
740
795,500
4.00%,
03/01/31
(d)
.................
1,548
1,617,660
Cheniere
Energy,
Inc.,
4.63%,
10/15/28
(d)
...
3,634
3,833,870
Chesapeake
Energy
Corp.
(d)
:
5.50%,
02/01/26
..................
40
42,200
5.88%,
02/01/29
..................
130
140,719
CITGO
Petroleum
Corp.
(d)
:
7.00%,
06/15/25
..................
453
472,058
6.38%,
06/15/26
..................
463
482,677
CNX
Resources
Corp.,
6.00%,
01/15/29
(d)
...
344
371,940
Colgate
Energy
Partners
III
LLC
(d)
:
7.75%,
02/15/26
..................
239
262,004
5.88%,
07/01/29
..................
623
646,362
Comstock
Resources,
Inc.
(d)
:
7.50%,
05/15/25
..................
205
212,688
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
14
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
6.75%,
03/01/29
..................
USD
1,022
$
1,088,665
5.88%,
01/15/30
..................
558
569,160
Continental
Resources,
Inc.:
4.50%,
04/15/23
..................
46
47,867
5.75%,
01/15/31
(d)
.................
273
326,918
4.90%,
06/01/44
..................
189
214,043
CQP
Holdco
LP,
5.50%,
06/15/31
(d)
.......
752
783,576
Crestwood
Midstream
Partners
LP,
5.63%,
05/01/27
(d)
.....................
122
125,203
CrownRock
LP,
5.63%,
10/15/25
(d)
.......
1,511
1,563,885
DCP
Midstream
Operating
LP
(d)
:
6.45%,
11/03/36
..................
269
314,730
6.75%,
09/15/37
..................
706
848,965
DT
Midstream,
Inc.
(d)
:
4.13%,
06/15/29
..................
888
901,613
4.38%,
06/15/31
..................
1,235
1,261,911
Endeavor
Energy
Resources
LP
(d)
:
5.50%,
01/30/26
..................
1,112
1,155,090
5.75%,
01/30/28
..................
52
55,445
Energy
Transfer
LP,
Series
H,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.69%),
6.50%
(f)(g)
............
1,342
1,368,169
EnLink
Midstream
LLC:
5.63%,
01/15/28
(d)
.................
305
322,199
5.38%,
06/01/29
..................
121
126,278
EnLink
Midstream
Partners
LP:
4.40%,
04/01/24
..................
293
307,650
4.15%,
06/01/25
..................
27
28,278
4.85%,
07/15/26
..................
28
28,980
5.60%,
04/01/44
..................
309
279,645
5.05%,
04/01/45
..................
45
38,700
EQM
Midstream
Partners
LP:
6.00%,
07/01/25
(d)
.................
418
454,575
4.13%,
12/01/26
..................
53
54,258
6.50%,
07/01/27
(d)
.................
753
839,595
4.50%,
01/15/29
(d)
.................
415
422,212
4.75%,
01/15/31
(d)
.................
854
879,996
EQT
Corp.:
3.13%,
05/15/26
(d)
.................
356
364,797
3.90%,
10/01/27
..................
542
580,617
5.00%,
01/15/29
..................
67
74,703
8.50%,
02/01/30
(
i
)
.................
367
478,168
3.63%,
05/15/31
(d)
.................
100
104,250
Genesis
Energy
LP:
5.63%,
06/15/24
..................
139
139,348
6.50%,
10/01/25
..................
63
63,630
8.00%,
01/15/27
..................
368
386,630
7.75%,
02/01/28
..................
167
172,584
Great
Western
Petroleum
LLC,
12.00%,
09/01/25
(d)
.....................
246
244,770
Harvest
Midstream
I
LP,
7.50%,
09/01/28
(d)
..
223
242,178
Hess
Midstream
Operations
LP,
5.13%,
06/15/28
(d)
.....................
78
81,803
Hilcorp
Energy
I
LP
(d)
:
5.75%,
02/01/29
..................
105
109,463
6.00%,
02/01/31
..................
148
156,880
Independence
Energy
Finance
LLC,
7.25%,
05/01/26
(d)
.....................
843
885,293
Indigo
Natural
Resources
LLC,
5.38%,
02/01/29
(d)
.....................
930
971,850
ITT
Holdings
LLC,
6.50%,
08/01/29
(d)
......
719
732,481
Matador
Resources
Co.,
5.88%,
09/15/26
...
1,472
1,516,160
MEG
Energy
Corp.
(d)
:
7.13%,
02/01/27
..................
76
80,965
5.88%,
02/01/29
..................
170
177,225
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Murphy
Oil
Corp.:
5.75%,
08/15/25
..................
USD
198
$
203,198
6.37%,
12/01/42
(
i
)
.................
46
45,557
New
Fortress
Energy,
Inc.
(d)
:
6.75%,
09/15/25
..................
2,884
2,952,495
6.50%,
09/30/26
..................
2,507
2,561,653
NGL
Energy
Operating
LLC,
7.50%,
02/01/26
(d)
712
747,600
NGPL
PipeCo
LLC,
7.77%,
12/15/37
(d)
.....
307
439,164
Northern
Oil
and
Gas,
Inc.,
8.13%,
03/01/28
(d)
954
1,027,935
NuStar
Logistics
LP:
5.75%,
10/01/25
..................
232
252,300
6.00%,
06/01/26
..................
311
337,435
6.38%,
10/01/30
..................
35
38,672
Occidental
Petroleum
Corp.:
2.70%,
02/15/23
..................
100
102,220
6.95%,
07/01/24
..................
121
136,304
2.90%,
08/15/24
..................
842
860,945
5.50%,
12/01/25
..................
163
180,118
5.55%,
03/15/26
..................
59
65,195
3.40%,
04/15/26
..................
132
134,970
3.20%,
08/15/26
..................
31
31,232
3.00%,
02/15/27
..................
9
8,933
8.88%,
07/15/30
..................
66
88,268
6.13%,
01/01/31
..................
415
488,260
4.30%,
08/15/39
..................
852
813,660
6.20%,
03/15/40
..................
1,472
1,664,420
4.50%,
07/15/44
..................
347
333,987
4.63%,
06/15/45
..................
1,663
1,621,425
6.60%,
03/15/46
..................
46
54,680
4.40%,
04/15/46
..................
332
318,886
4.10%,
02/15/47
..................
132
122,908
4.20%,
03/15/48
..................
520
486,200
4.40%,
08/15/49
..................
205
196,800
Ovintiv
Exploration,
Inc.,
5.38%,
01/01/26
...
65
73,251
Ovintiv
,
Inc.:
7.38%,
11/01/31
..................
150
199,156
6.50%,
08/15/34
..................
96
126,731
Parkland
Corp.
(d)
:
5.88%,
07/15/27
..................
418
445,534
4.50%,
10/01/29
..................
189
192,060
PBF
Holding
Co.
LLC,
9.25%,
05/15/25
(d)
...
1,756
1,768,977
PDC
Energy,
Inc.:
1.13%,
09/15/21
(j)
.................
365
361,815
6.13%,
09/15/24
..................
118
120,679
6.25%,
12/01/25
..................
10
10,350
Range
Resources
Corp.:
4.88%,
05/15/25
..................
163
168,705
9.25%,
02/01/26
..................
54
59,535
8.25%,
01/15/29
(d)
.................
264
297,660
SM
Energy
Co.:
10.00%,
01/15/25
(d)
................
1,538
1,735,387
5.63%,
06/01/25
..................
52
51,480
6.75%,
09/15/26
..................
86
87,505
6.63%,
01/15/27
..................
131
134,602
6.50%,
07/15/28
..................
405
416,138
Southwestern
Energy
Co.:
7.50%,
04/01/26
..................
35
37,056
8.38%,
09/15/28
..................
112
126,560
Sunoco
LP:
6.00%,
04/15/27
..................
42
43,922
5.88%,
03/15/28
..................
185
196,562
Tallgrass
Energy
Partners
LP
(d)
:
7.50%,
10/01/25
..................
226
247,470
6.00%,
12/31/30
..................
266
276,539
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Targa
Resources
Partners
LP:
5.88%,
04/15/26
..................
USD
337
$
353,954
5.38%,
02/01/27
..................
32
33,320
6.50%,
07/15/27
..................
280
303,442
6.88%,
01/15/29
..................
12
13,520
5.50%,
03/01/30
..................
728
800,552
4.88%,
02/01/31
(d)
.................
123
133,148
4.00%,
01/15/32
(d)
.................
139
142,982
TerraForm
Power
Operating
LLC
(d)
:
4.25%,
01/31/23
..................
16
16,420
5.00%,
01/31/28
..................
14
14,823
4.75%,
01/15/30
..................
254
260,139
Vine
Energy
Holdings
LLC,
6.75%,
04/15/29
(d)
1,108
1,166,170
Viper
Energy
Partners
LP,
5.38%,
11/01/27
(d)
.
187
194,800
Western
Midstream
Operating
LP:
4.75%,
08/15/28
..................
59
63,720
5.45%,
04/01/44
..................
660
711,150
5.30%,
03/01/48
..................
446
474,990
5.50%,
08/15/48
..................
147
159,993
6.50%,
02/01/50
(
i
)
.................
1,808
2,093,366
73,130,091
Personal
Products
—
0.1%
(d)
Coty,
Inc.,
5.00%,
04/15/26
............
241
244,369
Edgewell
Personal
Care
Co.,
5.50%,
06/01/28
150
159,000
Prestige
Brands,
Inc.,
3.75%,
04/01/31
.....
297
286,345
689,714
Pharmaceuticals
—
2.3%
Bausch
Health
Americas,
Inc.
(d)
:
9.25%,
04/01/26
..................
100
108,770
8.50%,
01/31/27
..................
868
943,429
Bausch
Health
Cos.,
Inc.
(d)
:
9.00%,
12/15/25
..................
332
356,004
5.75%,
08/15/27
..................
369
391,649
7.00%,
01/15/28
..................
438
451,140
5.00%,
01/30/28
..................
363
344,396
4.88%,
06/01/28
..................
1,466
1,500,451
5.00%,
02/15/29
..................
893
832,723
6.25%,
02/15/29
..................
714
706,182
7.25%,
05/30/29
..................
775
791,980
5.25%,
01/30/30
..................
78
72,540
5.25%,
02/15/31
..................
114
106,413
Catalent
Pharma
Solutions,
Inc.
(d)
:
5.00%,
07/15/27
..................
5
5,225
3.13%,
02/15/29
..................
356
344,743
Cheplapharm
Arzneimittel
GmbH,
5.50%,
01/15/28
(d)
.....................
480
492,000
Elanco
Animal
Health,
Inc.,
5.90%,
08/28/28
(i)
.
14
16,384
Endo
DAC,
9.50%,
07/31/27
(d)
..........
827
843,540
Endo
Luxembourg
Finance
Co.
I
SARL,
6.13%,
04/01/29
(d)
.....................
949
930,020
Jazz
Securities
DAC,
4.38%,
01/15/29
(d)
....
1,165
1,207,872
Organon
&
Co.
(d)
:
4.13%,
04/30/28
..................
1,922
1,960,055
5.13%,
04/30/31
..................
1,528
1,574,146
P&L
Development
LLC,
7.75%,
11/15/25
(d)
...
439
460,950
Par
Pharmaceutical,
Inc.,
7.50%,
04/01/27
(d)
.
2,536
2,592,629
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
7.13%,
01/31/25
..............
287
314,982
17,348,223
Professional
Services
—
0.6%
(d)
AMN
Healthcare,
Inc.,
4.00%,
04/15/29
....
153
154,081
ASGN,
Inc.,
4.63%,
05/15/28
...........
132
138,266
CoreLogic,
Inc.,
4.50%,
05/01/28
........
985
976,381
Security
Par
(000)
Par
(000)
Value
Professional
Services
(continued)
Dun
&
Bradstreet
Corp.
(The):
6.88%,
08/15/26
..................
USD
354
$
375,240
10.25%,
02/15/27
.................
597
659,226
Jaguar
Holding
Co.
II:
4.63%,
06/15/25
..................
113
118,650
5.00%,
06/15/28
..................
1,065
1,154,375
KBR,
Inc.,
4.75%,
09/30/28
............
305
305,000
Science
Applications
International
Corp.,
4.88%,
04/01/28
.................
279
292,601
4,173,820
Real
Estate
Management
&
Development
—
0.5%
(d)
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
.................
549
592,074
Five
Point
Operating
Co.
LP,
7.88%,
11/15/25
274
289,399
Forestar
Group,
Inc.,
3.85%,
05/15/26
.....
204
205,846
Howard
Hughes
Corp.
(The):
5.38%,
08/01/28
..................
325
345,030
4.13%,
02/01/29
..................
541
541,011
4.38%,
02/01/31
..................
921
917,666
Realogy
Group
LLC:
7.63%,
06/15/25
..................
212
229,956
5.75%,
01/15/29
..................
545
569,738
3,690,720
Road
&
Rail
—
0.9%
(d)
Avis
Budget
Car
Rental
LLC,
5.38%,
03/01/29
211
219,704
NESCO
Holdings
II,
Inc.,
5.50%,
04/15/29
...
604
630,425
Uber
Technologies,
Inc.:
7.50%,
05/15/25
..................
1,056
1,139,635
0.00%,
12/15/25
(j)(k)
................
621
629,694
8.00%,
11/01/26
..................
1,244
1,340,410
7.50%,
09/15/27
..................
1,216
1,336,360
6.25%,
01/15/28
..................
1,490
1,603,553
6,899,781
Semiconductors
&
Semiconductor
Equipment
—
0.3%
Entegris
,
Inc.
(d)
:
4.38%,
04/15/28
..................
377
393,494
3.63%,
05/01/29
..................
191
193,387
Microchip
Technology,
Inc.,
4.25%,
09/01/25
.
797
836,743
ON
Semiconductor
Corp.,
3.88%,
09/01/28
(d)
.
517
532,583
Synaptics,
Inc.,
4.00%,
06/15/29
(d)
........
378
379,890
2,336,097
Software
—
2.6%
ACI
Worldwide,
Inc.,
5.75%,
08/15/26
(d)
....
757
793,904
Ascend
Learning
LLC:
6.88%,
08/01/25
(d)
.................
1,041
1,057,224
Boxer
Parent
Co.,
Inc.
(d)
:
7.13%,
10/02/25
..................
864
924,480
9.13%,
03/01/26
..................
1,656
1,747,941
BY
Crown
Parent
LLC
(d)
:
7.38%,
10/15/24
..................
1,049
1,067,882
4.25%,
01/31/26
..................
1,045
1,094,637
Camelot
Finance
SA,
4.50%,
11/01/26
(d)
....
246
257,378
Castle
US
Holding
Corp.,
9.50%,
02/15/28
(d)
.
504
525,420
Change
Healthcare
Holdings
LLC,
5.75%,
03/01/25
(d)
.....................
1,657
1,683,926
Clarivate
Science
Holdings
Corp.
(d)
:
3.88%,
06/30/28
..................
785
792,151
4.88%,
06/30/29
..................
1,078
1,106,298
Crowdstrike
Holdings,
Inc.,
3.00%,
02/15/29
.
559
559,531
Elastic
NV,
4.13%,
07/15/29
(d)
..........
631
635,733
Fair
Isaac
Corp.,
4.00%,
06/15/28
(d)
.......
126
130,241
Helios
Software
Holdings,
Inc.,
4.63%,
05/01/28
(d)
.....................
673
658,746
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
16
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Software
(continued)
MicroStrategy,
Inc.,
6.13%,
06/15/28
(d)
.....
USD
668
$
668,000
Nuance
Communications,
Inc.,
5.63%,
12/15/26
327
340,665
Open
Text
Holdings,
Inc.,
4.13%,
02/15/30
(d)
.
35
35,693
PTC,
Inc.
(d)
:
3.63%,
02/15/25
..................
16
16,480
4.00%,
02/15/28
..................
290
299,570
Rocket
Software,
Inc.,
6.50%,
02/15/29
(d)
...
812
805,731
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(d)
.
1,804
1,911,699
Veritas
US,
Inc.,
7.50%,
09/01/25
(d)
.......
1,967
2,048,139
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(d)
499
495,881
19,657,350
Specialty
Retail
—
2.6%
Ambience
Merger
Sub,
Inc.,
7.13%,
07/15/29
(d)
163
164,630
Asbury
Automotive
Group,
Inc.:
4.50%,
03/01/28
..................
208
213,720
4.75%,
03/01/30
..................
186
194,370
BCPE
Ulysses
Intermediate,
Inc.,
7.75%,
(7.75%
Cash
or
8.50%
PIK),
04/01/27
(d)(h)
..
402
412,050
Carvana
Co.,
5.50%,
04/15/27
(d)
.........
543
560,772
eG
Global
Finance
plc
(d)
:
6.75%,
02/07/25
..................
867
896,448
8.50%,
10/30/25
..................
399
421,942
Gap,
Inc.
(The),
8.88%,
05/15/27
(d)
.......
267
308,972
Group
1
Automotive,
Inc.,
4.00%,
08/15/28
(d)
.
65
66,138
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
(d)
...
463
464,736
Ken
Garff
Automotive
LLC,
4.88%,
09/15/28
(d)
220
224,400
L
Brands,
Inc.:
6.63%,
10/01/30
(d)
.................
236
273,170
6.88%,
11/01/35
..................
752
952,220
6.75%,
07/01/36
..................
119
149,048
LBM
Acquisition
LLC,
6.25%,
01/15/29
(d)
....
937
944,215
LCM
Investments
Holdings
II
LLC,
4.88%,
05/01/29
(d)
.....................
435
445,875
Lithia
Motors,
Inc.,
3.88%,
06/01/29
(d)
......
267
276,759
Murphy
Oil
USA,
Inc.,
4.75%,
09/15/29
.....
440
462,968
Penske
Automotive
Group,
Inc.:
3.50%,
09/01/25
..................
312
323,169
3.75%,
06/15/29
..................
140
140,874
PetSmart,
Inc.
(d)
:
4.75%,
02/15/28
..................
1,342
1,394,003
7.75%,
02/15/29
..................
2,769
3,052,822
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
(d)
................
708
741,428
SRS
Distribution,
Inc.
(d)
:
4.63%,
07/01/28
..................
1,249
1,277,103
6.13%,
07/01/29
..................
713
733,755
Staples,
Inc.
(d)
:
7.50%,
04/15/26
..................
1,325
1,372,349
10.75%,
04/15/27
.................
394
400,560
Victoria's
Secret
&
Co.,
4.63%,
07/15/29
(d)
...
331
331,000
White
Cap
Buyer
LLC,
6.88%,
10/15/28
(d)
...
1,838
1,967,120
White
Cap
Parent
LLC,
8.25%,
(8.25%
Cash
or
9.00%
PIK),
03/15/26
(d)(h)
............
413
427,315
19,593,931
Technology
Hardware,
Storage
&
Peripherals
—
0.2%
Diebold
Nixdorf,
Inc.,
9.38%,
07/15/25
(d)
....
191
211,771
NCR
Corp.
(d)
:
5.75%,
09/01/27
..................
250
264,531
5.00%,
10/01/28
..................
172
177,860
5.13%,
04/15/29
..................
350
360,938
6.13%,
09/01/29
..................
39
42,510
5.25%,
10/01/30
..................
286
296,725
Xerox
Corp.,
4.80%,
03/01/35
..........
331
332,241
1,686,576
Security
Par
(000)
Par
(000)
Value
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
Crocs,
Inc.,
4.25%,
03/15/29
(d)
..........
USD
314
$
320,280
Hanesbrands,
Inc.,
5.38%,
05/15/25
(d)
.....
90
95,287
Levi
Strauss
&
Co.:
5.00%,
05/01/25
..................
14
14,280
3.50%,
03/01/31
(d)
.................
219
217,730
William
Carter
Co.
(The),
5.50%,
05/15/25
(d)
..
69
73,003
Wolverine
World
Wide,
Inc.,
6.38%,
05/15/25
(d)
119
126,601
847,181
Thrifts
&
Mortgage
Finance
—
0.5%
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(d)
....
806
888,373
Home
Point
Capital,
Inc.,
5.00%,
02/01/26
(d)
..
565
526,862
Ladder
Capital
Finance
Holdings
LLLP
(d)
:
4.25%,
02/01/27
..................
708
706,998
4.75%,
06/15/29
..................
286
286,000
MGIC
Investment
Corp.,
5.25%,
08/15/28
...
241
255,460
Nationstar
Mortgage
Holdings,
Inc.
(d)
:
6.00%,
01/15/27
..................
408
422,802
5.50%,
08/15/28
..................
395
398,212
5.13%,
12/15/30
..................
237
235,815
United
Wholesale
Mortgage
LLC,
5.50%,
04/15/29
(d)
.....................
174
173,960
3,894,482
Trading
Companies
&
Distributors
—
0.7%
Beacon
Roofing
Supply,
Inc.,
4.13%,
05/15/29
(d)
199
198,492
Brightstar
Escrow
Corp.,
9.75%,
10/15/25
(d)
..
147
158,209
Fortress
Transportation
&
Infrastructure
Investors
LLC
(d)
:
6.50%,
10/01/25
..................
130
135,037
9.75%,
08/01/27
..................
79
91,344
5.50%,
05/01/28
..................
609
634,121
Foundation
Building
Materials,
Inc.,
6.00%,
03/01/29
(d)
.....................
385
381,150
H&E
Equipment
Services,
Inc.,
3.88%,
12/15/28
(d)
.....................
148
145,632
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(d)
.....
440
463,857
Imola
Merger
Corp.,
4.75%,
05/15/29
(d)
.....
1,149
1,182,034
United
Rentals
North
America,
Inc.,
5.25%,
01/15/30
......................
30
32,862
WESCO
Distribution,
Inc.
(d)
:
7.13%,
06/15/25
..................
839
906,707
7.25%,
06/15/28
..................
832
926,723
5,256,168
Water
Utilities
—
0.0%
Solaris
Midstream
Holdings
LLC,
7.63%,
04/01/26
(d)
.....................
199
210,940
Wireless
Telecommunication
Services
—
1.5%
Connect
Finco
SARL,
6.75%,
10/01/26
(d)
....
5,214
5,513,805
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
......................
35
39,206
Ligado
Networks
LLC,
0.00%,
(0.00%
Cash
or
15.50%
PIK),
11/01/23
(d)(g)(h)
..........
1,139
1,092,804
Sprint
Corp.:
7.88%,
09/15/23
..................
50
56,804
7.13%,
06/15/24
..................
183
211,136
7.63%,
03/01/26
..................
301
367,220
T-Mobile
USA,
Inc.:
4.75%,
02/01/28
..................
400
428,500
2.63%,
02/15/29
..................
159
157,013
2.88%,
02/15/31
..................
883
876,377
3.50%,
04/15/31
(d)
.................
728
753,152
3.50%,
04/15/31
..................
732
757,291
Vmed
O2
UK
Financing
I
plc
(d)
:
4.25%,
01/31/31
..................
213
209,265
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Wireless
Telecommunication
Services
(continued)
4.75%,
07/15/31
..................
USD
1,004
$
1,019,060
11,481,633
Total
Corporate
Bonds
—
86.1%
(Cost:
$618,384,185)
..............................
641,477,945
Floating
Rate
Loan
Interests
—
8.7%
Aerospace
&
Defense
—
0.4%
(g)
Peraton
Corp.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.75%),
4.50%
,
 02/01/28
.
1,643
1,646,051
Peraton
Corp.,
2nd
Lien
Term
Loan
B1,
(LIBOR
USD
1
Month
+
7.75%),
8.50%
,
 02/01/29
(b)
579
590,580
Sequa
Mezzanine
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
6.75%),
7.75%
,
 11/28/23
..................
203
203,897
Spirit
Aerosystems
,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
5.25%),
6.00%
,
 01/15/25
.
308
310,122
2,750,650
Air
Freight
&
Logistics
—
0.0%
AIT
Worldwide
Logistics
Holdings,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
0.00%),
5.50%
,
 04/06/28
(g)
.................
132
131,794
Airlines
—
0.4%
(g)
AAdvantage
Loyality
IP
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
5.50%
,
 04/20/28
..................
1,213
1,263,423
SkyMiles
IP
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.75%
,
 10/20/27
......
538
567,961
United
AirLines
,
Inc.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.75%),
4.50%
,
 04/21/28
.
1,279
1,294,422
3,125,806
Auto
Components
—
0.1%
Clarios
Global
LP,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.35%
,
 04/30/26
(g)
398
393,972
Automobiles
—
0.0%
Dealer
Tire
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
4.25%),
4.35%
,
 01/01/38
(g)
.....
126
126,017
Building
Products
—
0.0%
(g)
CP
Atlas
Buyer,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.75%),
4.25%
,
 11/23/27
..
168
167,039
CPG
International
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
3.25%
,
 05/05/24
.
178
177,907
344,946
Capital
Markets
—
0.0%
Jefferies
Finance
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.13%
,
 06/03/26
(g)
....
330
328,009
Chemicals
—
0.3%
(g)
Alpha
3
BV,
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
3.00%
,
 03/18/28
............
927
921,790
Ascend
Performance
Materials
Operations
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
5.50%
,
 08/27/26
..................
598
606,393
Invictus
US
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
6.75%),
6.85%
,
 03/30/26
.
67
67,014
Lummus
Technology
Holdings
V
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.50%),
3.60%
,
 06/30/27
..................
475
471,481
Security
Par
(000)
Par
(000)
Value
Chemicals
(continued)
Momentive
Performance
Materials,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.36%
,
 05/15/24
............
USD
125
$
123,944
2,190,622
Commercial
Services
&
Supplies
—
0.5%
(g)
Brand
Energy
&
Infrastructure
Services,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.25%),
5.25%
,
 06/21/24
..................
2,884
2,834,779
Diamond
(BC)
BV,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.19%
,
 09/06/24
......
795
790,630
GFL
Environmental,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.50%
,
 05/30/25
.
146
145,956
Tempo
Acquisition
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.35%
,
 11/02/26
..
49
48,694
TruGreen
Ltd.
Partnership,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
8.50%),
9.25%
,
 11/02/28
(b)
.................
275
280,500
4,100,559
Construction
Materials
—
0.0%
(g)
Forterra
Finance
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%
,
 10/25/23
.....
147
146,674
Foundation
Building
Materials,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
3.75%
,
 01/31/28
..................
203
201,425
348,099
Containers
&
Packaging
—
0.1%
(g)
Charter
Next
Generation,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
5.00%
,
 12/01/27
..................
127
126,705
Kleopatra
Finco
SARL,
Facility
Term
Loan
B,
(LIBOR
USD
3
Month
+
4.75%),
5.25%
,
 02/12/26
(b)
.................
196
196,487
Mauser
Packaging
Solutions
Holding
Co.,
Term
Loan,
04/03/24
(l)
..................
724
705,611
1,028,803
Diversified
Consumer
Services
—
0.1%
(g)
Amentum
Government
Services
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.60%
,
 01/29/27
............
113
112,493
Mileage
Plus
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%
,
 06/21/27
.
307
327,618
Sotheby's,
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
5.50%
,
 01/15/27
............
453
455,099
895,210
Diversified
Financial
Services
—
1.0%
(g)
Acuris
Finance
US,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.50%
,
 02/16/28
.
194
194,130
AqGen
Ascensus
,
Inc.,
2nd
Lien
Term
Loan,
05/18/29
(b)(l)
......................
268
265,320
Connect
Finco
SARL,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
4.50%
,
 12/11/26
.....
273
273,395
Deerfield
Dakota
Holding
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
6.75%),
7.50%
,
 04/07/28
(b)
.................
426
435,585
Delta
Topco,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.50%
,
 12/01/27
.
715
716,362
Gainwell
Acquisition
Corp.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
4.00%),
4.75%
,
 10/01/27
..................
1,398
1,400,670
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
18
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Diversified
Financial
Services
(continued)
LBM
Acquisition
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.50%
,
 12/17/27
..................
USD
74
$
73,385
LBM
Acquisition
LLC,
Delayed
Draw
1st
Lien
Term
Loan,
12/17/27
(l)
...............
11
10,872
Lealand
Finance
Co.,
BV,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.09%
,
 06/28/24
(b)
25
14,719
Proofpoint
,
Inc.,
2nd
Lien
Term
Loan,
06/08/29
(l)
715
721,256
Sotera
Health
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
2.75%),
3.25%
,
 12/11/26
..................
620
617,160
Veritas
US,
Inc.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
5.00%),
6.00%
,
 09/01/25
......
1,555
1,563,207
White
Cap
Buyer
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.50%
,
 10/19/27
.....
889
889,646
7,175,707
Diversified
Telecommunication
Services
—
0.3%
(g)
Altice
Financing
SA,
Term
Loan,
(LIBOR
USD
3
Month
+
2.75%),
2.93%
,
 07/15/25
......
62
61,124
Altice
France
SA,
Term
Loan
B13,
(LIBOR
USD
3
Month
+
4.00%),
4.15%
,
 08/14/26
.....
286
285,100
Frontier
Communications
Holdings,
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.75%),
4.50%
,
 05/01/28
..................
526
525,683
Northwest
Fiber
LLC,
1st
Lien
Term
Loan
B2,
(LIBOR
USD
1
Month
+
3.75%),
3.82%
,
 04/30/27
..................
329
328,380
Zayo
Group
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.10%
,
 03/09/27
.
1,007
996,229
2,196,516
Entertainment
—
0.1%
(g)
MSG
National
Properties
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
6.25%),
7.00%
,
 11/12/25
(b)
.................
654
673,991
Renaissance
Holding
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.35%
,
 05/30/25
..................
9
8,586
682,577
Health
Care
Providers
&
Services
—
0.4%
(g)
AHP
Health
Partners,
Inc.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.75%),
4.75%
,
 06/30/25
..................
226
226,458
Azalea
TopCo
,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.69%
,
 07/24/26
.
257
255,089
Envision
Healthcare
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.85%
,
 10/10/25
.
1,043
890,402
Gentiva
Health
Services,
Inc.,
1st
Lien
Term
Loan
B1,
(LIBOR
USD
1
Month
+
2.75%),
2.88%
,
 07/02/25
..................
220
219,173
LifePoint
Health,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.75%),
3.85%
,
 11/16/25
..................
177
176,622
Ortho-Clinical
Diagnostics,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.09%
,
 06/30/25
..................
139
139,296
Quorum
Health
Corp.,
Term
Loan,
04/29/25
(l)
.
510
515,993
WCG
Purchaser
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.00%
,
 01/08/27
..................
316
316,599
2,739,632
Security
Par
(000)
Par
(000)
Value
Health
Care
Technology
—
0.4%
(g)
athenahealth
,
Inc.,
1st
Lien
Term
Loan
B1,
(LIBOR
USD
3
Month
+
4.25%),
4.41%
,
 02/11/26
..................
USD
242
$
242,923
Polaris
Newco
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.50%
,
 06/02/28
..................
775
776,845
Verscend
Holding
Corp.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
4.00%),
4.10%
,
 08/27/25
.
1,937
1,940,410
2,960,178
Hotels,
Restaurants
&
Leisure
—
0.3%
(g)
Caesars
Resort
Collection
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
4.50%),
4.60%
,
 07/21/25
..................
326
327,294
Golden
Nugget
Online
Gaming,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
12.00%),
13.00%
,
 10/04/23
(b)
................
87
96,130
Golden
Nugget,
Inc.,
Term
Loan
B,
(LIBOR
USD
2
Month
+
2.50%),
3.25%
,
 10/04/23
.
627
622,034
IRB
Holding
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
4.25%
,
 12/15/27
......
658
657,287
Life
Time,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.75%),
5.75%
,
 12/16/24
......
476
477,598
Raptor
Acquisition
Corp.,
Term
Loan
B,
11/01/26
(l)
.......................
116
116,145
2,296,488
Independent
Power
and
Renewable
Electricity
Producers
—
0.0%
Calpine
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.00%),
2.10%
,
 08/12/26
(g)
.....
26
25,385
Industrial
Conglomerates
—
0.1%
AVSC
Holding
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.25%),
8.25%
,
 09/01/25
(g)
.................
504
405,763
Insurance
—
0.3%
(g)
Alliant
Holdings
Intermediate
LLC,
Term
Loan,
11/05/27
(l)
.......................
274
274,651
Asurion
LLC,
Term
Loan
B8,
(LIBOR
USD
1
Month
+
3.25%),
3.35%
,
 12/23/26
......
116
114,925
Ryan
Specialty
Group
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.75%
,
 09/01/27
.
315
314,327
Sedgwick
Claims
Management
Services,
Inc.,
Term
Loan:
(LIBOR
USD
1
Month
+
3.25%),
3.35%, 12/31/25
................
825
815,542
(LIBOR
USD
1
Month
+
3.75%),
3.85%, 09/03/26
................
365
363,751
(LIBOR
USD
1
Month
+
4.25%),
5.25%, 09/03/26
................
137
137,554
2,020,750
Interactive
Media
&
Services
—
0.1%
(g)
Camelot
US
Acquisition
1
Co.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%
,
 10/30/26
..................
213
212,930
Grab
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.50%),
5.50%
,
 01/29/26
......
317
321,700
534,630
Internet
&
Direct
Marketing
Retail
—
0.1%
CNT
Holding
I
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.50%
,
 11/08/27
(g)
.................
386
386,032
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
IT
Services
—
0.4%
(g)
CCC
Information
Services,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%
,
 04/29/24
..................
USD
163
$
163,197
Epicor
Software
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.75%),
8.75%
,
 07/31/28
..................
156
160,973
Epicor
Software
Corp.,
Term
Loan
C,
(LIBOR
USD
1
Month
+
3.25%),
4.00%
,
 07/30/27
.
429
428,135
Flexential
Intermediate
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.65%
,
 08/01/24
..................
188
171,802
Flexential
Intermediate
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.25%),
7.38%
,
 08/01/25
..................
83
74,107
Mitchell
International,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.34%
-
3.35%
,
 11/29/24
..................
214
211,859
Mitchell
International,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.25%),
7.35%
,
 12/01/25
..................
123
122,469
Pug
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.50%),
3.60%
,
 02/12/27
............
291
283,578
Sabre
GLBL,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.00%),
4.75%
,
 12/17/27
(b)
.....
166
166,996
Sophia
LP,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
3.90%
,
 10/07/27
............
1,102
1,102,692
TierPoint
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.50%
,
 05/05/26
.
192
191,243
3,077,051
Life
Sciences
Tools
&
Services
—
0.2%
(g)
ICON
Luxembourg
SARL,
Term
Loan
B:
 06/16/28
(l)
......................
1,027
1,028,425
Parexel
International
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
2.85%
,
 09/27/24
.
583
579,451
1,607,876
Machinery
—
0.3%
(g)
MHI
Holdings
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
5.00%),
5.10%
,
 09/21/26
......
707
708,742
Titan
Acquisition
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.17%
,
 03/28/25
.....
1,675
1,644,851
2,353,593
Media
—
0.9%
Ascend
Learning
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%
,
 07/12/24
(g)
....
141
140,694
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.50%),
3.69%
,
 08/21/26
(g)
.................
1,263
1,232,317
Intelsat
Jackson
Holdings
SA,
Facility
Term
Loan,
(LIBOR
USD
3
Month
+
5.50%),
6.50%
,
 07/13/22
(g)
.................
1,029
1,034,395
Intelsat
Jackson
Holdings
SA,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
4.75%),
8.00%
,
 11/27/23
(g)
.................
317
321,207
Intelsat
Jackson
Holdings
SA,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
5.50%),
8.75%
,
 01/02/24
(g)
.................
416
423,267
Intelsat
Jackson
Holdings
SA,
Term
Loan
B5,
8.63%
,
 01/02/24
(m)
.................
2,255
2,291,035
Learfield
Communications
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
4.25%
,
 12/01/23
(g)
.................
122
118,211
Security
Par
(000)
Par
(000)
Value
Media
(continued)
Radiate
Holdco
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.50%),
4.25%
,
 09/25/26
(g)
USD
59
$
59,482
Xplornet
Communications,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.75%),
4.85%
,
 12/31/28
(g)
.................
786
785,280
6,405,888
Oil,
Gas
&
Consumable
Fuels
—
0.4%
Ascent
Resources
Utica
Holdings
LLC,
2nd
Lien
Term
Loan,
11/01/25
(g)(l)
..........
2,945
3,247,717
Pharmaceuticals
—
0.1%
Endo
Luxembourg
Finance
Co.
I
SARL,
Term
Loan,
(LIBOR
USD
3
Month
+
5.00%),
5.75%
,
 03/27/28
(g)
.................
953
917,923
Professional
Services
—
0.1%
Dun
&
Bradstreet
Corp.
(The),
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.35%
,
 02/06/26
(g)
.................
682
678,828
Software
—
1.0%
(g)
Barracuda
Networks,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
6.75%),
7.50%
,
 10/30/28
..................
327
332,627
Boxer
Parent
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.85%
,
 10/02/25
.
452
449,118
BY
Crown
Parent
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.00%),
4.00%
,
 02/02/26
.
81
80,659
Castle
US
Holding
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
3.90%
,
 01/29/27
.
354
349,566
Greeneden
US
Holdings
I
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
4.00%),
4.75%
,
 12/01/27
..................
464
464,493
Helios
Software
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
3.92%
,
 03/11/28
..................
239
239,383
Informatica
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.13%),
7.13%
,
 02/25/25
(b)
707
721,140
Informatica
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.35%
,
 02/25/27
......
327
324,597
Magenta
Buyer
LLC,
1st
Lien
Term
Loan,
05/03/28
(l)
.......................
1,113
1,111,887
Magenta
Buyer
LLC,
2nd
Lien
Term
Loan,
05/03/29
(b)(l)
......................
706
697,175
MH
Sub
I
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
6.25%),
6.35%
,
 02/23/29
.
103
104,481
Planview
Parent,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.25%),
8.00%
,
 12/18/28
(b)
.................
288
286,560
Project
Alpha
Intermediate
Holding,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.00%),
4.11%
,
 04/26/24
..................
358
358,454
Proofpoint
,
Inc.,
Term
Loan,
06/09/28
(l)
.....
502
498,928
RealPage
,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.75%
,
 04/24/28
.
640
637,760
TIBCO
Software,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.25%),
7.36%
,
 03/03/28
..................
471
477,476
UKG
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
4.00%
,
 05/04/26
......
321
320,768
UKG,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.85%
,
 05/04/26
......
167
167,242
7,622,314
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
20
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Specialty
Retail
—
0.2%
(g)
PetSmart
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.50%
,
 02/11/28
.......
USD
1,134
$
1,134,284
Staples,
Inc.,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
5.00%),
5.18%
,
 04/16/26
......
284
276,636
1,410,920
Wireless
Telecommunication
Services
—
0.1%
Digicel
International
Finance
Ltd.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.25%),
3.43%
,
 05/27/24
(g)
.................
403
385,655
Total
Floating
Rate
Loan
Interests
—
8.7%
(Cost:
$64,248,563)
...............................
64,895,910
Shares
Shares
Investment
Companies
—
0.0%
Cheniere
Energy
Partners
LP
...........
1,067
47,257
Western
Midstream
Partners
LP
..........
4,417
94,612
Total
Investment
Companies
—
0.0%
(Cost:
$114,625)
.................................
141,869
Par
(000)
Pa
r
(
000)
Capital
Trusts
—
1.4%
Banks
—
1.0%
(f)(g)
Bank
of
America
Corp.:
Series
X,
(LIBOR
USD
3
Month
+
3.71%),
6.25%
.......................
512
566,400
Series
Z,
(LIBOR
USD
3
Month
+
4.17%),
6.50%
.......................
584
661,380
Series
AA,
(LIBOR
USD
3
Month
+
3.90%),
6.10%
.......................
840
943,211
Series
DD,
(LIBOR
USD
3
Month
+
4.55%),
6.30%
.......................
98
113,083
CIT
Group,
Inc.,
Series
A,
(LIBOR
USD
3
Month
+
3.97%),
5.80%
..................
295
304,697
Citigroup,
Inc.,
Series
W,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.60%),
4.00%
..................
295
304,956
JPMorgan
Chase
&
Co.:
Series
Q,
(LIBOR
USD
3
Month
+
3.25%),
5.15%
.......................
190
196,175
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
Series
U,
(LIBOR
USD
3
Month
+
3.33%),
6.13%
.......................
USD
99
$
107,291
Series
FF,
(SOFR
+
3.38%),
5.00%
.....
1,199
1,267,283
Series
HH,
(SOFR
+
3.13%),
4.60%
.....
426
441,464
Wells
Fargo
&
Co.:
Series
U,
(LIBOR
USD
3
Month
+
3.99%),
5.87%
.......................
425
475,962
Series
BB,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.45%),
3.90%
.......................
710
735,063
6,116,965
Capital
Markets
—
0.3%
(f)(g)
Charles
Schwab
Corp.
(The),
Series
H,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
10
Year
+
3.08%),
4.00%
......
1,590
1,626,570
Goldman
Sachs
Group,
Inc.
(The),
Series
R,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.22%),
4.95%
.
921
984,420
2,610,990
Consumer
Finance
—
0.0%
General
Motors
Financial
Co.,
Inc.,
Series
C,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.00%),
5.70%
(f)
(g)
............................
210
235,200
Electric
Utilities
—
0.1%
Edison
International,
Series
A,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.70%),
5.38%
(f)(g)
.............
900
906,570
Total
Capital
Trusts
—
1.4%
(Cost:
$9,450,984)
...............................
9,869,725
Total
Long-Term
Investments
—
98.5%
(Cost:
$704,816,961)
..............................
733,629,599
Shares
Shares
Short-Term
Securities
—
2.7%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.01%
(n)(o)
..................
20,092,407
20,092,407
Total
Short-Term
Securities
—
2.7%
(Cost:
$20,092,407)
...............................
20,092,407
Total
Investments
—
101.2%
(Cost:
$724,909,368
)
..............................
753,722,006
Liabilities
in
Excess
of
Other
Assets
—
(1.2)%
.............
(8,726,110)
Net
Assets
—
100.0%
...............................
$
744,995,896
(a)
Non-income
producing
security.
(b)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(c)
Restricted
security
as
to
resale,
excluding
144A
securities.
The
Fund
held
restricted
securities
with
a
current
value
of
$412,132,
representing
less
than
0.05%
of
its
net
assets
as
of
period
end,
and
an
original
cost
of
$263,946.
(d)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(e)
Issuer
filed
for
bankruptcy
and/or
is
in
default.
(f)
Perpetual
security
with
no
stated
maturity
date.
(g)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(h)
Payment-in-kind
security
which
may
pay
interest/dividends
in
additional
par/shares
and/or
in
cash.
Rates
shown
are
the
current
rate
and
possible
payment
rates.
(i)
Step
coupon
security.
Coupon
rate
will
either
increase
(step-up
bond)
or
decrease
(step-down
bond)
at
regular
intervals
until
maturity.
Interest
rate
shown
reflects
the
rate
currently
in
effect.
(j)
Convertible
security.
(k)
Zero-coupon
bond.
(l)
Represents
an
unsettled
loan
commitment
at
period
end.
Certain
details
associated
with
this
purchase
are
not
known
prior
to
the
settlement
date,
including
coupon
rate.
(m)
Fixed
rate.
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
21
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
(n)
Annualized
7-day
yield
as
of
period
end.
(o)
Affiliate
of
the
Fund.
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
six
months
ended
June
30,
2021
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
12/31/20
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
06/30/21
Shares
Held
at
06/30/21
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
11,933,997
$
8,158,410
$
—
$
—
$
—
$
20,092,407
20,092,407
$
1,656
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
For
Fund
compliance
purposes,
the
Fund's
industry
classifications
refer
to
one
or
more
of
the
industry
sub-classifications
used
by
one
or
more
widely
recognized
market
indexes
or
rating
group
indexes,
and/or
as
defined
by
the
investment
adviser.
These
definitions
may
not
apply
for
purposes
of
this
report,
which
may
combine
such
industry
sub-classifications
for
reporting
ease.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
22
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Short
Contracts
U.S.
Treasury
10
Year
Note
...................................................
47
09/21/21
$
6,224
$
(23,940)
U.S.
Treasury
Long
Bond
....................................................
1
09/21/21
161
(3,561)
U.S.
Treasury
Ultra
Bond
....................................................
12
09/21/21
2,310
(95,698)
U.S.
Treasury
5
Year
Note
....................................................
43
09/30/21
5,305
16,731
$
(106,468)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
USD
260,282
CAD
315,000
State
Street
Bank
and
Trust
Co.
09/15/21
$
6,176
USD
1,110,396
EUR
916,000
BNP
Paribas
SA
09/15/21
22,527
USD
117,293
GBP
83,000
Citibank
NA
09/15/21
2,459
$
31,162
OTC
Credit
Default
Swap
s
—
Sell
Protection
Reference
Obligation/Index
Financing
Rate
Received
by
the
Fund
Payment
Frequency
Counterparty
Termination
Date
Credit
Rating
(a)
Notional
Amount
(000)
(b)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Lumen
Technologies,
Inc.
1.00
%
Quarterly
Barclays
Bank
plc
12/20/23
NR
USD
312
$
(4,884)
$
(11,835)
$
6,951
Lumen
Technologies,
Inc.
1.00
Quarterly
Barclays
Bank
plc
06/20/25
NR
USD
567
(28,874)
(59,781)
30,907
$
(33,758)
$
(71,616)
$
37,858
(a)
Using
the
rating
of
the
issuer
or
the
underlying
securities
of
the
index,
as
applicable,
provided
by
S&P
Global
Ratings.
(b)
The
maximum
potential
amount
the
Fund
may
pay
should
a
negative
credit
event
take
place
as
defined
under
the
terms
of
the
agreement.
Balances
Reported
in
the
Statement
of
Assets
and
Liabilities
for
OTC
Swaps
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
OTC
Swaps
...................................................................
$
—
$
(71,616)
$
37,858
$
—
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
23
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statement
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
.....
$
—
$
—
$
—
$
—
$
16,731
$
—
$
16,731
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
31,162
—
—
31,162
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
37,858
—
—
—
—
37,858
$
—
$
37,858
$
—
$
31,162
$
16,731
$
—
$
85,751
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
123,199
—
123,199
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
71,616
—
—
—
—
71,616
$
—
$
71,616
$
—
$
—
$
123,199
$
—
$
194,815
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statement
of
Assets
and
Liabilities,
only
current
day's
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
six
months
ended
June
30,
2021,
the
effect
of
derivative
financial
instruments
in
the
Statement
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from:
Futures
contracts
.......................
$
—
$
—
$
148,962
$
—
$
1,912,106
$
—
$
2,061,068
Forward
foreign
currency
exchange
contracts
....
—
—
—
(87,268)
—
—
(87,268)
Swaps
..............................
—
299,602
—
—
—
—
299,602
$
—
$
299,602
$
148,962
$
(87,268)
$
1,912,106
$
—
$
2,273,402
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
(129,075)
—
(129,075)
Forward
foreign
currency
exchange
contracts
....
—
—
—
113,897
—
—
113,897
Swaps
..............................
—
(168,734)
—
—
—
—
(168,734)
$
—
$
(168,734)
$
—
$
113,897
$
(129,075)
$
—
$
(183,912)
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts:
Average
notional
value
of
contracts
—
short
.................................................................................
$
14,999,614
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
1,615,754
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
43,592
Average
notional
value
—
sell
protection
...................................................................................
2,598,994
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
24
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
—
Offsetting
as
of
Period
End
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
—
$
19,734
Forward
foreign
currency
exchange
contracts
.................................................................
31,162
—
Swaps
—
OTC
(a)
....................................................................................
37,858
71,616
Total
derivative
assets
and
liabilities
in
the
Statement
of
Assets
and
Liabilities
.............................................
$
69,020
$
91,350
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
—
(19,734)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
69,020
$
71,616
(a)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/received
in
the
Statement
of
Assets
and
Liabilities.
The
following
tables
present
the
Fund's
derivative
assets
and
liabilities
by
counterparty
net
of
amounts
available
for
offset
under
an
MNA
and
net
of
the
related
collateral
received
and
pledged
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(b)(c)
Barclays
Bank
plc
................................
$
37,858
$
(37,858)
$
—
$
—
$
—
BNP
Paribas
SA
.................................
22,527
—
—
—
22,527
Citibank
NA
....................................
2,459
—
—
—
2,459
State
Street
Bank
and
Trust
Co.
......................
6,176
—
—
—
6,176
$
69,020
$
(37,858)
$
—
$
—
$
31,162
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
(d)
Net
Amount
of
Derivative
Liabilities
Barclays
Bank
plc
................................
$
71,616
$
(37,858)
$
—
$
(33,758)
$
—
(a)
The
amount
of
derivatives
available
for
offset
is
limited
to
the
amount
of
derivative
assets
and/or
liabilities
that
are
subject
to
an
MNA.
(b)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(c)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(d)
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Common
Stocks:
Building
Products
.......................................
$
14,691
$
—
$
—
$
14,691
Chemicals
............................................
1,922,320
—
—
1,922,320
Communications
Equipment
................................
305,862
—
—
305,862
Electrical
Equipment
.....................................
549,208
—
—
549,208
Energy
Equipment
&
Services
..............................
—
—
15,658
15,658
Entertainment
.........................................
321,631
—
—
321,631
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
2,539,176
—
—
2,539,176
Hotels,
Restaurants
&
Leisure
..............................
370,414
—
—
370,414
Life
Sciences
Tools
&
Services
..............................
1,907,852
—
—
1,907,852
BlackRock
High
Yield
V.I.
Fund
Schedule
of
Investments
25
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Level
1
Level
2
Level
3
Total
Media
...............................................
$
280,788
$
—
$
—
$
280,788
Metals
&
Mining
........................................
1,140,089
—
—
1,140,089
Oil,
Gas
&
Consumable
Fuels
...............................
7,183,657
412,132
—
7,595,789
Road
&
Rail
...........................................
280,672
—
—
280,672
Corporate
Bonds:
Aerospace
&
Defense
....................................
—
24,119,732
—
24,119,732
Airlines
..............................................
—
13,606,502
—
13,606,502
Auto
Components
......................................
—
14,342,666
—
14,342,666
Automobiles
..........................................
—
1,271,834
—
1,271,834
Banks
...............................................
—
1,904,013
—
1,904,013
Beverages
...........................................
—
230,575
—
230,575
Biotechnology
.........................................
—
115,583
—
115,583
Building
Products
.......................................
—
8,253,468
—
8,253,468
Capital
Markets
........................................
—
3,756,446
—
3,756,446
Chemicals
............................................
—
10,075,022
—
10,075,022
Commercial
Services
&
Supplies
.............................
—
23,901,416
—
23,901,416
Communications
Equipment
................................
—
7,265,999
—
7,265,999
Construction
&
Engineering
................................
—
2,545,596
—
2,545,596
Consumer
Finance
......................................
—
8,260,419
—
8,260,419
Containers
&
Packaging
..................................
—
15,736,605
—
15,736,605
Distributors
...........................................
—
3,399,262
—
3,399,262
Diversified
Consumer
Services
..............................
—
4,707,432
—
4,707,432
Diversified
Financial
Services
...............................
—
6,195,526
—
6,195,526
Diversified
Telecommunication
Services
........................
—
48,091,168
—
48,091,168
Electric
Utilities
........................................
—
5,618,927
—
5,618,927
Electrical
Equipment
.....................................
—
1,177,454
—
1,177,454
Electronic
Equipment,
Instruments
&
Components
.................
—
1,280,643
—
1,280,643
Energy
Equipment
&
Services
..............................
—
5,719,601
757,274
6,476,875
Entertainment
.........................................
—
7,965,523
—
7,965,523
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
—
22,300,778
—
22,300,778
Food
&
Staples
Retailing
..................................
—
4,114,986
—
4,114,986
Food
Products
.........................................
—
16,106,573
—
16,106,573
Gas
Utilities
...........................................
—
441,838
—
441,838
Health
Care
Equipment
&
Supplies
...........................
—
5,436,360
—
5,436,360
Health
Care
Providers
&
Services
............................
—
38,817,931
—
38,817,931
Health
Care
Technology
..................................
—
545,165
—
545,165
Hotels,
Restaurants
&
Leisure
..............................
—
43,401,517
—
43,401,517
Household
Durables
.....................................
—
6,627,868
—
6,627,868
Household
Products
.....................................
—
2,077,994
—
2,077,994
Independent
Power
and
Renewable
Electricity
Producers
............
—
2,823,174
—
2,823,174
Insurance
............................................
—
13,020,893
—
13,020,893
Interactive
Media
&
Services
...............................
—
1,709,288
—
1,709,288
Internet
&
Direct
Marketing
Retail
............................
—
1,407,160
—
1,407,160
IT
Services
...........................................
—
14,187,277
—
14,187,277
Leisure
Products
.......................................
—
1,461,049
—
1,461,049
Life
Sciences
Tools
&
Services
..............................
—
1,402,232
—
1,402,232
Machinery
............................................
—
9,844,501
—
9,844,501
Marine
..............................................
—
224,797
—
224,797
Media
...............................................
—
46,830,617
—
46,830,617
Metals
&
Mining
........................................
—
15,113,800
—
15,113,800
Mortgage
Real
Estate
Investment
Trusts
(REITs)
..................
—
666,604
—
666,604
Multiline
Retail
.........................................
—
1,720,150
—
1,720,150
Oil,
Gas
&
Consumable
Fuels
...............................
—
73,130,091
—
73,130,091
Personal
Products
......................................
—
689,714
—
689,714
Pharmaceuticals
.......................................
—
17,348,223
—
17,348,223
Professional
Services
....................................
—
4,173,820
—
4,173,820
Real
Estate
Management
&
Development
.......................
—
3,690,720
—
3,690,720
Road
&
Rail
...........................................
—
6,899,781
—
6,899,781
Semiconductors
&
Semiconductor
Equipment
....................
—
2,336,097
—
2,336,097
Software
.............................................
—
19,657,350
—
19,657,350
Specialty
Retail
........................................
—
19,593,931
—
19,593,931
Technology
Hardware,
Storage
&
Peripherals
....................
—
1,686,576
—
1,686,576
Textiles,
Apparel
&
Luxury
Goods
............................
—
847,181
—
847,181
Thrifts
&
Mortgage
Finance
................................
—
3,894,482
—
3,894,482
Trading
Companies
&
Distributors
............................
—
5,256,168
—
5,256,168
Water
Utilities
.........................................
—
210,940
—
210,940
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
High
Yield
V.I.
Fund
26
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Wireless
Telecommunication
Services
.........................
$
—
$
11,481,633
$
—
$
11,481,633
Floating
Rate
Loan
Interests:
Aerospace
&
Defense
....................................
—
2,160,070
590,580
2,750,650
Air
Freight
&
Logistics
....................................
—
131,794
—
131,794
Airlines
..............................................
—
3,125,806
—
3,125,806
Auto
Components
......................................
—
393,972
—
393,972
Automobiles
..........................................
—
126,017
—
126,017
Building
Products
.......................................
—
344,946
—
344,946
Capital
Markets
........................................
—
328,009
—
328,009
Chemicals
............................................
—
2,190,622
—
2,190,622
Commercial
Services
&
Supplies
.............................
—
3,820,059
280,500
4,100,559
Construction
Materials
....................................
—
348,099
—
348,099
Containers
&
Packaging
..................................
—
832,316
196,487
1,028,803
Diversified
Consumer
Services
..............................
—
895,210
—
895,210
Diversified
Financial
Services
...............................
—
6,460,083
715,624
7,175,707
Diversified
Telecommunication
Services
........................
—
2,196,516
—
2,196,516
Entertainment
.........................................
—
8,586
673,991
682,577
Health
Care
Providers
&
Services
............................
—
2,739,632
—
2,739,632
Health
Care
Technology
..................................
—
2,960,178
—
2,960,178
Hotels,
Restaurants
&
Leisure
..............................
—
2,200,358
96,130
2,296,488
Independent
Power
and
Renewable
Electricity
Producers
............
—
25,385
—
25,385
Industrial
Conglomerates
..................................
—
405,763
—
405,763
Insurance
............................................
—
2,020,750
—
2,020,750
Interactive
Media
&
Services
...............................
—
534,630
—
534,630
Internet
&
Direct
Marketing
Retail
............................
—
386,032
—
386,032
IT
Services
...........................................
—
2,910,055
166,996
3,077,051
Life
Sciences
Tools
&
Services
..............................
—
1,607,876
—
1,607,876
Machinery
............................................
—
2,353,593
—
2,353,593
Media
...............................................
—
6,405,888
—
6,405,888
Oil,
Gas
&
Consumable
Fuels
...............................
—
3,247,717
—
3,247,717
Pharmaceuticals
.......................................
—
917,923
—
917,923
Professional
Services
....................................
—
678,828
—
678,828
Software
.............................................
—
5,917,439
1,704,875
7,622,314
Specialty
Retail
........................................
—
1,410,920
—
1,410,920
Wireless
Telecommunication
Services
.........................
—
385,655
—
385,655
Investment
Companies
....................................
141,869
—
—
141,869
Capital
Trusts
...........................................
—
9,869,725
—
9,869,725
Short-Term
Securities
.......................................
20,092,407
—
—
20,092,407
Unfunded
Floating
Rate
Loan
Interests
(a)
..............................
—
13
—
13
$
37,050,636
$
711,473,268
$
5,198,115
$
753,722,019
Derivative
Financial
Instruments
(b)
Assets:
Credit
contracts
...........................................
$
—
$
37,858
$
—
$
37,858
Foreign
currency
exchange
contracts
............................
—
31,162
—
31,162
Interest
rate
contracts
.......................................
16,731
—
—
16,731
Liabilities:
Interest
rate
contracts
.......................................
(123,199)
—
—
(123,199)
$
(106,468)
$
69,020
$
—
$
(37,448)
(a)
Unfunded
floating
rate
loan
interests
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
commitment.
(b)
Derivative
financial
instruments
are
swaps,
futures
contracts
and
forward
foreign
currency
exchange
contracts.
Swaps,
futures
contracts
and
forward
foreign
currency
exchange
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
Statement
of
Assets
and
Liabilities
(unaudited)

June
30,
2021
27
Financial
Statements
BlackRock
High
Yield
V.I.
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
733,629,599‌
Investments,
at
value
—
affiliated
(b)
.........................................................................................
20,092,407‌
Cash
.............................................................................................................
471,478‌
Cash
pledged:
–‌
Collateral
—
OTC
derivatives
............................................................................................
410,000‌
Futures
contracts
....................................................................................................
190,000‌
Foreign
currency,
at
value
(c)
..............................................................................................
2,266‌
Receivables:
–‌
Investments
sold
....................................................................................................
3,058,350‌
Capital
shares
sold
...................................................................................................
1,223,432‌
Dividends
—
affiliated
.................................................................................................
91‌
Dividends
—
unaffiliated
...............................................................................................
13,843‌
Interest
—
unaffiliated
.................................................................................................
9,971,338‌
Unrealized
appreciation
on:
–‌
Forward
foreign
currency
exchange
contracts
.................................................................................
31,162‌
OTC
swaps
........................................................................................................
37,858‌
Unfunded
floating
rate
loan
interests
.......................................................................................
13‌
Prepaid
e
xpenses
.....................................................................................................
7,266‌
Total
a
ssets
.........................................................................................................
769,139,103‌
LIABILITIES
Payables:
–‌
Investments
purchased
................................................................................................
20,438,082‌
Capital
shares
redeemed
...............................................................................................
196,458‌
Distribution
fees
.....................................................................................................
105,106‌
Income
dividend
distributions
............................................................................................
2,573,177‌
Investment
advisory
fees
..............................................................................................
270,732‌
Other
affiliate
fees
...................................................................................................
2,158‌
Variation
margin
on
futures
contracts
.......................................................................................
19,734‌
Other
accrued
expenses
...............................................................................................
466,144‌
Swap
premiums
received
................................................................................................
71,616‌
Total
li
abilities
........................................................................................................
24,143,207‌
NET
ASSETS
........................................................................................................
$
744,995,896‌
NET
ASSETS
CONSIST
OF
Paid-in
capital
........................................................................................................
$
719,394,384‌
Accumulated
earnings
..................................................................................................
25,601,512‌
NET
ASSETS
........................................................................................................
$
744,995,896‌
(a)
  Investments,
at
cost
—
unaffiliated
........................................................................................
$
704,816,961‌
(b)
  Investments,
at
cost
—
affiliated
..........................................................................................
$
20,092,407‌
(c)
  Foreign
currency,
at
cost
...............................................................................................
$
2,293‌
See
notes
to
financial
statements.
Statement
of
Assets
and
Liabilities
(unaudited)
(continued)
June
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
28
See
notes
to
financial
statements.
BlackRock
High
Yield
V.I.
Fund
NET
ASSET
VALUE
Class
I
Net
assets
........................................................................................................
$
202,040,075‌
Shares
outstanding
.................................................................................................
26,338,039‌
Net
asset
value
....................................................................................................
$
7.67‌
Shares
authorized
..................................................................................................
200
million
Par
value
........................................................................................................
$
0.10‌
Class
III
Net
assets
........................................................................................................
$
542,955,821‌
Shares
outstanding
.................................................................................................
70,823,118‌
Net
asset
value
....................................................................................................
$
7.67‌
Shares
authorized
..................................................................................................
100
million
Par
value
........................................................................................................
$
0.10‌
Statement
of
Operations
(unaudited)

Six
Months
Ended
June
30,
2021
29
Financial
Statements
See
notes
to
financial
statements.
BlackRock
High
Yield
V.I.
Fund
INVESTMENT
INCOME
Dividends
—
affiliated
.................................................................................................
$
1,656‌
Dividends
—
unaffiliated
...............................................................................................
217,231‌
Interest
—
unaffiliated
................................................................................................
17,285,733‌
Total
investment
income
.................................................................................................
17,504,620‌
EXPENSES
Investment
advisory
..................................................................................................
1,546,645‌
Distribution
—
class
specific
............................................................................................
621,249‌
Transfer
agent
—
class
specific
..........................................................................................
534,207‌
Accounting
services
..................................................................................................
82,069‌
Professional
.......................................................................................................
44,476‌
Custodian
.........................................................................................................
18,333‌
Registration
.......................................................................................................
11,629‌
Directors
and
Officer
.................................................................................................
3,964‌
Transfer
agent
......................................................................................................
2,836‌
Miscellaneous
......................................................................................................
44,741‌
Total
expenses
.......................................................................................................
2,910,149‌
Less:
–‌
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(3,802‌)
Transfer
agent
fees
reimbursed
—
class
specific
...............................................................................
(353,475‌)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
2,552,872‌
Net
investment
income
..................................................................................................
14,951,748‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
10,882,466‌
Net
realized
gain
(loss)
from:
$
–‌
Investments
—
unaffiliated
...........................................................................................
9,705,562‌
Forward
foreign
currency
exchange
contracts
...............................................................................
(87,268‌)
Foreign
currency
transactions
.........................................................................................
23,630‌
Futures
contracts
..................................................................................................
2,061,068‌
Swaps
.........................................................................................................
299,602‌
A
12,002,594‌
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
...........................................................................................
(934,783‌)
Forward
foreign
currency
exchange
contracts
...............................................................................
113,897‌
Foreign
currency
translations
..........................................................................................
(1,446‌)
Futures
contracts
..................................................................................................
(129,075‌)
Swaps
.........................................................................................................
(168,734‌)
Unfunded
floating
rate
loan
interests
.....................................................................................
13‌
A
(1,120,128‌)
Net
realized
and
unrealized
gain
...........................................................................................
10,882,466‌
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
25,834,214‌
Statements
of
Changes
in
Net
Assets

2021
BlackRock
Semi-Annual
Report
to
Shareholders
30
See
notes
to
financial
statements.
BlackRock
High
Yield
V.I.
Fund
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
12/31/20
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
(loss)
..........................................................................
$
14,951,748‌
$
27,272,574‌
Net
realized
gain
(loss)
..............................................................................
12,002,594‌
(
503,418‌
)
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
(
1,120,128‌
)
13,433,140‌
Net
increase
in
net
assets
resulting
from
operations
.............................................................
25,834,214‌
40,202,296‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Class
I
........................................................................................
(
4,401,886‌
)
(
8,873,345‌
)
Class
III
.......................................................................................
(
11,028,236‌
)
(
19,188,316‌
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(
15,430,122‌
)
(
28,061,661‌
)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
...................................................
64,638,611‌
82,416,377‌
NET
ASSETS
Total
increase
in
net
assets
.............................................................................
75,042,703‌
94,557,012‌
Beginning
of
period
..................................................................................
669,953,193‌
575,396,181‌
End
of
period
......................................................................................
$
744,995,896‌
$
669,953,193‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
31
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
excludes
insurance-related
fees
and
expenses
and
assumes
the
reinvestment
of
distributions.
(d)
Aggregate
total
return.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Annualized.
BlackRock
High
Yield
V.I.
Fund
Class
I
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
period
...............
$
7.56‌
$
7.43‌
$
6.80‌
$
7.39‌
$
7.24‌
$
6.77‌
Net
investment
income
(loss)
(a)
...................
0.17‌
0.37‌
0.38‌
0.38‌
0.38‌
0.37‌
Net
realized
and
unrealized
gain
(loss)
.............
0.12‌
0.14‌
0.64‌
(0.57‌)
0.15‌
0.48‌
Net
increase
(decrease)
from
investment
operations
......
0.29‌
0.51‌
1.02‌
(0.19‌)
0.53‌
0.85‌
Distributions
from
net
investment
income
(b)
..........
(0.18‌)
(0.38‌)
(0.39‌)
(0.40‌)
(0.38‌)
(0.38‌)
Net
asset
value,
end
of
period
....................
$
7.67‌
$
7.56‌
$
7.43‌
$
6.80‌
$
7.39‌
$
7.24‌
Total
Return
(c)
3.83%
7.27%
15.29%
(2.79)%
7.34%
—
Based
on
net
asset
value
........................
3.83%
(d)
7.27%
15.29%
(2.79)%
7.48%
12.92%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
...............................
0.68%
(f)
0.69%
0.70%
0.77%
0.78%
0.80%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.57%
(f)
0.58%
0.59%
0.63%
0.67%
0.68%
Net
investment
income
(loss)
.....................
4.54%
(f)
5.13%
5.28%
5.30%
5.13%
5.29%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
202,040‌
$
182,845‌
$
178,147‌
$
185,736‌
$
201,945‌
$
152,835‌
Portfolio
turnover
rate
..........................
32%
103%
83%
79%
75%
89%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
...................
—%
—%
0.01%
0.01%
0.01%
0.01%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
32
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
excludes
insurance-related
fees
and
expenses
and
assumes
the
reinvestment
of
distributions.
(d)
Aggregate
total
return.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Annualized.
BlackRock
High
Yield
V.I.
Fund
Class
III
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
period
...............
$
7.55‌
$
7.42‌
$
6.80‌
$
7.38‌
$
7.24‌
$
6.76‌
Net
investment
income
(loss)
(a)
...................
0.16‌
0.35‌
0.37‌
0.36‌
0.36‌
0.36‌
Net
realized
and
unrealized
gain
(loss)
.............
0.13‌
0.14‌
0.62‌
(0.56‌)
0.14‌
0.48‌
Net
increase
(decrease)
from
investment
operations
......
0.29‌
0.49‌
0.99‌
(0.20‌)
0.50‌
0.84‌
Distributions
from
net
investment
income
(b)
..........
(0.17‌)
(0.36‌)
(0.37‌)
(0.38‌)
(0.36‌)
(0.36‌)
Net
asset
value,
end
of
period
....................
$
7.67‌
$
7.55‌
$
7.42‌
$
6.80‌
$
7.38‌
$
7.24‌
Total
Return
(c)
3.84%
7.01%
14.86%
(2.89)%
7.08%
—
Based
on
net
asset
value
........................
3.84%
(d)
7.01%
14.86%
(2.89)%
7.08%
12.82%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
...............................
0.91%
(f)
0.92%
0.94%
1.02%
1.03%
1.00%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.81%
(f)
0.82%
0.83%
0.87%
0.92%
0.92%
Net
investment
income
(loss)
.....................
4.30%
(f)
4.86%
5.06%
5.05%
4.87%
5.05%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
542,956‌
$
487,109‌
$
397,249‌
$
243,871‌
$
243,479‌
$
190,149‌
Portfolio
turnover
rate
..........................
32%
103%
83%
79%
75%
89%
Six
Months
Ended
0
6/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
...................
—%
—%
0.01%
0.01%
0.01%
0.01%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
33
Notes
to
Financial
Statements
1.
ORGANIZATION 
BlackRock
Variable
Series
Funds
II,
Inc. (the
"Company")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"),
as
an
open-end
management
investment
company.
The
Company
is
organized
as
a
Maryland
corporation
that
is
comprised
of
3 separate
funds. 
The
funds
offer shares
to
insurance
companies
for
their
separate
accounts
to
fund
benefits
under
certain
variable
annuity
and
variable
life
insurance
contracts. The
financial
statements
presented
are
for
BlackRock
High
Yield
V.I.
Fund (the
"Fund"). The
Fund
is
classified
as
diversified.
Class
I
and
Class
III
Shares
have
equal
voting,
dividend,
liquidation
and
other
rights,
except
that
only
shares
of
the
respective
classes
are
entitled
to
vote
on
matters
concerning
only
that
class.
In
addition,
Class
III
Shares
bear
certain
expenses
related
to
the
distribution
of
such
shares.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
"Manager") or
its
affiliates,
is
included
in
a
complex
of
non-
index
fixed-income
mutual
funds
and
all
BlackRock-advised
closed-end
funds
referred
to
as
the
BlackRock
Fixed-Income
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies: 
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
dates
may
have
passed
are
subsequently
recorded
when
the
Fund
is
informed
of
the
ex-dividend
dates.
Under
the
applicable
foreign
tax
laws,
a
withholding
tax
at
various
rates
may
be
imposed
on
capital
gains,
dividends
and
interest.
Upon
notification
from
issuers,
a
portion
of
the
dividend
income
received
from
a
real
estate
investment
trust
may
be
redesignated
as
a
reduction
of
cost
of
the
related
investment
and/or
realized
gain.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
and
payment-in-kind
interest
are
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
For
convertible
securities,
premiums
attributable
to
the
debt
instrument
are
amortized,
but
premiums
attributable
to
the
conversion
feature
are
not
amortized.
Foreign
Currency
Translation:
The
Fund’s
books
and
records
are
maintained
in
U.S.
dollars.
Securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
using
exchange
rates
determined
as
of
the
close
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”)
.
Purchases
and
sales
of
investments
are
recorded
at
the
rates
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Generally,
when
the
U.S.
dollar
rises
in
value
against
a
foreign
currency,
the
investments
denominated
in
that
currency
will
lose
value;
the
opposite
effect
occurs
if
the
U.S.
dollar
falls
in
relative
value. 
The
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statement
of
Operations
from
the
effects
of
changes
in
market
prices
of
those
investments,
but
are
included
as
a
component
of
net
realized
and
unrealized
gain
(loss)
from
investments.
The
Fund
reports
realized
currency
gains
(losses)
on
foreign
currency
related
transactions
as
components
of
net
realized
gain
(loss)
for
financial
reporting
purposes,
whereas
such
components
are
generally
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes.
Segregation
and
Collateralization:
In
cases
where the
Fund
enters
into
certain
investments
(e.g.,
futures
contracts,
forward
foreign
currency
exchange
contracts
and
swaps)
that
would
be
treated
as
“senior
securities”
for
1940
Act
purposes, the
Fund
may
segregate
or
designate
on
its
books
and
records
cash
or
liquid
assets
having
a
market
value
at
least
equal
to
the
amount
of
its
future
obligations
under
such
investments.
Doing
so
allows
the
investment
to
be
excluded
from
treatment
as
a
“senior
security.” 
Furthermore,
if
required
by
an
exchange
or
counterparty
agreement,
the
Fund
may
be
required
to
deliver/deposit
cash
and/or
securities
to/with
an
exchange,
or
broker-dealer
or
custodian
as
collateral
for
certain
investments
or
obligations.  
Distributions:
Distributions
paid
by
the
Fund
are
recorded
on
the
ex-dividend
dates.
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly.
Distributions
of
capital
gains
are
recorded
on
the
e
x-dividend
dates
and
made
at
least
annually.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP
.  
Deferred
Compensation
Plan:
Under
the
Deferred
Compensation
Plan
(the
“Plan”)
approved
by
the
Board
of
Directors
of
the
Company
(the
“Board”), the directors
who
are
not
“interested
persons”
of
the
Fund,
as
defined
in
the
1940
Act
(“Independent
Directors”),
may
defer
a
portion
of
their
annual
complex-wide
compensation.
Deferred
amounts
earn
an
approximate
return
as
though
equivalent
dollar
amounts
had
been
invested
in
common
shares
of
certain
funds
in
the
BlackRock
Fixed-Income
Complex
selected
by
the
Independent
Directors.
This
has
the
same
economic
effect
for
the
Independent Directors
as
if
the
Independent 
Directors
had
invested
the
deferred
amounts
directly
in
certain
funds
in
the
BlackRock
Fixed-Income
Complex.  
The
Plan
is
not
funded
and
obligations
thereunder
represent
general
unsecured
claims
against
the
general
assets
of
the
Fund,
as
applicable.
Deferred
compensation
liabilities,
if
any, are
included
in
the
Directors’
and
Officer’s
fees
payable
in
the
Statement
of
Assets
and
Liabilities
and
will
remain
as
a
liability
of
the
Fund
until
such
amounts
are
distributed
in
accordance
with
the
Plan. 
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Fund
and
other
shared
expenses
prorated
to
the
Fund
are
allocated
daily
to
each
class
based
on
its
relative
net
assets
or
other
appropriate
methods.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager
,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods.  
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
34
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 The
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
policies
approved
by
the
Board.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value.
The
BlackRock
Global
Valuation
Methodologies
Committee
(the
“Global
Valuation
Committee”)
is
the
committee
formed
by
management
to
develop
global
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund’s
assets
and
liabilities: 
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day's official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
Equity
investments
traded
on
a
recognized
exchange
for
which
there
were
no
sales
on
that
day
may
be
valued
at
the
last
available
bid
(long
positions)
or
ask
(short
positions)
price.  
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
or
current
market
quotations
provided
by
independent
dealers
or
third
party
pricing
services.
Floating
rate
loan
interests
are
valued
at
the
mean
of
the
bid
prices
from
one
or
more
independent
brokers
or
dealers
as
obtained
from
a
third
party
pricing
service.
Pricing
services
generally
value
fixed-income
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
a
fund
may
hold
or
transact
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
may
trade
at
lower
prices
than
institutional
round
lots.
The
pricing
services
may
use
matrix
pricing
or
valuation
models
that
utilize
certain
inputs
and
assumptions
to
derive
values,
including
transaction
data
(e.g.,
recent
representative
bids
and
offers),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day's
published net
asset
value
(“NAV”). 
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
or
trade price
on
the
exchange
where
the
contract
is
traded.
Forward
foreign
currency
exchange
contracts
are
valued
at
the
mean
between
the
bid
and
ask
prices
and
are
determined
as
of
the
close
of
trading
on
the
NYSE
based
on
that
day’s
prevailing
forward
exchange
rate
for
the
underlying
currencies.
Swap
agreements
are
valued
utilizing
quotes
received
daily
by
independent pricing
services
or
through
brokers,
which
are
derived
using
daily
swap
curves
and
models
that
incorporate
a
number
of
market
data
factors,
such
as
discounted
cash
flows,
trades
and
values
of
the
underlying
reference
instruments. 
If
events
(e.g.,
a
market
closure,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Global
Valuation
Committee,
or
its
delegate,
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the
Global
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Global
Valuation
Committee,
or
its
delegate,
seeks
to
determine
the
price
that
the
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm’s-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the
Global
Valuation
Committee,
or
its
delegate,
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
The
pricing
of
all
Fair
Valued
Investments
is
subsequently
reported
to
the
Board
or
a
committee
thereof
on
a
quarterly
basis.
For
investments
in
equity
or
debt
issued
by
privately
held
companies
or
funds
(“Private
Company”
or
collectively,
the
“Private
Companies”)
and
other
Fair
Valued
Investments,
the
fair
valuation
approaches
that
are
used
by
the
Global
Valuation
Committee
and
third
party
pricing
services
utilize
one
or
a
combination
of,
but
not
limited
to,
the
following
inputs.  
Standard
Inputs
Generally
Considered
By
Third
Party
Pricing
Services
Market
approach
........................
(i)        
recent
market
transactions,
including
subsequent
rounds
of
financing,
in
the
underlying
investment
or
comparable  
            issuers;
(ii)        recapitalizations
and
other
transactions
across
the
capital
structure;
and
(iii)      
market
multiples
of
comparable
issuers.
Income
approach
..........................
(i)        
future
cash
flows
discounted
to
present
and
adjusted
as
appropriate
for
liquidity,
credit,
and/or
market
risks;
(ii)        quoted
prices
for
similar
investments
or
assets
in
active
markets;
and
(iii)      
other
risk
factors,
such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks,
            recovery
rates,
liquidation
amounts
and/or
default
rates.
Cost
approach
............................
(i)        
audited
or
unaudited
financial
statements,
investor
communications
and
financial
or
operational
metrics
            issued
by
the
Private
Company;
(ii)        changes
in
the
valuation
of
relevant
indices
or
publicly
traded
companies
comparable
to
the
Private
Company;
(iii)      
relevant
news
and
other
public
sources;
and
(iv)      
known
secondary
market
transactions
in
the
Private
Company’s
interests
and
merger
or
acquisition
activity
            in
companies
comparable
to
the
Private
Company.
Notes
to
Financial
Statements
(unaudited)
(continued)
35
Notes
to
Financial
Statements
Investments
in
series
of
preferred
stock
issued
by
Private
Companies
are
typically
valued
utilizing
market
approach
in
determining
the
enterprise
value
of
the
company.
Such
investments
often
contain
rights
and
preferences
that
differ
from
other
series
of
preferred
and
common
stock
of
the
same
issuer.
Enterprise
valuation
techniques
such
as
an
option
pricing
model
(“OPM”),
a
probability
weighted
expected
return
model
(“PWERM”),
current
value
method or
a
hybrid
of
those
techniques
are
used,
as
deemed
appropriate
under
the
circumstances.
The
use
of these
valuation techniques
involve
a
determination
of
the
exit
scenarios
of
the
investment
in
order
to
appropriately
allocate
the
enterprise
value
of
the
company
among
the
various
parts
of
its
capital
structure. 
The
Private
Companies
are
not
subject
to
the
public
company
disclosure,
timing,
and
reporting
standards
applicable
to other
investments
held
by the
Fund.
Typically,
the
most
recently
available
information
by
a
Private
Company
is
as
of
a
date
that
is
earlier
than
the
date the
Fund
is
calculating
its
NAV.
This
factor
may
result
in
a
difference
between
the
value
of
the
investment
and
the
price the
Fund
could
receive
upon
the
sale
of
the
investment.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows: 
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
—
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market–corroborated
inputs);
and 
Level
3 —
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Global
Valuation
Committee's assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Global
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
Private
Companies
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
SECURITIES
AND
OTHER
INVESTMENTS 
Asset-Backed
and
Mortgage-Backed
Securities:
Asset-backed
securities
are
generally
issued
as
pass-through
certificates
or
as
debt
instruments.
Asset-backed
securities
issued
as
pass-through
certificates
represent
undivided
fractional
ownership
interests
in
an
underlying
pool
of
assets.
Asset-backed
securities
issued
as
debt
instruments,
which
are
also
known
as
collateralized
obligations,
are
typically
issued
as
the
debt
of
a
special
purpose
entity
organized
solely
for
the
purpose
of
owning
such
assets
and
issuing
such
debt.
Asset-backed
securities
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
The
yield
characteristics
of
certain
asset-backed
securities
may
differ
from
traditional
debt
securities.
One
such
major
difference
is
that
all
or
a
principal
part
of
the
obligations
may
be
prepaid
at
any
time
because
the
underlying
assets
(i.e.,
loans)
may
be
prepaid
at
any
time.
As
a
result,
a
decrease
in
interest
rates
in
the
market
may
result
in
increases
in
the
level
of
prepayments
as
borrowers,
particularly
mortgagors,
refinance
and
repay
their
loans.
An
increased
prepayment
rate
with
respect
to
an
asset-backed
security
will
have
the
effect
of
shortening
the
maturity
of
the
security.
In
addition,
a
fund
may
subsequently
have
to
reinvest
the
proceeds
at
lower
interest
rates.
If
a
fund
has
purchased
such
an
asset-backed
security
at
a
premium,
a
faster
than
anticipated
prepayment
rate
could
result
in
a
loss
of
principal
to
the
extent
of
the
premium
paid. 
For
mortgage
pass-through
securities
(the
“Mortgage
Assets”)
there
are
a
number
of
important
differences
among
the
agencies
and
instrumentalities
of
the
U.S.
Government
that
issue
mortgage-related
securities
and
among
the
securities
that
they
issue.
For
example,
mortgage-related
securities
guaranteed
by
Ginnie
Mae
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
Ginnie
Mae
and
such
guarantee
is
backed
by
the
full
faith
and
credit
of
the
United
States.
However,
mortgage-related
securities
issued
by
Freddie
Mac
and
Fannie
Mae,
including
Freddie
Mac
and
Fannie
Mae
guaranteed
mortgage
pass-through
certificates,
which
are
solely
the
obligations
of
Freddie
Mac
and
Fannie
Mae,
are
not
backed
by
or
entitled
to
the
full
faith
and
credit
of
the
United
States,
but
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Treasury.
Non-agency
mortgage-backed
securities
are
securities
issued
by
non-governmental
issuers
and
have
no
direct
or
indirect
government
guarantees
of
payment
and
are
subject
to
various
risks.
Non-agency
mortgage
loans
are
obligations
of
the
borrowers
thereunder
only
and
are
not
typically
insured
or
guaranteed
by
any
other
person
or
entity.
The
ability
of
a
borrower
to
repay
a
loan
is
dependent
upon
the
income
or
assets
of
the
borrower.
A
number
of
factors,
including
a
general
economic
downturn,
acts
of
God,
terrorism,
social
unrest
and
civil
disturbances,
may
impair
a
borrower’s
ability
to
repay
its
loans.
Zero-Coupon
Bonds:
Zero-coupon
bonds
are
normally
issued
at
a
significant
discount
from
face
value
and
do
not
provide
for
periodic
interest
payments.
These
bonds
may
experience
greater
volatility
in
market
value
than
other
debt
obligations
of
similar
maturity
which
provide
for
regular
interest
payments. 
Capital
Securities
and
Trust
Preferred
Securities:
Capital
securities,
including
trust
preferred
securities,
are
typically
issued
by
corporations,
generally
in
the
form
of
interest-bearing
notes
with
preferred
securities
characteristics.
In
the
case
of
trust
preferred
securities,
an
affiliated
business
trust
of
a
corporation
issues
these
securities,
generally
in
the
form
of
beneficial
interests
in
subordinated
debentures
or
similarly
structured
securities.
The
securities
can
be
structured
with
either
a
fixed
or
adjustable
coupon
that
can
have
either
a
perpetual
or
stated
maturity
date.
For
trust
preferred
securities,
the
issuing
bank
or
corporation
pays
interest
to
the
trust,
which
is
then
distributed
to
holders
of
these
securities
as
a
dividend.
Dividends
can
be
deferred
without
creating
an
event
of
default
or
acceleration,
although
maturity
cannot
take
place
unless
all
cumulative
payment
obligations
have
been
met.
The
deferral
of
payments
does
not
affect
the
purchase
or
sale
of
these
securities
in
the
open
market.
These
securities
generally
are
rated
below
that
of
the
issuing
company’s
senior
debt
securities
and
are
freely
callable
at
the
issuer’s
option. 
Floating
Rate
Loan
Interests:
Floating
rate
loan
interests
are
typically
issued
to
companies
(the
“borrower”)
by
banks,
other
financial
institutions,
or
privately
and
publicly
offered
corporations
(the
“lender”).
Floating
rate
loan
interests
are
generally
non-investment
grade,
often
involve
borrowers
whose
financial
condition
is
troubled
or
uncertain
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
36
and
companies
that
are
highly
leveraged
or
in
bankruptcy
proceedings.
In
addition,
transactions
in
floating
rate
loan
interests
may
settle
on
a
delayed
basis,
which
may
result
in
proceeds
from
the
sale
not
being
readily
available
for
a
fund
to
make
additional
investments
or
meet
its
redemption
obligations.
Floating
rate
loan
interests
may
include
fully
funded
term
loans
or
revolving
lines
of
credit.
Floating
rate
loan
interests
are
typically
senior
in
the
corporate
capital
structure
of
the
borrower.
Floating
rate
loan
interests
generally
pay
interest
at
rates
that
are
periodically
determined
by
reference
to
a
base
lending
rate
plus
a
premium.
Since
the
rates
reset
only
periodically,
changes
in
prevailing
interest
rates
(and
particularly
sudden
and
significant
changes)
can
be
expected
to
cause
some
fluctuations
in
the
NAV
of
a
fund
to
the
extent
that
it
invests
in
floating
rate
loan
interests.
The
base
lending
rates
are
generally
the
lending
rate
offered
by
one
or
more
European
banks,
such
as
the
London
Interbank
Offered
Rate
(“LIBOR”),
the
prime
rate
offered
by
one
or
more
U.S.
banks
or
the
certificate
of
deposit
rate.
Floating
rate
loan
interests
may
involve
foreign
borrowers,
and
investments
may
be
denominated
in
foreign
currencies.
These
investments
are
treated
as
investments
in
debt
securities
for
purposes
of
a
fund’s
investment
policies. 
When
a
fund
purchases
a
floating
rate
loan
interest,
it
may
receive
a
facility
fee
and
when
it
sells
a
floating
rate
loan
interest,
it
may
pay
a
facility
fee.
On
an
ongoing
basis,
a
fund
may
receive
a
commitment
fee
based
on
the
undrawn
portion
of
the
underlying
line
of
credit
amount
of
a
floating
rate
loan
interest.
Facility
and
commitment
fees
are
typically
amortized
to
income
over
the
term
of
the
loan
or
term
of
the
commitment,
respectively.
Consent
and
amendment
fees
are
recorded
to
income
as
earned.
Prepayment
penalty
fees,
which
may
be
received
by
a
fund
upon
the
prepayment
of
a
floating
rate
loan
interest
by
a
borrower,
are
recorded
as
realized
gains.
A
fund
may
invest
in
multiple
series
or
tranches
of
a
loan.
A
different
series
or
tranche
may
have
varying
terms
and
carry
different
associated
risks.
Floating
rate
loan
interests
are
usually
freely
callable
at
the
borrower’s
option.
A
fund
may
invest
in
such
loans
in
the
form
of
participations
in
loans
(“Participations”)
or
assignments
(“Assignments”)
of
all
or
a
portion
of
loans
from
third
parties.
Participations
typically
will
result
in
a
fund
having
a
contractual
relationship
only
with
the
lender,
not
with
the
borrower.
A
fund
has
the
right
to
receive
payments
of
principal,
interest
and
any
fees
to
which
it
is
entitled
only
from
the
lender
selling
the
Participation
and
only
upon
receipt
by
the
lender
of
the
payments
from
the
borrower.
In
connection
with
purchasing
Participations,
a
fund
generally
will
have
no
right
to
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement,
nor
any
rights
of
offset
against
the
borrower.
A
fund
may
not
benefit
directly
from
any
collateral
supporting
the
loan
in
which
it
has
purchased
the
Participation.
As
a
result,
a
fund
assumes
the
credit
risk
of
both
the
borrower
and
the
lender
that
is
selling
the
Participation.
A
fund’s
investment
in
loan
participation
interests
involves
the
risk
of
insolvency
of
the
financial
intermediaries
who
are
parties
to
the
transactions.
In
the
event
of
the
insolvency
of
the
lender
selling
the
Participation,
a
fund
may
be
treated
as
a
general
creditor
of
the
lender
and
may
not
benefit
from
any
offset
between
the
lender
and
the
borrower.
Assignments
typically
result
in
a
fund
having
a
direct
contractual
relationship
with
the
borrower,
and
a
fund
may
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement.
In
connection
with
floating
rate
loan
interests,
the
Fund
may
also
enter
into
unfunded
floating
rate
loan
interests
(“commitments”).
In
connection
with
these
commitments,
the
fund
earns
a
commitment
fee,
typically
set
as
a
percentage
of
the
commitment
amount.
Such
fee
income,
which
is
included
in
interest
income
in
the Statement
of
Operations,
is
recognized
ratably
over
the
commitment
period.
Unfunded
floating
rate
loan
interests
are
marked-to-market
daily,
and
any
unrealized
appreciation
(depreciation)
is
included
in
the
Statement
of
Assets
and
Liabilities
and
Statement
of
Operations.
As
of
period
end,
the
Fund
had
the
following
unfunded
floating
rate
loan
interests: 
Commitments:
Commitments
are
agreements
to
acquire
an
investment
at
a
future
date
(subject
to
conditions)
in
connection
with
a
potential
public
or
non-public
offering. 
Such
agreements
may
obligate
the
Fund
to
make
future
cash
payments. 
As
of
June
30,
2021
,
the Fund
had
outstanding
commit
ments
of
$374,680.
These
commitments
are
not
included
in
the
net
assets
of
the Fund
as
of
June
30,
2021
.
5.
Derivative
Financial
Instruments
The
Fund
engages
in
various
portfolio
investment
strategies
using
derivative
contracts
both
to
increase
the
returns
of
the
Fund
and/or
to
manage
its
exposure
to
certain
risks
such
as
credit
risk,
equity
risk,
interest
rate
risk,
foreign
currency
exchange
rate
risk,
commodity
price
risk
or
other
risks
(e.g.,
inflation
risk).
Derivative
financial
instruments
categorized
by
risk
exposure
are
included
in
the
Schedule
of
Investments.
These
contracts
may
be
transacted
on
an
exchange or
over-the-counter
(“OTC”).
Futures
Contracts:
Futures
contracts
are
purchased
or
sold
to
gain
exposure
to,
or
manage
exposure
to,
changes
in
interest
rates
(interest
rate
risk)
and
changes
in
the
value
of
equity
securities
(equity
risk)
or
foreign
currencies
(foreign
currency
exchange
rate
risk).
Futures
contracts
are
exchange-traded agreements
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
specific
quantity
of
an
underlying
instrument
at
a
specified
price
and
on
a
specified
date.
Depending
on
the
terms
of
a
contract,
it
is
settled
either
through
physical
delivery
of
the
underlying
instrument
on
the
settlement
date
or
by
payment
of
a
cash
amount
on
the
settlement
date.
Upon
entering
into
a
futures
contract,
the
Fund
is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
a
contract’s
size
and
risk
profile.
The
initial
margin
deposit
must
then
be
maintained
at
an
established
level
over
the
life
of
the
contract.
Amounts
pledged,
which
are
considered
restricted,
are
included
in
cash
pledged
for
futures
contracts
in
the Statement
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
an
amount
of
cash
equal
to
the
daily
fluctuation
in
market
value
of
the
contract
(“variation
margin”).
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and,
if
any,
shown
as
variation
margin
receivable
(or
payable)
on
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
notional
amount
of
the
contract
at
the
time
it
was
opened
and
the
notional
amount
at
the
time
it
was
closed.
The
use
of
futures
contracts
involves
the
risk
of
an
imperfect
correlation
in
the
movements
in
the
price
of
futures
contracts
and
interest
rates,
foreign
currency
exchange
rates
or
underlying
assets.
Forward
Foreign
Currency
Exchange
Contracts
:
Forward
foreign
currency
exchange
contracts
are
entered
into
to
gain
or
reduce
exposure
to
foreign
currencies
(foreign
currency
exchange
rate
risk).
Borrower
Par
Commitment
Amount
Value
Unrealized
Appreciation
(Depreciation)
LBM
Acquisition
LLC,
Delayed
Draw
1st
Lien
Term
Loan
.......................
$
5,478‌
$
5,423‌
$
5,436‌
$
13‌
Notes
to
Financial
Statements
(unaudited)
(continued)
37
Notes
to
Financial
Statements
A
forward
foreign
currency
exchange
contract
is
an
agreement
between
two
parties
to
buy
and
sell
a
currency
at
a
set
exchange
rate
on
a
specified
date.
These
contracts
help
to
manage
the
overall
exposure
to
the
currencies
in
which
some
of
the
investments
held
by
the
Fund
are
denominated
and
in
some
cases,
may
be
used
to
obtain
exposure
to
a
particular
market.
The
contracts
are
traded
OTC
and
not
on
an
organized
exchange.
The
contract
is
marked-to-market
daily
and
the
change
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
in
the
Statement
of
Assets
and
Liabilities.
When
a
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
value
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
Non-deliverable
forward
foreign
currency
exchange
contracts
are
settled
with
the
counterparty
in
cash
without
the
delivery
of
foreign
currency.
The
use
of
forward
foreign
currency
exchange
contracts
involves
the
risk
that
the
value
of
a
forward
foreign
currency
exchange
contract
changes
unfavorably
due
to
movements
in
the
value
of
the
referenced
foreign
currencies,
and
such
value
may
exceed
the
amount(s)
reflected
in
the
Statement
of
Assets
and
Liabilities.
Cash
amounts
pledged
for
forward
foreign
currency
exchange
contracts
are
considered
restricted
and
are
included
in
cash
pledged
as
collateral
for
OTC
derivatives
in
the
Statement
of
Assets
and
Liabilities.
A
Fund’s
risk
of
loss
from
counterparty
credit
risk
on
OTC
derivatives
is
generally
limited
to
the
aggregate
unrealized
gain
netted
against
any
collateral
held
by
the
Fund.
Swaps:
Swap
contracts
are
entered
into
to
manage
exposure
to
issuers,
markets
and
securities.
Such
contracts
are
agreements
between
the
Fund
and
a
counterparty
to
make
periodic
net
payments
on
a
specified
notional
amount
or
a
net
payment
upon
termination.
Swap
agreements
are
privately
negotiated
in
the
OTC
market
and
may
be
entered
into
as
a
bilateral
contract
(“OTC
swaps”)
or
centrally
cleared
(“centrally
cleared
swaps”).
For
OTC
swaps,
any
upfront
premiums
paid
and
any
upfront
fees
received
are
shown
as
swap
premiums
paid
and
swap
premiums
received,
respectively,
in
the
Statement
of
Assets
and
Liabilities
and
amortized
over
the
term
of
the
contract.
The
daily
fluctuation
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
on
OTC
Swaps
in
the
Statement
of
Assets
and
Liabilities.
Payments
received
or
paid
are
recorded
in
the
Statement
of
Operations
as
realized
gains
or
losses,
respectively.
When
an
OTC
swap
is
terminated,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
proceeds
from
(or
cost
of)
the
closing
transaction
and
the
Fund’s
basis
in
the
contract,
if
any.
Generally,
the
basis
of
the
contract
is
the
premium
received
or
paid.
In
a
centrally
cleared
swap,
immediately
following
execution
of
the
swap
contract,
the
swap
contract
is
novated
to
a
central
counterparty
(the
“CCP”)
and
the
CCP
becomes
the Fund’s
counterparty
on
the
swap.
The
Fund
is
required
to
interface
with
the
CCP
through
the
broker.
Upon
entering
into
a
centrally
cleared
swap,
the
Fund
is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
the
size
and
risk
profile
of
the
particular
swap. Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited
is
shown
as
cash
pledged
for
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities. Amounts
pledged,
which
are
considered
restricted
cash,
are
included
in
cash
pledged
for
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
variation
margin.
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and
shown
as
variation
margin
receivable
(or
payable)
on
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities.
Payments
received
from
(paid
to)
the
counterparty
are
amortized
over
the
term
of
the
contract
and
recorded
as
realized
gains
(losses)
in
the
Statement
of
Operations,
including
those
at
termination.
Credit
default
swaps
—
Credit
default
swaps
are
entered
into
to
manage
exposure
to
the
market
or
certain
sectors
of
the
market,
to
reduce
risk
exposure
to
defaults
of
corporate
and/or
sovereign
issuers
or
to
create
exposure
to
corporate
and/or
sovereign
issuers
to
which
a
fund
is
not
otherwise
exposed
(credit
risk).
The
Fund
may
either
buy
or
sell
(write)
credit
default
swaps
on
single-name
issuers
(corporate
or
sovereign),
a
combination
or
basket
of
single-name
issuers
or
traded
indexes.
Credit
default
swaps
are
agreements
in
which
the
protection
buyer
pays
fixed
periodic
payments
to
the
seller
in
consideration
for
a
promise
from
the
protection
seller
to
make
a
specific
payment
should
a
negative
credit
event
take
place
with
respect
to
the
referenced
entity
(e.g.,
bankruptcy,
failure
to
pay,
obligation
acceleration,
repudiation,
moratorium
or
restructuring).
As
a
buyer,
if
an
underlying
credit
event
occurs,
the
Fund
will
either
(i)
receive
from
the
seller
an
amount
equal
to
the
notional
amount
of
the
swap
and
deliver
the
referenced
security
or
underlying
securities
comprising
the
index,
or
(ii)
receive
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
As
a
seller
(writer),
if
an
underlying
credit
event
occurs,
the
Fund
will
either
pay
the
buyer
an
amount
equal
to
the
notional
amount
of
the
swap
and
take
delivery
of
the
referenced
security
or
underlying
securities
comprising
the
index
or
pay
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risk
in
excess
of
the
amounts
recognized
in
the
Statement
of
Assets
and
Liabilities.
Such
risks
involve
the
possibility
that
there
will
be
no
liquid
market
for
these
agreements,
that
the
counterparty
to
the
agreements
may
default
on
its
obligation
to
perform
or
disagree
as
to
the
meaning
of
the
contractual
terms
in
the
agreements,
and
that
there
may
be
unfavorable
changes
in
interest
rates
and/or
market
values
associated
with
these
transactions.
Master
Netting
Arrangements:
In
order
to
define
its
contractual
rights
and
to
secure
rights
that
will
help
it mitigate its
counterparty
risk, the
Fund
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
its
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between a
Fund
and
a
counterparty
that
governs
certain
OTC
derivatives
and
typically
contains,
among
other
things,
collateral
posting
terms
and
netting
provisions
in
the
event
of
a
default
and/or
termination
event.
Under
an
ISDA
Master
Agreement, a
Fund
may,
under
certain
circumstances,
offset
with
the
counterparty
certain
derivative
financial
instruments’
payables
and/or
receivables
with
collateral
held
and/or
posted
and
create
one
single
net
payment.
The
provisions
of
the
ISDA
Master
Agreement
typically
permit
a
single
net
payment
in
the
event
of
default
including
the
bankruptcy
or
insolvency
of
the
counterparty.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
the
right
of
offset
in
bankruptcy,
insolvency
or
other
events.
Collateral
Requirements:
For
derivatives
traded
under
an
ISDA
Master
Agreement,
the
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement
and
comparing
that
amount
to
the
value
of
any
collateral
currently
pledged
by
the
Fund
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
obligations
of
the
Fund
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statement
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
and
cash
received
as
collateral,
respectively.
Non-cash
collateral
pledged
by
the
Fund,
if
any,
is
noted
in
the
Schedule
of
Investments.
Generally,
the
amount
of
collateral
due
from
or
to
a
counterparty
is
subject
to
a
certain
minimum
transfer
amount
threshold
before
a
transfer
is
required,
which
is
determined
at
the
close
of
business
of
the
Fund.
Any
additional
required
collateral
is
delivered
to/pledged
by
the
Fund
on
the
next
business
day.
Typically,
the
counterparty
is
not
permitted
to
sell,
re-pledge
or
use
cash
and
non-cash
collateral
it
receives.
The
Fund
generally
agrees
not
to
use
non-cash
collateral
that
it
receives
but
may,
absent
default
or
certain
other
circumstances
defined
in
the
underlying
ISDA
Master
Agreement,
be
permitted
to
use
cash
collateral
received.
In
such
cases,
interest
may
be
paid
pursuant
to
the
collateral
arrangement
with
the
counterparty.
To
the
extent
amounts
due
to
the
Fund
from the
counterparties
are
not
fully
collateralized, the
Fund bears
the
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
38
risk
of
loss
from
counterparty
non-performance.
Likewise,
to
the
extent
the
Fund
has
delivered
collateral
to
a
counterparty
and
stands
ready
to
perform
under
the
terms
of
its
agreement
with
such
counterparty, the
Fund bears the
risk
of
loss
from
a
counterparty
in
the
amount
of
the
value
of
the
collateral
in
the
event
the
counterparty
fails
to
return
such
collateral.
Based
on
the
terms
of
agreements,
collateral
may
not
be
required
for
all
derivative
contracts.
For
financial
reporting
purposes,
the
Fund
does
not
offset
derivative
assets
and
derivative
liabilities
that
are
subject
to
netting
arrangements,
if
any,
in
the
Statement
of
Assets
and
Liabilities.
6.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES 
Investment
Advisory:
The
Company,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”)
,
to
provide
investment
advisory
and
administrative
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
based
on
a
percentage
of
the
aggregate
average
daily
net
assets
of
the
Fund
and
BlackRock
Total
Return
V.I.
Fund,
a
series
of
the
Company,
at
the
following
annual
rates:
For
the
six
months
ended
June
30,
2021,
the
aggregate
average
daily
net
assets
of
the
Fund
and
BlackRock
Total
Return
V.I.
Fund
were
approximately
$1,455,894,480.
For
the six
months
ended
June
30,
2021,
the
Fund
reimbursed
the
Manager $2,668
for
certain
accounting
services,
which
is
included
in
accounting
services
in
the
Statement
of
Operations.
The
Manager
entered
into a
sub-advisory
agreement
with
BlackRock
International
Limited
(“BIL”),
an
affiliate
of
the
Manager. The
Manager
pays
BIL for
services
it provides
for
that
portion
of
the
Fund
for
which
BIL
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by the
Fund
to
the
Manager.
Distribution
Fees:
 The
Company
,
on behalf
of
the
Fund,
entered
into
a
Distribution
Agreement
and
a Distribution Plan
with
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
the
Manager.
Pursuant
to
the
Distribution
Plan
and
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Fund
pays
BRIL
ongoing
distribution
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
an
annual
rate
of
0.25%
based
upon
the
average
daily
net
assets
attributable
to
Class
III
.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
distribution
services to
the
Fund.
The
ongoing
distribution
fee compensates
BRIL
and
each
broker-dealer
for
providing
shareholder
distribution related
services
to
shareholders.
For
the six
months
ended
June
30,
2021,
the
class
specific
distribution
fees
borne
directly
by Class
III
were
$621,249.
Transfer
Agent:
On
behalf
of
the
Fund,
the
Manager
entered
into
agreements
with
insurance
companies
and
other
financial
intermediaries
(“Service
Organizations”),
some
of
which
may
be
affiliates.
Pursuant
to
these
agreements,
the
Service
Organizations
provide
the
Fund
with
administrative,
networking,
recordkeeping,
sub-transfer
agency
and
shareholder
services
to
underlying
investor
accounts.
For
these
services,
the
Service
Organizations
receive
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets
of
Fund
shareholders
serviced
by
the
Service
Organizations
which
is
shown
as
transfer
agent
–
class
specific.
For
the
six
months
ended
June
30,
2021
,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
In
addition,
the
Fund
pays
the
transfer
agent,
which
is
not
an
affiliate,
a
fee
for
the
issuance,
transfer
and
redemption
of
shares
and
the
opening
and
maintenance
of
shareholder
accounts,
which
is
included
in
transfer
agent
in
the
Statement
of
Operations.
For
the
six
months ended
June
30,
2021,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Expense
Limitations,
Waivers
and
Reimbursements:
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
the
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
June
30,
2023.
The
contractual
agreement
may
be
terminated upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
of
fees
and
expenses
made
pursuant
to
the
expense
limitations
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver. This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2021,
the
amount
waived
was
$3,802.
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund’s
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2023.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
six
months
ended
June
30,
2021,
there
were
no
fees
waived
and/or
reimbursed
by
the
Manager
pursuant
to
this
arrangement.
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$250
Million
.......................................................................................................
0.55%
$250
Million
-
$500
Million
.................................................................................................
0.50
$500
Million
-
$750
Million
.................................................................................................
0.45
Greater
than
$750
Million
.................................................................................................
0.40
Class
I
..........................................................................................................
$
156,584‌
Class
III
.........................................................................................................
377,623‌
$
534,207‌
Notes
to
Financial
Statements
(unaudited)
(continued)
39
Notes
to
Financial
Statements
The
Manager
has
contractually
agreed
to
reimburse
certain
transfer
agent
fees
in
order
to
limit
such
expenses
to
a
percentage
of
average
daily
net
assets
as
follows:  
The
Manager
has
agreed
not
to
reduce
or
discontinue
the
contractual
expense
limitations
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
These
amounts
are
included
in
transfer
agent
fees
reimbursed
–
class
specific
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2021,
class
specific
expense
reimbursements
were
as
follows: 
The
Manager
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
tax
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
The
Manager
has
agreed
not
to
reduce
or
discontinue
these
contractual
expense
limitations
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of the
Fund. For
the
six
months
ended
June
30,
2021,
there
were
no
fees
waived
and/
or
reimbursed
by
the
Manager
pursuant
to
this
agreement.
Interfund
Lending:
In
accordance
with
an
exemptive
order
(
the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to borrow
under
the
Interfund
Lending
Program. 
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets,
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board. 
During the
period
ended
June
30,
2021,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Directors
and
Officers: 
Certain
directors
and/or
officers
of
the Company are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the 
Company's
Chief
Compliance
Officer,
which
is
included
in
Directors and
Officer
in
the
Statement
of
Operations. 
7.
PURCHASES
AND
SALES 
For
the six
months
ended
June
30,
2021,
purchases
and
sales
of
investments,
including
paydowns
and
excluding
short-term
investments, were $290,689,495
and
$213,755,940,
respectively.
8.
INCOME
TAX
INFORMATION 
It
is
the
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required. 
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction. 
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
June
30,
2021,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
As
of
December
31,
2020, the Fund
had
non-expiring
capital
loss
carryforwards
available
to
offset
future
realized
capital
gains
of
$13,249,400. 
Class
I
................................................................................................................
0.06‌%
Class
III
...............................................................................................................
0.05‌
Fund
Name/Share
Class
Transfer
Agent
Fees
Reimbursed
BlackRock
High
Yield
V.I.
Fund
Class
I
..........................................................................................................
$
100,126‌
Class
III
.........................................................................................................
253,349‌
$
353,475‌
Class
I
.............................................................................................................
1.25‌%
Class
III
............................................................................................................
1.50‌
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
40
As
of
June
30,
2021, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows: 
9.
BANK
BORROWINGS 
The
Company,
on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
(“Participating
Funds”),
is
a
party
to
a
364-day,
$2.25
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Fund
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Fund,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
one-month
LIBOR
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum
or
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed.
The
agreement
expires
in
April
2022
unless
extended
or
renewed.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
six
months ended
June
30,
2021,
the
Fund
did
not
borrow
under
the
credit
agreement.
10.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject. 
Market Risk:
The
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
the
Fund
to
reinvest
in
lower
yielding
securities. The
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
the
Fund’s
portfolio
will
decline
if
the Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
the
Fund
portfolio’s
current
earnings
rate.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund's
investments.
The duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
Valuation
Risk:
The
market
values
of
equities,
such
as
common
stocks
and
preferred
securities
or
equity
related
investments,
such
as
futures
and
options,
may
decline
due
to
general
market
conditions
which
are
not
specifically
related
to
a
particular
company.
They
may
also
decline
due
to
factors
which
affect
a
particular
industry
or
industries. The
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that the
Fund
reasonably
expects
cannot
be
sold
or
disposed
of
in
current
market
conditions
in
seven
calendar
days
or
less
without
the
sale
or
disposition
significantly
changing
the
market
value
of
the
investment. The
Fund
may
experience
difficulty
in
selling
illiquid
investments
in
a
timely
manner
at
the
price
that it
believes
the
investments
are
worth.
Prices
may
fluctuate
widely
over
short
or
extended
periods
in
response
to
company,
market
or
economic
news.
Markets
also
tend
to
move
in
cycles,
with
periods
of
rising
and
falling
prices.
This
volatility
may
cause
the
Fund’s
NAV
to
experience
significant
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of the
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which the
Fund
invests. 
The
price the
Fund
could
receive
upon
the
sale
of
any
particular
portfolio
investment
may
differ
from the
Fund’s
valuation
of
the
investment,
particularly
for
securities
that
trade
in
thin
or
volatile
markets
or
that
are
valued
using
a
fair
valuation
technique
or
a
price
provided
by
an
independent
pricing
service.
Changes
to
significant
unobservable
inputs
and
assumptions
(i.e.,
publicly
traded
company
multiples,
growth
rate,
time
to
exit)
due
to
the
lack
of
observable
inputs
may
significantly
impact
the
resulting
fair
value
and
therefore
the
Fund’s
results
of
operations.
As
a
result,
the
price
received
upon
the
sale
of
an
investment
may
be
less
than
the
value
ascribed
by the
Fund,
and the
Fund
could
realize
a
greater
than
expected
loss
or
lesser
than
expected
gain
upon
the
sale
of
the
investment. The
Fund’s
ability
to
value
its
investments
may
also
be
impacted
by
technological
issues
and/or
errors
by
pricing
services
or
other
third
party
service
providers. 
Counterparty
Credit
Risk:
The
Fund
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Fund
manages
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Fund
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Fund’s
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statement
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Fund. 
A
derivative
contract
may
suffer
a
mark-to-market
loss
if
the
value
of
the
contract
decreases
due
to
an
unfavorable
change
in
the
market
rates
or
values
of
the
underlying
instrument.
Losses
can
also
occur
if
the
counterparty
does
not
perform
under
the
contract.
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
High
Yield
V.I.
Fund
........................................
$
726,876,989‌
$
30,185,093‌
$
(3,377,524‌)
$
26,807,569‌
Notes
to
Financial
Statements
(unaudited)
(continued)
41
Notes
to
Financial
Statements
With
exchange-traded
futures,
there
is
less
counterparty
credit
risk
to
the
Fund
since
the
exchange
or
clearinghouse,
as
counterparty
to
such
instruments,
guarantees
against
a
possible
default.
The
clearinghouse
stands
between
the
buyer
and
the
seller
of
the
contract;
therefore,
credit
risk
is
limited
to
failure
of
the
clearinghouse.
While
offset
rights
may
exist
under
applicable
law, the
Fund
does
not
have
a
contractual
right
of
offset
against
a
clearing
broker
or
clearinghouse
in
the
event
of
a
default
(including
the
bankruptcy
or
insolvency).
Additionally,
credit
risk
exists
in exchange-traded
futures
with
respect
to
initial
and
variation
margin
that
is
held
in
a
clearing
broker’s
customer
accounts.
While
clearing
brokers
are
required
to
segregate
customer
margin
from
their
own
assets,
in
the
event
that
a
clearing
broker
becomes
insolvent
or
goes
into
bankruptcy
and
at
that
time
there
is
a
shortfall
in
the
aggregate
amount
of
margin
held
by
the
clearing
broker
for
all
its
clients,
typically
the
shortfall
would
be
allocated
on
a
pro
rata
basis
across
all
the
clearing
broker’s
customers,
potentially
resulting
in
losses
to
the
Fund. 
Concentration
Risk:
 A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
the
Fund's
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
high
yield
securities.
High
yield
securities
that
are
rated
below
investment-grade
(commonly
referred
to
as
“junk
bonds”)
or
are
unrated
may
be
deemed
speculative,
involve
greater
levels
of
risk
than
higher-rated
securities
of
similar
maturity
and
are
more
likely
to
default.
High
yield
securities
may
be
issued
by
less
creditworthy
issuers,
and
issuers
of
high
yield
securities
may
be
unable
to
meet
their
interest
or
principal
payment
obligations.
High
yield
securities
are
subject
to
extreme
price
fluctuations,
may
be
less
liquid
than
higher
rated
fixed-income
securities,
even
under
normal
economic
conditions,
and
frequently
have
redemption
features. 
The
Fund
invests
a
significant
portion
of
its
assets
in
fixed-income
securities
and/or
uses
derivatives
tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may
affect
the
value
and/or
liquidity
of
such
investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
increase
as
interest
rates
fall
and
decrease
as
interest
rates
rise.
The
Fund
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates.
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a phase
out of
the
LIBOR.
Although
many
LIBOR
rates
will
be
phased
out
by
the
end
of
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
Fund
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against,
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Fund
is
uncertain. 
11.
CAPITAL
SHARE
TRANSACTIONS 
Transactions
in
capital
shares
for
each
class
were
as
follows:
12.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Six
Months
Ended
06/30/21
Year
Ended
12/31/20
Shares
Amount
Shares
Amount
Class
I
Shares
sold
.............................................
4,741,087‌
$
35,910,284‌
13,734,356‌
$
99,683,568‌
Shares
issued
in
reinvestment
of
distributions
........................
578,320‌
4,379,324‌
1,250,039‌
8,899,981‌
Shares
redeemed
.........................................
(3,178,058‌)
(24,098,753‌)
(14,769,292‌)
(106,123,209‌)
Net
increase
...............................................
2,141,349‌
$
16,190,855‌
215,103‌
$
2,460,340‌
Class
III
Shares
sold
.............................................
15,185,189‌
$
114,993,802‌
51,857,389‌
$
372,553,853‌
Shares
issued
in
reinvestment
of
distributions
........................
1,446,317‌
10,944,759‌
2,662,655‌
18,972,539‌
Shares
redeemed
.........................................
(10,310,298‌)
(77,490,805‌)
(43,528,745‌)
(311,570,355‌)
Net
increase
...............................................
6,321,208‌
$
48,447,756‌
10,991,299‌
$
79,956,037‌
Total
Net
Increase
8,462,557‌
$
64,638,611‌
11,206,403‌
$
82,416,377‌
Glossary
of
Terms
Used
in
this
Report
2021
BlackRock
Semi-Annual
Report
to
Shareholders
42
Currency
Abbreviations
CAD
Canadian
Dollar
EUR
Euro
GBP
British
Pound
USD
United
States
Dollar
Portfolio
Abbreviations
DAC
Designated
Activity
Company
LIBOR
London
Interbank
Offered
Rate
MSCI
Morgan
Stanley
Capital
International
OTC
Over-the-counter
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
June
30,
2021
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2021
Semi-Annual
Report
(Unaudited)
BlackRock
Variable
Series
Funds
II,
Inc.
BlackRock
Total
Return
V.I.
Fund
Fund
Summary
as
of
June
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
2
BlackRock
Total
Return
V.I.
Fund
Investment
Objective
BlackRock
Total
Return
V.I.
Fund’s
(the
“Fund”)
investment
objective
is
to
maximize
total
return,
consistent
with
income
generation
and
prudent
investment
management.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
June
30,
2021,
the
Fund
outperformed
its
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index.
What
factors
influenced
performance?
Positions
in
U.S.
high-yield
bonds
and
structured
products
contributed
to
performance,
reflecting
the
relative
strength
in
the
credit
sectors
versus
the
market
as
a
whole.
The
Fund’s
duration
was
below
that
of
the
benchmark,
which
added
value
given
that
yields
rose.
(Duration
is
measure
of
interest-rate
sensitivity).
Macro
strategies,
emerging
market
debt,
and
absolute
return
strategies
were
the
primary
detractors.
The
Fund
held
derivatives
in
the
form
of
futures,
options,
interest-rate
swaps,
and
currency
forward
contracts
to
manage
duration
and
portfolio
risk.
The
Fund’s
use
of
derivatives
detracted
from
Fund
performance
during
the
period.
Describe
recent
portfolio
activity.
The
investment
adviser
trimmed
duration,
increasing
the
extent
of
the
underweight
versus
the
benchmark.
The
underweight
was
primarily
concentrated
in
the
United
States,
given
the
investment
adviser’s
view
that
duration
has
become
a
less
effective
way
to
balance
credit
risk
at
a
time
in
which
improving
growth
and
the
re-opening
of
the
economy
appeared
likely
to
push
rates
higher.
The
Fund
instead
used
cash
as
a
way
to
offset
credit
risk.
The
investment
adviser
also
identified
opportunities
in
European
peripheral
bonds,
emerging
market
bonds
and
Chinese
government
debt.
In
addition,
the
investment
adviser
moved
down
the
capital
structure
into
U.S.
high
yield
bonds,
hard-currency
emerging
market
corporates,
and
structured
products
due
to
their
attractive
income
profile
in
a
low-rate
regime.
Describe
portfolio
positioning
at
period
end.
The
Fund’s
cash
position
stood
at
7%
at
the
end
of
June,
reflecting
the
investment
adviser’s
preference
for
holding
cash
over
higher-quality,
rate-sensitive
securities.
The
Fund’s
cash
position
did
not
have
any
material
impact
on
Fund
performance.
The
Fund
held
a
barbell
allocation.
On
one
end,
it
favored
high-quality
bonds
alongside
the
cash
position.
On
the
other
end
of
the
barbell,
it
held
a
modest
allocation
to
emerging
market
debt,
high
yield
credit,
and
structured
products.
The
investment
adviser
continued
to
look
for
opportunities
to
build
the
Fund’s
income
profile.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
June
30,
2021
(continued)
3
Fund
Summary
BlackRock
Total
Return
V.I.
Fund
Performance
Summary
for
the
Period
Ended
June
30,
2021
Portfolio
Information
Average
Annual
Total
Returns
(a)
Standardized
30-Day
Yields
(b)
Unsubsidized
30-Day
Yields
(b)
6-Month
Total
Returns
(a)
1
Year
5
Years
10
Years
Class
I
(c)(d)
.......................................
1.57‌%
1.41‌%
(1.39‌)%
1.55‌%
3.49‌%
3.97‌%
Class
III
(c)(d)
......................................
1.27‌
1.19‌
(1.49‌)
1.23‌
3.17‌
3.66‌
(
e
)
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
(f)
—‌
—‌
(1.60‌)
(0.33‌)
3.03‌
3.39‌
(a)
For
a
portion
of
the
period,
the
Fund's
investment
adviser
waived
a
portion
of
its
fee.
Without
such
waiver,
the
Fund's
performance
would
have
been
lower.
(b)
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
(c)
Average
annual
and
cumulative
total
returns
are
based
on
changes
in
net
asset
value
for
the
periods
shown,
and
assume
reinvestment
of
all
distributions
at
net
asset
value
on
the
ex-dividend/
payable
date.
Insurance-related
fees
and
expenses
are
not
reflected
in
these
returns.
(d)
Under
normal
circumstances,
the
Fund
invests
at
least
80%,
and
typically
invests
90%
or
more,
of
its
assets
in
fixed
income
securities,
such
as
corporate
bonds
and
notes,
mortgage-backed
securities,
asset-backed
securities,
convertible
securities,
preferred
securities,
government
obligations
and
money
market
securities.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
Total
Return
V.I.
Fund
(the
"Predecessor
Fund"),
a
series
of
BlackRock
Variable
Series
Funds,
Inc.,
through
a
tax-free
reorganization
(the
"Reorganization
").
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
(e)
The
returns
for
Class
III
Shares
prior
to
August
14,
2012,
the
recommencement
of
operations
of
Class
III
Shares,
are
based
upon
the
performance
of
the
Predecessor
Fund’s
Class
I
Shares,
as
adjusted
to
reflect
the
distribution
(12b-1)
fees
applicable
to
Class
III
Shares.
(f)
A
broad-based
flagship
benchmark
that
measures
the
investment
grade,
U.S.
dollar-denominated,
fixed-rate
taxable
bond
market.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
36‌
%
Corporate
Bonds
...................................
29‌
U.S.
Treasury
Obligations
.............................
13‌
Investment
Companies
...............................
11‌
Foreign
Government
Obligations
........................
6‌
Asset-Backed
Securities
..............................
3‌
Non-Agency
Mortgage-Backed
Securities
..................
1‌
Municipal
Bonds
...................................
1‌
Foreign
Agency
Obligations
............................
—‌
(b)
Capital
Trusts
.....................................
—‌
(b)
Floating
Rate
Loan
Interests
...........................
—‌
(b)
Other
Interests
....................................
—‌
(b)
(a)
Excludes
short-term
securities,
options
purchased,
options
written
and
TBA
sale
commitments.
(b)
Represents
less
than
1%
of
the
Fund's
total
investments.
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(a)
Percent
of
Total
Investments
(b)
AAA/
Aaa
(c)
......................................
5
2‌
%
AA/Aa
.........................................
2‌
A
............................................
15‌
BBB/Baa
.......................................
16‌
BB/Ba
.........................................
2‌
B
............................................
1‌
CCC/
Caa
.......................................
—‌
(d)
CC/Ca
........................................
—‌
(d)
C
............................................
—‌
(d)
NR
...........................................
12‌
(a)
For
financial
reporting
purposes,
credit
quality
ratings
shown
above
reflect
the
highest
rating
assigned
by
either
S&P
Global
Ratings
or
Moody’s
Investors
Service
if
ratings
differ.
These
rating
agencies
are
independent,
nationally
recognized
statistical
rating
organizations
and
are
widely
used.
Investment
grade
ratings
are
credit
ratings
of
BBB/
Baa
or
higher.
Below
investment
grade
ratings
are
credit
ratings
of
BB/Ba
or
lower.
Investments
designated
NR
are
not
rated
by
either
rating
agency.
Unrated
investments
do
not
necessarily
indicate
low
credit
quality.
Credit
quality
ratings
are
subject
to
change.
(b)
Excludes
short-term
securities,
options
purchased,
options
written,
TBA
sale
commitments
and
investments
sold
short.
(c)
The
investment
adviser
evaluates
the
credit
quality
of
unrated
investments
based
upon
certain
factors
including,
but
not
limited
to,
credit
ratings
for
similar
investments
and
financial
analysis
of
sectors,
individual
investments
and/or
issuers.
Using
this
approach,
the
investment
adviser
has
deemed
unrated
U.S.
Government
Sponsored
Agency
Securities
and
U.S.
Treasury
Obligations
to
be
of
similar
credit
quality
as
investments
rated
AAA/Aaa.
(d)
Represents
less
than
1%
of
the
Fund's
total
investments.
The
Benefits
and
Risks
of
Leveraging
2021
BlackRock
Semi-Annual
Report
to
Shareholders
4
The
Fund
may
utilize
leverage
to
seek
to
enhance
returns
and
net
asset
value
(“NAV”).
However,
there
is
no
guarantee
that
these
objectives
can
be
achieved
in
all
interest
rate
environments.  
The
Fund
may
utilize
leverage
by
entering
into
reverse
repurchase
agreements. 
In
general,
the
concept
of
leveraging
is
based
on
the
premise
that
the
financing
cost
of
leverage,
which
is
based
on
short-term
interest
rates,
is
normally
lower
than
the
income
earned
by
the
Fund
on
its
longer-term
portfolio
investments
purchased
with
the
proceeds
from
leverage.
To
the
extent
that
the
total
assets
of
the
Fund
(including
the
assets
obtained
from
leverage)
are
invested
in
higher-yielding
portfolio
investments,
the
Fund’s
shareholders
benefit
from
the
incremental
net
income.
The
interest
earned
on
securities
purchased
with
the
proceeds
from
leverage
is
distributed
to
the
Fund’s
shareholders,
and
the
value
of
these
portfolio
holdings
is
reflected
in
the
Fund’s
per
share
NAV.
However,
in
order
to
benefit
shareholders,
the
return
on
assets
purchased
with
leverage
proceeds
must
exceed
the
ongoing
costs
associated
with
the
leverage.
If
interest
and
other
ongoing
costs
of
leverage
exceed
the
Fund’s
return
on
assets
purchased
with
leverage
proceeds,
income
to
shareholders
is
lower
than
if
the
Fund
had
not
used
leverage.
Furthermore,
the
value
of
the
Fund’s
portfolio
investments
generally
varies
inversely
with
the
direction
of
long-term
interest
rates,
although
other
factors
can
also
influence
the
value
of
portfolio
investments.
As
a
result,
changes
in
interest
rates
can
influence
the
Fund’s
NAV
positively
or
negatively
in
addition
to
the
impact
on
the
Fund’s
performance
from
leverage.
Changes
in
the
direction
of
interest
rates
are
difficult
to
predict
accurately,
and
there
is
no
assurance
that
the
Fund’s
leveraging
strategy
will
be
successful.
The
use
of
leverage
also
generally
causes
greater
changes
in
the
Fund’s
NAV
and
dividend
rates
than
comparable
portfolios
without
leverage.
In
a
declining
market,
leverage
is
likely
to
cause
a
greater
decline
in
the
NAV
of the
Fund’s
shares
than
if
the
Fund
were
not
leveraged.
In
addition,
the
Fund
may
be
required
to
sell
portfolio
securities
at
inopportune
times
or
at
distressed
values
in
order
to
comply
with
regulatory
requirements
applicable
to
the
use
of
leverage
or
as
required
by
the
terms
of
the
leverage
instruments,
which
may
cause
the
Fund
to
incur
losses.
The
use
of
leverage
may
limit the
Fund’s
ability
to
invest
in
certain
types
of
securities
or
use
certain
types
of
hedging
strategies.
The
Fund
incurs
expenses
in
connection
with
the
use
of
leverage,
all
of
which
are
borne
by
the
Fund’s
shareholders
and
may
reduce
income.
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
on January
1,
2021 and
held
through
June
30,
2021)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.” 
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds. 
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only,
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Actual
Hypothetical
(a)
Beginning
Account
Value
(01/01/21)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(b)
Beginning
Account
Value
(01/01/21)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(b)
Annualized
Expense
Ratio
Class
I
..................................
$
1,000.00
$
986.10
$
2.36
$
1,000.00
$
1,022.41
$
2.41
0.48%
Class
III
..................................
1,000.00
985.10
3.
89
1,000.00
1,020.
88
3.
96
0.
79
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
365.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Derivative
Financial
Instruments
5
Derivative
Financial
Instruments
The
Fund
may
invest
in
various
derivative
financial
instruments.
These
instruments
are
used
to
obtain
exposure
to
a
security,
commodity,
index,
market,
and/or
other
assets
without
owning
or
taking
physical
custody
of
securities,
commodities
and/or
other
referenced
assets
or
to
manage
market,
equity,
credit,
interest
rate,
foreign
currency
exchange
rate,
commodity
and/or
other
risks.
Derivative
financial
instruments
may
give
rise
to
a
form
of
economic
leverage
and
involve
risks,
including
the
imperfect
correlation
between
the
value
of
a
derivative
financial
instrument
and
the
underlying
asset,
possible
default
of
the
counterparty
to
the
transaction
or
illiquidity
of
the
instrument.
The
Fund’s
successful
use
of
a
derivative
financial
instrument
depends
on
the
investment
adviser’s
ability
to
predict
pertinent
market
movements
accurately,
which
cannot
be
assured.
The
use
of
these
instruments
may
result
in
losses
greater
than
if
they
had
not
been
used,
may
limit
the
amount
of
appreciation the
Fund
can
realize
on
an
investment
and/or
may
result
in
lower
distributions
paid
to
shareholders.
The
Fund’s
investments
in
these
instruments,
if
any,
are
discussed
in
detail
in
the
Notes
to
Financial
Statements.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
—
3.2%
ACE
Securities
Corp.
Home
Equity
Loan
Trust
(a)
:
Series
2003-OP1,
Class
A2,
(LIBOR
USD
1
Month
+
0.72%),
0.81%,
12/25/33
....
USD
122
$
113,416
Series
2007-HE4,
Class
A2A,
(LIBOR
USD
1
Month
+
0.26%),
0.35%,
05/25/37
....
91
21,365
Adams
Mill
CLO
Ltd.,
Series
2014-1A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.10%),
1.28%,
07/15/26
(a)(b)
................
41
40,949
Ajax
Mortgage
Loan
Trust
(b)
:
Series
2018-A,
Class
B,
0.00%,
04/25/58
..
5
4,132
Series
2018-B,
Class
B,
0.00%,
02/26/57
..
21
9,703
Series
2018-D,
Class
A,
3.75%,
08/25/58
(a)(c)
313
315,762
Series
2018-D,
Class
B,
0.00%,
08/25/58
(a)(c)
109
70,427
Series
2018-E,
Class
A,
4.38%,
06/25/58
(a)
181
181,897
Series
2018-E,
Class
B,
5.25%,
06/25/58
(a)(c)
100
100,840
Series
2018-E,
Class
C,
0.00%,
06/25/58
(a)
96
85,870
Series
2018-F,
Class
C,
0.00%,
11/25/58
(c)
.
23
13,506
Series
2018-G,
Class
A,
4.38%,
06/25/57
(a)(c)
424
423,531
Series
2018-G,
Class
B,
5.25%,
06/25/57
(a)(c)
103
77,765
Series
2018-G,
Class
C,
5.25%,
06/25/57
(c)
226
222,641
Series
2019-A,
Class
A,
3.75%,
08/25/57
(a)
391
396,860
Series
2019-A,
Class
B,
5.25%,
08/25/57
(a)
100
99,060
Series
2019-A,
Class
C,
0.00%,
08/25/57
(c)
185
152,911
Series
2019-B,
Class
A,
3.75%,
01/25/59
(a)
668
677,169
Series
2019-B,
Class
B,
5.25%,
01/25/59
(a)(c)
117
88,335
Series
2019-B,
Class
C,
0.00%,
01/25/59
(c)
298
255,771
Allegro
CLO
II-S
Ltd.,
Series
2014-1RA,
Class
A1,
(LIBOR
USD
3
Month
+
1.08%),
1.27%,
10/21/28
(a)(b)
.....................
491
483,363
American
Homes
4
Rent
Trust,
Series
2014-
SFR3,
Class
A,
3.68%,
12/17/36
(b)
......
176
187,574
Anchorage
Capital
CLO
1-R
Ltd.,
Series
2018-
1RA,
Class
A1,
(LIBOR
USD
3
Month
+
0.99%),
1.18%,
04/13/31
(a)(b)
..........
310
309,420
Anchorage
Capital
CLO
4-R
Ltd.
(a)(b)
:
Series
2014-4RA,
Class
A,
(LIBOR
USD
3
Month
+
1.05%),
1.23%,
01/28/31
....
250
250,137
Series
2014-4RA,
Class
C,
(LIBOR
USD
3
Month
+
1.85%),
2.03%,
01/28/31
....
250
248,140
Anchorage
Capital
CLO
5-R
Ltd.
(a)(b)
:
Series
2014-5RA,
Class
B,
(LIBOR
USD
3
Month
+
1.45%),
1.63%,
01/15/30
....
500
496,995
Series
2014-5RA,
Class
C,
(LIBOR
USD
3
Month
+
1.85%),
2.03%,
01/15/30
....
250
248,501
Anchorage
Capital
CLO
Ltd.,
Series
2013-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.25%),
1.44%,
10/13/30
(a)(b)
................
250
250,006
Apidos
CLO
XII,
Series
2013-12A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.26%,
04/15/31
(a)(b)
.....................
500
500,025
Apidos
CLO
XV,
Series
2013-15A,
Class
A1RR,
(LIBOR
USD
3
Month
+
1.01%),
1.20%,
04/20/31
(a)(b)
.....................
500
500,037
Ares
XXXVII
CLO
Ltd.,
Series
2015-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.17%),
1.35%,
10/15/30
(a)(b)
................
250
250,024
Argent
Mortgage
Loan
Trust,
Series
2005-W1,
Class
A2,
(LIBOR
USD
1
Month
+
0.24%),
0.33%,
05/25/35
(a)
.................
42
39,091
Avery
Point
V
CLO
Ltd.,
Series
2014-5A,
Class
AR,
(LIBOR
USD
3
Month
+
0.98%),
1.17%,
07/17/26
(a)(b)
.....................
18
17,918
Babson
CLO
Ltd.,
Series
2015-2A,
Class
AR,
(LIBOR
USD
3
Month
+
1.19%),
1.38%,
10/20/30
(a)(b)
.....................
260
260,061
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
BankAmerica
Manufactured
Housing
Contract
Trust,
Series
1998-2,
Class
B1,
7.43%,
12/10/25
(a)
......................
USD
300
$
120,546
Bayview
Financial
Revolving
Asset
Trust
(a)(b)
:
Series
2004-B,
Class
A1,
(LIBOR
USD
1
Month
+
1.00%),
1.10%,
05/28/39
(c)
...
92
78,973
Series
2005-A,
Class
A1,
(LIBOR
USD
1
Month
+
1.00%),
1.10%,
02/28/40
....
124
118,586
Series
2005-E,
Class
A1,
(LIBOR
USD
1
Month
+
1.00%),
1.10%,
12/28/40
....
44
40,585
BCMSC
Trust
(a)
:
Series
2000-A,
Class
A2,
7.58%,
06/15/30
.
40
9,430
Series
2000-A,
Class
A3,
7.83%,
06/15/30
.
37
9,052
Series
2000-A,
Class
A4,
8.29%,
06/15/30
.
27
6,935
BDS
Ltd.,
Series
2019-FL3,
Class
A,
(LIBOR
USD
1
Month
+
1.40%),
1.48%,
12/15/35
(a)(b)
123
123,486
Bear
Stearns
Asset-Backed
Securities
I
Trust
(a)
:
Series
2007-FS1,
Class
1A3,
(LIBOR
USD
1
Month
+
0.17%),
0.26%,
05/25/35
....
28
27,307
Series
2007-HE2,
Class
23A,
(LIBOR
USD
1
Month
+
0.14%),
0.23%,
03/25/37
....
32
30,496
Series
2007-HE3,
Class
1A4,
(LIBOR
USD
1
Month
+
0.35%),
0.44%,
04/25/37
....
195
188,881
Benefit
Street
Partners
CLO
VI
Ltd.,
Series
2015-VIA,
Class
A1R,
(LIBOR
USD
3
Month
+
1.24%),
1.43%,
10/18/29
(a)(b)
.........
250
250,046
BlueMountain
CLO
Ltd.
(a)(b)
:
Series
2013-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.23%),
1.42%,
01/20/29
....
216
216,449
Series
2013-2A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.18%),
1.36%,
10/22/30
....
490
490,244
Carrington
Mortgage
Loan
Trust,
Series
2006-
NC4,
Class
A3,
(LIBOR
USD
1
Month
+
0.16%),
0.25%,
10/25/36
(a)
...........
53
51,120
CBAM
Ltd.,
Series
2017-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.25%),
1.44%,
07/20/30
(a)(b)
250
250,015
C-BASS
Trust,
Series
2006-CB7,
Class
A4,
(LIBOR
USD
1
Month
+
0.16%),
0.25%,
10/25/36
(a)
......................
48
40,361
Cedar
Funding
VIII
CLO
Ltd.,
Series
2017-8A,
Class
A1,
(LIBOR
USD
3
Month
+
1.25%),
1.44%,
10/17/30
(a)(b)
................
510
510,252
CIFC
Funding
Ltd.,
Series
2014-4RA,
Class
A1A,
(LIBOR
USD
3
Month
+
1.13%),
1.32%,
10/17/30
(a)(b)
................
540
539,891
Citigroup
Mortgage
Loan
Trust
(a)
:
Series
2007-AHL2,
Class
A3B,
(LIBOR
USD
1
Month
+
0.20%),
0.29%,
05/25/37
...
196
156,613
Series
2007-AHL2,
Class
A3C,
(LIBOR
USD
1
Month
+
0.27%),
0.36%,
05/25/37
...
89
71,710
Conseco
Finance
Corp.
(a)
:
Series
1997-3,
Class
M1,
7.53%,
03/15/28
.
33
34,067
Series
1997-6,
Class
M1,
7.21%,
01/15/29
.
21
21,654
Series
1998-8,
Class
M1,
6.98%,
09/01/30
.
103
97,361
Series
1999-5,
Class
A5,
7.86%,
03/01/30
.
27
15,534
Series
1999-5,
Class
A6,
7.50%,
03/01/30
.
29
15,823
Series
2001-D,
Class
B1,
(LIBOR
USD
1
Month
+
2.50%),
2.57%,
11/15/32
....
43
39,205
Conseco
Finance
Securitizations
Corp.:
Series
2000-1,
Class
A5,
8.06%,
09/01/29
(a)
56
17,502
Series
2000-4,
Class
A6,
8.31%,
05/01/32
(a)
151
45,641
Series
2000-5,
Class
A7,
8.20%,
05/01/31
.
138
58,570
Countrywide
Asset-Backed
Certificates,
Series
2006-SPS1,
Class
A,
(LIBOR
USD
1
Month
+
0.22%),
0.31%,
12/25/25
(a)
..........
—
(d)
738
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Credit-Based
Asset
Servicing
&
Securitization
LLC:
Series
2006-CB2,
Class
AF4,
6.20%,
12/25/36
(e)
....................
USD
12
$
12,453
Series
2006-MH1,
Class
B1,
6.25%,
10/25/36
(b)(e)
...................
100
102,779
Series
2006-SL1,
Class
A2,
6.06%,
09/25/36
(b)(e)
...................
79
7,032
Series
2007-CB6,
Class
A4,
(LIBOR
USD
1
Month
+
0.34%),
0.43%,
07/25/37
(a)(b)
..
44
35,566
CWABS
Asset-Backed
Certificates
Trust
(a)
:
Series
2005-16,
Class
1AF,
5.69%,
04/25/36
103
100,973
Series
2006-11,
Class
3AV2,
(LIBOR
USD
1
Month
+
0.16%),
0.25%,
09/25/46
....
4
4,241
CWABS
Revolving
Home
Equity
Loan
Trust,
Series
2004-U,
Class
2A,
(LIBOR
USD
1
Month
+
0.27%),
0.34%,
03/15/34
(a)
.....
15
14,813
CWABS,
Inc.
Asset-Backed
Certificates
Trust,
Series
2004-5,
Class
A,
(LIBOR
USD
1
Month
+
0.90%),
0.99%,
10/25/34
(a)
.....
85
83,958
CWHEQ
Home
Equity
Loan
Trust,
Series
2006-
S5,
Class
A5,
6.16%,
06/25/35
.........
5
6,158
CWHEQ
Revolving
Home
Equity
Loan
Resuritization
Trust
(a)(b)
:
Series
2006-RES,
Class
4Q1B,
(LIBOR
USD
1
Month
+
0.30%),
0.37%,
12/15/33
...
12
10,790
Series
2006-RES,
Class
5B1B,
(LIBOR
USD
1
Month
+
0.19%),
0.26%,
05/15/35
...
5
4,549
CWHEQ
Revolving
Home
Equity
Loan
Trust
(a)
:
Series
2005-B,
Class
2A,
(LIBOR
USD
1
Month
+
0.18%),
0.25%,
05/15/35
....
8
8,310
Series
2006-C,
Class
2A,
(LIBOR
USD
1
Month
+
0.18%),
0.25%,
05/15/36
....
59
57,150
Series
2006-H,
Class
1A,
(LIBOR
USD
1
Month
+
0.15%),
0.22%,
11/15/36
....
39
34,369
Dorchester
Park
CLO
DAC,
Series
2015-1A,
Class
BR,
(LIBOR
USD
3
Month
+
1.45%),
1.64%,
04/20/28
(a)(b)
................
250
247,601
Dryden
53
CLO
Ltd.,
Series
2017-53A,
Class
A,
(LIBOR
USD
3
Month
+
1.12%),
1.30%,
01/15/31
(a)(b)
.....................
800
800,012
Dryden
XXV
Senior
Loan
Fund,
Series
2012-
25A,
Class
ARR,
(LIBOR
USD
3
Month
+
0.90%),
1.08%,
10/15/27
(a)(b)
..........
184
183,580
First
Franklin
Mortgage
Loan
Trust
(a)
:
Series
2004-FFH3,
Class
M3,
(LIBOR
USD
1
Month
+
1.05%),
1.14%,
10/25/34
...
33
31,903
Series
2006-FF16,
Class
2A3,
(LIBOR
USD
1
Month
+
0.14%),
0.23%,
12/25/36
...
627
361,566
Series
2006-FF17,
Class
A5,
(LIBOR
USD
1
Month
+
0.15%),
0.24%,
12/25/36
....
458
429,542
Series
2006-FFH1,
Class
M2,
(LIBOR
USD
1
Month
+
0.60%),
0.69%,
01/25/36
...
93
82,664
Fremont
Home
Loan
Trust,
Series
2006-3,
Class
1A1,
(LIBOR
USD
1
Month
+
0.28%),
0.37%,
02/25/37
(a)
.................
90
73,626
GE-WMC
Asset-Backed
Pass-Through
Certificates,
Series
2005-2,
Class
A2C,
(LIBOR
USD
1
Month
+
0.50%),
0.59%,
12/25/35
(a)
......................
5
5,211
GSAA
Home
Equity
Trust,
Series
2007-2,
Class
AF3,
5.92%,
03/25/37
(a)
.............
26
7,086
GSAMP
Trust
(a)
:
Series
2007-H1,
Class
A1B,
(LIBOR
USD
1
Month
+
0.20%),
0.29%,
01/25/47
....
25
16,021
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2007-HS1,
Class
M6,
(LIBOR
USD
1
Month
+
2.25%),
2.34%,
02/25/47
....
USD
40
$
43,134
Halcyon
Loan
Advisors
Funding
Ltd.,
Series
2015-2A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.26%,
07/25/27
(a)(b)
..........
85
84,645
Home
Equity
Asset
Trust,
Series
2007-1,
Class
2A3,
(LIBOR
USD
1
Month
+
0.30%),
0.39%,
05/25/37
(a)
......................
87
77,339
Home
Equity
Mortgage
Loan
Asset-Backed
Trust
(a)
:
Series
2004-A,
Class
M2,
(LIBOR
USD
1
Month
+
2.03%),
2.12%,
07/25/34
....
19
19,143
Series
2007-A,
Class
2A2,
(LIBOR
USD
1
Month
+
0.19%),
0.28%,
04/25/37
....
60
45,534
Home
Equity
Mortgage
Trust,
Series
2006-2,
Class
1A1,
5.87%,
07/25/36
(e)
.........
57
10,566
Home
Loan
Mortgage
Loan
Trust,
Series
2005-
1,
Class
A3,
(LIBOR
USD
1
Month
+
0.72%),
0.79%,
04/15/36
(a)
.................
18
17,033
HPS
Loan
Management
Ltd.,
Series
6A-2015,
Class
A1R,
(LIBOR
USD
3
Month
+
1.00%),
1.18%,
02/05/31
(a)(b)
................
248
248,435
ICG
US
CLO
Ltd.,
Series
2015-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.14%),
1.33%,
10/19/28
(a)(b)
.....................
238
238,052
Invitation
Homes
Trust,
Series
2018-SFR3,
Class
A,
(LIBOR
USD
1
Month
+
1.00%),
1.08%,
07/17/37
(a)(b)
................
118
117,788
Irwin
Home
Equity
Loan
Trust,
Series
2006-3,
Class
2A3,
6.53%,
09/25/37
(b)(e)
........
21
20,997
JPMorgan
Mortgage
Acquisition
Trust,
Series
2006-CW1,
Class
M1,
(LIBOR
USD
1
Month
+
0.41%),
0.50%,
05/25/36
(a)
..........
100
98,294
LCM
26
Ltd.,
Series
26A,
Class
A1,
(LIBOR
USD
3
Month
+
1.07%),
1.26%,
01/20/31
(a)(b)
280
280,000
LCM
XX
LP,
Series
20A,
Class
AR,
(LIBOR
USD
3
Month
+
1.04%),
1.23%,
10/20/27
(a)(b)
173
172,572
Lehman
ABS
Manufactured
Housing
Contract
Trust,
Series
2001-B,
Class
M1,
6.63%,
04/15/40
(a)
......................
57
60,051
Litigation
Fee
Residual
Funding
LLC,
Series
2015-1,  4.00%,
10/30/27
(c)
...........
19
19,220
Madison
Avenue
Manufactured
Housing
Contract
Trust,
Series
2002-A,
Class
B2,
(LIBOR
USD
1
Month
+
3.25%),
3.34%,
03/25/32
(a)
......................
20
20,310
Madison
Park
Funding
XIII
Ltd.,
Series
2014-
13A,
Class
AR2,
(LIBOR
USD
3
Month
+
0.95%),
1.14%,
04/19/30
(a)(b)
..........
580
579,820
Madison
Park
Funding
XVIII
Ltd.,
Series
2015-
18A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.19%),
1.38%,
10/21/30
(a)(b)
..........
510
510,102
Madison
Park
Funding
XXVI
Ltd.,
Series
2017-
26A,
Class
AR,
(LIBOR
USD
3
Month
+
1.20%),
1.38%,
07/29/30
(a)(b)
..........
270
270,100
Marble
Point
CLO
XI
Ltd.,
Series
2017-2A,
Class
A,
(LIBOR
USD
3
Month
+
1.18%),
1.37%,
12/18/30
(a)(b)
................
250
250,002
MASTR
Specialized
Loan
Trust,
Series
2006-3,
Class
A,
(LIBOR
USD
1
Month
+
0.26%),
0.35%,
06/25/46
(a)(b)
................
13
13,025
Merrill
Lynch
Mortgage
Investors
Trust
(a)
:
Series
2006-OPT1,
Class
M1,
(LIBOR
USD
1
Month
+
0.26%),
0.35%,
08/25/37
...
34
28,430
Series
2006-RM3,
Class
A2B,
(LIBOR
USD
1
Month
+
0.18%),
0.27%,
06/25/37
...
26
7,650
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
8
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Morgan
Stanley
ABS
Capital
I,
Inc.
Trust
(a)
:
Series
2005-HE1,
Class
A2MZ,
(LIBOR
USD
1
Month
+
0.60%),
0.69%,
12/25/34
...
USD
155
$
146,586
Series
2005-HE5,
Class
M4,
(LIBOR
USD
1
Month
+
0.87%),
0.96%,
09/25/35
....
130
94,460
MP
CLO
III
Ltd.,
Series
2013-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.25%),
1.44%,
10/20/30
(a)(b)
.....................
250
250,070
Navient
Private
Education
Loan
Trust,
Series
2014-AA,
Class
A2B,
(LIBOR
USD
1
Month
+
1.25%),
1.32%,
02/15/29
(a)(b)
.........
132
132,206
Neuberger
Berman
Loan
Advisers
CLO
26
Ltd.,
Series
2017-26A,
Class
A,
(LIBOR
USD
3
Month
+
1.17%),
1.36%,
10/18/30
(a)(b)
....
250
250,006
Oakwood
Mortgage
Investors,
Inc.
(a)
:
Series
2001-D,
Class
A2,
5.26%,
01/15/19
.
18
11,789
Series
2001-D,
Class
A4,
6.93%,
09/15/31
.
10
7,802
Series
2002-B,
Class
M1,
7.62%,
06/15/32
80
69,223
OCP
CLO
Ltd.
(a)(b)
:
Series
2016-12A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.12%),
1.31%,
10/18/28
....
175
174,651
Series
2017-13A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.26%),
1.44%,
07/15/30
....
300
300,041
Series
2017-14A,
Class
B,
(LIBOR
USD
3
Month
+
1.95%),
2.11%,
11/20/30
.....
250
249,333
Octagon
Investment
Partners
XVI
Ltd.,
Series
2013-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.02%),
1.21%,
07/17/30
(a)(b)
.........
250
249,324
Octagon
Investment
Partners
XVII
Ltd.,
Series
2013-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.00%),
1.18%,
01/25/31
(a)(b)
.........
250
249,932
OHA
Loan
Funding
Ltd.,
Series
2013-2A,
Class
AR,
(LIBOR
USD
3
Month
+
1.04%),
1.19%,
05/23/31
(a)(b)
.....................
225
224,422
Option
One
Mortgage
Acceptance
Corp.
Asset-
Backed
Certificates,
Series
2003-4,
Class
A2,
(LIBOR
USD
1
Month
+
0.64%),
0.73%,
07/25/33
(a)
......................
140
136,265
Option
One
Mortgage
Loan
Trust:
Series
2007-CP1,
Class
2A3,
(LIBOR
USD
1
Month
+
0.21%),
0.30%,
03/25/37
(a)
...
90
72,756
Series
2007-FXD1,
Class
1A1,
5.87%,
01/25/37
(e)
....................
82
81,836
Series
2007-FXD1,
Class
2A1,
5.87%,
01/25/37
(e)
....................
209
209,857
Series
2007-FXD2,
Class
1A1,
5.82%,
03/25/37
(e)
....................
110
110,983
Origen
Manufactured
Housing
Contract
Trust,
Series
2007-B,
Class
A1,
(LIBOR
USD
1
Month
+
1.20%),
1.27%,
10/15/37
(a)(b)(c)
...
48
47,307
Ownit
Mortgage
Loan
Trust,
Series
2006-2,
Class
A2C,
6.50%,
01/25/37
(e)
.........
70
67,672
OZLM
Funding
IV
Ltd.,
Series
2013-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.25%),
1.43%,
10/22/30
(a)(b)
................
383
382,656
OZLM
XIV
Ltd.,
Series
2015-14A,
Class
A2AR,
(LIBOR
USD
3
Month
+
1.70%),
1.88%,
01/15/29
(a)(b)
.....................
250
250,045
Palmer
Square
CLO
Ltd.
(a)(b)
:
Series
2014-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.13%),
1.32%,
01/17/31
....
250
249,926
Series
2018-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.03%),
1.22%,
04/18/31
....
250
250,032
Series
2018-2A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.10%),
1.28%,
07/16/31
....
420
420,059
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Race
Point
X
CLO
Ltd.,
Series
2016-10A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.10%),
1.28%,
07/25/31
(a)(b)
................
USD
246
$
246,548
Rockford
Tower
CLO
Ltd.,
Series
2017-3A,
Class
A,
(LIBOR
USD
3
Month
+
1.19%),
1.38%,
10/20/30
(a)(b)
................
250
250,050
Romark
WM-R
Ltd.,
Series
2018-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.03%),
1.22%,
04/20/31
(a)(b)
.....................
247
247,358
RR
3
Ltd.,
Series
2018-3A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.09%),
1.27%,
01/15/30
(a)(b)
.....................
1,250
1,248,886
SG
Mortgage
Securities
Trust,
Series
2006-
OPT2,
Class
A3D,
(LIBOR
USD
1
Month
+
0.21%),
0.30%,
10/25/36
(a)
...........
100
80,638
Signal
Peak
CLO
4
Ltd.,
Series
2017-4A,
Class
A,
(LIBOR
USD
3
Month
+
1.21%),
1.39%,
10/26/29
(a)(b)
.....................
250
250,075
Signal
Peak
CLO
5
Ltd.,
Series
2018-5A,
Class
A,
(LIBOR
USD
3
Month
+
1.11%),
1.29%,
04/25/31
(a)(b)
.....................
250
250,000
Silver
Creek
CLO
Ltd.,
Series
2014-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.24%),
1.43%,
07/20/30
(a)(b)
.....................
250
250,112
SLM
Private
Credit
Student
Loan
Trust,
Series
2004-B,
Class
A3,
(LIBOR
USD
3
Month
+
0.33%),
0.45%,
03/15/24
(a)
...........
96
96,021
SMB
Private
Education
Loan
Trust,
Series
2015-B,
Class
B,
3.50%,
12/17/40
(b)
.....
100
103,293
Soundview
Home
Loan
Trust,
Series
2004-
WMC1,
Class
M2,
(LIBOR
USD
1
Month
+
0.80%),
0.89%,
01/25/35
(a)
...........
1
1,364
Structured
Asset
Securities
Corp.
Mortgage
Pass-Through
Certificates,
Series
2004-
23XS,
Class
2A1,
(LIBOR
USD
1
Month
+
0.45%),
0.39%,
01/25/35
(a)
...........
3
2,581
Towd
Point
Mortgage
Trust,
Series
2019-SJ2,
Class
M1,
4.50%,
11/25/58
(a)(b)
.........
340
345,330
Tricon
American
Homes
Trust,
Series
2018-
SFR1,
Class
E,
4.56%,
05/17/37
(b)
......
100
104,503
Venture
XVIII
CLO
Ltd.,
Series
2014-18A,
Class
AR,
(LIBOR
USD
3
Month
+
1.22%),
1.40%,
10/15/29
(a)(b)
.....................
315
315,038
Voya
CLO
Ltd.,
Series
2017-4A,
Class
A1,
(LIBOR
USD
3
Month
+
1.13%),
1.31%,
10/15/30
(a)(b)
.....................
250
250,047
Wachovia
Asset
Securitization
Issuance
II
LLC
Trust,
Series
2007-HE2A,
Class
A,
(LIBOR
USD
1
Month
+
0.13%),
0.22%,
07/25/37
(a)(b)
56
51,708
Washington
Mutual
Asset-Backed
CertificatesTrust
(a)
:
Series
2006-HE4,
Class
2A2,
(LIBOR
USD
1
Month
+
0.18%),
0.27%,
09/25/36
....
139
57,367
Series
2006-HE5,
Class
1A,
(LIBOR
USD
1
Month
+
0.16%),
0.25%,
10/25/36
....
138
118,833
Yale
Mortgage
Loan
Trust,
Series
2007-1,
Class
A,
(LIBOR
USD
1
Month
+
0.40%),
0.49%,
06/25/37
(a)(b)
.....................
84
36,249
York
CLO-2
Ltd.,
Series
2015-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.15%),
1.33%,
01/22/31
(a)(b)
.....................
250
249,925
Total
Asset-Backed
Securities
—
3.2%
(Cost:
$26,378,486)
...............................
26,269,635
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
9
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Corporate
Bonds
—
32.7%
Aerospace
&
Defense
—
1.4%
BAE
Systems
Holdings,
Inc.,
3.85%,
12/15/25
(b)
USD
165
$
182,229
BAE
Systems
plc,
3.40%,
04/15/30
(b)
......
737
801,049
Boeing
Co.
(The):
5.81%,
05/01/50
..................
189
254,513
5.93%,
05/01/60
..................
242
334,168
Embraer
Netherlands
Finance
BV,
5.40%,
02/01/27
......................
36
38,228
Embraer
Overseas
Ltd.,
5.70%,
09/16/23
...
49
52,186
General
Dynamics
Corp.,
3.63%,
04/01/30
..
584
659,715
Huntington
Ingalls
Industries,
Inc.:
3.84%,
05/01/25
..................
79
86,088
4.20%,
05/01/30
..................
339
387,176
L3Harris
Technologies,
Inc.:
3.85%,
12/15/26
..................
257
288,243
4.40%,
06/15/28
..................
680
789,381
2.90%,
12/15/29
..................
300
317,725
1.80%,
01/15/31
..................
458
444,121
Leidos,
Inc.,
4.38%,
05/15/30
..........
607
689,267
Lockheed
Martin
Corp.:
3.60%,
03/01/35
..................
451
516,214
4.07%,
12/15/42
..................
34
41,281
3.80%,
03/01/45
..................
112
130,320
2.80%,
06/15/50
..................
132
132,545
Northrop
Grumman
Corp.:
3.25%,
01/15/28
..................
836
913,118
4.03%,
10/15/47
..................
330
393,718
5.25%,
05/01/50
..................
137
192,412
Raytheon
Technologies
Corp.:
3.15%,
12/15/24
..................
155
166,337
3.50%,
03/15/27
..................
306
337,518
7.20%,
08/15/27
..................
45
58,378
7.00%,
11/01/28
..................
360
473,398
4.13%,
11/16/28
..................
888
1,021,697
2.15%,
05/18/30
..................
EUR
155
205,354
2.25%,
07/01/30
..................
USD
124
126,010
4.50%,
06/01/42
..................
124
154,384
3.75%,
11/01/46
..................
130
146,542
4.63%,
11/16/48
..................
53
68,183
Textron,
Inc.:
3.90%,
09/17/29
..................
336
375,961
2.45%,
03/15/31
..................
110
110,093
TransDigm
,
Inc.
(b)
:
8.00%,
12/15/25
..................
246
265,803
6.25%,
03/15/26
..................
594
626,670
11,780,025
Air
Freight
&
Logistics
—
0.3%
FedEx
Corp.:
4.25%,
05/15/30
..................
294
342,306
2.40%,
05/15/31
..................
513
522,092
3.90%,
02/01/35
..................
112
128,370
4.10%,
02/01/45
..................
106
121,038
United
Parcel
Service,
Inc.:
3.40%,
03/15/29
..................
168
188,712
4.45%,
04/01/30
..................
590
714,081
5.20%,
04/01/40
..................
312
423,511
XPO
Logistics,
Inc.
(b)
:
6.13%,
09/01/23
..................
30
30,225
6.75%,
08/15/24
..................
73
75,829
2,546,164
Airlines
—
0.5%
Air
Canada
Pass-Through
Trust
(b)
:
Series
2017-1,
Class
B,
3.70%,
01/15/26
.
1
736
Series
2017-1,
Class
AA,
3.30%,
01/15/30
84
84,690
Security
Par
(000)
Par
(000)
Value
Airlines
(continued)
American
Airlines
Pass-Through
Trust:
Series
2013-2,
Class
A,
4.95%,
01/15/23
.
USD
70
$
71,119
Series
2015-2,
Class
B,
4.40%,
09/22/23
.
219
214,628
Series
2016-1,
Class
B,
5.25%,
01/15/24
.
164
161,307
Series
2017-1,
Class
B,
4.95%,
02/15/25
.
48
46,825
Series
2015-2,
Class
AA,
3.60%,
09/22/27
39
40,260
Series
2016-1,
Class
AA,
3.58%,
01/15/28
102
104,004
Series
2019-1,
Class
B,
3.85%,
02/15/28
.
213
203,075
Series
2016-2,
Class
AA,
3.20%,
06/15/28
69
70,610
Series
2016-3,
Class
AA,
3.00%,
10/15/28
335
340,730
Series
2017-1,
Class
AA,
3.65%,
02/15/29
56
57,212
Series
2019-1,
Class
AA,
3.15%,
02/15/32
203
209,439
Avianca
Holdings
SA,
(LIBOR
USD
3
Month
+
12.00%),
12.15%,
(12.15%
Cash
or
12.00%
PIK),
11/10/21
(a)(f)
................
30
29,400
Delta
Air
Lines
Pass-Through
Trust,
Series
2019-1,
Class
AA,
3.20%,
04/25/24
.....
505
533,892
Gol
Finance
SA,
7.00%,
01/31/25
(b)
.......
107
102,399
Turkish
Airlines
Pass-Through
Trust,
Series
2015-1,
Class
A,
4.20%,
03/15/27
(b)
.....
27
25,524
United
Airlines
Pass-Through
Trust:
Series
2014-1,
Class
B,
4.75%,
04/11/22
.
11
11,124
Series
2014-2,
Class
B,
4.63%,
09/03/22
.
17
17,532
Series
2016-2,
Class
B,
3.65%,
10/07/25
.
11
10,501
Series
2020-1,
Class
B,
4.88%,
01/15/26
.
131
138,928
Series
2014-1,
Class
A,
4.00%,
04/11/26
.
134
141,173
Series
2020-1,
Class
A,
5.88%,
10/15/27
.
757
839,467
Series
2015-1,
Class
AA,
3.45%,
12/01/27
35
36,839
Series
2019-2,
Class
B,
3.50%,
05/01/28
.
142
140,122
Series
2016-1,
Class
AA,
3.10%,
07/07/28
11
11,636
Series
2016-2,
Class
AA,
2.88%,
10/07/28
73
74,036
Series
2018-1,
Class
AA,
3.50%,
03/01/30
35
36,959
Series
2019-2,
Class
AA,
2.70%,
05/01/32
125
125,222
3,879,389
Auto
Components
—
0.0%
American
Axle
&
Manufacturing,
Inc.,
6.25%,
04/01/25
......................
49
50,615
Magna
International,
Inc.,
2.45%,
06/15/30
..
122
124,667
175,282
Automobiles
—
0.4%
BMW
US
Capital
LLC,
2.55%,
04/01/31
(b)
...
437
452,537
General
Motors
Co.:
4.88%,
10/02/23
..................
201
218,976
6.13%,
10/01/25
..................
222
262,804
Hyundai
Capital
America
(b)
:
3.95%,
02/01/22
..................
305
311,028
2.38%,
02/10/23
..................
450
461,902
Nissan
Motor
Co.
Ltd.,
4.81%,
09/17/30
(b)
...
1,359
1,534,366
3,241,613
Banks
—
5.0%
Banco
Santander
SA:
2.71%,
06/27/24
..................
600
631,360
1.85%,
03/25/26
..................
400
404,266
3.31%,
06/27/29
..................
400
435,249
Bangkok
Bank
PCL,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.90%),
3.73%,
09/25/34
(a)
...........
200
207,412
Bank
of
America
Corp.:
(LIBOR
USD
3
Month
+
1.02%),
2.88%,
04/24/23
(a)
....................
127
129,602
(LIBOR
USD
3
Month
+
0.93%),
2.82%,
07/21/23
(a)
....................
83
85,064
(LIBOR
USD
3
Month
+
0.78%),
3.55%,
03/05/24
(a)
....................
234
245,858
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
10
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
(LIBOR
USD
3
Month
+
0.94%),
3.86%,
07/23/24
(a)
....................
USD
116
$
123,686
4.00%,
01/22/25
..................
287
314,972
Series
L,
3.95%,
04/21/25
...........
327
358,866
(LIBOR
USD
3
Month
+
0.87%),
2.46%,
10/22/25
(a)
....................
2,025
2,118,342
(LIBOR
USD
3
Month
+
0.81%),
3.37%,
01/23/26
(a)
....................
236
254,454
(LIBOR
USD
3
Month
+
0.64%),
2.01%,
02/13/26
(a)
....................
512
527,896
4.45%,
03/03/26
..................
272
308,936
(SOFR
+
1.01%),
1.20%,
10/24/26
(a)
....
851
842,847
(SOFR
+
0.96%),
1.73%,
07/22/27
(a)
....
1,540
1,551,844
(LIBOR
USD
3
Month
+
1.51%),
3.71%,
04/24/28
(a)
....................
875
967,559
(LIBOR
USD
3
Month
+
1.31%),
4.27%,
07/23/29
(a)
....................
760
873,080
(LIBOR
USD
3
Month
+
1.21%),
3.97%,
02/07/30
(a)
....................
758
859,558
(LIBOR
USD
3
Month
+
1.18%),
3.19%,
07/23/30
(a)
....................
422
454,309
(LIBOR
USD
3
Month
+
1.32%),
4.08%,
04/23/40
(a)
....................
464
541,314
(SOFR
+
1.93%),
2.68%,
06/19/41
(a)
....
465
451,282
Bank
of
East
Asia
Ltd.
(The),
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.26%),
5.87%
(a)(g)
...........
250
267,078
Barclays
plc
(a)
:
(LIBOR
USD
3
Month
+
1.90%),
4.97%,
05/16/29
.....................
836
978,936
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.20%),
2.67%,
03/10/32
................
200
201,089
BNP
Paribas
SA
(a)(b)
:
(LIBOR
USD
3
Month
+
1.11%),
2.82%,
11/19/25
.....................
477
501,871
(SOFR
+
1.51%),
3.05%,
01/13/31
......
270
284,664
Citigroup,
Inc.
(a)
:
(SOFR
+
0.77%),
1.46%,
06/09/27
......
510
507,804
(LIBOR
USD
3
Month
+
1.39%),
3.67%,
07/24/28
.....................
1,396
1,539,621
(SOFR
+
1.42%),
2.98%,
11/05/30
......
1,654
1,751,887
Citizens
Financial
Group,
Inc.,
3.25%,
04/30/30
143
154,934
Credit
Suisse
Group
Funding
Guernsey
Ltd.,
3.80%,
09/15/22
.................
316
328,824
Danske
Bank
A/S:
5.00%,
01/12/22
(b)
.................
400
409,281
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.03%),
1.17%,
12/08/23
(a)(b)
..............
263
264,319
5.38%,
01/12/24
..................
200
221,771
5.38%,
01/12/24
(b)
.................
602
667,530
Grupo
Aval
Ltd.,
4.38%,
02/04/30
(b)
.......
200
197,690
HSBC
Holdings
plc
(a)
:
(LIBOR
USD
3
Month
+
1.53%),
4.58%,
06/19/29
.....................
531
613,708
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.25%),
4.70%
(g)
......................
510
529,125
ING
Groep
NV:
3.55%,
04/09/24
..................
311
334,998
4.63%,
01/06/26
(b)
.................
202
230,517
(SOFR
+
1.01%),
1.73%,
04/01/27
(a)
....
200
201,707
Itau
Unibanco
Holding
SA
(b)
:
2.90%,
01/24/23
..................
250
255,275
3.25%,
01/24/25
..................
250
256,141
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
JPMorgan
Chase
&
Co.:
(SOFR
+
0.60%),
0.65%,
09/16/24
(a)
....
USD
171
$
171,100
(LIBOR
USD
3
Month
+
1.00%),
4.02%,
12/05/24
(a)
....................
1,450
1,565,024
3.13%,
01/23/25
..................
307
329,445
(SOFR
+
1.16%),
2.30%,
10/15/25
(a)
....
137
142,688
(SOFR
+
1.59%),
2.00%,
03/13/26
(a)
....
1,241
1,281,208
3.20%,
06/15/26
..................
78
84,909
(SOFR
+
0.80%),
1.05%,
11/19/26
(a)
.....
264
260,659
(LIBOR
USD
3
Month
+
1.25%),
3.96%,
01/29/27
(a)
....................
988
1,100,242
(LIBOR
USD
3
Month
+
1.34%),
3.78%,
02/01/28
(a)
....................
527
585,208
(LIBOR
USD
3
Month
+
1.38%),
3.54%,
05/01/28
(a)
....................
1,765
1,940,555
(LIBOR
USD
3
Month
+
1.33%),
4.45%,
12/05/29
(a)
....................
42
49,113
(SOFR
+
1.46%),
3.16%,
04/22/42
(a)
....
499
519,424
(LIBOR
USD
3
Month
+
1.58%),
4.26%,
02/22/48
(a)
....................
117
142,007
(LIBOR
USD
3
Month
+
1.46%),
4.03%,
07/24/48
(a)
....................
470
556,850
(SOFR
+
1.58%),
3.33%,
04/22/52
(a)
....
15
16,017
Kasikornbank
PCL,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.70%),
3.34%,
10/02/31
(a)
...........
200
204,038
Lloyds
Banking
Group
plc:
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.85%),
1.63%,
05/11/27
(a)
...............
373
373,193
4.38%,
03/22/28
..................
228
261,845
(LIBOR
USD
3
Month
+
1.21%),
3.57%,
11/07/28
(a)
....................
200
218,755
Mitsubishi
UFJ
Financial
Group,
Inc.:
2.62%,
07/18/22
..................
807
826,877
2.19%,
02/25/25
..................
868
903,356
Mizuho
Financial
Group,
Inc.
(a)
:
(SOFR
+
1.36%),
2.55%,
09/13/25
......
719
752,750
(SOFR
+
1.77%),
2.20%,
07/10/31
......
200
199,647
(SOFR
+
1.53%),
1.98%,
09/08/31
......
425
415,741
NBK
Tier
1
Financing
Ltd.,
(USD
Swap
Semi
6
Year
+
2.88%),
3.62%
(a)(b)(g)
..........
200
200,813
Santander
UK
Group
Holdings
plc:
2.88%,
08/05/21
..................
240
240,554
3.57%,
01/10/23
..................
963
978,423
(SOFR
+
0.79%),
1.09%,
03/15/25
(a)
....
400
401,279
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.25%),
1.53%,
08/21/26
(a)
...............
240
240,410
(LIBOR
USD
3
Month
+
1.40%),
3.82%,
11/03/28
(a)
....................
200
219,929
Sumitomo
Mitsui
Financial
Group,
Inc.:
2.70%,
07/16/24
..................
395
417,565
2.35%,
01/15/25
..................
644
672,651
3.78%,
03/09/26
..................
201
223,641
Washington
Mutual
Escrow
Bonds
(c)(h)(
i
)
:
0.00%,
11/06/09
..................
300
—
0.00%,
09/19/17
(j)
.................
250
—
0.00%,
09/29/17
..................
500
—
Wells
Fargo
&
Co.
(a)
:
(LIBOR
USD
3
Month
+
1.31%),
3.58%,
05/22/28
.....................
383
421,947
(SOFR
+
1.43%),
2.88%,
10/30/30
......
167
176,848
(SOFR
+
4.03%),
4.48%,
04/04/31
......
179
211,576
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
11
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
(SOFR
+
2.53%),
3.07%,
04/30/41
......
USD
646
$
662,591
41,355,404
Beverages
—
0.7%
Anheuser-Busch
Cos.
LLC,
4.70%,
02/01/36
.
1,243
1,525,588
Anheuser-Busch
InBev
Finance,
Inc.,
4.00%,
01/17/43
......................
92
102,596
Anheuser-Busch
InBev
Worldwide,
Inc.:
4.00%,
04/13/28
..................
1,345
1,531,436
3.50%,
06/01/30
..................
1,434
1,595,161
Coca-Cola
Co.
(The):
2.50%,
06/01/40
..................
200
198,108
1.00%,
03/09/41
..................
EUR
210
242,976
Keurig
Dr
Pepper,
Inc.,
3.20%,
05/01/30
....
USD
421
455,070
5,650,935
Biotechnology
—
0.9%
AbbVie,
Inc.:
2.30%,
11/21/22
..................
197
202,205
2.60%,
11/21/24
..................
1,571
1,656,536
3.20%,
05/14/26
..................
1,281
1,388,949
4.55%,
03/15/35
..................
129
156,569
4.50%,
05/14/35
..................
603
726,311
4.85%,
06/15/44
..................
3
3,815
4.70%,
05/14/45
..................
342
425,874
4.88%,
11/14/48
..................
50
64,405
4.25%,
11/21/49
..................
226
270,864
Amgen,
Inc.:
2.45%,
02/21/30
..................
350
360,784
4.40%,
05/01/45
..................
456
553,651
Biogen,
Inc.:
2.25%,
05/01/30
..................
393
394,071
3.15%,
05/01/50
..................
176
172,848
Gilead
Sciences,
Inc.:
4.75%,
03/01/46
..................
549
696,216
4.15%,
03/01/47
..................
69
81,247
7,154,345
Building
Products
—
0.1%
Carrier
Global
Corp.,
2.24%,
02/15/25
.....
981
1,020,014
Johnson
Controls
International
plc,
5.13%,
09/14/45
......................
5
6,628
Masonite
International
Corp.,
5.38%,
02/01/28
(b)
36
38,149
Owens
Corning,
3.95%,
08/15/29
........
41
46,320
Standard
Industries,
Inc.
(b)
:
5.00%,
02/15/27
..................
35
36,247
4.75%,
01/15/28
..................
15
15,700
1,163,058
Capital
Markets
—
2.3%
Credit
Suisse
AG,
3.63%,
09/09/24
.......
263
285,729
Credit
Suisse
Group
AG
(a)(b)
:
(LIBOR
USD
3
Month
+
1.24%),
4.21%,
06/12/24
.....................
252
268,395
(SOFR
+
1.73%),
3.09%,
05/14/32
......
250
257,563
Deutsche
Bank
AG:
0.90%,
05/28/24
..................
178
177,189
(SOFR
+
1.13%),
1.45%,
04/01/25
(a)
....
584
587,511
1.69%,
03/19/26
..................
905
913,585
(SOFR
+
3.04%),
3.55%,
09/18/31
(a)
....
150
159,670
Goldman
Sachs
Group,
Inc.
(The):
3.50%,
01/23/25
..................
180
194,615
3.50%,
04/01/25
..................
2,520
2,733,941
3.75%,
05/22/25
..................
647
707,783
(LIBOR
USD
3
Month
+
1.20%),
3.27%,
09/29/25
(a)
....................
163
174,375
(SOFR
+
0.61%),
0.86%,
02/12/26
(a)
....
933
926,153
Security
Par
(000)
Par
(000)
Value
Capital
Markets
(continued)
3.75%,
02/25/26
..................
USD
199
$
220,152
(LIBOR
USD
3
Month
+
1.17%),
1.33%,
05/15/26
(a)
....................
300
307,926
(SOFR
+
0.80%),
1.43%,
03/09/27
(a)
....
700
698,027
(LIBOR
USD
3
Month
+
1.51%),
3.69%,
06/05/28
(a)
....................
704
777,292
Huarong
Finance
Co.
Ltd.:
3.25%,
11/13/24
..................
200
147,000
3.88%,
11/13/29
..................
200
136,000
Intercontinental
Exchange,
Inc.:
3.75%,
09/21/28
..................
121
136,168
2.10%,
06/15/30
..................
150
148,652
1.85%,
09/15/32
..................
172
162,775
Moody's
Corp.,
3.25%,
01/15/28
.........
225
246,579
Morgan
Stanley:
(SOFR
+
1.15%),
2.72%,
07/22/25
(a)
....
3
3,155
3.88%,
01/27/26
..................
775
866,447
3.63%,
01/20/27
..................
1,244
1,379,372
(SOFR
+
0.88%),
1.59%,
05/04/27
(a)
....
1,367
1,376,672
(LIBOR
USD
3
Month
+
1.34%),
3.59%,
07/22/28
(a)
....................
166
183,887
(LIBOR
USD
3
Month
+
1.14%),
3.77%,
01/24/29
(a)
....................
376
421,995
(LIBOR
USD
3
Month
+
1.63%),
4.43%,
01/23/30
(a)
....................
961
1,125,226
(SOFR
+
1.14%),
2.70%,
01/22/31
(a)
....
1,655
1,732,458
(SOFR
+
3.12%),
3.62%,
04/01/31
(a)
....
130
145,113
(SOFR
+
1.49%),
3.22%,
04/22/42
(a)
....
299
316,954
Northern
Trust
Corp.,
3.15%,
05/03/29
.....
107
117,612
UBS
Group
AG
(b)
:
(USD
Swap
Semi
5
Year
+
4.34%),
7.00%
(a)
(g)
..........................
490
539,613
4.13%,
04/15/26
..................
200
224,306
18,799,890
Chemicals
—
0.5%
Braskem
Netherlands
Finance
BV,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
8.22%),
8.50%,
01/23/81
(a)
(b)
..........................
262
305,115
Cydsa
SAB
de
CV,
6.25%,
10/04/27
(b)
.....
200
210,790
Dow
Chemical
Co.
(The):
4.55%,
11/30/25
..................
269
306,248
2.10%,
11/15/30
..................
163
160,971
1.13%,
03/15/32
..................
EUR
115
139,383
3.60%,
11/15/50
..................
USD
260
280,928
DuPont
de
Nemours,
Inc.,
4.49%,
11/15/25
..
515
585,635
Ecolab,
Inc.,
4.80%,
03/24/30
..........
267
326,643
LYB
International
Finance
III
LLC,
4.20%,
05/01/50
......................
255
293,406
MEGlobal
Canada
ULC:
5.00%,
05/18/25
..................
200
224,250
5.00%,
05/18/25
(b)
.................
200
224,250
Orbia
Advance
Corp.
SAB
de
CV,
1.88%,
05/11/26
(b)
.....................
200
200,938
Sasol
Financing
USA
LLC,
5.50%,
03/18/31
..
200
210,500
Sherwin-Williams
Co.
(The):
4.20%,
01/15/22
..................
260
262,799
2.30%,
05/15/30
..................
352
356,081
4,087,937
Commercial
Services
&
Supplies
—
0.3%
Aramark
Services,
Inc.,
5.00%,
02/01/28
(b)
...
83
86,918
Clean
Harbors,
Inc.,
4.88%,
07/15/27
(b)
.....
38
39,805
KAR
Auction
Services,
Inc.,
5.13%,
06/01/25
(b)
71
72,860
Nielsen
Co.
Luxembourg
SARL
(The),
5.00%,
02/01/25
(b)
.....................
35
36,006
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
12
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
RELX
Capital,
Inc.:
3.50%,
03/16/23
..................
USD
355
$
372,228
4.00%,
03/18/29
..................
404
458,876
3.00%,
05/22/30
..................
507
541,684
Republic
Services,
Inc.:
2.90%,
07/01/26
..................
131
140,292
3.95%,
05/15/28
..................
81
92,144
2.30%,
03/01/30
..................
177
179,742
Waste
Management,
Inc.:
1.15%,
03/15/28
..................
370
358,489
2.00%,
06/01/29
..................
101
102,075
2.95%,
06/01/41
..................
118
121,562
Waste
Pro
USA,
Inc.,
5.50%,
02/15/26
(b)
....
37
38,193
2,640,874
Communications
Equipment
—
0.2%
Juniper
Networks,
Inc.,
2.00%,
12/10/30
....
156
149,046
Motorola
Solutions,
Inc.:
4.60%,
05/23/29
..................
623
726,375
2.75%,
05/24/31
..................
663
676,717
5.50%,
09/01/44
..................
179
233,150
1,785,288
Construction
&
Engineering
—
0.0%
Mexico
City
Airport
Trust,
5.50%,
07/31/47
..
200
201,750
Stoneway
Capital
Corp.
(h)(
i
)
:
10.00%,
03/01/27
(b)
................
133
35,907
10.00%,
03/01/27
.................
133
35,908
273,565
Consumer
Finance
—
0.6%
AerCap
Ireland
Capital
DAC,
4.45%,
04/03/26
190
208,660
Capital
One
Financial
Corp.,
3.90%,
01/29/24
185
199,656
Discover
Financial
Services,
4.50%,
01/30/26
149
168,213
General
Motors
Financial
Co.,
Inc.:
5.20%,
03/20/23
..................
1,565
1,685,166
3.70%,
05/09/23
..................
66
69,289
5.10%,
01/17/24
..................
173
190,456
4.00%,
01/15/25
..................
341
371,495
4.35%,
04/09/25
..................
396
437,577
2.75%,
06/20/25
..................
318
334,819
2.70%,
06/10/31
..................
11
11,040
Hyundai
Capital
Services,
Inc.,
3.00%,
08/29/22
(b)
.....................
250
256,063
Navient
Corp.:
6.50%,
06/15/22
..................
67
69,861
7.25%,
09/25/23
..................
39
43,046
5.88%,
10/25/24
..................
37
39,914
6.75%,
06/25/25
..................
38
42,074
6.75%,
06/15/26
..................
37
41,301
Synchrony
Financial:
4.50%,
07/23/25
..................
5
5,591
3.70%,
08/04/26
..................
91
99,361
Toyota
Motor
Credit
Corp.,
2.15%,
02/13/30
..
508
520,669
4,794,251
Containers
&
Packaging
—
0.0%
Ball
Corp.:
5.25%,
07/01/25
..................
15
16,931
4.88%,
03/15/26
..................
11
12,252
International
Paper
Co.,
6.00%,
11/15/41
...
42
59,686
Owens-Brockway
Glass
Container,
Inc.,
5.88%,
08/15/23
(b)
.....................
52
56,075
144,944
Security
Par
(000)
Par
(000)
Value
Distributors
—
0.0%
(b)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
4.00%,
01/15/28
..............
USD
60
$
61,483
Performance
Food
Group,
Inc.,
5.50%,
10/15/27
......................
79
83,025
144,508
Diversified
Financial
Services
—
0.4%
Banco
Votorantim
SA,
4.00%,
09/24/22
(b)
...
200
206,225
Coastal
Emerald
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
7.45%),
4.30%
(a)(g)
................
200
199,225
GE
Capital
International
Funding
Co.
Unlimited
Co.,
4.42%,
11/15/35
..............
745
892,869
MDGH
-
GMTN
BV,
2.88%,
11/07/29
(b)
.....
200
209,850
Operadora
de
Servicios
Mega
SA
de
CV
SOFOM
ER,
8.25%,
02/11/25
(b)
........
200
199,475
ORIX
Corp.,
2.90%,
07/18/22
..........
155
159,029
Shell
International
Finance
BV:
3.88%,
11/13/28
..................
128
146,768
2.38%,
11/07/29
..................
964
1,000,557
3,013,998
Diversified
Telecommunication
Services
—
1.6%
Altice
France
SA,
7.38%,
05/01/26
(b)
......
200
207,986
AT&T,
Inc.:
0.00%,
11/27/22
(b)(j)
................
1,000
991,810
1.65%,
02/01/28
..................
277
274,937
4.35%,
03/01/29
..................
505
584,718
4.30%,
02/15/30
..................
359
414,941
2.75%,
06/01/31
..................
669
695,418
2.55%,
12/01/33
(b)
.................
203
201,100
4.50%,
05/15/35
..................
568
666,730
2.60%,
05/19/38
..................
EUR
175
237,621
3.50%,
09/15/53
(b)
.................
USD
353
354,649
3.55%,
09/15/55
(b)
.................
494
495,656
3.80%,
12/01/57
(b)
.................
174
181,287
3.65%,
09/15/59
(b)
.................
395
400,569
CCO
Holdings
LLC
(b)
:
5.75%,
02/15/26
..................
75
77,517
5.50%,
05/01/26
..................
89
92,017
5.13%,
05/01/27
..................
192
201,389
5.00%,
02/01/28
..................
203
212,896
5.38%,
06/01/29
..................
92
100,565
4.75%,
03/01/30
..................
106
112,095
Deutsche
Telekom
International
Finance
BV,
3.60%,
01/19/27
(b)
................
150
164,983
Level
3
Financing,
Inc.:
5.25%,
03/15/26
..................
55
56,678
4.63%,
09/15/27
(b)
.................
15
15,569
Network
i2i
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.27%),
5.65%
(a)(g)
.....................
200
213,500
Oi
SA,
10.00%,
(10.00%
Cash
or
4.00%
PIK),
07/27/25
(f)
.....................
49
50,255
Verizon
Communications,
Inc.:
4.13%,
03/16/27
..................
476
542,087
2.10%,
03/22/28
..................
449
458,391
3.88%,
02/08/29
..................
376
429,554
4.02%,
12/03/29
..................
64
73,384
3.15%,
03/22/30
..................
1,082
1,168,313
1.50%,
09/18/30
..................
834
796,871
1.68%,
10/30/30
..................
251
239,668
2.55%,
03/21/31
..................
17
17,376
4.27%,
01/15/36
..................
984
1,170,788
2.65%,
11/20/40
..................
83
79,872
2.88%,
11/20/50
..................
723
686,790
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
13
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
3.70%,
03/22/61
..................
USD
424
$
454,129
13,122,109
Electric
Utilities
—
2.5%
Adani
Transmission
Ltd.,
4.25%,
05/21/36
...
187
190,915
AEP
Texas,
Inc.:
3.95%,
06/01/28
..................
310
349,224
Series
H,
3.45%,
01/15/50
...........
91
94,069
3.45%,
05/15/51
..................
237
244,885
AEP
Transmission
Co.
LLC:
3.80%,
06/15/49
..................
155
178,906
3.15%,
09/15/49
..................
222
231,223
Series
M,
3.65%,
04/01/50
...........
232
262,391
Alabama
Power
Co.:
4.15%,
08/15/44
..................
5
5,994
3.45%,
10/01/49
..................
242
262,664
3.13%,
07/15/51
..................
70
71,734
Baltimore
Gas
&
Electric
Co.:
2.25%,
06/15/31
..................
68
68,646
3.75%,
08/15/47
..................
166
190,159
4.25%,
09/15/48
..................
105
129,115
3.20%,
09/15/49
..................
125
130,767
2.90%,
06/15/50
..................
100
99,557
CenterPoint
Energy
Houston
Electric
LLC:
Series
AE,
2.35%,
04/01/31
..........
120
123,028
3.95%,
03/01/48
..................
85
101,499
Series
AF,
3.35%,
04/01/51
..........
195
213,692
China
Huadian
Overseas
Development
2018
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
6.07%),
3.38%
(a)(g)
200
206,038
Commonwealth
Edison
Co.:
Series
127,
3.20%,
11/15/49
..........
180
191,040
Series
130,
3.13%,
03/15/51
..........
30
31,316
DTE
Electric
Co.:
Series
A,
4.05%,
05/15/48
...........
265
322,190
3.95%,
03/01/49
..................
121
146,269
Duke
Energy
Carolinas
LLC:
3.95%,
11/15/28
..................
72
82,478
2.45%,
02/01/30
..................
230
237,585
3.88%,
03/15/46
..................
32
36,908
3.70%,
12/01/47
..................
104
117,240
3.95%,
03/15/48
..................
155
182,091
Duke
Energy
Florida
LLC:
3.80%,
07/15/28
..................
100
113,322
2.50%,
12/01/29
..................
550
576,354
1.75%,
06/15/30
..................
955
934,748
4.20%,
07/15/48
..................
34
41,748
Duke
Energy
Ohio,
Inc.,
3.65%,
02/01/29
...
112
124,725
Duke
Energy
Progress
LLC,
3.45%,
03/15/29
.
527
583,764
Edison
International:
2.40%,
09/15/22
..................
42
42,742
4.95%,
04/15/25
..................
272
301,141
Entergy
Arkansas
LLC,
3.35%,
06/15/52
....
117
124,925
Entergy
Louisiana
LLC,
4.20%,
09/01/48
...
256
310,762
Exelon
Corp.:
5.10%,
06/15/45
..................
35
45,726
4.70%,
04/15/50
..................
65
82,102
FEL
Energy
VI
SARL,
5.75%,
12/01/40
.....
199
210,647
FirstEnergy
Corp.:
2.05%,
03/01/25
..................
52
52,390
Series
B,
4.40%,
07/15/27
(e)
..........
349
379,537
2.65%,
03/01/30
..................
158
157,363
Series
B,
2.25%,
09/01/30
...........
79
75,747
Series
C,
5.35%,
07/15/47
(e)
..........
125
150,000
Series
C,
3.40%,
03/01/50
...........
71
69,403
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
FirstEnergy
Transmission
LLC
(b)
:
4.35%,
01/15/25
..................
USD
666
$
730,682
5.45%,
07/15/44
..................
42
52,406
4.55%,
04/01/49
..................
550
645,074
Florida
Power
&
Light
Co.:
3.95%,
03/01/48
..................
331
402,062
3.15%,
10/01/49
..................
468
508,562
Genneia
SA,
8.75%,
01/20/22
..........
103
99,704
MidAmerican
Energy
Co.:
3.10%,
05/01/27
..................
193
210,841
3.65%,
04/15/29
..................
460
520,142
6.75%,
12/30/31
..................
61
86,477
4.25%,
07/15/49
..................
131
164,658
3.15%,
04/15/50
..................
277
295,857
Mid-Atlantic
Interstate
Transmission
LLC,
4.10%,
05/15/28
(b)
................
52
58,520
Mong
Duong
Finance
Holdings
BV,
5.13%,
05/07/29
......................
250
250,281
NextEra
Energy
Capital
Holdings,
Inc.,
1.90%,
06/15/28
......................
101
102,085
Northern
States
Power
Co.:
2.25%,
04/01/31
..................
140
144,071
3.60%,
05/15/46
..................
27
30,532
2.90%,
03/01/50
..................
88
89,767
2.60%,
06/01/51
..................
123
116,827
3.20%,
04/01/52
..................
50
53,263
NRG
Energy,
Inc.:
7.25%,
05/15/26
..................
73
75,672
6.63%,
01/15/27
..................
89
92,135
2.45%,
12/02/27
(b)
.................
842
847,415
5.75%,
01/15/28
..................
59
62,835
4.45%,
06/15/29
(b)
.................
70
77,264
5.25%,
06/15/29
(b)
.................
53
56,379
NSTAR
Electric
Co.,
3.95%,
04/01/30
.....
59
67,875
Ohio
Power
Co.,
4.00%,
06/01/49
........
125
146,902
Oncor
Electric
Delivery
Co.
LLC:
3.70%,
11/15/28
..................
267
301,922
3.80%,
09/30/47
..................
101
118,030
4.10%,
11/15/48
..................
83
101,118
3.80%,
06/01/49
..................
89
105,761
PECO
Energy
Co.,
3.05%,
03/15/51
......
231
241,306
Public
Service
Electric
&
Gas
Co.:
3.65%,
09/01/28
..................
210
235,894
2.05%,
08/01/50
..................
128
110,368
Public
Service
Electric
and
Gas
Co.,
3.00%,
03/01/51
......................
60
62,424
Southern
California
Edison
Co.:
1.85%,
02/01/22
..................
42
42,165
Series
E,
3.70%,
08/01/25
...........
136
148,131
Series
20C,
1.20%,
02/01/26
.........
311
308,697
Series
A,
4.20%,
03/01/29
...........
105
118,420
2.25%,
06/01/30
..................
445
437,538
Southwestern
Public
Service
Co.,
Series
8,
3.15%,
05/01/50
.................
270
282,047
Star
Energy
Geothermal
Darajat
II,
4.85%,
10/14/38
(b)
.....................
200
219,850
Tampa
Electric
Co.:
4.30%,
06/15/48
..................
30
36,885
4.45%,
06/15/49
..................
175
221,133
Trans-Allegheny
Interstate
Line
Co.,
3.85%,
06/01/25
(b)
.....................
700
756,717
Virginia
Electric
&
Power
Co.:
Series
A,
3.80%,
04/01/28
...........
62
69,989
Series
A,
2.88%,
07/15/29
...........
69
74,117
Series
A,
6.00%,
05/15/37
...........
66
91,733
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
14
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
4.00%,
01/15/43
..................
USD
247
$
289,955
Vistra
Operations
Co.
LLC
(b)
:
5.50%,
09/01/26
..................
72
74,250
3.70%,
01/30/27
..................
149
159,193
5.63%,
02/15/27
..................
93
96,488
5.00%,
07/31/27
..................
93
95,477
4.30%,
07/15/29
..................
503
546,720
20,213,385
Electronic
Equipment,
Instruments
&
Components
—
0.0%
Corning,
Inc.,
4.38%,
11/15/57
..........
75
89,363
Energy
Equipment
&
Services
—
0.0%
Hilong
Holding
Ltd.,
9.75%,
11/18/24
......
207
182,160
Entertainment
—
0.2%
Activision
Blizzard,
Inc.:
1.35%,
09/15/30
..................
166
155,216
2.50%,
09/15/50
..................
260
233,386
NBCUniversal
Media
LLC:
5.95%,
04/01/41
..................
183
263,488
4.45%,
01/15/43
..................
164
201,160
Netflix,
Inc.:
4.88%,
04/15/28
..................
24
27,900
6.38%,
05/15/29
..................
12
15,327
5.38%,
11/15/29
(b)
.................
13
15,790
4.88%,
06/15/30
(b)
.................
15
17,839
Walt
Disney
Co.
(The),
4.70%,
03/23/50
....
466
621,402
1,551,508
Equity
Real
Estate
Investment
Trusts
(REITs)
—
1.0%
American
Tower
Corp.:
5.00%,
02/15/24
..................
16
17,745
2.40%,
03/15/25
..................
635
663,474
1.60%,
04/15/26
..................
26
26,275
3.95%,
03/15/29
..................
143
160,429
3.80%,
08/15/29
..................
311
346,522
2.10%,
06/15/30
..................
197
193,728
ARI
FCP
Investments
LP,
(LIBOR
USD
1
Month
+
2.90%),
2.98%,
01/06/25
(a)(c)
........
701
696,580
Crown
Castle
International
Corp.:
1.05%,
07/15/26
..................
131
127,941
3.80%,
02/15/28
..................
83
92,219
4.30%,
02/15/29
..................
63
72,456
3.10%,
11/15/29
..................
583
618,539
3.30%,
07/01/30
..................
466
499,223
5.20%,
02/15/49
..................
106
137,949
Digital
Dutch
Finco
BV:
1.50%,
03/15/30
..................
EUR
315
394,013
1.00%,
01/15/32
..................
180
211,249
Duke
Realty
LP,
1.75%,
02/01/31
........
USD
518
496,866
Equinix
,
Inc.:
1.25%,
07/15/25
..................
135
135,324
1.00%,
09/15/25
..................
433
429,918
2.15%,
07/15/30
..................
121
120,228
2.50%,
05/15/31
..................
153
155,605
ESH
Hospitality,
Inc.,
5.25%,
05/01/25
(b)
....
91
92,693
GLP
Capital
LP:
3.35%,
09/01/24
..................
130
137,711
5.38%,
04/15/26
..................
110
126,611
5.75%,
06/01/28
..................
147
174,909
4.00%,
01/15/30
..................
514
551,682
MGM
Growth
Properties
Operating
Partnership
LP:
5.63%,
05/01/24
..................
159
172,189
4.50%,
09/01/26
..................
44
46,970
5.75%,
02/01/27
..................
71
78,996
Security
Par
(000)
Par
(000)
Value
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
MPT
Operating
Partnership
LP:
5.25%,
08/01/26
..................
USD
7
$
7,210
5.00%,
10/15/27
..................
100
106,009
4.63%,
08/01/29
..................
13
13,916
National
Retail
Properties,
Inc.,
3.50%,
04/15/51
......................
203
212,451
Prologis
Euro
Finance
LLC,
1.50%,
09/10/49
.
EUR
255
297,827
Realty
Income
Corp.,
3.25%,
01/15/31
.....
USD
174
189,562
RHP
Hotel
Properties
LP,
4.75%,
10/15/27
..
61
62,650
Service
Properties
Trust,
4.35%,
10/01/24
...
37
37,259
Trust
Fibra
Uno,
6.39%,
01/15/50
(b)
.......
200
233,100
VICI
Properties
LP
(b)
:
3.50%,
02/15/25
..................
54
55,066
4.25%,
12/01/26
..................
19
19,764
3.75%,
02/15/27
..................
11
11,188
4.63%,
12/01/29
..................
15
15,938
4.13%,
08/15/30
..................
15
15,402
8,255,386
Food
&
Staples
Retailing
—
0.1%
Albertsons
Cos.,
Inc.:
3.50%,
02/15/23
(b)
.................
55
56,458
5.75%,
03/15/25
..................
29
29,652
7.50%,
03/15/26
(b)
.................
92
100,970
4.63%,
01/15/27
(b)
.................
20
20,919
5.88%,
02/15/28
(b)
.................
68
73,263
4.88%,
02/15/30
(b)
.................
15
15,998
Alimentation
Couche-Tard,
Inc.,
3.55%,
07/26/27
(b)
.....................
492
540,724
837,984
Food
Products
—
0.1%
BRF
GmbH,
4.35%,
09/29/26
(b)
.........
200
210,412
Darling
Ingredients,
Inc.,
5.25%,
04/15/27
(b)
..
36
37,800
JBS
USA
LUX
SA
(b)
:
6.75%,
02/15/28
..................
68
74,375
6.50%,
04/15/29
..................
106
119,119
5.50%,
01/15/30
..................
19
21,249
Lamb
Weston
Holdings,
Inc.
(b)
:
4.63%,
11/01/24
..................
59
61,052
4.88%,
11/01/26
..................
59
60,991
Mondelez
International,
Inc.,
2.75%,
04/13/30
234
246,482
Pilgrim's
Pride
Corp.,
5.88%,
09/30/27
(b)
....
127
135,255
Post
Holdings,
Inc.
(b)
:
5.75%,
03/01/27
..................
98
102,533
5.63%,
01/15/28
..................
72
76,320
5.50%,
12/15/29
..................
57
61,061
1,206,649
Gas
Utilities
—
0.1%
Atmos
Energy
Corp.:
4.13%,
03/15/49
..................
91
109,922
3.38%,
09/15/49
..................
14
15,117
CenterPoint
Energy
Resources
Corp.,
1.75%,
10/01/30
......................
532
510,030
Eastern
Energy
Gas
Holdings
LLC,
4.80%,
11/01/43
......................
45
53,705
Eastern
Gas
Transmission
&
Storage,
Inc.,
4.60%,
12/15/44
.................
46
53,674
ONE
Gas,
Inc.,
2.00%,
05/15/30
.........
80
78,666
Piedmont
Natural
Gas
Co.,
Inc.:
2.50%,
03/15/31
..................
175
177,741
3.64%,
11/01/46
..................
25
26,891
1,025,746
Health
Care
Equipment
&
Supplies
—
0.1%
Boston
Scientific
Corp.,
2.65%,
06/01/30
...
178
184,107
DH
Europe
Finance
II
SARL,
1.80%,
09/18/49
EUR
200
248,270
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Health
Care
Equipment
&
Supplies
(continued)
Medtronic
Global
Holdings
SCA:
1.50%,
07/02/39
..................
EUR
165
$
204,990
1.75%,
07/02/49
..................
100
125,982
Teleflex,
Inc.,
4.63%,
11/15/27
..........
USD
35
37,282
800,631
Health
Care
Providers
&
Services
—
1.3%
Aetna,
Inc.:
6.63%,
06/15/36
..................
175
254,967
4.75%,
03/15/44
..................
5
6,194
Anthem,
Inc.:
4.10%,
03/01/28
..................
231
264,011
4.38%,
12/01/47
..................
65
79,278
3.60%,
03/15/51
..................
155
170,370
Centene
Corp.:
5.38%,
06/01/26
(b)
.................
129
134,805
5.38%,
08/15/26
(b)
.................
54
56,430
4.25%,
12/15/27
..................
177
186,513
4.63%,
12/15/29
..................
53
58,288
Cigna
Corp.:
3.40%,
03/01/27
..................
402
440,852
4.38%,
10/15/28
..................
760
883,905
CVS
Health
Corp.:
1.30%,
08/21/27
..................
218
213,837
3.25%,
08/15/29
..................
160
173,607
3.75%,
04/01/30
..................
1,715
1,919,205
5.13%,
07/20/45
..................
401
521,561
5.05%,
03/25/48
..................
195
253,281
Encompass
Health
Corp.:
4.50%,
02/01/28
..................
35
36,311
4.75%,
02/01/30
..................
37
39,313
HCA,
Inc.:
4.75%,
05/01/23
..................
782
837,900
5.00%,
03/15/24
..................
568
627,597
5.38%,
02/01/25
..................
39
43,992
5.25%,
04/15/25
..................
618
707,034
5.88%,
02/15/26
..................
23
26,580
5.25%,
06/15/26
..................
466
539,423
5.38%,
09/01/26
..................
15
17,261
5.63%,
09/01/28
..................
23
27,255
5.88%,
02/01/29
..................
15
18,113
3.50%,
07/15/51
..................
44
43,980
Humana,
Inc.:
4.50%,
04/01/25
..................
150
167,951
4.88%,
04/01/30
..................
69
83,245
Molina
Healthcare,
Inc.,
5.38%,
11/15/22
(e)
..
51
53,359
Select
Medical
Corp.,
6.25%,
08/15/26
(b)
....
41
43,666
Tenet
Healthcare
Corp.:
4.63%,
07/15/24
..................
103
104,514
4.63%,
09/01/24
(b)
.................
43
44,133
4.88%,
01/01/26
(b)
.................
148
153,506
6.25%,
02/01/27
(b)
.................
220
229,625
5.13%,
11/01/27
(b)
.................
23
24,121
UnitedHealth
Group,
Inc.:
4.63%,
11/15/41
..................
397
505,679
4.20%,
01/15/47
..................
241
293,973
3.25%,
05/15/51
..................
97
103,476
10,389,111
Hotels,
Restaurants
&
Leisure
—
0.5%
1011778
BC
ULC,
3.88%,
01/15/28
(b)
......
11
11,138
Caesars
Resort
Collection
LLC,
5.25%,
10/15/25
(b)
.....................
121
122,512
Cedar
Fair
LP:
5.50%,
05/01/25
(b)
.................
47
49,056
5.38%,
04/15/27
..................
73
75,190
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
5.25%,
07/15/29
..................
USD
73
$
75,190
Churchill
Downs,
Inc.
(b)
:
5.50%,
04/01/27
..................
88
91,701
4.75%,
01/15/28
..................
44
45,527
Expedia
Group,
Inc.:
6.25%,
05/01/25
(b)
.................
179
208,223
5.00%,
02/15/26
..................
247
281,771
3.25%,
02/15/30
..................
359
374,992
Hilton
Domestic
Operating
Co.,
Inc.,
4.88%,
01/15/30
......................
15
16,013
Hilton
Worldwide
Finance
LLC,
4.88%,
04/01/27
......................
43
44,828
Marriott
International,
Inc.,
Series
HH,
2.85%,
04/15/31
......................
82
83,270
Marriott
Ownership
Resorts,
Inc.,
6.50%,
09/15/26
......................
55
57,131
McDonald's
Corp.:
2.63%,
09/01/29
..................
140
147,089
2.13%,
03/01/30
..................
130
131,424
3.60%,
07/01/30
..................
91
102,327
4.88%,
12/09/45
..................
368
474,046
MGM
China
Holdings
Ltd.,
4.75%,
02/01/27
..
200
204,750
MGM
Resorts
International:
5.75%,
06/15/25
..................
10
11,028
4.63%,
09/01/26
..................
6
6,337
5.50%,
04/15/27
..................
10
10,975
Scientific
Games
International,
Inc.,
5.00%,
10/15/25
(b)
.....................
79
81,568
Starbucks
Corp.:
2.25%,
03/12/30
..................
229
231,679
2.55%,
11/15/30
..................
317
328,460
Station
Casinos
LLC,
5.00%,
10/01/25
(b)
....
30
30,450
Sunny
Express
Enterprises
Corp.,
3.13%,
04/23/30
......................
200
207,282
Wynn
Las
Vegas
LLC
(b)
:
5.50%,
03/01/25
..................
162
174,451
5.25%,
05/15/27
..................
81
87,002
Wynn
Resorts
Finance
LLC,
5.13%,
10/01/29
(b)
67
70,769
3,836,179
Household
Durables
—
0.1%
Brookfield
Residential
Properties,
Inc.,
6.25%,
09/15/27
(b)
.....................
87
91,894
Century
Communities,
Inc.,
6.75%,
06/01/27
.
39
41,389
Lennar
Corp.:
4.13%,
01/15/22
..................
33
33,330
4.50%,
04/30/24
..................
38
41,562
4.75%,
05/30/25
..................
7
7,849
5.25%,
06/01/26
..................
380
441,024
4.75%,
11/29/27
..................
13
15,026
Mattamy
Group
Corp.,
5.25%,
12/15/27
(b)
...
7
7,315
PulteGroup,
Inc.:
5.50%,
03/01/26
..................
8
9,340
5.00%,
01/15/27
..................
7
8,186
Taylor
Morrison
Communities,
Inc.,
5.88%,
06/15/27
(b)
.....................
7
7,919
704,834
Household
Products
—
0.0%
Spectrum
Brands,
Inc.,
5.75%,
07/15/25
....
64
65,584
Independent
Power
and
Renewable
Electricity
Producers
—
0.0%
Capex
SA,
6.88%,
05/15/24
(b)
..........
50
46,119
Industrial
Conglomerates
—
0.1%
General
Electric
Co.:
6.88%,
01/10/39
..................
9
13,464
4.25%,
05/01/40
..................
2
2,337
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
16
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Industrial
Conglomerates
(continued)
4.50%,
03/11/44
..................
USD
3
$
3,637
Grupo
KUO
SAB
de
CV,
5.75%,
07/07/27
(b)
..
200
208,725
Roper
Technologies,
Inc.:
2.95%,
09/15/29
..................
87
93,020
2.00%,
06/30/30
..................
161
158,545
479,728
Insurance
—
0.4%
Ambac
Assurance
Corp.,
5.10%
(b)(g)
.......
15
20,821
Ambac
LSNI
LLC,
(LIBOR
USD
3
Month
+
5.00%),
6.00%,
02/12/23
(a)(b)
..........
84
84,031
American
International
Group,
Inc.:
3.40%,
06/30/30
..................
304
333,367
4.50%,
07/16/44
..................
271
328,924
4.75%,
04/01/48
..................
60
76,253
Aon
Corp.:
4.50%,
12/15/28
..................
83
97,049
3.75%,
05/02/29
..................
602
677,409
2.80%,
05/15/30
..................
468
491,316
Aon
plc,
4.25%,
12/12/42
.............
30
34,835
Hartford
Financial
Services
Group,
Inc.
(The),
3.60%,
08/19/49
.................
74
81,136
Marsh
&
McLennan
Cos.,
Inc.:
1.35%,
09/21/26
..................
EUR
160
200,346
1.98%,
03/21/30
..................
145
191,276
2.25%,
11/15/30
..................
USD
424
429,450
Willis
North
America,
Inc.,
3.60%,
05/15/24
..
36
38,672
3,084,885
Interactive
Media
&
Services
—
0.0%
Tencent
Holdings
Ltd.,
3.24%,
06/03/50
....
200
193,975
Internet
&
Direct
Marketing
Retail
—
0.2%
Amazon.com,
Inc.:
1.65%,
05/12/28
..................
120
121,025
3.88%,
08/22/37
..................
89
106,128
2.50%,
06/03/50
..................
672
634,974
eBay,
Inc.,
1.40%,
05/10/26
...........
473
474,601
1,336,728
IT
Services
—
0.8%
Fidelity
National
Information
Services,
Inc.:
1.00%,
12/03/28
..................
EUR
300
365,844
2.95%,
05/21/39
..................
200
289,387
Fiserv,
Inc.:
4.20%,
10/01/28
..................
USD
99
113,804
3.50%,
07/01/29
..................
1,486
1,635,108
Global
Payments,
Inc.:
1.20%,
03/01/26
..................
584
578,423
4.80%,
04/01/26
..................
475
543,072
3.20%,
08/15/29
..................
305
326,460
International
Business
Machines
Corp.:
3.30%,
05/15/26
..................
705
775,543
3.50%,
05/15/29
..................
721
806,870
1.95%,
05/15/30
..................
328
327,548
2.85%,
05/15/40
..................
116
117,889
Mastercard,
Inc.,
2.95%,
06/01/29
........
166
181,198
PayPal
Holdings,
Inc.:
1.65%,
06/01/25
..................
162
166,261
2.65%,
10/01/26
..................
74
79,469
Visa,
Inc.:
4.15%,
12/14/35
..................
357
438,891
2.70%,
04/15/40
..................
163
168,498
6,914,265
Leisure
Products
—
0.1%
Hasbro,
Inc.,
2.60%,
11/19/22
..........
451
464,000
Security
Par
(000)
Par
(000)
Value
Life
Sciences
Tools
&
Services
—
0.1%
Agilent
Technologies,
Inc.:
3.05%,
09/22/26
..................
USD
366
$
394,690
2.75%,
09/15/29
..................
133
139,044
2.10%,
06/04/30
..................
88
87,065
Charles
River
Laboratories
International,
Inc.,
4.25%,
05/01/28
(b)
................
7
7,236
Thermo
Fisher
Scientific,
Inc.:
4.50%,
03/25/30
..................
180
214,329
1.88%,
10/01/49
..................
EUR
300
378,172
1,220,536
Machinery
—
0.2%
CNH
Industrial
Capital
LLC,
4.20%,
01/15/24
.
USD
860
930,591
Deere
&
Co.,
3.75%,
04/15/50
..........
68
82,210
Otis
Worldwide
Corp.,
2.57%,
02/15/30
....
225
233,021
Parker-Hannifin
Corp.,
3.25%,
03/01/27
....
99
108,239
1,354,061
Media
—
1.2%
AMC
Networks,
Inc.:
5.00%,
04/01/24
..................
28
28,356
4.75%,
08/01/25
..................
56
57,495
Charter
Communications
Operating
LLC:
6.38%,
10/23/35
..................
21
28,070
6.48%,
10/23/45
..................
1,329
1,830,274
5.38%,
05/01/47
..................
229
280,619
3.85%,
04/01/61
..................
172
168,818
4.40%,
12/01/61
..................
202
217,046
Clear
Channel
Worldwide
Holdings,
Inc.,
5.13%,
08/15/27
(b)
................
92
94,320
Comcast
Corp.:
3.30%,
02/01/27
..................
206
226,379
3.30%,
04/01/27
..................
162
178,543
3.15%,
02/15/28
..................
295
323,740
2.65%,
02/01/30
..................
946
995,825
3.40%,
04/01/30
..................
1,019
1,124,818
1.95%,
01/15/31
..................
197
194,207
4.75%,
03/01/44
..................
100
127,318
3.97%,
11/01/47
..................
463
539,041
3.45%,
02/01/50
..................
80
86,327
2.80%,
01/15/51
..................
471
453,163
2.45%,
08/15/52
..................
99
89,435
Cox
Communications,
Inc.
(b)
:
3.15%,
08/15/24
..................
268
285,895
3.35%,
09/15/26
..................
22
23,890
3.60%,
06/15/51
..................
260
273,787
Diamond
Sports
Group
LLC,
5.38%,
08/15/26
(b)
45
29,137
Discovery
Communications
LLC,
1.90%,
03/19/27
......................
EUR
413
523,785
Gray
Television,
Inc.
(b)
:
5.88%,
07/15/26
..................
USD
52
53,690
7.00%,
05/15/27
..................
59
63,794
iHeartCommunications
,
Inc.:
6.38%,
05/01/26
..................
60
63,760
5.25%,
08/15/27
(b)
.................
54
56,452
4.75%,
01/15/28
(b)
.................
7
7,201
Interpublic
Group
of
Cos.,
Inc.
(The),
4.75%,
03/30/30
......................
191
225,484
Lamar
Media
Corp.,
3.75%,
02/15/28
......
9
9,158
Meredith
Corp.,
6.88%,
02/01/26
........
112
116,480
Nexstar
Broadcasting,
Inc.,
5.63%,
07/15/27
(b)
85
90,100
Outfront
Media
Capital
LLC
(b)
:
5.00%,
08/15/27
..................
97
100,433
4.63%,
03/15/30
..................
7
7,105
Sirius
XM
Radio,
Inc.
(b)
:
4.63%,
07/15/24
..................
106
108,798
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Media
(continued)
5.38%,
07/15/26
..................
USD
57
$
58,853
5.00%,
08/01/27
..................
109
114,205
5.50%,
07/01/29
..................
90
98,073
TEGNA,
Inc.:
4.63%,
03/15/28
..................
15
15,563
5.00%,
09/15/29
..................
17
17,790
Time
Warner
Cable
LLC,
4.00%,
09/01/21
...
22
22,000
ViacomCBS
,
Inc.:
4.38%,
03/15/43
..................
122
141,161
5.85%,
09/01/43
..................
253
346,639
9,897,027
Metals
&
Mining
—
0.4%
Anglo
American
Capital
plc,
2.63%,
09/10/30
(b)
317
317,158
Chinalco
Capital
Holdings
Ltd.,
4.25%,
04/21/22
200
202,975
FMG
Resources
August
2006
Pty.
Ltd.,
4.50%,
09/15/27
(b)
.....................
9
9,788
Freeport-McMoRan,
Inc.:
5.00%,
09/01/27
..................
9
9,506
5.25%,
09/01/29
..................
9
9,934
Glencore
Funding
LLC
(b)
:
1.63%,
09/01/25
..................
52
52,591
1.63%,
04/27/26
..................
564
565,916
2.50%,
09/01/30
..................
573
571,600
2.85%,
04/27/31
..................
281
285,759
Newmont
Corp.,
2.25%,
10/01/30
........
311
310,150
Nucor
Corp.,
3.95%,
05/01/28
..........
164
186,728
Steel
Dynamics,
Inc.,
2.80%,
12/15/24
.....
135
142,487
Vale
Overseas
Ltd.,
3.75%,
07/08/30
......
90
95,715
Vedanta
Resources
Finance
II
plc,
8.95%,
03/11/25
(b)
.....................
200
196,000
2,956,307
Multiline
Retail
—
0.0%
Dollar
General
Corp.,
4.13%,
04/03/50
.....
2
2,343
Multi-Utilities
—
0.1%
Ameren
Illinois
Co.:
3.80%,
05/15/28
..................
120
135,907
3.25%,
03/15/50
..................
159
171,875
Consumers
Energy
Co.:
3.25%,
08/15/46
..................
94
100,754
3.75%,
02/15/50
..................
381
449,489
3.10%,
08/15/50
..................
140
147,895
3.50%,
08/01/51
..................
120
135,950
1,141,870
Oil,
Gas
&
Consumable
Fuels
—
2.2%
Boardwalk
Pipelines
LP,
4.80%,
05/03/29
...
53
60,991
BP
Capital
Markets
America,
Inc.:
3.79%,
02/06/24
..................
308
332,245
3.80%,
09/21/25
..................
145
160,700
3.38%,
02/08/61
..................
85
85,452
Buckeye
Partners
LP,
3.95%,
12/01/26
.....
9
9,157
Cameron
LNG
LLC
(b)
:
3.30%,
01/15/35
..................
105
112,747
3.40%,
01/15/38
..................
532
561,829
Cheniere
Corpus
Christi
Holdings
LLC:
5.88%,
03/31/25
..................
495
567,304
5.13%,
06/30/27
..................
461
536,045
Cheniere
Energy
Partners
LP:
5.63%,
10/01/26
..................
37
38,387
4.50%,
10/01/29
..................
23
24,725
Chevron
USA,
Inc.:
5.25%,
11/15/43
..................
72
97,872
4.95%,
08/15/47
..................
55
74,137
2.34%,
08/12/50
..................
90
81,057
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Citgo
Holding,
Inc.,
9.25%,
08/01/24
(b)
.....
USD
75
$
76,500
CrownRock
LP,
5.63%,
10/15/25
(b)
.......
39
40,365
DCP
Midstream
Operating
LP:
5.38%,
07/15/25
..................
13
14,478
5.13%,
05/15/29
..................
9
9,945
Devon
Energy
Corp.:
5.85%,
12/15/25
..................
56
65,729
4.50%,
01/15/30
(b)
.................
64
70,361
Diamondback
Energy,
Inc.:
3.50%,
12/01/29
..................
588
629,481
3.13%,
03/24/31
..................
235
243,544
Energean
Israel
Finance
Ltd.,
5.88%,
03/30/31
(b)
.....................
80
82,275
Energy
Transfer
LP:
4.50%,
04/15/24
..................
718
781,708
2.90%,
05/15/25
..................
1,013
1,066,162
5.95%,
12/01/25
..................
217
254,061
5.50%,
06/01/27
..................
111
130,179
6.63%,
10/15/36
..................
30
39,839
6.50%,
02/01/42
..................
197
255,770
Enterprise
Products
Operating
LLC:
3.13%,
07/31/29
..................
448
483,364
2.80%,
01/31/30
..................
164
173,252
EOG
Resources,
Inc.,
4.15%,
01/15/26
....
62
69,755
Exxon
Mobil
Corp.,
1.41%,
06/26/39
......
EUR
320
373,244
Galaxy
Pipeline
Assets
Bidco
Ltd.:
2.16%,
03/31/34
(b)
.................
USD
200
196,250
2.63%,
03/31/36
..................
200
196,000
Kinder
Morgan,
Inc.,
5.30%,
12/01/34
.....
13
16,057
Marathon
Petroleum
Corp.,
5.85%,
12/15/45
.
65
84,801
Matador
Resources
Co.,
5.88%,
09/15/26
...
16
16,480
Medco
Oak
Tree
Pte.
Ltd.,
7.38%,
05/14/26
..
200
217,788
MPLX
LP:
4.88%,
12/01/24
..................
407
455,455
1.75%,
03/01/26
..................
265
267,857
2.65%,
08/15/30
..................
217
219,016
NGPL
PipeCo
LLC
(b)
:
4.88%,
08/15/27
..................
230
263,428
3.25%,
07/15/31
..................
507
522,529
7.77%,
12/15/37
..................
52
74,386
Northwest
Pipeline
LLC,
4.00%,
04/01/27
...
365
408,341
Petrobras
Global
Finance
BV:
6.25%,
03/17/24
..................
36
40,640
5.30%,
01/27/25
..................
129
144,827
5.60%,
01/03/31
..................
200
223,250
Qatar
Petroleum,
3.30%,
07/12/51
.......
200
200,000
ReNew
Power
Synthetic,
6.67%,
03/12/24
...
200
209,913
Sabine
Pass
Liquefaction
LLC:
5.63%,
04/15/23
(e)
.................
184
197,670
5.75%,
05/15/24
..................
888
996,501
5.63%,
03/01/25
..................
1,969
2,250,444
5.88%,
06/30/26
..................
172
203,606
5.00%,
03/15/27
..................
185
213,627
SM
Energy
Co.,
10.00%,
01/15/25
(b)
......
12
13,540
Suncor
Energy,
Inc.,
6.80%,
05/15/38
.....
96
137,815
Sunoco
LP:
5.50%,
02/15/26
..................
26
26,793
6.00%,
04/15/27
..................
19
19,869
Targa
Resources
Partners
LP:
5.88%,
04/15/26
..................
72
75,622
5.38%,
02/01/27
..................
36
37,485
6.50%,
07/15/27
..................
58
62,856
5.00%,
01/15/28
..................
11
11,605
6.88%,
01/15/29
..................
58
65,345
5.50%,
03/01/30
..................
15
16,495
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
18
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Texas
Eastern
Transmission
LP,
3.50%,
01/15/28
(b)
.....................
USD
504
$
548,163
TransCanada
PipeLines
Ltd.,
4.63%,
03/01/34
123
145,900
Transcontinental
Gas
Pipe
Line
Co.
LLC:
7.85%,
02/01/26
..................
724
919,405
4.00%,
03/15/28
..................
496
561,189
3.95%,
05/15/50
..................
232
259,236
Williams
Cos.,
Inc.
(The),
Series
A,
7.50%,
01/15/31
......................
129
178,713
18,301,557
Paper
&
Forest
Products
—
0.1%
Georgia-Pacific
LLC:
1.75%,
09/30/25
(b)
.................
246
252,291
2.10%,
04/30/27
(b)
.................
98
101,128
2.30%,
04/30/30
(b)
.................
164
167,507
8.88%,
05/15/31
..................
83
131,000
Suzano
Austria
GmbH:
3.75%,
01/15/31
..................
30
31,350
3.13%,
01/15/32
..................
90
89,136
772,412
Pharmaceuticals
—
0.5%
AstraZeneca
plc,
1.38%,
08/06/30
........
518
490,168
Bausch
Health
Americas,
Inc.
(b)
:
9.25%,
04/01/26
..................
103
112,033
8.50%,
01/31/27
..................
120
130,428
Bausch
Health
Cos.,
Inc.
(b)
:
5.50%,
11/01/25
..................
103
105,678
9.00%,
12/15/25
..................
105
112,592
5.75%,
08/15/27
..................
31
32,903
7.00%,
01/15/28
..................
49
50,470
7.25%,
05/30/29
..................
51
52,117
Elanco
Animal
Health,
Inc.
(e)
:
5.27%,
08/28/23
..................
54
58,082
5.90%,
08/28/28
..................
11
12,873
Eli
Lilly
&
Co.,
1.70%,
11/01/49
.........
EUR
200
263,284
Johnson
&
Johnson:
3.70%,
03/01/46
..................
USD
43
51,142
3.75%,
03/03/47
..................
75
90,195
Merck
&
Co.,
Inc.:
3.40%,
03/07/29
..................
104
116,550
2.45%,
06/24/50
..................
126
118,866
Pfizer,
Inc.:
3.45%,
03/15/29
..................
101
113,598
2.63%,
04/01/30
..................
755
804,051
Takeda
Pharmaceutical
Co.
Ltd.:
2.05%,
03/31/30
..................
600
595,249
2.00%,
07/09/40
..................
EUR
380
484,384
3,794,663
Real
Estate
Management
&
Development
—
0.4%
Agile
Group
Holdings
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
11.25%),
8.38%
(a)(g)
..............
USD
200
208,100
Arabian
Centres
Sukuk
II
Ltd.,
5.63%,
10/07/26
(b)
.....................
200
211,937
Celulosa
Arauco
y
Constitucion
SA,
4.25%,
04/30/29
(b)
.....................
200
217,687
China
Aoyuan
Group
Ltd.,
7.95%,
02/19/23
..
200
197,500
China
Resources
Land
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.14%),
3.75%
(a)(g)
...............
200
207,538
CIFI
Holdings
Group
Co.
Ltd.,
5.50%,
01/23/22
200
201,938
Country
Garden
Holdings
Co.
Ltd.,
5.40%,
05/27/25
......................
200
214,100
Security
Par
(000)
Par
(000)
Value
Real
Estate
Management
&
Development
(continued)
Fantasia
Holdings
Group
Co.
Ltd.,
11.75%,
04/17/22
......................
USD
200
$
187,700
Kaisa
Group
Holdings
Ltd.,
11.95%,
10/22/22
.
200
205,913
Powerlong
Real
Estate
Holdings
Ltd.,
7.13%,
11/08/22
......................
200
207,500
Ronshine
China
Holdings
Ltd.,
5.50%,
02/01/22
200
195,496
Sunac
China
Holdings
Ltd.,
6.65%,
08/03/24
.
200
200,725
Vanke
Real
Estate
Hong
Kong
Co.
Ltd.,
3.15%,
05/12/25
......................
200
207,163
Yuzhou
Group
Holdings
Co.
Ltd.:
6.00%,
10/25/23
..................
200
175,225
8.50%,
02/26/24
..................
200
182,250
3,020,772
Road
&
Rail
—
0.8%
Burlington
Northern
Santa
Fe
LLC:
4.45%,
03/15/43
..................
101
127,062
3.30%,
09/15/51
..................
510
556,942
Canadian
Pacific
Railway
Co.,
2.05%,
03/05/30
97
96,543
CMB
International
Leasing
Management
Ltd.,
2.00%,
02/04/26
.................
200
197,725
CSX
Corp.:
2.40%,
02/15/30
..................
223
229,241
4.30%,
03/01/48
..................
296
359,203
2.50%,
05/15/51
..................
90
81,702
4.25%,
11/01/66
..................
65
80,157
Norfolk
Southern
Corp.:
3.65%,
08/01/25
..................
6
6,579
2.90%,
06/15/26
..................
241
260,187
4.15%,
02/28/48
..................
75
88,122
3.40%,
11/01/49
..................
273
288,066
3.05%,
05/15/50
..................
82
81,965
Penske
Truck
Leasing
Co.
LP
(b)
:
4.25%,
01/17/23
..................
231
243,646
2.70%,
03/14/23
..................
160
165,175
2.70%,
11/01/24
..................
179
188,241
3.95%,
03/10/25
..................
90
98,412
4.00%,
07/15/25
..................
240
264,311
1.20%,
11/15/25
..................
94
93,104
1.70%,
06/15/26
..................
290
291,918
Rumo
Luxembourg
SARL,
5.88%,
01/18/25
(b)
.
200
209,725
Ryder
System,
Inc.:
2.50%,
09/01/24
..................
69
72,223
4.63%,
06/01/25
..................
690
778,738
Simpar
Europe
SA,
5.20%,
01/26/31
(b)
.....
200
204,500
Union
Pacific
Corp.:
2.75%,
03/01/26
..................
175
186,714
3.84%,
03/20/60
..................
550
626,173
2.97%,
09/16/62
..................
212
203,730
3.75%,
02/05/70
..................
180
198,408
Union
Pacific
Railroad
Co.
Pass-Through
Trust,
Series
2014-1,
3.23%,
05/14/26
.......
87
93,790
6,372,302
Semiconductors
&
Semiconductor
Equipment
—
1.1%
Applied
Materials,
Inc.,
2.75%,
06/01/50
....
154
152,834
Broadcom
Corp.,
3.88%,
01/15/27
.......
230
254,145
Broadcom,
Inc.:
4.11%,
09/15/28
..................
35
39,373
4.75%,
04/15/29
..................
412
479,262
5.00%,
04/15/30
..................
900
1,061,795
4.15%,
11/15/30
..................
372
417,166
4.30%,
11/15/32
..................
211
240,271
3.47%,
04/15/34
(b)
.................
443
468,585
Intel
Corp.,
3.73%,
12/08/47
...........
398
454,492
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Semiconductors
&
Semiconductor
Equipment
(continued)
KLA
Corp.:
4.10%,
03/15/29
..................
USD
421
$
486,005
3.30%,
03/01/50
..................
456
482,507
Lam
Research
Corp.:
3.75%,
03/15/26
..................
379
424,402
2.88%,
06/15/50
..................
411
413,626
NVIDIA
Corp.:
3.20%,
09/16/26
..................
92
101,210
1.55%,
06/15/28
..................
947
943,140
2.85%,
04/01/30
..................
129
139,639
3.50%,
04/01/50
..................
171
193,041
NXP
BV
(b)
:
3.88%,
06/18/26
..................
95
105,250
4.30%,
06/18/29
..................
638
729,578
3.40%,
05/01/30
..................
357
387,977
2.50%,
05/11/31
..................
704
710,964
QUALCOMM,
Inc.,
4.30%,
05/20/47
......
404
510,072
Texas
Instruments,
Inc.,
1.75%,
05/04/30
...
83
82,583
9,277,917
Software
—
0.8%
Autodesk,
Inc.,
3.50%,
06/15/27
.........
560
617,113
Citrix
Systems,
Inc.:
4.50%,
12/01/27
..................
275
311,707
3.30%,
03/01/30
..................
210
220,936
Microsoft
Corp.,
2.92%,
03/17/52
........
825
875,612
Oracle
Corp.:
4.30%,
07/08/34
..................
141
163,458
3.85%,
07/15/36
..................
354
389,167
6.13%,
07/08/39
..................
350
484,542
3.60%,
04/01/40
..................
563
593,829
3.65%,
03/25/41
..................
1,292
1,369,981
4.13%,
05/15/45
..................
293
326,478
4.00%,
07/15/46
..................
238
258,081
4.00%,
11/15/47
..................
507
553,070
3.60%,
04/01/50
..................
316
324,485
4.10%,
03/25/61
..................
113
125,283
salesforce.com,
Inc.,
3.05%,
07/15/61
.....
36
36,476
6,650,218
Specialty
Retail
—
0.3%
Home
Depot,
Inc.
(The),
2.95%,
06/15/29
...
803
877,133
InRetail
Consumer,
3.25%,
03/22/28
(b)
.....
200
196,740
Lowe's
Cos.,
Inc.:
4.00%,
04/15/25
..................
1,008
1,115,310
3.65%,
04/05/29
..................
318
355,702
2,544,885
Technology
Hardware,
Storage
&
Peripherals
—
0.3%
Apple,
Inc.:
3.85%,
05/04/43
..................
334
396,905
4.38%,
05/13/45
..................
75
95,620
2.55%,
08/20/60
..................
347
323,709
2.80%,
02/08/61
..................
159
154,861
Dell
International
LLC:
5.85%,
07/15/25
..................
296
347,272
4.90%,
10/01/26
..................
128
147,723
8.35%,
07/15/46
..................
80
130,848
Hewlett
Packard
Enterprise
Co.,
4.65%,
10/01/24
......................
754
838,281
Seagate
HDD
Cayman,
4.09%,
06/01/29
(b)
..
168
171,998
2,607,217
Textiles,
Apparel
&
Luxury
Goods
—
0.0%
Hanesbrands,
Inc.
(b)
:
4.63%,
05/15/24
..................
64
67,840
4.88%,
05/15/26
..................
13
14,040
Security
Par
(000)
Par
(000)
Value
Textiles,
Apparel
&
Luxury
Goods
(continued)
Under
Armour,
Inc.,
3.25%,
06/15/26
......
USD
9
$
9,325
William
Carter
Co.
(The),
5.63%,
03/15/27
(b)
..
36
37,879
129,084
Thrifts
&
Mortgage
Finance
—
0.1%
(b)
BPCE
SA,
2.70%,
10/01/29
............
491
512,469
Quicken
Loans,
Inc.,
5.25%,
01/15/28
.....
71
74,550
587,019
Tobacco
—
0.6%
Altria
Group,
Inc.:
4.40%,
02/14/26
..................
62
70,149
2.20%,
06/15/27
..................
EUR
160
204,789
4.80%,
02/14/29
..................
USD
116
134,488
3.13%,
06/15/31
..................
EUR
460
627,340
2.45%,
02/04/32
..................
USD
548
529,961
5.80%,
02/14/39
..................
459
567,024
3.40%,
02/04/41
..................
263
250,755
6.20%,
02/14/59
..................
30
38,801
BAT
Capital
Corp.:
3.22%,
09/06/26
..................
249
264,168
4.91%,
04/02/30
..................
616
707,683
2.73%,
03/25/31
..................
329
324,814
3.98%,
09/25/50
..................
206
200,631
BAT
International
Finance
plc,
3.95%,
06/15/25
(b)
.....................
66
72,080
Philip
Morris
International,
Inc.,
1.45%,
08/01/39
......................
EUR
395
454,169
Reynolds
American,
Inc.:
4.45%,
06/12/25
..................
USD
70
77,544
5.85%,
08/15/45
..................
260
318,359
4,842,755
Trading
Companies
&
Distributors
—
0.1%
Air
Lease
Corp.,
1.88%,
08/15/26
........
598
598,462
BOC
Aviation
Ltd.,
3.00%,
09/11/29
.......
200
204,787
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
.....
89
93,826
United
Rentals
North
America,
Inc.:
5.88%,
09/15/26
..................
73
75,540
5.50%,
05/15/27
..................
73
77,380
3.88%,
11/15/27
..................
11
11,558
4.88%,
01/15/28
..................
118
125,139
5.25%,
01/15/30
..................
11
12,049
1,198,741
Wireless
Telecommunication
Services
—
0.6%
Empresa
Nacional
de
Telecomunicaciones
SA,
4.75%,
08/01/26
(b)
................
240
265,170
Millicom
International
Cellular
SA
(b)
:
6.63%,
10/15/26
..................
180
190,440
4.50%,
04/27/31
..................
200
208,038
Sprint
Corp.:
7.63%,
02/15/25
..................
117
139,011
7.63%,
03/01/26
..................
118
143,960
Sprint
Spectrum
Co.
LLC,
3.36%,
09/20/21
(b)(e)
49
49,711
T-Mobile
USA,
Inc.:
3.75%,
04/15/27
..................
491
542,555
3.88%,
04/15/30
..................
1,820
2,034,432
VEON
Holdings
BV,
3.38%,
11/25/27
(b)
.....
200
201,200
Vodafone
Group
plc,
5.25%,
05/30/48
.....
580
764,246
4,538,763
Total
Corporate
Bonds
—
32.7%
(Cost:
$263,435,419)
..............................
268,642,248
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
20
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Floating
Rate
Loan
Interests
—
0.3%
Air
Freight
&
Logistics
—
0.0%
XPO
Logistics,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
1.75%),
1.88%
,
 02/24/25
(a)
.....
USD
269
$
268,144
Building
Products
—
0.0%
(a)
Advanced
Drainage
Systems,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.25%),
2.38%
,
 07/31/26
..................
30
30,241
Jeld-Wen
,
Inc.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
2.00%),
2.10%
,
 12/14/24
......
116
115,439
145,680
Consumer
Finance
—
0.0%
Credito
Real
SAB
de
CV
SOFOM
ER,
Term
Loan
A,
(LIBOR
USD
3
Month
+
3.75%),
3.90%
,
 02/21/23
(a)(c)
................
30
28,200
Diversified
Financial
Services
—
0.0%
Connect
Finco
SARL,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
4.50%
,
 12/11/26
(a)
....
269
268,814
Health
Care
Providers
&
Services
—
0.0%
Select
Medical
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.25%),
2.36%
,
 03/06/25
(a)
45
44,242
Hotels,
Restaurants
&
Leisure
—
0.1%
(a)
Aimbridge
Acquisition
Co.,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.85%
,
 02/02/26
..................
154
150,038
Golden
Nugget,
Inc.,
Term
Loan
B,
(LIBOR
USD
2
Month
+
2.50%),
3.25%
,
 10/04/23
.
182
180,991
331,029
Media
—
0.0%
(a)
CSC
Holdings
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.50%),
2.57%
,
 04/15/27
......
179
176,850
Lamar
Media
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
1.50%),
1.58%
,
 02/05/27
.....
19
18,964
195,814
Oil,
Gas
&
Consumable
Fuels
—
0.1%
Buckeye
Partners
LP,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
2.25%),
2.35%
,
 11/01/26
(a)
461
457,721
Pharmaceuticals
—
0.0%
Grifols
Worldwide
Operations
Ltd.,
Term
Loan
B,
(LIBOR
USD
1
Week
+
2.00%),
2.09%
,
 11/15/27
(a)
.................
283
280,144
Road
&
Rail
—
0.0%
Genesee
&
Wyoming,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
2.00%),
2.15%
,
 12/30/26
(a)
167
165,683
Thrifts
&
Mortgage
Finance
—
0.1%
Caliber
Home
Loans,
Term
Loan,
(LIBOR
USD
1
Month
+
0.00%),
10.00%
,
 07/01/25
(a)(c)
..
306
305,344
Total
Floating
Rate
Loan
Interests
—
0.3%
(Cost:
$2,506,530)
...............................
2,490,815
Foreign
Agency
Obligations
—
0.4%
Argentina
—
0.0%
YPF
SA,
7.00%
,
12/15/47
(b)
.............
106
68,920
Colombia
—
0.1%
Ecopetrol
SA:
5.38%,
06/26/26
..................
395
435,527
6.88%,
04/29/30
..................
239
287,579
Security
Par
(000)
Par
(000)
Value
Colombia
(continued)
Empresas
Publicas
de
Medellin
ESP,
4.25%
,
07/18/29
(b)
......................
USD
200
$
197,475
920,581
India
—
0.0%
Power
Finance
Corp.
Ltd.,
4.50%
,
06/18/29
..
200
214,038
Indonesia
—
0.1%
Pertamina
Persero
PT,
4.18%
,
01/21/50
....
200
205,414
Perusahaan
Perseroan
Persero
PT
Perusahaan
Listrik
Negara,
6.25%
,
01/25/49
........
200
253,288
458,702
Mexico
—
0.2%
Petroleos
Mexicanos
:
Series
13-2,
7.19%,
09/12/24
.........
MXN
22
104,280
6.88%,
10/16/25
..................
USD
248
273,606
5.35%,
02/12/28
..................
86
84,362
6.50%,
01/23/29
..................
304
314,640
6.84%,
01/23/30
..................
458
471,396
5.63%,
01/23/46
..................
20
16,272
6.35%,
02/12/48
..................
133
112,678
7.69%,
01/23/50
..................
225
215,719
6.95%,
01/28/60
..................
40
35,350
1,628,303
Pakistan
—
0.0%
Pakistan
Water
&
Power
Development
Authority,
7.50%
,
06/04/31
...........
200
199,250
Panama
—
0.0%
Banco
Latinoamericano
de
Comercio
Exterior
SA,
2.38%
,
09/14/25
(b)
..............
200
203,937
Total
Foreign
Agency
Obligations
—
0.4%
(Cost:
$3,602,296)
...............................
3,693,731
Foreign
Government
Obligations
—
6.5%
Argentina
—
0.0%
Argentine
Republic
(The),
0.12%
,
07/09/35
(e)
.
594
188,001
Brazil
—
0.1%
Federative
Republic
of
Brazil,
3.88%
,
06/12/30
1,159
1,169,940
China
—
4.1%
People's
Republic
of
China:
1.99%,
04/09/25
..................
CNY
103,870
15,519,017
2.41%,
06/19/25
..................
15,600
2,365,699
2.85%,
06/04/27
..................
11,100
1,694,725
2.68%,
05/21/30
..................
97,430
14,479,714
34,059,155
Colombia
—
0.5%
Republic
of
Colombia:
3.88%,
04/25/27
..................
USD
528
560,934
4.50%,
03/15/29
..................
937
1,019,749
3.13%,
04/15/31
..................
1,650
1,611,638
5.20%,
05/15/49
..................
450
492,131
3,684,452
Dominican
Republic
—
0.2%
Dominican
Republic
Government
Bond:
4.50%,
01/30/30
..................
933
952,126
4.88%,
09/23/32
(b)
.................
717
738,510
1,690,636
Ecuador
—
0.0%
Republic
of
Ecuador,
0.50%
,
07/31/35
(e)
.....
202
138,370
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
21
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Egypt
—
0.0%
Arab
Republic
of
Egypt,
8.88%
,
05/29/50
(b)
...
USD
205
$
220,862
Ghana
—
0.0%
Republic
of
Ghana,
8.63%
,
04/07/34
(b)
......
209
215,205
Hungary
—
0.1%
Hungary
Government
Bond,
5.38%
,
03/25/24
.
414
466,992
Indonesia
—
0.2%
Republic
of
Indonesia:
4.10%,
04/24/28
..................
670
756,807
2.85%,
02/14/30
..................
250
258,718
6.50%,
02/15/31
..................
IDR
3,461,000
236,661
1,252,186
Mexico
—
0.5%
United
Mexican
States:
2.66%,
05/24/31
..................
USD
3,027
2,955,676
4.50%,
01/31/50
..................
930
987,718
3,943,394
Panama
—
0.2%
Republic
of
Panama:
3.88%,
03/17/28
..................
1,026
1,128,151
2.25%,
09/29/32
..................
207
198,435
1,326,586
Peru
—
0.1%
Republic
of
Peru,
4.13%
,
08/25/27
........
648
725,274
Philippines
—
0.2%
Republic
of
Philippines,
3.00%
,
02/01/28
....
1,210
1,304,271
Romania
—
0.0%
Romania
Government
Bond,
3.00%
,
02/14/31
(b)
175
181,486
South
Africa
—
0.1%
Republic
of
South
Africa:
7.00%,
02/28/31
..................
ZAR
9,541
573,320
8.25%,
03/31/32
..................
5,745
367,077
940,397
Sri
Lanka
—
0.0%
Democratic
Socialist
Republic
of
Sri
Lanka,
7.55%
,
03/28/30
..................
USD
200
126,475
Ukraine
—
0.1%
Ukraine
Government
Bond:
9.75%,
11/01/28
..................
391
465,608
7.38%,
09/25/32
..................
400
419,825
7.25%,
03/15/33
..................
200
207,975
1,093,408
Uruguay
—
0.1%
Oriental
Republic
of
Uruguay:
4.38%,
10/27/27
..................
333
382,659
5.10%,
06/18/50
..................
120
157,110
539,769
Total
Foreign
Government
Obligations
—
6.5%
(Cost:
$51,827,751)
...............................
53,266,859
Security
Shares
Shares
Value
Investment
Companies
—
12.4%
BlackRock
Allocation
Target
Shares-
BATS
Series
A
(k)
.......................
10,119,382
$
101,800,981
Total
Investment
Companies
—
12.4%
(Cost:
$101,105,000)
..............................
101,800,981
Par
(000)
Par
(000)
Municipal
Bonds
—
0.7%
California
-
0.3%
Bay
Area
Toll
Authority,
Series
2010S-1,
RB,
7.04%, 04/01/50
..................
USD
290
506,494
Los
Angeles
Community
College
District,
Series
2010E,
GO,
6.60%, 08/01/42
..........
110
174,305
Los
Angeles
Unified
School
District,
Series
2010I,
GO,
6.76%, 07/01/34
..........
500
718,935
State
of
California:
Series
2018,
GO,
4.60%, 04/01/38
......
815
956,297
Series
2009,
GO,
7.55%, 04/01/39
......
65
110,302
University
of
California,
Series
2012AD,
RB,
4.86%, 05/15/12
..................
25
35,491
2,501,824
Georgia
-
0.0%
Municipal
Electric
Authority
of
Georgia,
Series
2010A,
RB,
6.64%, 04/01/57
..........
54
82,211
Illinois
-
0.1%
State
of
Illinois,
Series
2003,
GO,
5.10%, 06/01/33
..................
775
911,718
Massachusetts
-
0.0%
Massachusetts
Housing
Finance
Agency,
Series
2015A,
RB,
4.50%, 12/01/48
.....
30
32,105
New
Jersey
-
0.1%
New
Jersey
Turnpike
Authority,
Series
2009F,
RB,
7.41%, 01/01/40
...............
167
274,585
New
York
-
0.0%
Metropolitan
Transportation
Authority,
Series
2010A,
RB,
6.67%, 11/15/39
..........
75
108,473
New
York
City
Water
&
Sewer
System:
Series
2010EE,
RB,
6.01%, 06/15/42
....
35
53,816
Series
2011CC,
RB,
5.88%, 06/15/44
....
55
85,407
New
York
State
Dormitory
Authority,
Series
2010H,
RB,
5.39%, 03/15/40
..........
60
80,727
Port
Authority
of
New
York
&
New
Jersey:
Series
2010-165,
RB,
5.65%, 11/01/40
...
120
168,173
Series
2014-181,
RB,
4.96%, 08/01/46
...
195
261,070
757,666
Ohio
-
0.0%
American
Municipal
Power,
Inc.,
Series
2010B,
RB,
8.08%, 02/15/50
...............
135
247,370
Texas
-
0.2%
City
of
San
Antonio
Electric
&
Gas
Systems,
Series
2010A,
RB,
5.81%, 02/01/41
.....
215
316,682
State
of
Texas,
Series
2009A,
GO,
5.52%, 04/01/39
..................
215
311,019
627,701
Total
Municipal
Bonds
—
0.7%
(Cost:
$4,859,083)
...............................
5,435,180
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
22
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Non-Agency
Mortgage-Backed
Securities
—
1.6%
Collateralized
Mortgage
Obligations
—
0.5%
Alternative
Loan
Trust:
Series
2005-22T1,
Class
A1,
(LIBOR
USD
1
Month
+
0.35%),
0.44%,
06/25/35
(a)
...
USD
116
$
97,360
Series
2005-72,
Class
A3,
(LIBOR
USD
1
Month
+
0.60%),
0.69%,
01/25/36
(a)
...
56
53,048
Series
2005-76,
Class
2A1,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
1.00%),
1.12%,
02/25/36
(a)
....................
19
18,072
Series
2006-11CB,
Class
3A1,
6.50%,
05/25/36
.....................
55
39,285
Series
2006-15CB,
Class
A1,
6.50%,
06/25/36
.....................
9
6,694
Series
2006-OA14,
Class
1A1,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
1.73%),
1.85%,
11/25/46
(a)
....................
66
56,945
Series
2006-OA16,
Class
A4C,
(LIBOR
USD
1
Month
+
0.68%),
0.77%,
10/25/46
(a)
..
142
104,724
Series
2006-OA8,
Class
1A1,
(LIBOR
USD
1
Month
+
0.19%),
0.28%,
07/25/46
(a)
...
10
9,114
Series
2006-OC10,
Class
2A1,
(LIBOR
USD
1
Month
+
0.18%),
0.27%,
11/25/36
(a)
..
—
(d)
3
Series
2006-OC10,
Class
2A3,
(LIBOR
USD
1
Month
+
0.46%),
0.55%,
11/25/36
(a)
..
56
51,670
Series
2006-OC7,
Class
2A3,
(LIBOR
USD
1
Month
+
0.50%),
0.59%,
07/25/46
(a)
..
79
73,888
Series
2007-3T1,
Class
1A1,
6.00%,
04/25/37
.....................
10
6,830
Series
2007-OA3,
Class
1A1,
(LIBOR
USD
1
Month
+
0.14%),
0.23%,
04/25/47
(a)
...
19
16,995
American
Home
Mortgage
Assets
Trust
(a)
:
Series
2006-3,
Class
2A11,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
0.94%),
1.06%,
10/25/46
.....................
52
42,452
Series
2006-4,
Class
1A12,
(LIBOR
USD
1
Month
+
0.21%),
0.30%,
10/25/46
....
62
40,801
Series
2006-5,
Class
A1,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
0.92%),
1.04%,
11/25/46
.....
114
48,162
Series
2007-1,
Class
A1,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
0.70%),
0.82%,
02/25/47
.....
57
32,336
APS
Resecuritization
Trust
(a)(b)
:
Series
2016-1,
Class
1MZ,
3.82%,
07/31/57
263
94,226
Series
2016-3,
Class
3A,
(LIBOR
USD
1
Month
+
2.85%),
2.94%,
09/27/46
....
127
126,724
Series
2016-3,
Class
4A,
(LIBOR
USD
1
Month
+
2.60%),
2.69%,
04/27/47
....
16
15,655
Banc
of
America
Funding
Trust,
Series
2016-
R2,
Class
1A1,
4.70%,
05/01/33
(a)(b)
.....
75
71,929
Bear
Stearns
Mortgage
Funding
Trust
(a)
:
Series
2006-SL1,
Class
A1,
(LIBOR
USD
1
Month
+
0.28%),
0.37%,
08/25/36
....
30
29,483
Series
2007-AR2,
Class
A1,
(LIBOR
USD
1
Month
+
0.17%),
0.26%,
03/25/37
....
99
93,679
Series
2007-AR3,
Class
1A1,
(LIBOR
USD
1
Month
+
0.14%),
0.23%,
03/25/37
....
12
11,352
Series
2007-AR4,
Class
1A1,
(LIBOR
USD
1
Month
+
0.20%),
0.29%,
09/25/47
....
44
43,005
Series
2007-AR4,
Class
2A1,
(LIBOR
USD
1
Month
+
0.21%),
0.30%,
06/25/37
....
14
14,018
Security
Par
(000)
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
Chase
Mortgage
Finance
Trust,
Series
2007-
S6,
Class
1A1,
6.00%,
12/25/37
........
USD
736
$
463,570
CHL
Mortgage
Pass-Through
Trust:
Series
2006-OA4,
Class
A1,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
0.96%),
1.08%,
04/25/46
(a)
....................
140
58,123
Series
2006-OA5,
Class
3A1,
(LIBOR
USD
1
Month
+
0.40%),
0.49%,
04/25/46
(a)
...
20
18,832
Series
2007-15,
Class
2A2,
6.50%,
09/25/37
195
112,093
Citicorp
Mortgage
Securities
Trust:
Series
2007-9,
Class
1A1,
6.25%,
12/25/37
49
44,697
Series
2008-2,
Class
1A1,
6.50%,
06/25/38
75
66,953
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2009-12R,
Class
3A1,
6.50%,
10/27/37
(b)
......................
281
156,656
CSFB
Mortgage-Backed
Pass-Through
Certificates,
Series
2005-10,
Class
10A1,
(LIBOR
USD
1
Month
+
1.35%),
1.44%,
11/25/35
(a)
......................
43
7,964
CSMC
Trust
(a)(b)
:
Series
2009-5R,
Class
4A4,
2.97%,
06/25/36
.....................
—
(d)
1
Series
2014-11R,
Class
16A1,
3.16%,
09/27/47
.....................
13
13,633
Deutsche
Alt-A
Securities
Mortgage
Loan
Trust,
Series
2007-OA4,
Class
A2A,
(LIBOR
USD
1
Month
+
0.17%),
0.26%,
08/25/47
(a)
....
116
124,633
Deutsche
Alt-B
Securities
Mortgage
Loan
Trust,
Series
2006-AB3,
Class
A8,
(LIBOR
USD
1
Month
+
0.00%),
6.36%,
07/25/36
(a)
.....
9
8,905
GreenPoint
Mortgage
Funding
Trust,
Series
2006-AR2,
Class
4A1,
(Federal
Reserve
US
12
Month
Cumulative
Average
1
Year
CMT
+
2.00%),
2.12%,
03/25/36
(a)
...........
22
21,834
GSMPS
Mortgage
Loan
Trust
(a)(b)
:
Series
2005-RP1,
Class
1AF,
(LIBOR
USD
1
Month
+
0.35%),
0.44%,
01/25/35
....
40
36,803
Series
2005-RP2,
Class
1AF,
(LIBOR
USD
1
Month
+
0.35%),
0.44%,
03/25/35
....
47
43,687
Series
2006-RP1,
Class
1AF1,
(LIBOR
USD
1
Month
+
0.35%),
0.44%,
01/25/36
...
37
30,511
GSR
Mortgage
Loan
Trust,
Series
2007-1F,
Class
2A4,
5.50%,
01/25/37
..........
6
6,636
HarborView
Mortgage
Loan
Trust,
Series
2007-4,
Class
2A2,
(LIBOR
USD
1
Month
+
0.25%),
0.35%,
07/19/47
(a)
...........
126
115,177
IndyMac
INDX
Mortgage
Loan
Trust
(a)
:
Series
2007-AR19,
Class
3A1,
3.12%,
09/25/37
.....................
74
51,641
Series
2007-FLX5,
Class
2A2,
(LIBOR
USD
1
Month
+
0.24%),
0.33%,
08/25/37
...
112
104,626
Lehman
XS
Trust,
Series
2007-20N,
Class
A1,
(LIBOR
USD
1
Month
+
1.15%),
1.24%,
12/25/37
(a)
......................
22
23,096
MASTR
Resecuritization
Trust,
Series
2008-3,
Class
A1,
0.53%,
08/25/37
(a)(b)
.........
20
10,949
MCM
Trust,
Series
2018-NPL2,
Class
B,
0.00%,
10/25/28
(b)
......................
255
130,045
Merrill
Lynch
Alternative
Note
Asset
Trust,
Series
2007-OAR2,
Class
A2,
(LIBOR
USD
1
Month
+
0.42%),
0.51%,
04/25/37
(a)
....
146
143,924
Mortgage
Loan
Resecuritization
Trust,
Series
2009-RS1,
Class
A85,
(LIBOR
USD
1
Month
+
0.34%),
0.43%,
04/16/36
(a)(b)
.........
318
293,818
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
23
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
New
Residential
Mortgage
Loan
Trust,
Series
2019-2A,
Class
A1,
4.25%,
12/25/57
(a)(b)
..
USD
60
$
62,963
Nomura
Asset
Acceptance
Corp.
Alternative
Loan
Trust,
Series
2007-2,
Class
A4,
(LIBOR
USD
1
Month
+
0.42%),
0.51%,
06/25/37
(a)
13
10,828
Prima
Capital
CRE
Securitization
Ltd.,
Series
2015-4A,
Class
C,
4.00%,
08/24/49
(b)(c)
...
100
98,180
RALI
Trust,
Series
2007-QH9,
Class
A1,
1.40%,
11/25/37
(a)
......................
28
26,777
Reperforming
Loan
REMIC
Trust,
Series
2005-R3,
Class
AF,
(LIBOR
USD
1
Month
+
0.40%),
0.49%,
09/25/35
(a)(b)
..........
4
3,783
Seasoned
Credit
Risk
Transfer
Trust,
Series
2018-1,
Class
BX,
2.22%,
05/25/57
(a)
....
19
10,055
Structured
Adjustable
Rate
Mortgage
Loan
Trust,
Series
2006-3,
Class
4A,
3.05%,
04/25/36
(a)
......................
48
36,596
Structured
Asset
Mortgage
Investments
II
Trust
(a)
:
Series
2006-AR4,
Class
3A1,
(LIBOR
USD
1
Month
+
0.38%),
0.47%,
06/25/36
....
65
61,249
Series
2006-AR5,
Class
2A1,
(LIBOR
USD
1
Month
+
0.42%),
0.51%,
05/25/46
....
45
40,390
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Trust:
Series
2006-4,
Class
1A1,
6.00%,
04/25/36
61
61,756
Series
2006-4,
Class
3A1,
6.50%,
05/25/36
(e)
....................
32
31,597
3,731,431
Commercial
Mortgage-Backed
Securities
—
1.0%
245
Park
Avenue
Trust,
Series
2017-245P,
Class
E,
3.78%,
06/05/37
(a)(b)
..........
200
194,781
280
Park
Avenue
Mortgage
Trust
(a)(b)
:
Series
2017-280P,
Class
D,
(LIBOR
USD
1
Month
+
1.54%),
1.61%,
09/15/34
....
100
99,880
Series
2017-280P,
Class
E,
(LIBOR
USD
1
Month
+
2.12%),
2.19%,
09/15/34
....
150
148,116
AOA
Mortgage
Trust,
Series
2015-1177,
Class
C,
3.11%,
12/13/29
(a)(b)
..............
100
99,974
Ashford
Hospitality
Trust,
Series
2018-ASHF,
Class
D,
(LIBOR
USD
1
Month
+
2.10%),
2.17%,
04/15/35
(a)(b)
................
19
18,927
BAMLL
Commercial
Mortgage
Securities
Trust
(a)
(b)
:
Series
2015-200P,
Class
F,
3.72%,
04/14/33
300
307,567
Series
2017-SCH,
Class
CL,
(LIBOR
USD
1
Month
+
1.50%),
1.57%,
11/15/32
....
100
86,848
Series
2017-SCH,
Class
DL,
(LIBOR
USD
1
Month
+
2.00%),
2.07%,
11/15/32
....
100
83,083
Series
2018-DSNY,
Class
D,
(LIBOR
USD
1
Month
+
1.70%),
1.77%,
09/15/34
....
650
647,563
Bayview
Commercial
Asset
Trust
(a)(b)
:
Series
2005-4A,
Class
A1,
(LIBOR
USD
1
Month
+
0.45%),
0.54%,
01/25/36
....
36
34,936
Series
2005-4A,
Class
M1,
(LIBOR
USD
1
Month
+
0.68%),
0.77%,
01/25/36
....
27
25,669
Series
2006-1A,
Class
A2,
(LIBOR
USD
1
Month
+
0.54%),
0.63%,
04/25/36
....
9
8,237
Series
2006-3A,
Class
A1,
(LIBOR
USD
1
Month
+
0.25%),
0.34%,
10/25/36
....
14
13,707
Series
2006-3A,
Class
A2,
(LIBOR
USD
1
Month
+
0.30%),
0.39%,
10/25/36
....
12
11,446
Series
2007-2A,
Class
A1,
(LIBOR
USD
1
Month
+
0.27%),
0.36%,
07/25/37
....
24
22,950
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2007-4A,
Class
A1,
(LIBOR
USD
1
Month
+
0.45%),
0.54%,
09/25/37
....
USD
122
$
115,656
BBCMS
Mortgage
Trust,
Series
2018-TALL,
Class
A,
(LIBOR
USD
1
Month
+
0.72%),
0.79%,
03/15/37
(a)(b)
................
35
34,782
BBCMS
Trust,
Series
2015-SRCH,
Class
A1,
3.31%,
08/10/35
(b)
.................
90
95,441
Bear
Stearns
Commercial
Mortgage
Securities
Trust,
Series
2007-T26,
Class
AM,
5.51%,
01/12/45
(a)
......................
28
27,579
Benchmark
Mortgage
Trust,
Series
2019-B10,
Class
3CCA,
4.03%,
03/15/62
(a)(b)
.......
148
159,038
BHMS,
Series
2018-ATLS,
Class
A,
(LIBOR
USD
1
Month
+
1.25%),
1.32%,
07/15/35
(a)(b)
140
140,085
BWAY
Mortgage
Trust
(b)
:
Series
2013-1515,
Class
A2,
3.45%,
03/10/33
.....................
150
160,523
Series
2013-1515,
Class
C,
3.45%,
03/10/33
105
110,183
BX
Commercial
Mortgage
Trust,
Series
2018-IND,
Class
H,
(LIBOR
USD
1
Month
+
3.00%),
3.07%,
11/15/35
(a)(b)
..........
371
371,691
BXP
Trust
(a)(b)
:
Series
2017-CC,
Class
D,
(LIBOR
USD
1
Month
+
0.00%),
3.67%,
08/13/37
....
60
63,239
Series
2017-CC,
Class
E,
(LIBOR
USD
1
Month
+
0.00%),
3.67%,
08/13/37
....
110
112,703
Series
2017-GM,
Class
D,
3.54%,
06/13/39
200
210,792
Series
2017-GM,
Class
E,
3.54%,
06/13/39
50
51,175
CAMB
Commercial
Mortgage
Trust,
Series
2019-LIFE,
Class
D,
(LIBOR
USD
1
Month
+
1.75%),
1.82%,
12/15/37
(a)(b)
..........
100
100,155
CD
Mortgage
Trust,
Series
2017-CD3,
Class
A4,
3.63%,
02/10/50
...............
30
33,156
CFCRE
Commercial
Mortgage
Trust,
Series
2016-C3,
Class
A3,
3.87%,
01/10/48
.....
10
11,012
CFK
Trust,
Series
2019-FAX,
Class
D,
4.79%,
01/15/39
(a)(b)
.....................
126
140,820
Citigroup
Commercial
Mortgage
Trust,
Series
2016-GC37,
Class
C,
5.08%,
04/10/49
(a)
..
20
21,162
Commercial
Mortgage
Trust
(a)
:
Series
2015-LC21,
Class
C,
4.48%,
07/10/48
.....................
150
157,594
Series
2016-667M,
Class
D,
3.28%,
10/10/36
(b)
....................
100
96,866
CSAIL
Commercial
Mortgage
Trust,
Series
2015-C2,
Class
A4,
3.50%,
06/15/57
.....
50
53,982
CSMC
Trust
(b)
:
Series
2017-PFHP,
Class
A,
(LIBOR
USD
1
Month
+
0.95%),
1.02%,
12/15/30
(a)
...
60
59,649
Series
2017-TIME,
Class
A,
3.65%,
11/13/39
100
102,925
DBGS
Mortgage
Trust,
Series
2019-1735,
Class
F,
4.33%,
04/10/37
(a)(b)
..........
100
83,868
DBUBS
Mortgage
Trust
(b)
:
Series
2017-BRBK,
Class
A,
3.45%,
10/10/34
.....................
140
149,184
Series
2017-BRBK,
Class
E,
(LIBOR
USD
1
Month
+
0.00%),
3.65%,
10/10/34
(a)
...
210
215,857
Series
2017-BRBK,
Class
F,
3.65%,
10/10/34
(a)
....................
80
81,107
GS
Mortgage
Securities
Corp.
II,
Series
2005-
ROCK,
Class
A,
5.37%,
05/03/32
(b)
......
100
113,995
GS
Mortgage
Securities
Corp.
Trust,
Series
2017-GPTX,
Class
A,
2.86%,
05/10/34
(b)
..
100
99,686
GS
Mortgage
Securities
Trust,
Series
2017-
GS7,
Class
D,
3.00%,
08/10/50
(b)
.......
20
18,515
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
24
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
HMH
Trust,
Series
2017-NSS,
Class
A,
3.06%,
07/05/31
(b)
......................
USD
110
$
110,020
IMT
Trust
(b)
:
Series
2017-APTS,
Class
AFX,
3.48%,
06/15/34
.....................
100
106,074
Series
2017-APTS,
Class
EFX,
3.61%,
06/15/34
(a)
....................
100
101,273
JPMBB
Commercial
Mortgage
Securities
Trust,
Series
2015-C33,
Class
D1,
4.27%,
12/15/48
(a)(b)
.....................
100
98,805
JPMCC
Commercial
Mortgage
Securities
Trust:
Series
2017-JP5,
Class
D,
4.77%,
03/15/50
(a)(b)
...................
100
102,201
Series
2017-JP7,
Class
B,
4.05%,
09/15/50
10
10,947
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(a)
:
Series
2012-CBX,
Class
A4FL,
(LIBOR
USD
1
Month
+
1.30%),
1.38%,
06/15/45
(b)
..
53
52,600
Series
2015-JP1,
Class
D,
4.39%,
01/15/49
50
46,453
Lehman
Brothers
Small
Balance
Commercial
Mortgage
Trust,
Series
2007-1A,
Class
1A,
(LIBOR
USD
1
Month
+
0.25%),
0.34%,
03/25/37
(a)(b)
.....................
19
18,428
LSTAR
Commercial
Mortgage
Trust,
Series
2015-3,
Class
AS,
3.37%,
04/20/48
(a)(b)
...
16
16,273
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust,
Series
2015-C26,
Class
D,
3.06%,
10/15/48
(b)
......................
15
14,654
Morgan
Stanley
Capital
I
Trust:
Series
2007-T27,
Class
AJ,
6.21%,
06/11/42
(a)
....................
60
61,151
Series
2015-MS1,
Class
D,
4.17%,
05/15/48
(a)(b)
...................
100
89,839
Series
2017-CLS,
Class
F,
(LIBOR
USD
1
Month
+
2.60%),
2.67%,
11/15/34
(a)(b)
..
211
210,842
Series
2017-H1,
Class
D,
2.55%,
06/15/50
(b)
140
118,005
Natixis
Commercial
Mortgage
Securities
Trust,
Series
2018-FL1,
Class
MCR1,
(LIBOR
USD
1
Month
+
2.35%),
2.42%,
06/15/35
(a)(b)
...
85
84,085
Olympic
Tower
Mortgage
Trust,
Series
2017-
OT,
Class
E,
4.08%,
05/10/39
(a)(b)
.......
190
171,241
PFP
Ltd.
(a)(b)
:
Series
2019-5,
Class
A,
(LIBOR
USD
1
Month
+
0.97%),
1.04%,
04/14/36
....
23
22,775
Series
2019-5,
Class
AS,
(LIBOR
USD
1
Month
+
1.42%),
1.49%,
04/14/36
....
40
39,952
USDC,
Series
2018,
Class
E,
4.64%,
05/13/38
(a)
(b)
............................
50
43,059
Velocity
Commercial
Capital
Loan
Trust
(a)
:
Series
2016-2,
Class
M4,
7.23%,
10/25/46
.
100
101,494
Series
2017-2,
Class
M3,
(LIBOR
USD
3
Month
+
0.00%),
4.24%,
11/25/47
(b)
...
104
105,347
Series
2017-2,
Class
M4,
5.00%,
11/25/47
(b)
52
52,312
Wells
Fargo
Commercial
Mortgage
Trust:
Series
2017-C39,
Class
D,
4.49%,
09/15/50
(a)(b)
...................
83
78,391
Series
2017-C41,
Class
D,
2.60%,
11/15/50
(a)(b)
...................
60
48,923
Series
2017-HSDB,
Class
A,
(LIBOR
USD
1
Month
+
0.85%),
0.92%,
12/13/31
(a)(b)
..
151
148,837
Series
2018-C44,
Class
A5,
4.21%,
05/15/51
770
885,856
7,935,941
Interest
Only
Collateralized
Mortgage
Obligations
—
0.0%
Banc
of
America
Funding
Trust,
Series
2014-
R2,
Class
1C,
0.00%,
11/26/36
(a)(b)
......
134
37,302
Security
Par
(000)
Par
(000)
Value
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.1%
(a)
BAMLL
Commercial
Mortgage
Securities
Trust,
Series
2016-SS1,
Class
XA,
0.70%,
12/15/35
(b)
......................
USD
15,000
$
347,550
Banc
of
America
Commercial
Mortgage
Trust,
Series
2017-BNK3,
Class
XB,
0.78%,
02/15/50
.......................
1,000
32,521
BBCMS
Trust,
Series
2015-SRCH,
Class
XA,
1.11%,
08/10/35
(b)
.................
1,007
44,917
BB-UBS
Trust,
Series
2012-SHOW,
Class
XA,
0.73%,
11/05/36
(b)
.................
3,475
69,888
Benchmark
Mortgage
Trust:
Series
2018-B8,
Class
XA,
0.83%,
01/15/52
4,974
198,385
Series
2019-B9,
Class
XA,
(LIBOR
USD
1
Month
+
0.00%),
1.21%,
03/15/52
....
1,041
69,895
CFCRE
Commercial
Mortgage
Trust,
Series
2016-C4,
Class
XB,
0.87%,
05/10/58
....
170
5,532
Commercial
Mortgage
Trust:
Series
2015-3BP,
Class
XA,
0.17%,
02/10/35
(b)
....................
1,916
6,533
Series
2015-CR25,
Class
XA,
0.97%,
08/10/48
.....................
190
5,522
CSAIL
Commercial
Mortgage
Trust,
Series
2017-CX10,
Class
XB,
0.22%,
11/15/50
...
1,430
20,514
JPMBB
Commercial
Mortgage
Securities
Trust:
Series
2014-C22,
Class
XA,
0.98%,
09/15/47
.....................
1,123
24,763
Series
2014-C23,
Class
XA,
0.76%,
09/15/47
.....................
1,033
17,826
JPMDB
Commercial
Mortgage
Securities
Trust,
Series
2016-C4,
Class
XC,
0.75%,
12/15/49
(b)
......................
1,800
61,114
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust,
Series
2016-JP3,
Class
XC,
0.75%,
08/15/49
(b)
.................
900
29,794
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
(b)
:
Series
2014-C19,
Class
XF,
1.34%,
12/15/47
130
4,768
Series
2015-C26,
Class
XD,
1.48%,
10/15/48
.....................
120
6,357
Morgan
Stanley
Capital
I
Trust:
Series
2016-UBS9,
Class
XD,
1.76%,
03/15/49
(b)
....................
1,000
67,380
Series
2017-H1,
Class
XD,
2.32%,
06/15/50
(b)
....................
110
11,527
Series
2019-L2,
Class
XA,
1.19%,
03/15/52
383
24,975
One
Market
Plaza
Trust
(b)
:
Series
2017-1MKT,
Class
XCP,
0.22%,
02/10/32
.....................
1,880
1,955
Series
2017-1MKT,
Class
XNCP,
0.00%,
02/10/32
(c)
....................
376
—
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2016-BNK1,
Class
XD,
1.40%,
08/15/49
(b)
......................
1,000
54,040
1,105,756
Principal
Only
Collateralized
Mortgage
Obligations
—
0.0%
Seasoned
Credit
Risk
Transfer
Trust,
Series
2017-3,
Class
B,
0.00%,
07/25/56
(b)(j)
.....
114
18,775
Total
Non-Agency
Mortgage-Backed
Securities
—
1.6%
(Cost:
$12,674,303)
...............................
12,829,205
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
25
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Beneficial
Interest
(000)
Value
Other
Interests
—
0.0%
(l)
Capital
Markets
—
0.0%
(c)(h)(i)
Lehman
Brothers
Holdings,
Capital
Trust
VII
..
USD
185
$
—
Lehman
Brothers
Holdings,
Inc.
..........
1,025
—
Total
Other
Interests
—
0.0%
(Cost:
$12)
....................................
—
Par
(000)
Pa
r
(
000)
Capital
Trusts
—
0.4%
(a)(g)
Banks
—
0.1%
Bank
of
America
Corp.,
Series
FF,
(LIBOR
USD
3
Month
+
2.93%),
5.87%
............
385
440,656
Citigroup,
Inc.:
Series
W,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.60%),
4.00%
.......................
913
943,814
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.42%),
3.88%
.......................
190
194,037
1,578,507
Capital
Markets
—
0.3%
Bank
of
New
York
Mellon
Corp.
(The):
Series
E,
(LIBOR
USD
3
Month
+
3.42%),
3.55%
.......................
200
201,450
Series
H,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.35%),
3.70%
.......................
180
187,425
Series
F,
(LIBOR
USD
3
Month
+
3.13%),
4.62%
.......................
310
341,527
Charles
Schwab
Corp.
(The),
Series
H,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
10
Year
+
3.08%),
4.00%
......
455
465,465
State
Street
Corp.:
Series
F,
(LIBOR
USD
3
Month
+
3.60%),
3.72%
.......................
68
68,054
Series
H,
(LIBOR
USD
3
Month
+
2.54%),
5.63%
.......................
680
720,800
1,984,721
Total
Capital
Trusts
—
0.4%
(Cost:
$3,437,509)
...............................
3,563,228
U.S.
Government
Sponsored
Agency
Securities
—
41.0%
Collateralized
Mortgage
Obligations
—
0.0%
Federal
Home
Loan
Mortgage
Corp.
Structured
Agency
Credit
Risk
Debt
Variable
Rate
Notes,
Series
2017-DNA3,
Class
B1,
(LIBOR
USD
1
Month
+
4.45%),
4.54%, 03/25/30
(a)
250
262,705
Commercial
Mortgage-Backed
Securities
—
0.0%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(a)
:
Series
2018-K732,
Class
B,
4.20%, 05/25/25
(b)
...............
80
87,311
Series
2018-SB53,
Class
A10F,
3.66%, 06/25/28
................
42
45,737
133,048
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.0%
Government
National
Mortgage
Association
Variable
Rate
Notes
(a)
:
Series
2013-63,
0.76%, 09/16/51
.......
353
10,033
Series
2013-191,
0.65%, 11/16/53
......
85
1,611
Series
2015-48,
0.61%, 02/16/50
.......
113
3,415
Security
Par
(000)
Par
(000)
Value
Interest
Only
Commercial
Mortgage-Backed
Securities
(continued)
Series
2015-173,
0.71%, 09/16/55
......
USD
149
$
5,342
Series
2016-26,
0.76%, 02/16/58
.......
355
14,516
Series
2016-110,
0.94%, 05/16/58
......
119
6,437
Series
2016-113,
(LIBOR
USD
1
Month
+
0.00%),
1.09%, 02/16/58
..........
163
10,281
Series
2016-125,
0.88%, 12/16/57
......
173
8,895
Series
2016-152,
0.78%, 08/15/58
......
358
18,812
79,342
Mortgage-Backed
Securities
—
41.0%
Federal
Home
Loan
Mortgage
Corp.:
2.50%, 01/01/29
-
04/01/31
...........
403
423,177
3.00%, 09/01/27
-
12/01/46
...........
1,221
1,300,988
3.50%, 02/01/31
-
01/01/48
...........
2,481
2,696,789
4.00%, 08/01/40
-
12/01/45
...........
201
221,261
4.50%, 02/01/39
-
04/01/49
...........
3,767
4,159,188
5.00%, 10/01/41
-
11/01/48
...........
160
179,210
5.50%, 02/01/35
-
06/01/41
...........
131
151,642
Federal
National
Mortgage
Association:
4.00%, 01/01/41
..................
13
13,721
6.00%, 07/01/39
..................
108
122,486
Government
National
Mortgage
Association:
2.00%, 07/15/51
(m)
.................
10,818
11,017,457
2.50%, 07/15/51
(m)
.................
11,306
11,700,357
3.00%, 02/15/45
..................
76
80,057
3.00%, 07/15/51
-
08/15/51
(m)
..........
33,910
35,377,037
3.50%, 01/15/42
-
11/20/46
...........
6,049
6,441,581
3.50%, 07/15/51
(m)
.................
3,421
3,591,602
4.00%, 04/20/39
-
12/20/47
...........
1,583
1,703,653
4.00%, 07/15/51
(m)
.................
3,051
3,221,257
4.50%, 12/20/39
-
07/20/49
...........
1,451
1,570,177
4.50%, 07/15/51
(m)
.................
185
197,141
5.00%, 12/15/38
-
07/20/44
...........
106
121,034
5.00%, 07/15/51
(m)
.................
1,436
1,547,066
Uniform
Mortgage-Backed
Securities:
1.50%, 07/25/36
(m)
.................
5,032
5,092,640
2.00%, 10/01/31
-
03/01/32
...........
365
377,875
2.00%, 07/25/36
-
09/25/51
(m)
..........
47,239
47,779,903
2.50%, 09/01/27
-
12/01/35
...........
4,431
4,667,696
2.50%, 07/25/36
-
08/25/51
(m)
..........
78,207
80,805,137
3.00%, 04/01/28
-
08/01/50
...........
13,794
14,713,134
3.00%, 07/25/36
-
07/25/51
(m)
..........
2,501
2,620,961
3.50%, 03/01/29
-
08/01/50
...........
12,064
13,000,043
3.50%, 07/25/36
-
07/25/51
(m)
..........
6,361
6,708,867
4.00%, 08/01/31
-
09/01/50
...........
39,811
42,533,644
4.00%, 07/25/51
-
08/25/51
(m)
..........
15,000
15,977,898
4.50%, 02/01/25
-
09/01/49
...........
11,169
12,345,570
4.50%, 07/25/51
(m)
.................
259
278,627
5.00%, 02/01/35
-
05/01/49
...........
1,245
1,393,817
5.00%, 07/25/51
(m)
.................
1,077
1,180,325
5.50%, 02/01/35
-
03/01/40
...........
396
457,618
6.00%, 04/01/35
-
06/01/41
...........
217
255,322
6.50%, 05/01/40
..................
89
105,402
336,131,360
Total
U.S.
Government
Sponsored
Agency
Securities
—
41.0%
(Cost:
$335,377,570)
..............................
336,606,455
U.S.
Treasury
Obligations
—
15.4%
U.S.
Treasury
Bonds:
4.25%, 05/15/39
-
11/15/40
...........
529
728,666
4.50%, 08/15/39
..................
146
205,849
4.38%, 11/15/39
..................
146
203,105
4.63%, 02/15/40
..................
432
620,123
1.13%, 05/15/40
-
08/15/40
...........
3,150
2,714,660
3.88%, 08/15/40
..................
432
567,962
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
26
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
U.S.
Treasury
Obligations
(continued)
1.38%, 11/15/40
..................
USD
1,575
$
1,414,793
3.13%, 02/15/43
..................
528
630,877
2.88%, 05/15/43
-
05/15/49
...........
1,138
1,316,310
3.63%, 08/15/43
..................
528
680,047
3.75%, 11/15/43
..................
528
693,083
2.50%, 02/15/45
..................
4,364
4,721,643
2.75%, 11/15/47
..................
4,364
4,967,800
3.00%, 02/15/48
..................
4,787
5,706,254
2.25%, 08/15/49
..................
1,937
2,006,611
2.38%, 11/15/49
-
05/15/51
...........
2,541
2,706,077
2.00%, 02/15/50
..................
73
71,717
1.25%, 05/15/50
..................
33
26,945
1.63%, 11/15/50
..................
13
11,676
U.S.
Treasury
Notes:
1.13%, 07/31/21
-
02/15/31
...........
2,956
2,939,011
1.75%, 07/31/21
-
11/15/29
...........
17,682
18,183,988
1.50%, 01/31/22
-
02/15/30
...........
11,907
12,213,055
2.13%, 12/31/22
-
05/15/25
...........
3,182
3,326,507
0.50%, 03/15/23
-
05/31/27
...........
7,310
7,246,720
0.13%, 03/31/23
-
05/31/23
...........
10,038
10,019,440
0.25%, 04/15/23
..................
4,593
4,595,512
2.75%, 05/31/23
..................
1,029
1,078,360
2.00%, 02/15/25
..................
1,283
1,347,150
0.38%, 04/30/25
-
12/31/25
...........
15,280
15,054,665
0.75%, 05/31/26
..................
3,956
3,933,438
1.63%, 11/30/26
-
05/15/31
...........
3,284
3,371,037
2.38%, 05/15/27
-
05/15/29
...........
1,864
2,007,862
2.25%, 08/15/27
(n)
.................
3,746
4,006,171
1.25%, 03/31/28
-
05/31/28
...........
5,084
5,100,269
2.88%, 08/15/28
..................
309
343,654
3.13%, 11/15/28
..................
946
1,070,199
2.63%, 02/15/29
..................
474
519,771
Total
U.S.
Treasury
Obligations
—
15.4%
(Cost:
$127,088,331)
..............................
126,351,007
Total
Long-Term
Investments
—
114.6%
(Cost:
$932,292,290)
..............................
940,949,344
Security
Shares
Shares
Value
Short-Term
Securities
—
11.7%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.01%
(k)(o)
..................
95,678,326
$
95,678,326
Total
Short-Term
Securities
—
11.7%
(Cost:
$95,678,326)
...............................
95,678,326
Total
Options
Purchased
—
0.3%
(Cost:
$1,084,425)
...............................
2,418,450
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
126.6%
(Cost:
$1,029,055,041
)
............................
1,039,046,120
Total
Options
Written
—
(0.3)%
(Premium
Received
—
$2,805,153)
....................
(2,617,590)
Par
(000)
Pa
r
(
000)
TBA
Sale
Commitments
—
(12.0)%
(m)
Mortgage-Backed
Securities
—
(12.0)%
Government
National
Mortgage
Association:
2.50%
,
 07/15/51
..................
USD
48
(49,673)
3.00%
,
 07/15/51
..................
700
(730,365)
4.50%
,
 07/15/51
..................
102
(108,694)
Uniform
Mortgage-Backed
Securities:
3.00%
,
 07/25/36
-
08/25/51
...........
11,404
(11,886,163)
3.50%
,
 07/25/36
..................
137
(146,301)
2.00%
,
 07/25/51
-
08/25/51
...........
22,539
(22,730,394)
2.50%
,
 07/25/51
..................
21,401
(22,135,039)
4.00%
,
 07/25/51
-
08/25/51
...........
37,382
(39,811,364)
4.50%
,
 07/25/51
..................
636
(684,198)
Total
TBA
Sale
Commitments
—
(12.0)%
(Proceeds:
$98,405,367)
...........................
(98,282,191)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
114.3%
(Cost:
$927,844,521
)
..............................
938,146,339
Liabilities
in
Excess
of
Other
Assets
—
(14.3)%
............
(117,026,262)
Net
Assets
—
100.0%
...............................
$
821,120,077
(a)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(b)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(c)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(d)
Amount
is
less
than
500.
(e)
Step
coupon
security.
Coupon
rate
will
either
increase
(step-up
bond)
or
decrease
(step-down
bond)
at
regular
intervals
until
maturity.
Interest
rate
shown
reflects
the
rate
currently
in
effect.
(f)
Payment-in-kind
security
which
may
pay
interest/dividends
in
additional
par/shares
and/or
in
cash.
Rates
shown
are
the
current
rate
and
possible
payment
rates.
(g)
Perpetual
security
with
no
stated
maturity
date.
(h)
Issuer
filed
for
bankruptcy
and/or
is
in
default.
(i)
Non-income
producing
security.
(j)
Zero-coupon
bond.
(k)
Affiliate
of
the
Fund.
(l)
Other
interests
represent
beneficial
interests
in
liquidation
trusts
and
other
reorganization
or
private
entities.
(m)
Represents
or
includes
a
TBA
transaction.
(n)
All
or
a
portion
of
the
security
has
been
pledged
as
collateral
in
connection
with
outstanding
OTC
derivatives.
(o)
Annualized
7-day
yield
as
of
period
end.
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
27
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
six
months
ended
June
30,
2021
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
12/31/20
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
06/30/21
Shares
Held
at
06/30/21
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
38,187,472
$
57,490,854
$
—
$
—
$
—
$
95,678,326
95,678,326
$
7,431
$
—
BlackRock
Allocation
Target
Shares-
BATS
Series
A
.....
67,937,601
33,369,000
—
—
494,380
101,800,981
10,119,382
1,091,924
—
$
—
$
494,380
$
197,479,307
$
1,099,355
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
For
Fund
compliance
purposes,
the
Fund's
industry
classifications
refer
to
one
or
more
of
the
industry
sub-classifications
used
by
one
or
more
widely
recognized
market
indexes
or
rating
group
indexes,
and/or
as
defined
by
the
investment
adviser.
These
definitions
may
not
apply
for
purposes
of
this
report,
which
may
combine
such
industry
sub-classifications
for
reporting
ease.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
28
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
U.S.
Treasury
Long
Bond
....................................................
220
09/21/21
$
35,324
$
919,357
U.S.
Treasury
Ultra
Bond
....................................................
174
09/21/21
33,495
1,327,865
U.S.
Treasury
2
Year
Note
....................................................
232
09/30/21
51,114
(77,647)
U.S.
Treasury
5
Year
Note
....................................................
325
09/30/21
40,099
(124,295)
2,045,280
Short
Contracts
Euro-Bund
..............................................................
7
09/08/21
1,433
(10,161)
Euro-
Buxl
...............................................................
15
09/08/21
3,615
(69,712)
U.S.
Treasury
10
Year
Note
...................................................
76
09/21/21
10,064
(12,151)
U.S.
Treasury
10
Year
Ultra
Note
...............................................
291
09/21/21
42,795
(651,384)
(743,408)
$
1,301,872
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
IDR
2,199,985,000
USD
149,000
Morgan
Stanley
&
Co.
International
plc
07/01/21
$
2,723
BRL
3,229,643
USD
637,000
Citibank
NA
07/02/21
12,330
BRL
1,622,560
USD
320,000
Deutsche
Bank
AG
07/02/21
6,222
BRL
401,318
USD
79,000
JPMorgan
Chase
Bank
NA
07/02/21
1,686
USD
120,000
KRW
133,686,785
BNP
Paribas
SA
07/12/21
1,693
USD
237,000
KRW
264,022,740
Morgan
Stanley
&
Co.
International
plc
07/12/21
3,351
CLP
88,328,425
USD
119,500
Citibank
NA
07/14/21
735
CLP
89,338,200
USD
119,500
Goldman
Sachs
International
07/14/21
2,110
MXN
6,966,578
USD
348,819
Barclays
Bank
plc
07/14/21
136
MXN
4,061,570
USD
200,000
Citibank
NA
07/14/21
3,443
MXN
4,845,360
USD
240,000
HSBC
Bank
plc
07/14/21
2,704
USD
240,000
CAD
296,344
BNP
Paribas
SA
07/14/21
938
USD
279,000
CLP
201,154,000
Citibank
NA
07/14/21
5,184
USD
79,000
CLP
56,899,750
UBS
AG
07/14/21
1,546
USD
276,478
EUR
228,000
Credit
Agricole
Corporate
&
Investment
Bank
SA
07/14/21
6,057
USD
119,000
JPY
13,086,351
Bank
of
America
NA
07/14/21
1,194
USD
805,000
MXN
15,958,953
Citibank
NA
07/14/21
5,619
USD
271,273
MXN
5,409,672
HSBC
Bank
plc
07/14/21
304
USD
319,000
ZAR
4,399,055
Citibank
NA
07/14/21
11,410
USD
120,000
ZAR
1,681,333
Deutsche
Bank
AG
07/14/21
2,438
USD
147,000
ZAR
2,031,576
State
Street
Bank
and
Trust
Co.
07/14/21
4,949
KZT
21,540,692
USD
49,090
Deutsche
Bank
AG
07/15/21
1,226
USD
237,756
EUR
196,000
JPMorgan
Chase
Bank
NA
07/20/21
5,260
USD
35,671
EUR
30,000
Morgan
Stanley
&
Co.
International
plc
07/20/21
85
KRW
137,104,949
USD
121,000
BNP
Paribas
SA
07/23/21
326
USD
121,000
KRW
136,270,200
Morgan
Stanley
&
Co.
International
plc
07/23/21
413
USD
78,000
TRY
674,310
JPMorgan
Chase
Bank
NA
07/30/21
1,712
USD
398,000
BRL
1,982,757
Bank
of
America
NA
08/03/21
768
USD
245,000
BRL
1,218,497
Citibank
NA
08/03/21
882
USD
122,000
CLP
89,596,800
Morgan
Stanley
&
Co.
International
plc
08/18/21
149
MXN
8,009,837
USD
386,372
UBS
AG
08/24/21
12,757
USD
4,434,531
CNY
28,761,040
HSBC
Bank
plc
08/24/21
5,054
USD
157,527
CNY
1,020,000
Morgan
Stanley
&
Co.
International
plc
08/24/21
437
USD
259,995
IDR
3,770,183,060
Standard
Chartered
Bank
08/24/21
2,797
USD
302,517
MXN
6,024,076
Barclays
Bank
plc
08/24/21
2,338
USD
144,094
MXN
2,853,606
State
Street
Bank
and
Trust
Co.
08/24/21
1,899
USD
186,747
ZAR
2,624,391
Citibank
NA
08/24/21
4,216
USD
793,942
ZAR
11,056,836
JPMorgan
Chase
Bank
NA
08/24/21
24,919
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
29
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Forward
Foreign
Currency
Exchange
Contracts
(continued)
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
MXN
5,037,000
USD
247,169
Barclays
Bank
plc
09/15/21
$
3,078
USD
156,148
CAD
189,000
Bank
of
America
NA
09/15/21
3,684
USD
12,312,207
CNY
79,119,475
Citibank
NA
09/15/21
146,609
USD
984,520
CNY
6,398,395
Deutsche
Bank
AG
09/15/21
688
USD
2,190,799
CNY
14,240,883
Goldman
Sachs
International
09/15/21
1,087
USD
6,767,842
EUR
5,583,000
BNP
Paribas
SA
09/15/21
137,304
USD
88,014
JPY
9,629,000
Morgan
Stanley
&
Co.
International
plc
09/15/21
1,284
USD
251,919
MXN
5,037,000
Morgan
Stanley
&
Co.
International
plc
09/15/21
1,672
437,416
USD
149,000
IDR
2,197,750,000
Morgan
Stanley
&
Co.
International
plc
07/01/21
(2,572)
BRL
1,976,468
USD
398,000
Bank
of
America
NA
07/02/21
(624)
USD
1,194,000
BRL
6,119,321
Citibank
NA
07/02/21
(36,311)
USD
240,000
BRL
1,219,032
Morgan
Stanley
&
Co.
International
plc
07/02/21
(5,091)
PLN
1,153,569
EUR
258,000
Bank
of
America
NA
07/07/21
(3,411)
KRW
399,283,080
USD
357,000
Citibank
NA
07/12/21
(3,651)
CAD
292,552
USD
240,000
JPMorgan
Chase
Bank
NA
07/14/21
(3,998)
CLP
85,680,000
USD
119,000
Goldman
Sachs
International
07/14/21
(2,370)
COP
609,946,000
USD
163,000
Citibank
NA
07/14/21
(571)
EUR
198,000
USD
239,956
HSBC
Bank
plc
07/14/21
(5,116)
EUR
30,000
USD
35,667
Morgan
Stanley
&
Co.
International
plc
07/14/21
(85)
JPY
39,661,392
USD
359,000
Bank
of
America
NA
07/14/21
(1,960)
RUB
11,540,800
USD
160,000
Citibank
NA
07/14/21
(2,475)
ZAR
1,100,409
USD
80,000
Bank
of
America
NA
07/14/21
(3,058)
ZAR
3,319,032
USD
240,000
BNP
Paribas
SA
07/14/21
(7,928)
EUR
3,000
USD
3,567
Credit
Agricole
Corporate
&
Investment
Bank
SA
07/20/21
(8)
EUR
223,000
USD
265,274
JPMorgan
Chase
Bank
NA
07/20/21
(749)
TRY
677,742
USD
78,000
Citibank
NA
07/30/21
(1,323)
CNY
2,843,510
USD
442,577
Goldman
Sachs
International
08/24/21
(4,649)
USD
62,263
MXN
1,251,345
Royal
Bank
of
Canada
08/24/21
(91)
IDR
3,365,856,000
USD
234,000
Citibank
NA
09/13/21
(4,970)
USD
870,470
CNY
5,669,721
HSBC
Bank
plc
09/15/21
(1,320)
USD
4,055,014
CNY
26,373,000
Morgan
Stanley
&
Co.
International
plc
09/15/21
(161)
(92,492)
$
344,924
OTC
Barrier
Options
Purchased
Description
Type
of
Option
Counterparty
Expiration  
Date
Exercise
Price
Barrier
Price/Range
Notional
Amount
(000)
Value
Call
EUR
Currency
...............
One-Touch
Bank
of
America
NA
07/16/21
USD
1.25
USD
1.25
EUR
26
$
12
Put
USD
Currency
...............
Down
and
Out
Morgan
Stanley
&
Co.
International
plc
07/02/21
BRL
5.02
BRL
4.84
USD
634
6,111
$
6,123
$
–
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
U.S.
Treasury
10
Year
Note
.....................
14
07/23/21
USD
131.00
USD
1,400
$
1,531
90-day
Eurodollar
September
2021
Futures
..........
558
09/10/21
USD
99.75
USD
139,500
170,888
90-day
Eurodollar
September
2021
Futures
..........
1,709
09/10/21
USD
99.38
USD
427,250
1,644,913
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
30
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Exchange-Traded
Options
Purchased
(continued)
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
90-day
Eurodollar
December
2021
Futures
..........
2,380
12/10/21
USD
99.38
USD
595,000
$
505,750
$
2,323,082
OTC
Currency
Options
Purchased
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
EUR
Currency
...........................
Bank
of
America
NA
07/05/21
PLN
4.50
EUR
258
$
1,614
USD
Currency
...........................
Goldman
Sachs
International
07/08/21
MXN
21.00
USD
485
78
USD
Currency
...........................
Morgan
Stanley
&
Co.
International
plc
07/12/21
ZAR
13.70
USD
318
13,660
USD
Currency
...........................
Bank
of
America
NA
07/14/21
JPY
110.50
USD
640
4,759
EUR
Currency
...........................
BNP
Paribas
SA
07/16/21
USD
1.23
EUR
388
17
USD
Currency
...........................
Bank
of
America
NA
07/21/21
KRW
1,132.00
USD
348
1,636
USD
Currency
...........................
BNP
Paribas
SA
08/02/21
ZAR
14.65
USD
283
2,615
24,379
Put
USD
Currency
...........................
Deutsche
Bank
AG
07/02/21
IDR
14,450.00
USD
390
115
USD
Currency
...........................
Morgan
Stanley
&
Co.
International
plc
07/02/21
BRL
5.18
USD
396
16,045
USD
Currency
...........................
Morgan
Stanley
&
Co.
International
plc
07/02/21
MXN
19.80
USD
792
801
USD
Currency
...........................
Bank
of
America
NA
07/08/21
RUB
71.80
USD
318
135
USD
Currency
...........................
BNP
Paribas
SA
07/08/21
ZAR
14.00
USD
392
425
USD
Currency
...........................
Deutsche
Bank
AG
07/08/21
MXN
19.50
USD
318
120
USD
Currency
...........................
Deutsche
Bank
AG
07/08/21
BRL
5.18
USD
392
16,059
USD
Currency
...........................
Morgan
Stanley
&
Co.
International
plc
07/09/21
MXN
19.85
USD
313
1,298
USD
Currency
...........................
BNP
Paribas
SA
07/12/21
ZAR
13.60
USD
318
48
USD
Currency
...........................
Barclays
Bank
plc
07/14/21
BRL
5.08
USD
400
10,059
USD
Currency
...........................
Bank
of
America
NA
07/16/21
RUB
73.75
USD
314
3,868
EUR
Currency
...........................
UBS
AG
07/20/21
USD
1.18
EUR
542
2,391
USD
Currency
...........................
Bank
of
America
NA
07/21/21
KRW
1,110.00
USD
348
302
EUR
Currency
...........................
Standard
Chartered
Bank
07/29/21
USD
1.18
EUR
548
2,070
GBP
Currency
...........................
Deutsche
Bank
AG
07/29/21
USD
1.38
GBP
470
2,983
USD
Currency
...........................
BNP
Paribas
SA
08/02/21
BRL
5.05
USD
317
8,147
64,866
$
89,245
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
U.S.
Treasury
10
Year
Note
......................
10
07/23/21
USD
133.50
USD
1,000
$
(1,719)
Put
U.S.
Treasury
10
Year
Note
......................
7
07/23/21
USD
129.00
USD
700
(109)
90-day
Eurodollar
September
2021
Futures
...........
558
09/10/21
USD
99.50
USD
139,500
(34,875)
90-day
Eurodollar
September
2021
Futures
...........
766
09/10/21
USD
99.00
USD
191,500
(234,586)
90-day
Eurodollar
September
2021
Futures
...........
943
09/10/21
USD
99.13
USD
235,750
(442,031)
(711,601)
$
(713,320)
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
31
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
OTC
Currency
Options
Written
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
USD
Currency
.............................
Deutsche
Bank
AG
07/02/21
IDR
14,800.00
USD
312
$
(15)
USD
Currency
.............................
Morgan
Stanley
&
Co.
International
plc
07/12/21
ZAR
14.10
USD
478
(8,677)
EUR
Currency
.............................
BNP
Paribas
SA
07/16/21
USD
1.25
EUR
582
(2)
USD
Currency
.............................
BNP
Paribas
SA
08/02/21
BRL
5.40
USD
198
(528)
USD
Currency
.............................
Citibank
NA
08/02/21
ZAR
14.00
USD
396
(11,984)
–
(21,206)
–
Put
USD
Currency
.............................
Morgan
Stanley
&
Co.
International
plc
07/02/21
MXN
19.40
USD
1,188
(2)
USD
Currency
.............................
Deutsche
Bank
AG
07/08/21
BRL
4.99
USD
392
(4,035)
USD
Currency
.............................
Bank
of
America
NA
07/08/21
RUB
71.00
USD
318
(24)
USD
Currency
.............................
BNP
Paribas
SA
07/08/21
ZAR
13.50
USD
392
(12)
USD
Currency
.............................
Morgan
Stanley
&
Co.
International
plc
07/09/21
MXN
19.45
USD
392
(127)
USD
Currency
.............................
BNP
Paribas
SA
07/12/21
ZAR
13.25
USD
478
(9)
USD
Currency
.............................
Barclays
Bank
plc
07/14/21
BRL
4.93
USD
400
(2,819)
USD
Currency
.............................
Bank
of
America
NA
07/16/21
RUB
72.20
USD
470
(1,216)
–
(8,244)
–
$
(29,450)
OTC
Interest
Rate
Swaptions
Written
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
Call
10-Year
Interest
Rate
Swap
(a)
1.68%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
10/20/21
1.68
%
USD
14,523
$
(371,871)
10-Year
Interest
Rate
Swap
(a)
1.72%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
10/20/21
1.72
USD
14,523
(412,261)
10-Year
Interest
Rate
Swap
(a)
1.70%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
11/03/21
1.70
USD
7,262
(195,389)
10-Year
Interest
Rate
Swap
(a)
1.75%
Semi-Annual
3
month
LIBOR
Quarterly
Goldman
Sachs
International
11/03/21
1.75
USD
7,262
(221,964)
10-Year
Interest
Rate
Swap
(a)
1.56%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
12/21/21
1.56
USD
4,419
(88,206)
(1,289,691)
Put
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.68%
Semi-Annual
Deutsche
Bank
AG
10/20/21
1.68
USD
14,523
(119,404)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.72%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
10/20/21
1.72
USD
14,523
(104,602)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.70%
Semi-Annual
Citibank
NA
11/03/21
1.70
USD
7,262
(64,157)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.75%
Semi-Annual
Goldman
Sachs
International
11/03/21
1.75
USD
7,262
(54,529)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.56%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
12/21/21
1.56
USD
4,419
(74,247)
5-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
3.04%
Semi-Annual
Barclays
Bank
plc
06/15/26
3.04
USD
12,840
(168,190)
(585,129)
$
(1,874,820)
(a)
Forward
settling
swaption.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
32
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Centrally
Cleared
Interest
Rate
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Effective
Date
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
0.74%
Annual
6
month
WIBOR
Semi-Annual
N/A
06/17/23
PLN
3,720
$
1,354
$
—
$
1,354
0.72%
Annual
6
month
WIBOR
Semi-Annual
N/A
06/17/23
PLN
3,720
1,649
—
1,649
0.76%
Annual
6
month
WIBOR
Semi-Annual
N/A
06/18/23
PLN
2,575
679
—
679
0.83%
Semi-Annual
6
month
WIBOR
Semi-Annual
N/A
06/22/23
PLN
6,008
(573)
—
(573)
0.51%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
04/07/24
USD
1,863
(1,063)
—
(1,063)
5.88%
Quarterly
3
month
JIBAR
Quarterly
N/A
06/16/26
ZAR
5,071
1,133
—
1,133
5.84%
Quarterly
3
month
JIBAR
Quarterly
N/A
06/16/26
ZAR
3,921
1,350
—
1,350
2.91%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/23/26
USD
125
(13,475)
—
(13,475)
3.16%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
10/03/28
USD
152
(21,453)
—
(21,453)
1.54%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
05/28/31
USD
313
(2,889)
—
(2,889)
1.60%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
06/01/31
USD
63
(908)
—
(908)
2.18%
Semi-Annual
3
month
LIBOR
Quarterly
06/17/26
(a)
06/17/31
USD
12,840
(112,875)
(916)
(111,959)
$
(147,071)
$
(916)
$
(146,155)
(a)
Forward
swap.
Centrally
Cleared
Inflation
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1
month
USCPI
At
Termination
2.47%
At
Termination
04/26/31
USD
6,637
$
(64,383)
$
—
$
(64,383)
1
month
USCPI
At
Termination
2.64%
At
Termination
05/21/31
USD
3,480
38,135
—
38,135
1
month
USCPI
At
Termination
2.64%
At
Termination
05/21/31
USD
3,480
39,502
—
39,502
UK
Retail
Price
Index
All
Items
Monthly
At
Termination
3.38%
At
Termination
12/15/40
GBP
210
(19,779)
—
(19,779)
UK
Retail
Price
Index
All
Items
Monthly
At
Termination
3.38%
At
Termination
12/15/40
GBP
470
(44,060)
—
(44,060)
UK
Retail
Price
Index
All
Items
Monthly
At
Termination
3.30%
At
Termination
01/15/41
GBP
48
(6,782)
—
(6,782)
$
(57,367)
$
—
$
(57,367)
OTC
Credit
Default
Swap
s
—
Buy
Protection
Reference
Obligation/Index
Financing
Rate
Paid
by
the
Fund
Payment
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Federative
Republic
of
Brazil
..
1.00
%
Quarterly
Barclays
Bank
plc
06/20/26
USD
1,395
$
42,774
$
76,497
$
(33,723)
Federative
Republic
of
Brazil
..
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
3,373
3,506
(133)
Federative
Republic
of
Brazil
..
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
220
6,745
7,013
(268)
Federative
Republic
of
Brazil
..
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
268
8,217
8,481
(264)
Federative
Republic
of
Brazil
..
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
120
3,679
3,825
(146)
Federative
Republic
of
Brazil
..
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
120
3,679
3,825
(146)
Republic
of
Colombia
.......
1.00
Quarterly
BNP
Paribas
SA
06/20/26
USD
120
2,046
2,121
(75)
Republic
of
Colombia
.......
1.00
Quarterly
BNP
Paribas
SA
06/20/26
USD
50
853
899
(46)
Republic
of
Colombia
.......
1.00
Quarterly
Citibank
NA
06/20/26
USD
175
2,984
3,110
(126)
Republic
of
Colombia
.......
1.00
Quarterly
Citibank
NA
06/20/26
USD
108
1,842
1,844
(2)
Republic
of
Colombia
.......
1.00
Quarterly
Citibank
NA
06/20/26
USD
108
1,842
1,742
100
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
1,876
2,055
(179)
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
100
1,705
1,987
(282)
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
1,876
2,186
(310)
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
98
1,671
1,949
(278)
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
33
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
OTC
Credit
Default
Swaps
—
Buy
Protection
(continued)
Reference
Obligation/Index
Financing
Rate
Paid
by
the
Fund
Payment
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Republic
of
Colombia
.......
1.00
%
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
$
1,876
$
2,109
$
(233)
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
100
1,705
1,988
(283)
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
40
682
748
(66)
Republic
of
Indonesia
.......
1.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/26
USD
1,092
(13,788)
(5,991)
(7,797)
Republic
of
South
Africa
.....
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
2,527
101,173
170,255
(69,082)
Republic
of
South
Africa
.....
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
406
16,240
27,329
(11,089)
Republic
of
South
Africa
.....
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
241
9,634
16,211
(6,577)
Republic
of
the
Philippines
...
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
754
(20,948)
(19,367)
(1,581)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(260)
(138)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
143
(474)
(137)
(337)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(231)
(167)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
152
(504)
(366)
(138)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(202)
(196)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(115)
(283)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
—
(398)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(260)
(138)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(260)
(138)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
130
(431)
(187)
(244)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(173)
(225)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
130
(431)
(187)
(244)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(58)
(340)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(86)
(312)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
194
(643)
47
(690)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(346)
(52)
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
06/20/26
USD
120
(398)
(260)
(138)
United
Mexican
States
......
1.00
Quarterly
BNP
Paribas
SA
06/20/26
USD
120
(398)
(144)
(254)
United
Mexican
States
......
1.00
Quarterly
BNP
Paribas
SA
06/20/26
USD
120
(398)
(115)
(283)
United
Mexican
States
......
1.00
Quarterly
Citibank
NA
06/20/26
USD
110
(364)
(344)
(20)
United
Mexican
States
......
1.00
Quarterly
Citibank
NA
06/20/26
USD
110
(364)
(318)
(46)
United
Mexican
States
......
1.00
Quarterly
Citibank
NA
06/20/26
USD
110
(364)
(291)
(73)
United
Mexican
States
......
1.00
Quarterly
Citibank
NA
06/20/26
USD
113
(374)
(190)
(184)
United
Mexican
States
......
1.00
Quarterly
Citibank
NA
06/20/26
USD
110
(364)
(317)
(47)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(291)
(73)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(56)
(308)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
100
(331)
(75)
(256)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
178
(590)
43
(633)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(397)
33
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
100
(331)
(51)
(280)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(264)
(100)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(264)
(100)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(264)
(100)
United
Mexican
States
......
1.00
Quarterly
Goldman
Sachs
International
06/20/26
USD
110
(364)
(53)
(311)
United
Mexican
States
......
1.00
Quarterly
Morgan
Stanley
&
Co.
International
plc
06/20/26
USD
1,714
(5,679)
10,743
(16,422)
CMBX.NA.9.AAA
..........
0.50
Monthly
Credit
Suisse
International
09/17/58
USD
150
(1,629)
1,840
(3,469)
CMBX.NA.9.AAA
..........
0.50
Monthly
Deutsche
Bank
AG
09/17/58
USD
120
(1,303)
1,492
(2,795)
CMBX.NA.9.AAA
..........
0.50
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
230
(2,498)
3,039
(5,537)
CMBX.NA.9.AAA
..........
0.50
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
90
(977)
1,104
(2,081)
CMBX.NA.9.AAA
..........
0.50
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
100
(1,086)
1,227
(2,313)
CMBX.NA.9.BBB-
.........
3.00
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
8
619
430
189
CMBX.NA.6.AAA
..........
0.50
Monthly
Deutsche
Bank
AG
05/11/63
USD
71
(280)
(11)
(269)
CMBX.NA.6.AAA
..........
0.50
Monthly
Deutsche
Bank
AG
05/11/63
USD
167
(658)
(132)
(526)
CMBX.NA.6.BBB-
.........
3.00
Monthly
JPMorgan
Securities
LLC
05/11/63
USD
30
7,922
2,682
5,240
$
–
$
–
$
–
$
162,482
$
330,264
$
(167,782)
$
–
$
–
$
–
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
34
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
OTC
Credit
Default
Swap
s
—
Sell
Protection
Reference
Obligation/Index
Financing
Rate
Received
by
the
Fund
Payment
Frequency
Counterparty
Termination
Date
Credit
Rating
(a)
Notional
Amount
(000)
(b)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
CMBX.NA.3.AM
.......
0.50
%
Monthly
Credit
Suisse
International
12/13/49
NR
USD
—
$
—
$
(4)
$
4
CMBX.NA.9.BBB-
.....
3.00
Monthly
Deutsche
Bank
AG
09/17/58
NR
USD
29
(2,243)
(3,248)
1,005
CMBX.NA.10.A
.......
2.00
Monthly
Deutsche
Bank
AG
11/17/59
NR
USD
120
(129)
(4,828)
4,699
CMBX.NA.10.A
.......
2.00
Monthly
Deutsche
Bank
AG
11/17/59
NR
USD
60
(65)
(2,460)
2,395
CMBX.NA.10.BBB-
....
3.00
Monthly
JPMorgan
Securities
LLC
11/17/59
NR
USD
10
(879)
(796)
(83)
CMBX.NA.6.BBB-
.....
3.00
Monthly
Credit
Suisse
International
05/11/63
BBB-
USD
30
(7,922)
(2,216)
(5,706)
$
(11,238)
$
(13,552)
$
2,314
(a)
Using
the
rating
of
the
issuer
or
the
underlying
securities
of
the
index,
as
applicable,
provided
by
S&P
Global
Ratings.
(b)
The
maximum
potential
amount
the
Fund
may
pay
should
a
negative
credit
event
take
place
as
defined
under
the
terms
of
the
agreement.
OTC
Interest
Rate
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1.42%
Semi-Annual
1
day
CLICP
Semi-Annual
Bank
of
America
NA
04/01/23
CLP
688,128
$
13,765
$
—
$
13,765
1
day
CLICP
Semi-Annual
1.65%
Semi-Annual
Bank
of
America
NA
05/28/23
CLP
688,128
(14,030)
—
(14,030)
1
day
BZDIOVER
At
Termination
7.21%
At
Termination
Citibank
NA
01/02/24
BRL
6,695
(11,317)
—
(11,317)
1
day
BZDIOVER
At
Termination
7.61%
At
Termination
Citibank
NA
01/02/24
BRL
3,872
(679)
—
(679)
1
day
BZDIOVER
At
Termination
7.70%
At
Termination
Citibank
NA
01/02/24
BRL
503
123
—
123
1
day
BZDIOVER
At
Termination
8.29%
At
Termination
JPMorgan
Chase
Bank
NA
01/02/29
BRL
2,089
(8,108)
—
(8,108)
1
day
BZDIOVER
At
Termination
8.42%
At
Termination
Citibank
NA
01/02/29
BRL
1,528
(3,416)
—
(3,416)
$
(23,662)
$
—
$
(23,662)
OTC
Total
Return
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Rate
(Amount)/
Reference
Frequency
Rate/Reference
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
3
month
LIBOR
.....
Quarterly
iBoxx
USD
Liquid
High
Yield
Total
Return
Index
At
Termination
Goldman
Sachs
International
09/20/21
USD
5,820
$
33,685
$
(1,960)
$
35,645
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1
day
BZDIOVER
.....................................
Overnight
Brazil
CETIP
—
Interbank
Rate
0.02
%
1
day
CLICP
.........................................
Chile
Indice
de
Camara
Promedio
Interbank
Overnight
Index
0.00
1
month
USCPI
.......................................
U.S.
Consumer
Price
Index
5.40
3
month
JIBAR
.......................................
Johannesburg
Interbank
Average
Rate
3.69
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.15
6
month
WIBOR
......................................
Warsaw
Interbank
Offered
Rate
0.15
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
35
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Balances
Reported
in
the
Statement
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps,
OTC
Swaps
and
Options
Written
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Centrally
Cleared
Swaps
(a)
...........................................
$
—
$
(916)
$
83,802
$
(287,324)
$
—
OTC
Swaps
.....................................................
362,327
(47,575)
63,198
(216,683)
—
Options
Written
...................................................
N/A
N/A
657,815
(470,252)
(2,617,590)
(a)
Includes
cumulative
appreciation
(depreciation)
on
centrally
cleared
swaps,
as
reported
in
the
Schedule
of
Investments.
Only
current
day’s
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statement
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
.....
$
—
$
—
$
—
$
—
$
2,247,222
$
—
$
2,247,222
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
437,416
—
—
437,416
Options
purchased
Investments
at
value
—
unaffiliated
(b)
...........
—
—
—
95,368
2,323,082
—
2,418,450
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
6,165
77,637
83,802
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
375,992
—
—
49,533
—
425,525
$
—
$
375,992
$
—
$
532,784
$
4,626,002
$
77,637
$
5,612,415
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
945,350
—
945,350
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
92,492
—
—
92,492
Options
written
(c)
Options
written
at
value
.....................
—
—
—
29,450
2,588,140
—
2,617,590
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
152,320
135,004
287,324
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
224,748
—
—
39,510
—
264,258
$
—
$
224,748
$
—
$
121,942
$
3,725,320
$
135,004
$
4,207,014
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statement
of
Assets
and
Liabilities,
only
current
day's
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
(b)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
(c)
Includes
forward
settling
swaptions.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
36
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
For
the
six
months
ended
June
30,
2021,
the
effect
of
derivative
financial
instruments
in
the
Statement
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from:
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
(5,339,468)
$
—
$
(5,339,468)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(1,120,865)
—
—
(1,120,865)
Options
purchased
(a)
....................
—
—
—
(1,162,391)
62,299
—
(1,100,092)
Options
written
........................
—
—
—
578,116
(71,914)
—
506,202
Swaps
..............................
—
(220,299)
—
—
(240,851)
(694,856)
(1,156,006)
$
—
$
(220,299)
$
—
$
(1,705,140)
$
(5,589,934)
$
(694,856)
$
(8,210,229)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
1,397,755
—
1,397,755
Forward
foreign
currency
exchange
contracts
....
—
—
—
929,086
—
—
929,086
Options
purchased
(b)
....................
—
—
—
(313,771)
1,428,478
—
1,114,707
Options
written
........................
—
—
—
5,823
183,392
—
189,215
Swaps
..............................
—
151,471
—
—
(277,733)
(57,795)
(184,057)
$
—
$
151,471
$
—
$
621,138
$
2,731,892
$
(57,795)
$
3,446,706
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
(b)
Options
purchased
are
included
in
net
change
in
unrealized
appreciation
(depreciation)
on
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts:
Average
notional
value
of
contracts
—
long
..................................................................................
$
173,527,249
Average
notional
value
of
contracts
—
short
.................................................................................
120,917,967
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
42,829,132
Average
amounts
sold
—
in
USD
........................................................................................
8,663,574
Options:
Average
value
of
option
contracts
purchased
................................................................................
3,776,668
Average
value
of
option
contracts
written
...................................................................................
1,966,585
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
—
(a)
Average
notional
value
of
swaption
contracts
written
...........................................................................
56,384,643
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
13,450,753
Average
notional
value
—
sell
protection
...................................................................................
249,052
Interest
rate
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
31,916,461
Average
notional
value
—
receives
fixed
rate
................................................................................
6,686,685
Inflation
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
10,118,500
Average
notional
value
—
receives
fixed
rate
................................................................................
813,136
Total
return
swaps:
Average
notional
value
...............................................................................................
2,910,000
(a)
Derivative
financial
instrument
not
held
at
any
quarter-end.
The
risk
exposure
table
serves
as
an
indicator
of
activity
during
the
period.
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
37
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
—
Offsetting
as
of
Period
End
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
363,375
$
238,118
Forward
foreign
currency
exchange
contracts
.................................................................
437,416
92,492
Options
(a)(b)
........................................................................................
2,418,450
2,617,590
Swaps
—
Centrally
cleared
.............................................................................
—
46,060
Swaps
—
OTC
(c)
....................................................................................
425,525
264,258
Total
derivative
assets
and
liabilities
in
the
Statement
of
Assets
and
Liabilities
.............................................
$
3,644,766
$
3,258,518
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(2,686,457)
(997,498)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
958,309
$
2,261,020
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statement
of
Assets
and
Liabilities
and
reported
in
the
Schedule
of
Investments.
(b)
Includes
forward
settling
swaptions.
(c)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/received
in
the
Statement
of
Assets
and
Liabilities.
The
following
tables
present
the
Fund's
derivative
assets
and
liabilities
by
counterparty
net
of
amounts
available
for
offset
under
an
MNA
and
net
of
the
related
collateral
received
and
pledged
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(b)(c)
Bank
of
America
NA
..............................
$
31,737
$
(24,323)
$
—
$
—
$
7,414
Barclays
Bank
plc
................................
92,155
(92,155)
—
—
—
BNP
Paribas
SA
.................................
154,533
(9,396)
—
—
145,137
Citibank
NA
....................................
197,347
(197,347)
—
—
—
Credit
Agricole
Corporate
&
Investment
Bank
SA
...........
6,057
(8)
—
—
6,049
Credit
Suisse
International
..........................
1,844
(1,844)
—
—
—
Deutsche
Bank
AG
...............................
39,442
(39,442)
—
—
—
Goldman
Sachs
International
........................
292,463
(292,463)
—
—
—
HSBC
Bank
plc
..................................
8,062
(6,436)
—
—
1,626
JPMorgan
Chase
Bank
NA
..........................
33,577
(26,643)
—
—
6,934
JPMorgan
Securities
LLC
...........................
7,922
(879)
—
—
7,043
Morgan
Stanley
&
Co.
International
plc
..................
64,761
(64,761)
—
—
—
Standard
Chartered
Bank
...........................
4,867
—
—
—
4,867
State
Street
Bank
and
Trust
Co.
......................
6,848
—
—
—
6,848
UBS
AG
......................................
16,694
—
—
—
16,694
$
958,309
$
(755,697)
$
—
$
—
$
202,612
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
(d)
Net
Amount
of
Derivative
Liabilities
(c)(e)
Bank
of
America
NA
..............................
$
24,323
$
(24,323)
$
—
$
—
$
—
Barclays
Bank
plc
................................
212,038
(92,155)
—
—
119,883
BNP
Paribas
SA
.................................
9,396
(9,396)
—
—
—
Citibank
NA
....................................
338,201
(197,347)
—
(140,854)
—
Credit
Agricole
Corporate
&
Investment
Bank
SA
...........
8
(8)
—
—
—
Credit
Suisse
International
..........................
11,395
(1,844)
—
—
9,551
Deutsche
Bank
AG
...............................
509,594
(39,442)
—
(470,152)
—
Goldman
Sachs
International
........................
399,632
(292,463)
—
—
107,169
HSBC
Bank
plc
..................................
6,436
(6,436)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
26,643
(26,643)
—
—
—
JPMorgan
Securities
LLC
...........................
879
(879)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
722,384
(64,761)
(601,755)
—
55,868
Royal
Bank
of
Canada
.............................
91
—
—
—
91
$
2,261,020
$
(755,697)
$
(601,755)
$
(611,006)
$
292,562
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
38
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
(a)
The
amount
of
derivatives
available
for
offset
is
limited
to
the
amount
of
derivative
assets
and/or
liabilities
that
are
subject
to
an
MNA.
(b)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(c)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(d)
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(e)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
BlackRock
Total
Return
V.I.
Fund
Schedule
of
Investments
39
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
us
ed
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
....................................
$
—
$
24,402,646
$
1,866,989
$
26,269,635
Corporate
Bonds:
Aerospace
&
Defense
....................................
—
11,780,025
—
11,780,025
Air
Freight
&
Logistics
....................................
—
2,546,164
—
2,546,164
Airlines
..............................................
—
3,879,389
—
3,879,389
Auto
Components
......................................
—
175,282
—
175,282
Automobiles
..........................................
—
3,241,613
—
3,241,613
Banks
...............................................
—
41,355,404
—
41,355,404
Beverages
...........................................
—
5,650,935
—
5,650,935
Biotechnology
.........................................
—
7,154,345
—
7,154,345
Building
Products
.......................................
—
1,163,058
—
1,163,058
Capital
Markets
........................................
—
18,799,890
—
18,799,890
Chemicals
............................................
—
4,087,937
—
4,087,937
Commercial
Services
&
Supplies
.............................
—
2,640,874
—
2,640,874
Communications
Equipment
................................
—
1,785,288
—
1,785,288
Construction
&
Engineering
................................
—
273,565
—
273,565
Consumer
Finance
......................................
—
4,794,251
—
4,794,251
Containers
&
Packaging
..................................
—
144,944
—
144,944
Distributors
...........................................
—
144,508
—
144,508
Diversified
Financial
Services
...............................
—
3,013,998
—
3,013,998
Diversified
Telecommunication
Services
........................
—
13,122,109
—
13,122,109
Electric
Utilities
........................................
—
20,213,385
—
20,213,385
Electronic
Equipment,
Instruments
&
Components
.................
—
89,363
—
89,363
Energy
Equipment
&
Services
..............................
—
182,160
—
182,160
Entertainment
.........................................
—
1,551,508
—
1,551,508
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
—
7,558,806
696,580
8,255,386
Food
&
Staples
Retailing
..................................
—
837,984
—
837,984
Food
Products
.........................................
—
1,206,649
—
1,206,649
Gas
Utilities
...........................................
—
1,025,746
—
1,025,746
Health
Care
Equipment
&
Supplies
...........................
—
800,631
—
800,631
Health
Care
Providers
&
Services
............................
—
10,389,111
—
10,389,111
Hotels,
Restaurants
&
Leisure
..............................
—
3,836,179
—
3,836,179
Household
Durables
.....................................
—
704,834
—
704,834
Household
Products
.....................................
—
65,584
—
65,584
Independent
Power
and
Renewable
Electricity
Producers
............
—
46,119
—
46,119
Industrial
Conglomerates
..................................
—
479,728
—
479,728
Insurance
............................................
—
3,084,885
—
3,084,885
Interactive
Media
&
Services
...............................
—
193,975
—
193,975
Internet
&
Direct
Marketing
Retail
............................
—
1,336,728
—
1,336,728
IT
Services
...........................................
—
6,914,265
—
6,914,265
Leisure
Products
.......................................
—
464,000
—
464,000
Life
Sciences
Tools
&
Services
..............................
—
1,220,536
—
1,220,536
Machinery
............................................
—
1,354,061
—
1,354,061
Media
...............................................
—
9,897,027
—
9,897,027
Metals
&
Mining
........................................
—
2,956,307
—
2,956,307
Multiline
Retail
.........................................
—
2,343
—
2,343
Multi-Utilities
..........................................
—
1,141,870
—
1,141,870
Oil,
Gas
&
Consumable
Fuels
...............................
—
18,301,557
—
18,301,557
Paper
&
Forest
Products
..................................
—
772,412
—
772,412
Pharmaceuticals
.......................................
—
3,794,663
—
3,794,663
Real
Estate
Management
&
Development
.......................
—
3,020,772
—
3,020,772
Road
&
Rail
...........................................
—
6,372,302
—
6,372,302
Semiconductors
&
Semiconductor
Equipment
....................
—
9,277,917
—
9,277,917
Software
.............................................
—
6,650,218
—
6,650,218
Specialty
Retail
........................................
—
2,544,885
—
2,544,885
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Total
Return
V.I.
Fund
40
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Technology
Hardware,
Storage
&
Peripherals
....................
$
—
$
2,607,217
$
—
$
2,607,217
Textiles,
Apparel
&
Luxury
Goods
............................
—
129,084
—
129,084
Thrifts
&
Mortgage
Finance
................................
—
587,019
—
587,019
Tobacco
.............................................
—
4,842,755
—
4,842,755
Trading
Companies
&
Distributors
............................
—
1,198,741
—
1,198,741
Wireless
Telecommunication
Services
.........................
—
4,538,763
—
4,538,763
Floating
Rate
Loan
Interests:
Air
Freight
&
Logistics
....................................
—
268,144
—
268,144
Building
Products
.......................................
—
145,680
—
145,680
Consumer
Finance
......................................
—
—
28,200
28,200
Diversified
Financial
Services
...............................
—
268,814
—
268,814
Health
Care
Providers
&
Services
............................
—
44,242
—
44,242
Hotels,
Restaurants
&
Leisure
..............................
—
331,029
—
331,029
Media
...............................................
—
195,814
—
195,814
Oil,
Gas
&
Consumable
Fuels
...............................
—
457,721
—
457,721
Pharmaceuticals
.......................................
—
280,144
—
280,144
Road
&
Rail
...........................................
—
165,683
—
165,683
Thrifts
&
Mortgage
Finance
................................
—
—
305,344
305,344
Foreign
Agency
Obligations
.................................
—
3,693,731
—
3,693,731
Foreign
Government
Obligations
..............................
—
53,266,859
—
53,266,859
Municipal
Bonds
.........................................
—
5,435,180
—
5,435,180
Non-Agency
Mortgage-Backed
Securities
........................
—
12,731,025
98,180
12,829,205
Other
Interests
..........................................
—
—
—
—
Capital
Trusts
...........................................
—
3,563,228
—
3,563,228
U.S.
Government
Sponsored
Agency
Securities
....................
—
336,606,455
—
336,606,455
U.S.
Treasury
Obligations
...................................
—
126,351,007
—
126,351,007
Short-Term
Securities
.......................................
95,678,326
—
—
95,678,326
Options
Purchased:
Foreign
currency
exchange
contracts
...........................
—
95,368
—
95,368
Interest
rate
contracts
......................................
2,323,082
—
—
2,323,082
Liabilities:
Investments:
TBA
Sale
Commitments
....................................
—
(98,282,191)
—
(98,282,191)
$
98,001,408
$
737,966,247
$
2,995,293
$
838,962,948
Investments
valued
at
NAV
(a)
......................................
101,800,981
$
—
$
940,763,929
$
—
Derivative
Financial
Instruments
(b)
Assets:
Credit
contracts
...........................................
$
—
$
13,665
$
—
$
13,665
Foreign
currency
exchange
contracts
............................
—
437,416
—
437,416
Interest
rate
contracts
.......................................
2,247,222
55,698
—
2,302,920
Other
contracts
...........................................
—
77,637
—
77,637
Liabilities:
Credit
contracts
...........................................
—
(179,133)
—
(179,133)
Foreign
currency
exchange
contracts
............................
—
(121,942)
—
(121,942)
Interest
rate
contracts
.......................................
(1,658,670)
(2,064,690)
—
(3,723,360)
Other
contracts
...........................................
—
(135,004)
—
(135,004)
$
588,552
$
(1,916,353)
$
—
$
(1,327,801)
(a)
Certain
investments
of
the
Fund
were
fair
valued
using
NAV
per
share
as
no
quoted
market
value
is
available
and
therefore
have
been
excluded
from
the
fair
value
hierarchy.
(b)
Derivative
financial
instruments
are
swaps,
futures
contracts,
forward
foreign
currency
exchange
contracts
and
options
written.
Swaps,
futures
contracts
and
forward
foreign
currency
exchange
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument
and
options
written
are
shown
at
value.
Statement
of
Assets
and
Liabilities
(unaudited)

June
30,
2021
41
Financial
Statements
BlackRock
Total
Return
V.I.
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
841,566,813‌
Investments,
at
value
—
affiliated
(b)
.........................................................................................
197,479,307‌
Cash
pledged:
–‌
Collateral
—
OTC
derivatives
............................................................................................
870,000‌
Futures
contracts
....................................................................................................
420,050‌
Centrally
cleared
swaps
................................................................................................
1,092,090‌
Foreign
currency,
at
value
(c)
..............................................................................................
4,222,275‌
Receivables:
–‌
Investments
sold
....................................................................................................
91,566,997‌
TBA
sale
commitments
................................................................................................
98,405,367‌
Capital
shares
sold
...................................................................................................
2,357,696‌
Dividends
—
affiliated
.................................................................................................
199,379‌
Dividends
—
unaffiliated
...............................................................................................
6,146‌
Interest
—
unaffiliated
.................................................................................................
4,014,648‌
Variation
margin
on
futures
contracts
.......................................................................................
363,375‌
Swap
premiums
paid
...................................................................................................
362,327‌
Unrealized
appreciation
on:
–‌
Forward
foreign
currency
exchange
contracts
.................................................................................
437,416‌
OTC
swaps
........................................................................................................
63,198‌
Prepaid
expenses
.....................................................................................................
8,220‌
Other
assets
.........................................................................................................
1,222‌
Total
assets
.........................................................................................................
1,243,436,526‌
LIABILITIES
Bank
overdraft
........................................................................................................
210,383‌
Options
written,
at
value
(d)
................................................................................................
2,617,590‌
TBA
sale
commitments,
at
value
(e)
..........................................................................................
98,282,191‌
Payables:
–‌
Investments
purchased
................................................................................................
318,330,031‌
Capital
shares
redeemed
...............................................................................................
250,314‌
Deferred
foreign
capital
gain
tax
..........................................................................................
994‌
Distribution
fees
.....................................................................................................
110,303‌
Income
dividend
distributions
............................................................................................
989,373‌
Investment
advisory
fees
..............................................................................................
261,482‌
Other
affiliate
fees
...................................................................................................
3,292‌
Variation
margin
on
futures
contracts
.......................................................................................
238,118‌
Variation
margin
on
centrally
cleared
swaps
..................................................................................
46,060‌
Other
accrued
expenses
...............................................................................................
619,568‌
Swap
premiums
received
................................................................................................
47,575‌
Unrealized
depreciation
on:
–‌
Forward
foreign
currency
exchange
contracts
.................................................................................
92,492‌
OTC
swaps
........................................................................................................
216,683‌
Total
liabilities
........................................................................................................
422,316,449‌
NET
ASSETS
........................................................................................................
$
821,120,077‌
NET
ASSETS
CONSIST
OF
Paid-in
capital
........................................................................................................
$
813,909,998‌
Accumulated
earnings
..................................................................................................
7,210,079‌
NET
ASSETS
........................................................................................................
$
821,120,077‌
(a)
  Investments,
at
cost
—
unaffiliated
........................................................................................
$
832,271,715‌
(b)
  Investments,
at
cost
—
affiliated
..........................................................................................
$
196,783,326‌
(c)
  Foreign
currency,
at
cost
...............................................................................................
$
4,132,597‌
(d)
  Premiums
received
..................................................................................................
$
2,805,153‌
(e)
  Proceeds
from
TBA
sale
commitments
.....................................................................................
$
98,405,367‌
See
notes
to
financial
statements.
Statement
of
Assets
and
Liabilities
(unaudited)
(continued)
June
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
42
See
notes
to
financial
statements.
BlackRock
Total
Return
V.I.
Fund
NET
ASSET
VALUE
Class
I
Net
assets
........................................................................................................
$
240,779,490‌
Shares
outstanding
.................................................................................................
19,863,486‌
Net
asset
value
....................................................................................................
$
12.12‌
Shares
authorized
..................................................................................................
600
million
Par
value
........................................................................................................
$
0.10‌
Class
III
Net
assets
........................................................................................................
$
580,340,587‌
Shares
outstanding
.................................................................................................
48,479,153‌
Net
asset
value
....................................................................................................
$
11.97‌
Shares
authorized
..................................................................................................
100
million
Par
value
........................................................................................................
$
0.10‌
Statement
of
Operations
(unaudited)

Six
Months
Ended
June
30,
2021
43
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Total
Return
V.I.
Fund
INVESTMENT
INCOME
Dividends
—
affiliated
.................................................................................................
$
1,099,355‌
Interest
—
unaffiliated
................................................................................................
6,539,375‌
Foreign
taxes
withheld
................................................................................................
(6,519‌)
Total
investment
income
.................................................................................................
7,632,211‌
EXPENSES
Investment
advisory
..................................................................................................
1,523,251‌
Distribution
—
class
specific
............................................................................................
649,371‌
Transfer
agent
—
class
specific
..........................................................................................
594,470‌
Accounting
services
..................................................................................................
85,067‌
Professional
.......................................................................................................
52,527‌
Custodian
.........................................................................................................
39,951‌
Registration
.......................................................................................................
13,851‌
Directors
and
Officer
.................................................................................................
4,386‌
Transfer
agent
......................................................................................................
2,480‌
Miscellaneous
......................................................................................................
106,789‌
Total
expenses
.......................................................................................................
3,072,143‌
Less:
–‌
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(17,490‌)
Transfer
agent
fees
reimbursed
—
class
specific
...............................................................................
(438,607‌)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
2,616,046‌
Net
investment
income
..................................................................................................
5,016,165‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
(15,173,193‌)
Net
realized
gain
(loss)
from:
$
–‌
Investments
—
unaffiliated
(a)
..........................................................................................
1,373,680‌
Forward
foreign
currency
exchange
contracts
...............................................................................
(1,120,865‌)
Foreign
currency
transactions
.........................................................................................
397,842‌
Futures
contracts
..................................................................................................
(5,339,468‌)
Options
written
...................................................................................................
506,202‌
Swaps
.........................................................................................................
(1,156,006‌)
A
(5,338,615‌)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
affiliated
.............................................................................................
494,380‌
Investments
—
unaffiliated
(b)
..........................................................................................
(12,577,020‌)
Forward
foreign
currency
exchange
contracts
...............................................................................
929,086‌
Foreign
currency
translations
..........................................................................................
(83,937‌)
Futures
contracts
..................................................................................................
1,397,755‌
Options
written
...................................................................................................
189,215‌
Swaps
.........................................................................................................
(184,057‌)
A
(9,834,578‌)
Net
realized
and
unrealized
loss
............................................................................................
(15,173,193‌)
NET
DECREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
.................................................................
$
(10,157,028‌)
(a)
  Net
of
foreign
capital
gain
tax
of
..........................................................................................
$
(7,480
)
(b)
  Net
of
reduction
in
deferred
foreign
capital
gain
tax
of
...........................................................................
$
(994
)
Statements
of
Changes
in
Net
Assets

2021
BlackRock
Semi-Annual
Report
to
Shareholders
44
See
notes
to
financial
statements.
BlackRock
Total
Return
V.I.
Fund
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
12/31/20
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
(loss)
..........................................................................
$
5,016,16
5‌
$
11,884,090‌
Net
realized
gain
(loss)
..............................................................................
(5,338,61
5‌
)
36,104,292‌
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
(9,834,578‌)
5,963,917‌
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.....................................................
(10,157,028‌)
53,952,299‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
  Class
I
........................................................................................
(2,139,669‌)
(17,113,905‌)
  Class
III
.......................................................................................
(3,832,152‌)
(30,384,213‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(5,971,821‌)
(47,498,118‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
...................................................
116,476,075‌
82,986,578‌
NET
ASSETS
Total
increase
in
net
assets
.............................................................................
100,347,226‌
89,440,759‌
Beginning
of
period
..................................................................................
720,772,851‌
631,332,092‌
End
of
period
......................................................................................
$
821,120,077‌
$
720,772,851‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
45
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
excludes
insurance-related
fees
and
expenses
and
assumes
the
reinvestment
of
distributions.
(d)
Aggregate
total
return.
(e)
Includes
payment
received
from
an
affiliate,
which
impacted
the
Fund's
total
return.
Excluding
the
payment
from
an
affiliate,
the
Fund's
total
return
is
3.51%.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Annualized.
(h)
Includes
reorganization
costs
associated
with
the
Fund's
reorganization.  Without
these
costs,
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
0.82%
and
0.57%,
respectively.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Total
Return
V.I.
Fund
Class
I
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
period
...............
$
12.40‌
$
12.22‌
$
11.53‌
$
11.91‌
$
11.79‌
$
11.71‌
Net
investment
income
(loss)
(a)
...................
0.09‌
0.25‌
0.35‌
0.33‌
0.29‌
0.23‌
Net
realized
and
unrealized
gain
(loss)
.............
(0.26‌)
0.82‌
0.73‌
(0.39‌)
0.13‌
0.09‌
Net
increase
(decrease)
from
investment
operations
......
(0.17‌)
1.07‌
1.08‌
(0.06‌)
0.42‌
0.32‌
Distributions
(b)
–
–
–
–
–
–
From
net
investment
income
....................
(0.11‌)
(0.29‌)
(0.35‌)
(0.32‌)
(0.30‌)
(0.24‌)
From
net
realized
gain
.........................
—‌
(0.60‌)
(0.04‌)
—‌
—‌
—‌
Total
distributions
.............................
(0.11‌)
(0.89‌)
(0.39‌)
(0.32‌)
(0.30‌)
(0.24‌)
Net
asset
value,
end
of
period
....................
$
12.12‌
$
12.40‌
$
12.22‌
$
11.53‌
$
11.91‌
$
11.79‌
Total
Return
(c)
(1.39)%
8.88%
9.49%
(0.46)%
3.60%
—
Based
on
net
asset
value
........................
(1.39)%
(d)
8.88%
9.49%
(0.46)%
3.60%
(e)
2.76%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
...............................
0.66%
(g)
0.69%
0.74%
0.85%
(h)
0.94%
0.82%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.48%
(g)
0.51%
0.54%
0.58%
(h)
0.74%
0.62%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
......................
0.48%
(g)
0.51%
0.52%
0.55%
0.62%
0.59%
Net
investment
income
(loss)
.....................
1.54%
(g)
1.98%
2.90%
2.84%
2.43%
1.92%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
240,779‌
$
250,444‌
$
245,548‌
$
246,390‌
$
152,138‌
$
157,445‌
Portfolio
turnover
rate
(
i
)
..........................
340%
674%
536%
488%
627%
590%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
....................
0.01%
0.01%
0.01%
0.01%
—%
0.01%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
..............
191%
399%
326%
310%
389%
396%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
46
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
excludes
insurance-related
fees
and
expenses
and
assumes
the
reinvestment
of
distributions.
(d)
Aggregate
total
return.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Annualized.
(h)
Includes
reorganization
costs
associated
with
the
Fund's
reorganization.  Without
these
costs,
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.03%
and
0.88%,
respectively.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Total
Return
V.I.
Fund
Class
III
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
period
...............
$
12.24‌
$
12.07‌
$
11.40‌
$
11.76‌
$
11.65‌
$
11.57‌
Net
investment
income
(loss)
(a)
...................
0.07‌
0.21‌
0.31‌
0.29‌
0.25‌
0.19‌
Net
realized
and
unrealized
gain
(loss)
.............
(0.25‌)
0.81‌
0.71‌
(0.37‌)
0.12‌
0.10‌
Net
increase
(decrease)
from
investment
operations
......
(0.18‌)
1.02‌
1.02‌
(0.08‌)
0.37‌
0.29‌
Distributions
(b)
–
–
–
–
–
–
From
net
investment
income
....................
(0.09‌)
(0.25‌)
(0.31‌)
(0.28‌)
(0.26‌)
(0.21‌)
From
net
realized
gain
.........................
—‌
(0.60‌)
(0.04‌)
—‌
—‌
—‌
Total
distributions
.............................
(0.09‌)
(0.85‌)
(0.35‌)
(0.28‌)
(0.26‌)
(0.21‌)
Net
asset
value,
end
of
period
....................
$
11.97‌
$
12.24‌
$
12.07‌
$
11.40‌
$
11.76‌
$
11.65‌
Total
Return
(c)
(1.49)%
8.54%
9.05%
(0.63)%
3.21%
—
Based
on
net
asset
value
........................
(1.49)%
(d)
8.54%
9.05%
(0.63)%
3.21%
(e)
2.46%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
...............................
0.88%
(g)
0.92%
0.97%
1.06%
(h)
1.16%
1.01%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.79%
(g)
0.82%
0.85%
0.89%
(h)
1.06%
0.93%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
......................
0.79%
(g)
0.82%
0.83%
0.86%
0.94%
0.89%
Net
investment
income
(loss)
.....................
1.22%
(g)
1.67%
2.58%
2.54%
2.15%
1.61%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
580,341‌
$
470,328‌
$
385,784‌
$
318,595‌
$
267,651‌
$
175,153‌
Portfolio
turnover
rate
(
i
)
..........................
340%
674%
536%
488%
627%
590%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
....................
0.01%
0.01%
0.01%
0.01%
—%
0.01%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
..............
191%
399%
326%
310%
389%
396%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
47
Notes
to
Financial
Statements
1.
ORGANIZATION 
BlackRock
Variable
Series
Funds
II,
Inc. (the
"Company")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"),
as
an
open-end
management
investment
company. 
The
Company
is
organized
as
a
Maryland
corporation
that
is
comprised
of
3 separate
funds. 
The
funds
offer shares
to
insurance
companies
for
their
separate
accounts
to
fund
benefits
under
certain
variable
annuity
and
variable
life
insurance
contracts. The
financial
statements
presented
are
for
BlackRock
Total
Return
V.I.
Fund (the
"Fund"). The
Fund
is
classified
as
diversified.
Class
I
and
Class
III
Shares
have
equal
voting,
dividend,
liquidation
and
other
rights,
except
that
only
shares
of
the
respective
classes
are
entitled
to
vote
on
matters
concerning
only
that
class.
In
addition,
Class
III
Shares
bear
certain
expenses
related
to
the
distribution
of
such
shares.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
"Manager") or
its
affiliates,
is
included
in
a
complex
of
non-
index
fixed-income
mutual
funds
and
all
BlackRock-advised
closed-end
funds
referred
to
as
the
BlackRock
Fixed-Income
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies: 
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
dates
may
have
passed
are
subsequently
recorded
when
the
Fund
is
informed
of
the
ex-dividend
dates.
Under
the
applicable
foreign
tax
laws,
a
withholding
tax
at
various
rates
may
be
imposed
on
capital
gains,
dividends
and
interest.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities
and
payment-in-kind
interest,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Foreign
Currency
Translation:
The
Fund’s
books
and
records
are
maintained
in
U.S.
dollars.
Securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
using
exchange
rates
determined
as
of
the
close
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”)
.
Purchases
and
sales
of
investments
are
recorded
at
the
rates
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Generally,
when
the
U.S.
dollar
rises
in
value
against
a
foreign
currency,
the
investments
denominated
in
that
currency
will
lose
value;
the
opposite
effect
occurs
if
the
U.S.
dollar
falls
in
relative
value. 
The
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statement
of
Operations
from
the
effects
of
changes
in
market
prices
of
those
investments,
but
are
included
as
a
component
of
net
realized
and
unrealized
gain
(loss)
from
investments.
The
Fund
reports
realized
currency
gains
(losses)
on
foreign
currency
related
transactions
as
components
of
net
realized
gain
(loss)
for
financial
reporting
purposes,
whereas
such
components
are
generally
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes.
Foreign
Taxes:
The
Fund
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
the
Fund
and
are
reflected
in
its
Statement
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Foreign
taxes
withheld”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
June
30,
2021
,
if
any,
are
disclosed
in
the Statement
of
Assets
and
Liabilities.
The
Fund
files
withholding
tax
reclaims
in
certain
jurisdictions
to
recover
a
portion
of
amounts
previously
withheld.
The
Fund
may
record
a
reclaim
receivable
based
on
collectability,
which
includes
factors
such
as
the
jurisdiction’s
applicable
laws,
payment
history
and
market
convention.
The
Statement
of
Operations
includes
tax
reclaims
recorded
as
well
as
professional
and
other
fees,
if
any,
associated
with
recovery
of
foreign
withholding
taxes.
Segregation
and
Collateralization:
In
cases
where the
Fund
enters
into
certain
investments
(e.g.,
dollar
rolls,
TBA
sale
commitments,
futures
contracts,
forward
foreign
currency
exchange
contracts,
options
written
and
swaps)
that
would
be
treated
as
“senior
securities”
for
1940
Act
purposes, the
Fund
may
segregate
or
designate
on
its
books
and
records
cash
or
liquid
assets
having
a
market
value
at
least
equal
to
the
amount
of
its
future
obligations
under
such
investments.
Doing
so
allows
the
investment
to
be
excluded
from
treatment
as
a
“senior
security.” 
Furthermore,
if
required
by
an
exchange
or
counterparty
agreement,
the
Fund
may
be
required
to
deliver/deposit
cash
and/or
securities
to/with
an
exchange,
or
broker-dealer
or
custodian
as
collateral
for
certain
investments
or
obligations.  
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly. 
Distributions
of
capital
gains
are
recorded
on
the
ex-dividend
dates
and
made
at
least
annually.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP.  
Deferred
Compensation
Plan:
Under
the
Deferred
Compensation
Plan
(the
“Plan”)
approved
by
the
Board
of
Directors
of
the
Company
(the
“Board”)
,
 the
directors
who
are
not
“interested
persons”
of
the
Fund,
as
defined
in
the
1940
Act
(“Independent
Directors
”),
may
defer
a
portion
of
their
annual
complex-wide
compensation.
Deferred
amounts
earn
an
approximate
return
as
though
equivalent
dollar
amounts
had
been
invested
in
common
shares
of
certain
funds
in
the
BlackRock
Fixed-Income
Complex
selected
by
the
Independent
Directors
.
This
has
the
same
economic
effect
for
the
Independent 
Directors
as
if
the
Independent 
Directors
had
invested
the
deferred
amounts
directly
in
certain
funds
in
the
BlackRock
Fixed-Income
Complex.  
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
48
The
Plan
is
not
funded
and
obligations
thereunder
represent
general
unsecured
claims
against
the
general
assets
of
the
Fund,
as
applicable.
Deferred
compensation
liabilities,
if
any, are
included
in
the
Directors’
and
Officer’s
fees
payable
in
the
Statement
of
Assets
and
Liabilities
and
will
remain
as
a
liability
of
the
Fund
until
such
amounts
are
distributed
in
accordance
with
the
Plan. 
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Fund
and
other
shared
expenses
prorated
to
the
Fund
are
allocated
daily
to
each
class
based
on
its
relative
net
assets
or
other
appropriate
methods.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager
,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods.  
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 The
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
policies
approved
by
the
Board.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value.
The
BlackRock
Global
Valuation
Methodologies
Committee
(the
“Global
Valuation
Committee”)
is
the
committee
formed
by
management
to
develop
global
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund’s
assets
and
liabilities: 
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day's official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
Equity
investments
traded
on
a
recognized
exchange
for
which
there
were
no
sales
on
that
day
may
be
valued
at
the
last
available
bid
(long
positions)
or
ask
(short
positions)
price.  
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
or
current
market
quotations
provided
by
independent
dealers
or
third
party
pricing
services.
Floating
rate
loan
interests
are
valued
at
the
mean
of
the
bid
prices
from
one
or
more
independent
brokers
or
dealers
as
obtained
from
a
third
party
pricing
service.
Pricing
services
generally
value
fixed-income
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
a
fund
may
hold
or
transact
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
may
trade
at
lower
prices
than
institutional
round
lots.
The
pricing
services
may
use
matrix
pricing
or
valuation
models
that
utilize
certain
inputs
and
assumptions
to
derive
values,
including
transaction
data
(e.g.,
recent
representative
bids
and
offers),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day's
published net
asset
value
(“NAV”). 
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
or
trade price
on
the
exchange
where
the
contract
is
traded.
Forward
foreign
currency
exchange
contracts
are
valued
at
the
mean
between
the
bid
and
ask
prices
and
are
determined
as
of
the
close
of
trading
on
the
NYSE
based
on
that
day’s
prevailing
forward
exchange
rate
for
the
underlying
currencies.
Exchange-traded
options
are
valued
at
the
mean
between
the
last bid
and
ask
prices
at
the
close
of
the
options
market in
which
the
options
trade.
An
exchange-traded
option
for
which there
is
no
mean
price
is
valued
at
the
last
bid
(long
positions)
or
ask
(short
positions)
price.
If
no
bid
or
ask
price
is
available,
the
prior
day's
price will
be
used,
unless
it
is
determined
that
the
prior
day's
price
no
longer
reflects
the
fair
value
of
the
option.
OTC
options
and
options
on
swaps
(“swaptions”)
are
valued
by
an
independent
pricing
service
using
a
mathematical
model,
which
incorporates
a
number
of
market
data
factors,
such
as
the
trades
and
prices
of
the
underlying
instruments.
Swap
agreements
are
valued
utilizing
quotes
received
daily
by
independent pricing
services
or
through
brokers,
which
are
derived
using
daily
swap
curves
and
models
that
incorporate
a
number
of
market
data
factors,
such
as
discounted
cash
flows,
trades
and
values
of
the
underlying
reference
instruments. 
If
events
(e.g.,
a
market
closure,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Global
Valuation
Committee,
or
its
delegate,
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the
Global
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Global
Valuation
Committee,
or
its
delegate,
seeks
to
determine
the
price
that
the
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm’s-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the
Global
Valuation
Committee,
or
its
delegate,
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
The
pricing
of
all
Fair
Valued
Investments
is
subsequently
reported
to
the
Board
or
a
committee
thereof
on
a
quarterly
basis.
Notes
to
Financial
Statements
(unaudited)
(continued)
49
Notes
to
Financial
Statements
For
investments
in
equity
or
debt
issued
by
privately
held
companies
or
funds
(“Private
Company”
or
collectively,
the
“Private
Companies”)
and
other
Fair
Valued
Investments,
the
fair
valuation
approaches
that
are
used
by
the
Global
Valuation
Committee
and
third
party
pricing
services
utilize
one
or
a
combination
of,
but
not
limited
to,
the
following
inputs.  
Investments
in
series
of
preferred
stock
issued
by
Private
Companies
are
typically
valued
utilizing
market
approach
in
determining
the
enterprise
value
of
the
company.
Such
investments
often
contain
rights
and
preferences
that
differ
from
other
series
of
preferred
and
common
stock
of
the
same
issuer.
Enterprise
valuation
techniques
such
as
an
option
pricing
model
(“OPM”),
a
probability
weighted
expected
return
model
(“PWERM”),
current
value
method or
a
hybrid
of
those
techniques
are
used,
as
deemed
appropriate
under
the
circumstances.
The
use
of these
valuation techniques
involve
a
determination
of
the
exit
scenarios
of
the
investment
in
order
to
appropriately
allocate
the
enterprise
value
of
the
company
among
the
various
parts
of
its
capital
structure. 
The
Private
Companies
are
not
subject
to
the
public
company
disclosure,
timing,
and
reporting
standards
applicable
to other
investments
held
by the
Fund.
Typically,
the
most
recently
available
information
by
a
Private
Company
is
as
of
a
date
that
is
earlier
than
the
date the
Fund
is
calculating
its
NAV.
This
factor
may
result
in
a
difference
between
the
value
of
the
investment
and
the
price the
Fund
could
receive
upon
the
sale
of
the
investment.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows: 
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
—
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market–corroborated
inputs);
and 
Level
3 —
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Global
Valuation
Committee's assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Global
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
Private
Companies
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
As
of
June
30,
2021,
certain
investments
of
the
Fund
were
fair
valued
using
NAV
per
share
as
no
quoted
market
value
is
available
and
therefore
have
been
excluded
from
the
fair
value
hierarchy.
4.
SECURITIES
AND
OTHER
INVESTMENTS 
Asset-Backed
and
Mortgage-Backed
Securities:
Asset-backed
securities
are
generally
issued
as
pass-through
certificates
or
as
debt
instruments.
Asset-backed
securities
issued
as
pass-through
certificates
represent
undivided
fractional
ownership
interests
in
an
underlying
pool
of
assets.
Asset-backed
securities
issued
as
debt
instruments,
which
are
also
known
as
collateralized
obligations,
are
typically
issued
as
the
debt
of
a
special
purpose
entity
organized
solely
for
the
purpose
of
owning
such
assets
and
issuing
such
debt.
Asset-backed
securities
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
The
yield
characteristics
of
certain
asset-backed
securities
may
differ
from
traditional
debt
securities.
One
such
major
difference
is
that
all
or
a
principal
part
of
the
obligations
may
be
prepaid
at
any
time
because
the
underlying
assets
(i.e.,
loans)
may
be
prepaid
at
any
time.
As
a
result,
a
decrease
in
interest
rates
in
the
market
may
result
in
increases
in
the
level
of
prepayments
as
borrowers,
particularly
mortgagors,
refinance
and
repay
their
loans.
An
increased
prepayment
rate
with
respect
to
an
asset-backed
security
will
have
the
effect
of
shortening
the
maturity
of
the
security.
In
addition,
a
fund
may
subsequently
have
to
reinvest
the
proceeds
at
lower
interest
rates.
If
a
fund
has
purchased
such
an
asset-backed
security
at
a
premium,
a
faster
than
anticipated
prepayment
rate
could
result
in
a
loss
of
principal
to
the
extent
of
the
premium
paid. 
For
mortgage
pass-through
securities
(the
“Mortgage
Assets”)
there
are
a
number
of
important
differences
among
the
agencies
and
instrumentalities
of
the
U.S.
Government
that
issue
mortgage-related
securities
and
among
the
securities
that
they
issue.
For
example,
mortgage-related
securities
guaranteed
by
Ginnie
Mae
are
guaranteed
as
to
Standard
Inputs
Generally
Considered
By
Third
Party
Pricing
Services
Market
approach
........................
(i)        
recent
market
transactions,
including
subsequent
rounds
of
financing,
in
the
underlying
investment
or
comparable  
            issuers;
(ii)        recapitalizations
and
other
transactions
across
the
capital
structure;
and
(iii)      
market
multiples
of
comparable
issuers.
Income
approach
..........................
(i)        
future
cash
flows
discounted
to
present
and
adjusted
as
appropriate
for
liquidity,
credit,
and/or
market
risks;
(ii)        quoted
prices
for
similar
investments
or
assets
in
active
markets;
and
(iii)      
other
risk
factors,
such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks,
            recovery
rates,
liquidation
amounts
and/or
default
rates.
Cost
approach
............................
(i)        
audited
or
unaudited
financial
statements,
investor
communications
and
financial
or
operational
metrics
            issued
by
the
Private
Company;
(ii)        changes
in
the
valuation
of
relevant
indices
or
publicly
traded
companies
comparable
to
the
Private
Company;
(iii)      
relevant
news
and
other
public
sources;
and
(iv)      
known
secondary
market
transactions
in
the
Private
Company’s
interests
and
merger
or
acquisition
activity
            in
companies
comparable
to
the
Private
Company.
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
50
the
timely
payment
of
principal
and
interest
by
Ginnie
Mae
and
such
guarantee
is
backed
by
the
full
faith
and
credit
of
the
United
States.
However,
mortgage-related
securities
issued
by
Freddie
Mac
and
Fannie
Mae,
including
Freddie
Mac
and
Fannie
Mae
guaranteed
mortgage
pass-through
certificates,
which
are
solely
the
obligations
of
Freddie
Mac
and
Fannie
Mae,
are
not
backed
by
or
entitled
to
the
full
faith
and
credit
of
the
United
States,
but
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Treasury. 
Non-agency
mortgage-backed
securities
are
securities
issued
by
non-governmental
issuers
and
have
no
direct
or
indirect
government
guarantees
of
payment
and
are
subject
to
various
risks.
Non-agency
mortgage
loans
are
obligations
of
the
borrowers
thereunder
only
and
are
not
typically
insured
or
guaranteed
by
any
other
person
or
entity.
The
ability
of
a
borrower
to
repay
a
loan
is
dependent
upon
the
income
or
assets
of
the
borrower.
A
number
of
factors,
including
a
general
economic
downturn,
acts
of
God,
terrorism,
social
unrest
and
civil
disturbances,
may
impair
a
borrower’s
ability
to
repay
its
loans.
Collateralized
Debt
Obligations:
Collateralized
debt
obligations
(“CDOs”),
including
collateralized
bond
obligations
(“CBOs”)
and
collateralized
loan
obligations
(“CLOs”),
are
types
of
asset-backed
securities.
A
CDO
is
an
entity
that
is
backed
by
a
diversified
pool
of
debt
securities
(CBOs)
or
syndicated
bank
loans
(CLOs).
The
cash
flows
of
the
CDO
can
be
split
into
multiple
segments,
called
“tranches,”
which
will
vary
in
risk
profile
and
yield.
The
riskiest
segment
is
the
subordinated
or
“equity”
tranche.
This
tranche
bears
the
greatest
risk
of
defaults
from
the
underlying
assets
in
the
CDO
and
serves
to
protect
the
other,
more
senior,
tranches
from
default
in
all
but
the
most
severe
circumstances.
Since
it
is
shielded
from
defaults
by
the
more
junior
tranches,
a
“senior”
tranche
will
typically
have
higher
credit
ratings
and
lower
yields
than
their
underlying
securities,
and
often
receive
investment
grade
ratings
from
one
or
more
of
the
nationally
recognized
rating
agencies.
Despite
the
protection
from
the
more
junior
tranches,
senior
tranches
can
experience
substantial
losses
due
to
actual
defaults,
increased
sensitivity
to
future
defaults
and
the
disappearance
of
one
or
more
protecting
tranches
as
a
result
of
changes
in
the
credit
profile
of
the
underlying
pool
of
assets. 
Inflation-Indexed
Bonds
:
Inflation-indexed
bonds
(other
than
municipal
inflation-indexed
and
certain
corporate
inflation-indexed
bonds)
are
fixed-income
securities
whose
principal
value
is
periodically
adjusted
according
to
the
rate
of
inflation.
If
the
index
measuring
inflation
rises
or
falls,
the
principal
value
of
inflation-indexed
bonds
(other
than
municipal
inflation-indexed
and
certain
corporate
inflation-indexed
bonds)
will
be
adjusted
upward
or
downward,
and
consequently
the
interest
payable
on
these
securities
(calculated
with
respect
to
a
larger
or
smaller
principal
amount)
will
be
increased
or
reduced,
respectively.
Any
upward
or
downward
adjustment
in
the
principal
amount
of
an
inflation-indexed
bond
will
be
included
as
interest
income
in
the
Statement
of
Operations,
even
though
investors
do
not
receive
their
principal
until
maturity.
Repayment
of
the
original
bond
principal
upon
maturity
(as
adjusted
for
inflation)
is
guaranteed
in
the
case
of
U.S.
Treasury
inflation-indexed
bonds.
For
bonds
that
do
not
provide
a
similar
guarantee,
the
adjusted
principal
value
of
the
bond
repaid
at
maturity
may
be
less
than
the
original
principal.
With
regard
to
municipal
inflation-indexed
bonds
and
certain
corporate
inflation-indexed
bonds,
the
inflation
adjustment
is
typically
reflected
in
the
semi-annual
coupon
payment.
As
a
result,
the
principal
value
of
municipal
inflation
indexed
bonds
and
such
corporate
inflation-indexed
bonds
does
not
adjust
according
to
the
rate
of
inflation.
Multiple
Class
Pass-Through
Securities:
Multiple
class
pass-through
securities,
including
collateralized
mortgage
obligations
(“CMOs”)
and
commercial
mortgage-backed
securities,
may
be
issued
by
Ginnie
Mae,
U.S.
Government
agencies
or
instrumentalities
or
by
trusts
formed
by
private
originators
of,
or
investors
in,
mortgage
loans.
In
general,
CMOs
are
debt
obligations
of
a
legal
entity
that
are
collateralized
by
a
pool
of
residential
or
commercial
mortgage
loans
or
Mortgage
Assets.
The
payments
on
these
are
used
to
make
payments
on
the
CMOs
or
multiple
pass-through
securities.
Multiple
class
pass-through
securities
represent
direct
ownership
interests
in
the
Mortgage
Assets.
Classes
of
CMOs
include
interest
only
(“IOs”),
principal
only
(“POs”),
planned
amortization
classes
and
targeted
amortization
classes.
IOs
and
POs
are
stripped
mortgage-backed
securities
representing
interests
in
a
pool
of
mortgages,
the
cash
flow
from
which
has
been
separated
into
interest
and
principal
components.
IOs
receive
the
interest
portion
of
the
cash
flow
while
POs
receive
the
principal
portion.
IOs
and
POs
can
be
extremely
volatile
in
response
to
changes
in
interest
rates.
As
interest
rates
rise
and
fall,
the
value
of
IOs
tends
to
move
in
the
same
direction
as
interest
rates.
POs
perform
best
when
prepayments
on
the
underlying
mortgages
rise
since
this
increases
the
rate
at
which
the
principal
is
returned
and
the
yield
to
maturity
on
the
PO.
When
payments
on
mortgages
underlying
a
PO
are
slower
than
anticipated,
the
life
of
the
PO
is
lengthened
and
the
yield
to
maturity
is
reduced.
If
the
underlying
Mortgage
Assets
experience
greater
than
anticipated
prepayments
of
principal,
a
fund’s
initial
investment
in
the
IOs
may
not
fully
recoup. 
Stripped
Mortgage-Backed
Securities:
Stripped
mortgage-backed
securities
are
typically
issued
by
the
U.S.
Government,
its
agencies
and
instrumentalities.
Stripped
mortgage-backed
securities
are
usually
structured
with
two
classes
that
receive
different
proportions
of
the
interest
(IOs)
and
principal
(POs)
distributions
on
a
pool
of
Mortgage
Assets.
Stripped
mortgage-backed
securities
may
be
privately
issued.
Zero-Coupon
Bonds:
Zero-coupon
bonds
are
normally
issued
at
a
significant
discount
from
face
value
and
do
not
provide
for
periodic
interest
payments.
These
bonds
may
experience
greater
volatility
in
market
value
than
other
debt
obligations
of
similar
maturity
which
provide
for
regular
interest
payments. 
Capital
Securities
and
Trust
Preferred
Securities:
Capital
securities,
including
trust
preferred
securities,
are
typically
issued
by
corporations,
generally
in
the
form
of
interest-bearing
notes
with
preferred
securities
characteristics.
In
the
case
of
trust
preferred
securities,
an
affiliated
business
trust
of
a
corporation
issues
these
securities,
generally
in
the
form
of
beneficial
interests
in
subordinated
debentures
or
similarly
structured
securities.
The
securities
can
be
structured
with
either
a
fixed
or
adjustable
coupon
that
can
have
either
a
perpetual
or
stated
maturity
date.
For
trust
preferred
securities,
the
issuing
bank
or
corporation
pays
interest
to
the
trust,
which
is
then
distributed
to
holders
of
these
securities
as
a
dividend.
Dividends
can
be
deferred
without
creating
an
event
of
default
or
acceleration,
although
maturity
cannot
take
place
unless
all
cumulative
payment
obligations
have
been
met.
The
deferral
of
payments
does
not
affect
the
purchase
or
sale
of
these
securities
in
the
open
market.
These
securities
generally
are
rated
below
that
of
the
issuing
company’s
senior
debt
securities
and
are
freely
callable
at
the
issuer’s
option. 
Preferred
Stocks:
Preferred
stock
has
a
preference
over
common
stock
in
liquidation
(and
generally
in
receiving
dividends
as
well),
but
is
subordinated
to
the
liabilities
of
the
issuer
in
all
respects.
As
a
general
rule,
the
market
value
of
preferred
stock
with
a
fixed
dividend
rate
and
no
conversion
element
varies
inversely
with
interest
rates
and
perceived
credit
risk,
while
the
market
price
of
convertible
preferred
stock
generally
also
reflects
some
element
of
conversion
value.
Because
preferred
stock
is
junior
to
debt
securities
and
other
obligations
of
the
issuer,
deterioration
in
the
credit
quality
of
the
issuer
will
cause
greater
changes
in
the
value
of
a
preferred
stock
than
in
a
more
senior
debt
security
with
similar
stated
yield
characteristics.
Unlike
interest
payments
on
debt
securities,
preferred
stock
dividends
are
payable
only
if
declared
by
the
issuer’s
board
of
directors.
Preferred
stock
also
may
be
subject
to
optional
or
mandatory
redemption
provisions. 
Floating
Rate
Loan
Interests:
Floating
rate
loan
interests
are
typically
issued
to
companies
(the
“borrower”)
by
banks,
other
financial
institutions,
or
privately
and
publicly
offered
corporations
(the
“lender”).
Floating
rate
loan
interests
are
generally
non-investment
grade,
often
involve
borrowers
whose
financial
condition
is
troubled
or
uncertain
and
companies
that
are
highly
leveraged
or
in
bankruptcy
proceedings.
In
addition,
transactions
in
floating
rate
loan
interests
may
settle
on
a
delayed
basis,
which
may
result
in
proceeds
from
the
sale
not
being
readily
available
for
a
fund
to
make
additional
investments
or
meet
its
redemption
obligations.
Floating
rate
loan
interests
may
Notes
to
Financial
Statements
(unaudited)
(continued)
51
Notes
to
Financial
Statements
include
fully
funded
term
loans
or
revolving
lines
of
credit.
Floating
rate
loan
interests
are
typically
senior
in
the
corporate
capital
structure
of
the
borrower.
Floating
rate
loan
interests
generally
pay
interest
at
rates
that
are
periodically
determined
by
reference
to
a
base
lending
rate
plus
a
premium.
Since
the
rates
reset
only
periodically,
changes
in
prevailing
interest
rates
(and
particularly
sudden
and
significant
changes)
can
be
expected
to
cause
some
fluctuations
in
the
NAV
of
a
fund
to
the
extent
that
it
invests
in
floating
rate
loan
interests.
The
base
lending
rates
are
generally
the
lending
rate
offered
by
one
or
more
European
banks,
such
as
the
London
Interbank
Offered
Rate
(“LIBOR”),
the
prime
rate
offered
by
one
or
more
U.S.
banks
or
the
certificate
of
deposit
rate.
Floating
rate
loan
interests
may
involve
foreign
borrowers,
and
investments
may
be
denominated
in
foreign
currencies.
These
investments
are
treated
as
investments
in
debt
securities
for
purposes
of
a
fund’s
investment
policies. 
When
a
fund
purchases
a
floating
rate
loan
interest,
it
may
receive
a
facility
fee
and
when
it
sells
a
floating
rate
loan
interest,
it
may
pay
a
facility
fee.
On
an
ongoing
basis,
a
fund
may
receive
a
commitment
fee
based
on
the
undrawn
portion
of
the
underlying
line
of
credit
amount
of
a
floating
rate
loan
interest.
Facility
and
commitment
fees
are
typically
amortized
to
income
over
the
term
of
the
loan
or
term
of
the
commitment,
respectively.
Consent
and
amendment
fees
are
recorded
to
income
as
earned.
Prepayment
penalty
fees,
which
may
be
received
by
a
fund
upon
the
prepayment
of
a
floating
rate
loan
interest
by
a
borrower,
are
recorded
as
realized
gains.
A
fund
may
invest
in
multiple
series
or
tranches
of
a
loan.
A
different
series
or
tranche
may
have
varying
terms
and
carry
different
associated
risks.
Floating
rate
loan
interests
are
usually
freely
callable
at
the
borrower’s
option.
A
fund
may
invest
in
such
loans
in
the
form
of
participations
in
loans
(“Participations”)
or
assignments
(“Assignments”)
of
all
or
a
portion
of
loans
from
third
parties.
Participations
typically
will
result
in
a
fund
having
a
contractual
relationship
only
with
the
lender,
not
with
the
borrower.
A
fund
has
the
right
to
receive
payments
of
principal,
interest
and
any
fees
to
which
it
is
entitled
only
from
the
lender
selling
the
Participation
and
only
upon
receipt
by
the
lender
of
the
payments
from
the
borrower.
In
connection
with
purchasing
Participations,
a
fund
generally
will
have
no
right
to
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement,
nor
any
rights
of
offset
against
the
borrower.
A
fund
may
not
benefit
directly
from
any
collateral
supporting
the
loan
in
which
it
has
purchased
the
Participation.
As
a
result,
a
fund
assumes
the
credit
risk
of
both
the
borrower
and
the
lender
that
is
selling
the
Participation.
A
fund’s
investment
in
loan
participation
interests
involves
the
risk
of
insolvency
of
the
financial
intermediaries
who
are
parties
to
the
transactions.
In
the
event
of
the
insolvency
of
the
lender
selling
the
Participation,
a
fund
may
be
treated
as
a
general
creditor
of
the
lender
and
may
not
benefit
from
any
offset
between
the
lender
and
the
borrower.
Assignments
typically
result
in
a
fund
having
a
direct
contractual
relationship
with
the
borrower,
and
a
fund
may
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement.
Forward
Commitments,
When-Issued
and
Delayed
Delivery
Securities:
The
Fund
may
purchase
securities
on
a
when-issued
basis
and
may
purchase
or
sell
securities
on
a
forward
commitment
basis.
Settlement
of
such
transactions
normally
occurs
within
a
month
or
more
after
the
purchase
or
sale
commitment
is
made.
The
Fund
may
purchase
securities
under
such
conditions
with
the
intention
of
actually
acquiring
them,
but
may
enter
into
a
separate
agreement
to
sell
the
securities
before
the
settlement
date.
Since
the
value
of
securities
purchased
may
fluctuate
prior
to
settlement,
the
Fund
may
be
required
to
pay
more
at
settlement
than
the
security
is
worth.
In
addition,
the
Fund
is
not
entitled
to
any
of
the
interest
earned
prior
to
settlement.
When
purchasing
a
security
on
a
delayed
delivery
basis,
the
Fund
assumes
the
rights
and
risks
of
ownership
of
the
security,
including
the
risk
of
price
and
yield
fluctuations.
In
the
event
of
default
by
the
counterparty,
the
Fund's
maximum
amount
of
loss
is
the
unrealized
appreciation
of
unsettled
when-issued
transactions.
TBA
Commitments:
TBA
commitments
are
forward
agreements
for
the
purchase
or
sale
of
securities,
including
mortgage-backed
securities
for
a
fixed
price,
with
payment
and
delivery
on
an
agreed
upon
future
settlement
date.
The
specific
securities
to
be
delivered
are
not
identified
at
the
trade
date.
However,
delivered
securities
must
meet
specified
terms,
including
issuer,
rate
and
mortgage
terms.
When
entering
into
TBA
commitments,
a
fund
may
take
possession
of
or
deliver
the
underlying
mortgage-backed
securities
but
can
extend
the
settlement
or
roll
the
transaction.
TBA
commitments
involve
a
risk
of
loss
if
the
value
of
the
security
to
be
purchased
or
sold
declines
or
increases,
respectively,
prior
to
settlement
date,
if
there
are
expenses
or
delays
in
connection
with
the
TBA
transactions,
or
if
the
counterparty
fails
to
complete
the
transaction.
In
order
to
better
define
contractual
rights
and
to
secure
rights
that
will
help
a
fund
mitigate
its
counterparty
risk,
TBA
commitments
may
be
entered
into
by
a
fund
under
Master
Securities
Forward
Transaction
Agreements
(each,
an
“MSFTA”).
An
MSFTA
typically
contains,
among
other
things,
collateral
posting
terms
and
netting
provisions
in
the
event
of
default
and/or
termination
event.
The
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement
and
comparing
that
amount
to
the
value
of
the
collateral
currently
pledged
by
a
fund
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
the
obligations
of
a
fund
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statement
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
for
TBA
commitments
or
cash
received
as
collateral
for
TBA
commitments,
respectively.
Non-cash
collateral
pledged
by
a
fund,
if
any,
is
noted
in
the
Schedule
of
Investments.
Typically,
a
fund
is
permitted
to
sell,
re-pledge
or
use
the
collateral
it
receives;
however,
the
counterparty
is
not
permitted
to
do
so.
To
the
extent
amounts
due
to
a
fund
are
not
fully
collateralized,
contractually
or
otherwise,
a
fund
bears
the
risk
of
loss
from
counterparty
non-performance.
Mortgage
Dollar
Roll
Transactions
:
The
Fund
may
sell
TBA
mortgage-backed
securities
and
simultaneously
contract
to
repurchase
substantially
similar
(i.e.,
same
type,
coupon
and
maturity)
securities
on
a
specific
future
date
at
an
agreed
upon
price.
During
the
period
between
the
sale
and
repurchase,
a
fund
is
not
entitled
to
receive
interest
and
principal
payments
on
the
securities
sold.
Mortgage
dollar
roll
transactions
are
treated
as
purchases
and
sales
and
a
fund realizes
gains
and
losses
on
these
transactions.
Mortgage
dollar
rolls
involve
the
risk
that
the
market
value
of
the
securities
that
a
fund
is
required
to
purchase
may
decline
below
the
agreed
upon
repurchase
price
of
those
securities.
5.
Derivative
Financial
Instruments
The
Fund
engages
in
various
portfolio
investment
strategies
using
derivative
contracts
both
to
increase
the
returns
of
the
Fund
and/or
to
manage
its
exposure
to
certain
risks
such
as
credit
risk,
equity
risk,
interest
rate
risk,
foreign
currency
exchange
rate
risk,
commodity
price
risk
or
other
risks
(e.g.,
inflation
risk).
Derivative
financial
instruments
categorized
by
risk
exposure
are
included
in
the
Schedule
of
Investments.
These
contracts
may
be
transacted
on
an
exchange or
OTC.
Futures
Contracts:
Futures
contracts
are
purchased
or
sold
to
gain
exposure
to,
or
manage
exposure
to,
changes
in
interest
rates
(interest
rate
risk)
and
changes
in
the
value
of
equity
securities
(equity
risk)
or
foreign
currencies
(foreign
currency
exchange
rate
risk).  
Futures
contracts
are
exchange-traded agreements
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
specific
quantity
of
an
underlying
instrument
at
a
specified
price
and
on
a
specified
date.
Depending
on
the
terms
of
a
contract,
it
is
settled
either
through
physical
delivery
of
the
underlying
instrument
on
the
settlement
date
or
by
payment
of
a
cash
amount
on
the
settlement
date.
Upon
entering
into
a
futures
contract,
the
Fund
is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
52
an
amount
that
varies
depending
on
a
contract’s
size
and
risk
profile.
The
initial
margin
deposit
must
then
be
maintained
at
an
established
level
over
the
life
of
the
contract.
Amounts
pledged,
which
are
considered
restricted,
are
included
in
cash
pledged
for
futures
contracts
in
the Statement
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
an
amount
of
cash
equal
to
the
daily
fluctuation
in
market
value
of
the
contract
(“variation
margin”).
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and,
if
any,
shown
as
variation
margin
receivable
(or
payable)
on
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
notional
amount
of
the
contract
at
the
time
it
was
opened
and
the
notional
amount
at
the
time
it
was
closed.
The
use
of
futures
contracts
involves
the
risk
of
an
imperfect
correlation
in
the
movements
in
the
price
of
futures
contracts
and
interest
rates,
foreign
currency
exchange
rates
or
underlying
assets.
Forward
Foreign
Currency
Exchange
Contracts
:
Forward
foreign
currency
exchange
contracts
are
entered
into
to
gain
or
reduce
exposure
to
foreign
currencies
(foreign
currency
exchange
rate
risk).
A
forward
foreign
currency
exchange
contract
is
an
agreement
between
two
parties
to
buy
and
sell
a
currency
at
a
set
exchange
rate
on
a
specified
date.
These
contracts
help
to
manage
the
overall
exposure
to
the
currencies
in
which
some
of
the
investments
held
by
the
Fund
are
denominated
and
in
some
cases,
may
be
used
to
obtain
exposure
to
a
particular
market.
The
contracts
are
traded
over-the-counter
("OTC")
and
not
on
an
organized
exchange.
The
contract
is
marked-to-market
daily
and
the
change
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
in
the
Statement
of
Assets
and
Liabilities.
When
a
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
value
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
Non-deliverable
forward
foreign
currency
exchange
contracts
are
settled
with
the
counterparty
in
cash
without
the
delivery
of
foreign
currency.
The
use
of
forward
foreign
currency
exchange
contracts
involves
the
risk
that
the
value
of
a
forward
foreign
currency
exchange
contract
changes
unfavorably
due
to
movements
in
the
value
of
the
referenced
foreign
currencies,
and
such
value
may
exceed
the
amount(s)
reflected
in
the
Statement
of
Assets
and
Liabilities.
Cash
amounts
pledged
for
forward
foreign
currency
exchange
contracts
are
considered
restricted
and
are
included
in
cash
pledged
as
collateral
for
OTC
derivatives
in
the
Statement
of
Assets
and
Liabilities.
A
Fund’s
risk
of
loss
from
counterparty
credit
risk
on
OTC
derivatives
is
generally
limited
to
the
aggregate
unrealized
gain
netted
against
any
collateral
held
by
the
Fund.
Options:
The
Fund
may purchase
and
write
call
and
put
options
to
increase
or
decrease
its
exposure
to
the
risks
of
underlying
instruments,
including
equity
risk,
interest
rate
risk
and/or
commodity
price
risk
and/or,
in
the
case
of
options
written,
to
generate
gains
from
options
premiums.
A
call
option
gives
the
purchaser
(holder)
of
the
option
the
right
(but
not
the
obligation)
to
buy,
and
obligates
the
seller
(writer)
to
sell
(when
the
option
is
exercised)
the
underlying
instrument
at
the
exercise
or
strike
price
at
any
time
or
at
a
specified
time
during
the
option
period.
A
put
option
gives
the
holder
the
right
to
sell
and
obligates
the
writer
to
buy
the
underlying
instrument
at
the
exercise
or
strike
price
at
any
time
or
at
a
specified
time
during
the
option
period.
Premiums
paid
on
options
purchased
and
premiums
received
on
options
written,
as
well
as
the
daily
fluctuation
in
market
value,
are
included
in
investments
at
value
–
unaffiliated
and
options
written
at
value,
respectively,
in
the
Statement
of
Assets
and
Liabilities.
When
an
instrument
is
purchased
or
sold
through
the
exercise
of
an
option,
the
premium
is
offset
against
the
cost
or
proceeds
of
the
underlying
instrument.
When
an
option
expires,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
to
the
extent
of
the
premiums
received
or
paid.
When
an
option
is
closed
or
sold,
a
gain
or
loss
is
recorded
in
the
Statement
of
Operations
to
the
extent
the
cost
of
the
closing
transaction
exceeds
the
premiums
received
or
paid.
When
the
Fund
writes
a
call
option,
such
option
is
typically
“covered,”
meaning
that
it
holds
the
underlying
instrument
subject
to
being
called
by
the
option
counterparty.
When
the
Fund
writes
a
put
option,
cash
is
segregated in
an
amount
sufficient
to
cover
the
obligation.
These
amounts,
which
are
considered
restricted,
are
included
in
cash
pledged
as
collateral
for
options
written
in
the
Statement
of
Assets
and
Liabilities.
Swaptions
–
The
Fund
may purchase
and
write
options
on
swaps
(“swaptions”)
primarily
to
preserve
a
return
or
spread
on
a
particular
investment
or
portion
of
the
Fund’s
holdings,
as
a
duration
management
technique
or
to
protect
against
an
increase
in
the
price
of
securities
it
anticipates
purchasing
at
a
later
date.
The
purchaser
and
writer
of
a
swaption
is
buying
or
granting
the
right
to
enter
into
a
previously
agreed
upon
interest
rate
or
credit
default
swap
agreement
(interest
rate
risk
and/or
credit
risk)
at
any
time
before
the
expiration
of
the
option. 
Foreign
currency
options
–
The
Fund
may purchase
and
write
foreign
currency
options,
foreign
currency
futures
and
options
on
foreign
currency
futures
to
gain
or
reduce
exposure
to
foreign
currencies
(foreign
currency
exchange
rate
risk).
Foreign
currency
options
give
the
purchaser
the
right
to
buy
from
or
sell
to
the
writer
a
foreign
currency
at
any
time
before
the
expiration
of
the
option.
Barrier
options
–
The
Fund
may
purchase
and
write
a
variety
of
options
with
non-standard
payout
structures
or
other
features
(“barrier
options”)
that
are
generally
traded
OTC.
The
Fund
may
invest
in
various
types
of
barrier
options,
including
down-and-out
options,
down-and-in
options,
double
no-touch
options,
one-touch
options,
up-and-out
options
and
up-and-in
options.
Down-and-out
options
expire
worthless
to
the
purchaser
if
the
price
of
the
underlying
instrument
falls
below
a
specific
barrier
price
level
prior
to
the
expiration
date.
Down-and-in
options
expire
worthless
to
the
purchaser
unless
the
price
of
the
underlying
instrument
falls
below
a
specific
barrier
price
level
prior
to
the
expiration
date.
Double
no-touch
options
provide
the
purchaser
an
agreed-upon
payout
if
the
price
of
the
underlying
instrument
does
not
reach
or
surpass
predetermined
barrier
price
levels
prior
to
the
option’s
expiration
date.
One-touch
options
provide
the
purchaser
an
agreed-upon
payout
if
the
price
of
the
underlying
instrument
reaches
or
surpasses
predetermined
barrier
price
levels
prior
to
the
expiration
date.
Up-and-out
options
expire
worthless
to
the
purchaser
if
the
price
of
the
underlying
instrument
increases
beyond
a
predetermined
barrier
price
level
prior
to
the
expiration
date.
Up-and-in
options
can
only
be
exercised
when
the
price
of
the
underlying
instrument
increases
beyond
a
predetermined
barrier
price
level.
In
purchasing
and
writing
options,
the
Fund
bears
the
risk
of
an
unfavorable
change
in
the
value
of
the
underlying
instrument
or
the
risk
that
it
may
not
be
able
to
enter
into
a
closing
transaction
due
to
an
illiquid
market.
Exercise
of
a
written
option
could
result
in
the
Fund
purchasing
or
selling
a
security
when
it
otherwise
would
not,
or
at
a
price
different
from
the
current
market
value.
Notes
to
Financial
Statements
(unaudited)
(continued)
53
Notes
to
Financial
Statements
Swaps:
Swap
contracts
are
entered
into
to
manage
exposure
to
issuers,
markets
and
securities.
Such
contracts
are
agreements
between
the
Fund
and
a
counterparty
to
make
periodic
net
payments
on
a
specified
notional
amount
or
a
net
payment
upon
termination.
Swap
agreements
are
privately
negotiated
in
the
OTC
market
and
may
be
entered
into
as
a
bilateral
contract
(“OTC
swaps”)
or
centrally
cleared
(“centrally
cleared
swaps”).
For
OTC
swaps,
any
upfront
premiums
paid
and
any
upfront
fees
received
are
shown
as
swap
premiums
paid
and
swap
premiums
received,
respectively,
in
the
Statement
of
Assets
and
Liabilities
and
amortized
over
the
term
of
the
contract.
The
daily
fluctuation
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
on
OTC
Swaps
in
the
Statement
of
Assets
and
Liabilities.
Payments
received
or
paid
are
recorded
in
the
Statement
of
Operations
as
realized
gains
or
losses,
respectively.
When
an
OTC
swap
is
terminated,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
proceeds
from
(or
cost
of)
the
closing
transaction
and
the
Fund’s
basis
in
the
contract,
if
any.
Generally,
the
basis
of
the
contract
is
the
premium
received
or
paid.
In
a
centrally
cleared
swap,
immediately
following
execution
of
the
swap
contract,
the
swap
contract
is
novated
to
a
central
counterparty
(the
“CCP”)
and
the
CCP
becomes
the Fund’s
counterparty
on
the
swap.
The
Fund
is
required
to
interface
with
the
CCP
through
the
broker.
Upon
entering
into
a
centrally
cleared
swap,
the
Fund
is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
the
size
and
risk
profile
of
the
particular
swap. Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited
is
shown
as
cash
pledged
for
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities. Amounts
pledged,
which
are
considered
restricted
cash,
are
included
in
cash
pledged
for
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
variation
margin.
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and
shown
as
variation
margin
receivable
(or
payable)
on
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities.
Payments
received
from
(paid
to)
the
counterparty
are
amortized
over
the
term
of
the
contract
and
recorded
as
realized
gains
(losses)
in
the
Statement
of
Operations,
including
those
at
termination.
Credit
default
swaps
—
Credit
default
swaps
are
entered
into
to
manage
exposure
to
the
market
or
certain
sectors
of
the
market,
to
reduce
risk
exposure
to
defaults
of
corporate
and/or
sovereign
issuers
or
to
create
exposure
to
corporate
and/or
sovereign
issuers
to
which
a
fund
is
not
otherwise
exposed
(credit
risk).
The
Fund
may
either
buy
or
sell
(write)
credit
default
swaps
on
single-name
issuers
(corporate
or
sovereign),
a
combination
or
basket
of
single-name
issuers
or
traded
indexes.
Credit
default
swaps
are
agreements
in
which
the
protection
buyer
pays
fixed
periodic
payments
to
the
seller
in
consideration
for
a
promise
from
the
protection
seller
to
make
a
specific
payment
should
a
negative
credit
event
take
place
with
respect
to
the
referenced
entity
(e.g.,
bankruptcy,
failure
to
pay,
obligation
acceleration,
repudiation,
moratorium
or
restructuring).
As
a
buyer,
if
an
underlying
credit
event
occurs,
the
Fund
will
either
(i)
receive
from
the
seller
an
amount
equal
to
the
notional
amount
of
the
swap
and
deliver
the
referenced
security
or
underlying
securities
comprising
the
index,
or
(ii)
receive
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
As
a
seller
(writer),
if
an
underlying
credit
event
occurs,
the
Fund
will
either
pay
the
buyer
an
amount
equal
to
the
notional
amount
of
the
swap
and
take
delivery
of
the
referenced
security
or
underlying
securities
comprising
the
index
or
pay
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
Total
return
swaps
—
Total
return
swaps
are
entered
into
to
obtain
exposure
to
a
security
or
market
without
owning
such
security
or
investing
directly
in
such
market
or
to
exchange
the
risk/return
of
one
security
or market
(e.g.,
fixed-income)
with
another
security
or
market
(e.g.,
equity
or
commodity
prices)
(equity
risk,
commodity
price
risk
and/or
interest
rate
risk).
Total
return
swaps
are
agreements
in
which
there
is
an
exchange
of
cash
flows
whereby
one
party
commits
to
make
payments
based
on
the
total
return
(distributions
plus
capital
gains/losses)
of
an
underlying
instrument,
or
basket
of
underlying
instruments,
in
exchange
for
fixed
or
floating
rate
interest
payments.
If
the
total
return
of
the
instrument(s)
or
index
underlying
the
transaction
exceeds
or
falls
short
of
the
offsetting
fixed
or
floating
interest
rate
obligation,
the
Fund
receives
payment
from
or
makes
a
payment
to
the
counterparty.
Interest
rate
swaps
—
Interest
rate
swaps
are
entered
into
to
gain
or
reduce
exposure
to
interest
rates
or
to
manage
duration,
the
yield
curve
or
interest
rate
(interest
rate
risk).
Interest
rate
swaps
are
agreements
in
which
one
party
pays
a
stream
of
interest
payments,
either
fixed
or
floating,
in
exchange
for
another
party’s
stream
of
interest
payments,
either
fixed
or
floating,
on
the
same
notional
amount
for
a
specified
period
of
time.
In
more
complex
interest
rate
swaps,
the
notional
principal
amount
may
decline
(or
amortize)
over
time.
Forward
swaps
—
The
Fund
may enter
into
forward
interest
rate
swaps
and
forward
total
return
swaps.
In
a
forward
swap,
the
Fund
and
the
counterparty
agree
to
make
periodic
net
payments
beginning
on
a
specified
date
or
a
net
payment
at
termination.
Inflation
swaps
—
Inflation
swaps
are
entered
into
to
gain
or
reduce
exposure
to
inflation
(inflation
risk).
In
an
inflation
swap,
one
party
makes
fixed
interest
payments
on
a
notional
principal
amount
in
exchange
for
another
party’s
variable
payments
based
on
an
inflation
index,
such
as
the
Consumer
Price
Index.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risk
in
excess
of
the
amounts
recognized
in
the
Statement
of
Assets
and
Liabilities.
Such
risks
involve
the
possibility
that
there
will
be
no
liquid
market
for
these
agreements,
that
the
counterparty
to
the
agreements
may
default
on
its
obligation
to
perform
or
disagree
as
to
the
meaning
of
the
contractual
terms
in
the
agreements,
and
that
there
may
be
unfavorable
changes
in
interest
rates
and/or
market
values
associated
with
these
transactions.
Master
Netting
Arrangements:
In
order
to
define
its
contractual
rights
and
to
secure
rights
that
will
help
it mitigate its
counterparty
risk, the
Fund
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
its
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between a
Fund
and
a
counterparty
that
governs
certain
OTC
derivatives
and
typically
contains,
among
other
things,
collateral
posting
terms
and
netting
provisions
in
the
event
of
a
default
and/or
termination
event.
Under
an
ISDA
Master
Agreement, a
Fund
may,
under
certain
circumstances,
offset
with
the
counterparty
certain
derivative
financial
instruments’
payables
and/or
receivables
with
collateral
held
and/or
posted
and
create
one
single
net
payment.
The
provisions
of
the
ISDA
Master
Agreement
typically
permit
a
single
net
payment
in
the
event
of
default
including
the
bankruptcy
or
insolvency
of
the
counterparty.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
the
right
of
offset
in
bankruptcy,
insolvency
or
other
events.
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
54
Collateral
Requirements:
For
derivatives
traded
under
an
ISDA
Master
Agreement,
the
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement
and
comparing
that
amount
to
the
value
of
any
collateral
currently
pledged
by
the
Fund
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
obligations
of
the
Fund
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statement
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
and
cash
received
as
collateral,
respectively.
Non-cash
collateral
pledged
by
the
Fund,
if
any,
is
noted
in
the
Schedule
of
Investments.
Generally,
the
amount
of
collateral
due
from
or
to
a
counterparty
is
subject
to
a
certain
minimum
transfer
amount
threshold
before
a
transfer
is
required,
which
is
determined
at
the
close
of
business
of
the
Fund.
Any
additional
required
collateral
is
delivered
to/pledged
by
the
Fund
on
the
next
business
day.
Typically,
the
counterparty
is
not
permitted
to
sell,
re-pledge
or
use
cash
and
non-cash
collateral
it
receives.
The
Fund
generally
agrees
not
to
use
non-cash
collateral
that
it
receives
but
may,
absent
default
or
certain
other
circumstances
defined
in
the
underlying
ISDA
Master
Agreement,
be
permitted
to
use
cash
collateral
received.
In
such
cases,
interest
may
be
paid
pursuant
to
the
collateral
arrangement
with
the
counterparty.
To
the
extent
amounts
due
to
the
Fund
from the
counterparties
are
not
fully
collateralized, the
Fund bears
the
risk
of
loss
from
counterparty
non-performance.
Likewise,
to
the
extent
the
Fund
has
delivered
collateral
to
a
counterparty
and
stands
ready
to
perform
under
the
terms
of
its
agreement
with
such
counterparty, the
Fund bears the
risk
of
loss
from
a
counterparty
in
the
amount
of
the
value
of
the
collateral
in
the
event
the
counterparty
fails
to
return
such
collateral.
Based
on
the
terms
of
agreements,
collateral
may
not
be
required
for
all
derivative
contracts.
For
financial
reporting
purposes,
the
Fund
does
not
offset
derivative
assets
and
derivative
liabilities
that
are
subject
to
netting
arrangements,
if
any,
in
the
Statement
of
Assets
and
Liabilities.
6.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES 
Investment
Advisory:
The
Company,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”)
,
to
provide
investment
advisory
and
administrative
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
based
on
a
percentage
of
the
aggregate
average
daily
net
assets
of
the
Fund
and
Blackrock
High
Yield
V.I.
Fund,
a
series
of
the
Company,
at
the
following
annual
rates:
For
the
six
months
ended
June
30,
2021,
the
aggregate
average
daily
net
assets
of
the
Fund
and
BlackRock
High
Yield
V.I.
Fund
were
approximately
$1,455,894,480.
For
the six
months
ended
June
30,
2021,
the
Fund
reimbursed
the
Manager $3,334
for
certain
accounting
services,
which
is
included
in
accounting
services
in
the
Statement
of
Operations.
The
Manager
entered
into separate
sub-advisory
agreements
with
BlackRock
International
Limited
(“BIL”)
and
BlackRock
(Singapore)
Limited
(“BRS”)
(collectively,
the
“Sub-
Advisers'),
each
an
affiliate
of
the
Manager. The
Manager
pays
BIL
and
BRS
for
services
they
provide
for
that
portion
of
the
Fund
for
which
BIL
and
BRS,
as
applicable,
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by the
Fund
to
the
Manager.
Distribution
Fees:
 The
Company
,
on behalf
of
the
Fund,
entered
into
a
Distribution
Agreement
and
a Distribution Plan
with
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
the
Manager.
Pursuant
to
the
Distribution
Plan
and
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Fund
pays
BRIL
ongoing
distribution
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
an
annual
rate
of
0.25%
based
upon
the
average
daily
net
assets
attributable
to
Class
III.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
distribution
services to
the
Fund.
The
ongoing
distribution
fee compensates
BRIL
and
each
broker-dealer
for
providing
shareholder
distribution related
services
to
shareholders.
For
the six
months
ended
June
30,
2021,
the
class
specific
distribution
fees
borne
directly
by Class
III
were
$649,371.
Transfer
Agent:
On
behalf
of
the
Fund,
the
Manager
entered
into
agreements
with
insurance
companies
and
other
financial
intermediaries
(“Service
Organizations”),
some
of
which
may
be
affiliates.
Pursuant
to
these
agreements,
the
Service
Organizations
provide
the
Fund
with
administrative,
networking,
recordkeeping,
sub-transfer
agency
and
shareholder
services
to
underlying
investor
accounts.
For
these
services,
the
Service
Organizations
receive
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets
of
Fund
shareholders
serviced
by
the
Service
Organizations
which
is
shown
as
transfer
agent
–
class
specific.
For
the
six
months
ended
June
30,
2021
,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
In
addition,
the
Fund
pays
the
transfer
agent,
which
is
not
an
affiliate,
a
fee
for
the
issuance,
transfer
and
redemption
of
shares
and
the
opening
and
maintenance
of
shareholder
accounts,
which
is
included
in
transfer
agent
in
the
Statement
of
Operations.
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$250
Million
.......................................................................................................
0.50%
$250
Million
-
$500
Million
.................................................................................................
0.45
$500
Million
-
$750
Million
.................................................................................................
0.40
Greater
than
$750
Million
.................................................................................................
0.35
Notes
to
Financial
Statements
(unaudited)
(continued)
55
Notes
to
Financial
Statements
For
the
six
months ended
June
30,
2021,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Expense
Limitations,
Waivers
and
Reimbursements:
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
the
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
June
30,
2023
.
The
contractual
agreement
may
be
terminated upon
90
days’
notice
by
a
majority
of
the
Independent
Directors
,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
of
fees
and
expenses
made
pursuant
to
the
expense
limitation
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver. This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2021,
the
amount
waived
was
$17,490.
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund’s
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2023
.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Directors
,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
six
months
ended
June
30
,
2021,
there
were
no
fees
waived
by
the
Manager
pursuant
to
this
arrangement.
The
Manager
has
contractually
agreed
to
reimburse
certain
transfer
agent
fees
in
order
to
limit
such
expenses
to
a
percentage
of
average
daily
net
assets
as
follows:  
The
Manager
has
agreed
not
to
reduce
or
discontinue
the
contractual
expense
limitations
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
These
amounts
are
included
in
transfer
agent
fees
reimbursed
–
class
specific
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2021,
class
specific
reimbursements
were
as
follows: 
The
Manager
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
In
addition,
with
respect
to
Class
I
shares,
the
Manager
has
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses
including
interest
expense,
and
excluding
dividend
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of
the
Fund's
business
to
0.60%
of
average
daily
net
assets
through
June
30,
2023.
The
Manager
has
agreed
not
to
reduce
or
discontinue
this
contractual
expense
limitation
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of the
Fund. For
the
six
months
ended
June
30,
2021,
there
were
no
fees
waived
and/
or
reimbursed
by
the
Manager
pursuant
to
this
agreement.
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to borrow under
the
Interfund
Lending
Program. 
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets,
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board. 
During the
period
ended
June
30,
2021,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Directors
and
Officers: 
Certain
directors
and/or
officers
of
the Company are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the 
Company's
Chief
Compliance
Officer,
which
is
included
in
Directors and
Officer
in
the
Statement
of
Operations. 
Class
I
..........................................................................................................
$
206,866‌
Class
III
.........................................................................................................
387,604‌
$
594,470‌
Class
I
................................................................................................................
0.00‌%
Class
III
...............................................................................................................
0.06‌
Fund
Name/Share
Class
Transfer
Agent
Fees
Reimbursed
BlackRock
Total
Return
V.I.
Fund
Class
I
..........................................................................................................
$
206,866‌
Class
III
.........................................................................................................
231,741‌
$
438,607‌
Class
I
.............................................................................................................
0.60‌%
Class
III
............................................................................................................
1.50‌
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
56
Other
Transactions:
The
Fund
may
purchase
securities
from,
or
sell
securities
to,
an
affiliated
fund
provided
the
affiliation
is
due
solely
to
having
a
common
investment
adviser,
common
officers,
or
common
directors.
For
the
six
months ended
June
30,
2021,
the
purchase
and
sale
transactions
and
any
net
realized
gains
(losses)
with
affiliated
fund
s
in
compliance
with
Rule
17a-7
under
the
1940
Act
were
as
follows:
7.
PURCHASES
AND
SALES 
For
the six
months
ended
June
30,
2021,
purchases
and
sales
of
investments,
including
paydowns
and
mortgage
dollar
rolls
and
excluding
short-term
investments, were
as
follows:
RULE
ABOVE
For
the
six
months ended
June
30,
2021,
purchases
and
sales
related
to
mortgage
dollar
rolls
were
$1,105,267,343
and
$1,105,865,948,
respectively. 
8.
INCOME
TAX
INFORMATION 
It
is
the
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required. 
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction. 
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
June
30,
2021,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
As
of
June
30,
2021, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows: 
9.
BANK
BORROWINGS 
The
Company,
on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
(“Participating
Funds”),
is
a
party
to
a
364-day,
$2.25
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Fund
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Fund,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
one-month
LIBOR
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum
or
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed.
The
agreement
expires
in
April
2022
unless
extended
or
renewed.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
six
months ended
June
30,
2021,
the
Fund
did
not
borrow
under
the
credit
agreement.
10.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject. 
Market Risk:
The
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
the
Fund
to
reinvest
in
lower
yielding
securities. The
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
the
Fund’s
portfolio
will
decline
if
the Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
the
Fund
portfolio’s
current
earnings
rate.
Purchases
...............................................................................................................
$
46,540‌
Sales
...................................................................................................................
34,120‌
Net
Realized
Gain
..........................................................................................................
2,302‌
U.S.
Government
Securities
Other
Securities
Purchases
Sales
Purchases
Sales
BlackRock
Total
Return
V.I.
Fund
.........................................
$
69,340,314‌
$
22,975,466‌
$
2,660,530,449‌
$
2,501,689,844‌
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
Total
Return
V.I.
Fund
.......................................
$
1,029,863,273‌
$
18,886,038‌
$
(8,102,663‌)
$
10,783,375‌
Notes
to
Financial
Statements
(unaudited)
(continued)
57
Notes
to
Financial
Statements
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer's
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund's
investments.
The duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
Valuation
Risk:
The
market
values
of
equities,
such
as
common
stocks
and
preferred
securities
or
equity
related
investments,
such
as
futures
and
options,
may
decline
due
to
general
market
conditions
which
are
not
specifically
related
to
a
particular
company.
They
may
also
decline
due
to
factors
which
affect
a
particular
industry
or
industries. The
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that the
Fund
reasonably
expects
cannot
be
sold
or
disposed
of
in
current
market
conditions
in
seven
calendar
days
or
less
without
the
sale
or
disposition
significantly
changing
the
market
value
of
the
investment. The
Fund
may
experience
difficulty
in
selling
illiquid
investments
in
a
timely
manner
at
the
price
that it
believes
the
investments
are
worth.
Prices
may
fluctuate
widely
over
short
or
extended
periods
in
response
to
company,
market
or
economic
news.
Markets
also
tend
to
move
in
cycles,
with
periods
of
rising
and
falling
prices.
This
volatility
may
cause
the
Fund’s
NAV
to
experience
significant
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of the
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which the
Fund
invests. 
The
price the
Fund
could
receive
upon
the
sale
of
any
particular
portfolio
investment
may
differ
from the
Fund’s
valuation
of
the
investment,
particularly
for
securities
that
trade
in
thin
or
volatile
markets
or
that
are
valued
using
a
fair
valuation
technique
or
a
price
provided
by
an
independent
pricing
service.
Changes
to
significant
unobservable
inputs
and
assumptions
(i.e.,
publicly
traded
company
multiples,
growth
rate,
time
to
exit)
due
to
the
lack
of
observable
inputs
may
significantly
impact
the
resulting
fair
value
and
therefore
the
Fund’s
results
of
operations.
As
a
result,
the
price
received
upon
the
sale
of
an
investment
may
be
less
than
the
value
ascribed
by the
Fund,
and the
Fund
could
realize
a
greater
than
expected
loss
or
lesser
than
expected
gain
upon
the
sale
of
the
investment. The
Fund’s
ability
to
value
its
investments
may
also
be
impacted
by
technological
issues
and/or
errors
by
pricing
services
or
other
third
party
service
providers. 
Counterparty
Credit
Risk:
The
Fund
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Fund
manages
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Fund
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Fund’s
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statement
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Fund. 
A
derivative
contract
may
suffer
a
mark-to-market
loss
if
the
value
of
the
contract
decreases
due
to
an
unfavorable
change
in
the
market
rates
or
values
of
the
underlying
instrument.
Losses
can
also
occur
if
the
counterparty
does
not
perform
under
the
contract.
For
OTC
options
purchased,
the
Fund
bears
the
risk
of
loss
in
the
amount
of
the
premiums
paid
plus
the
positive
change
in
market
values
net
of
any
collateral
held
by
the
Fund
should
the
counterparty
fail
to
perform
under
the
contracts.
Options
written
by
the
Fund
do
not
typically
give
rise
to
counterparty
credit
risk,
as
options
written
generally
obligate
the
Fund,
and
not
the
counterparty,
to
perform.
The
Fund
may
be
exposed
to
counterparty
credit
risk
with
respect
to
options
written
to
the
extent
the
Fund
deposits
collateral
with
its
counterparty
to
a
written
option. 
With
exchange-traded
options
purchased
and
exchange-traded
futures
and
centrally
cleared
swaps,
there
is
less
counterparty
credit
risk
to
the
Fund
since
the
exchange
or
clearinghouse,
as
counterparty
to
such
instruments,
guarantees
against
a
possible
default.
The
clearinghouse
stands
between
the
buyer
and
the
seller
of
the
contract;
therefore,
credit
risk
is
limited
to
failure
of
the
clearinghouse.
While
offset
rights
may
exist
under
applicable
law, the
Fund
does
not
have
a
contractual
right
of
offset
against
a
clearing
broker
or
clearinghouse
in
the
event
of
a
default
(including
the
bankruptcy
or
insolvency).
Additionally,
credit
risk
exists
in exchange-traded
futures
and
centrally
cleared
swaps
with
respect
to
initial
and
variation
margin
that
is
held
in
a
clearing
broker’s
customer
accounts.
While
clearing
brokers
are
required
to
segregate
customer
margin
from
their
own
assets,
in
the
event
that
a
clearing
broker
becomes
insolvent
or
goes
into
bankruptcy
and
at
that
time
there
is
a
shortfall
in
the
aggregate
amount
of
margin
held
by
the
clearing
broker
for
all
its
clients,
typically
the
shortfall
would
be
allocated
on
a
pro
rata
basis
across
all
the
clearing
broker’s
customers,
potentially
resulting
in
losses
to
the
Fund. 
Concentration
Risk:
 A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
the
Fund's
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
fixed-income
securities
and/or
uses
derivatives
tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may
affect
the
value
and/or
liquidity
of
such
investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
increase
as
interest
rates
fall
and
decrease
as
interest
rates
rise.
The
Funds
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
backed
by
commercial
or
residential
mortgage
loans
or
in
issuers
that
hold
mortgage
and
other
asset-backed
securities.
When
a
Fund
concentrates
its
investments
in
this
manner,
it
assumes
a
greater
risk
of
prepayment
or
payment
extension
by
securities
issuers. Changes
in
economic
conditions,
including
delinquencies
and/or
defaults
on
assets
underlying
these
securities,
can
affect
the
value,
income
and/or
liquidity
of
such
positions.
Investment
percentages
in
these
securities
are
presented
in
the
Schedule
of
Investments.
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
58
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a phase
out of
the
LIBOR.
Although
many
LIBOR
rates
will
be
phased
out
by
the
end
of
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
Fund
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against,
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Fund
is
uncertain. 
11.
CAPITAL
SHARE
TRANSACTIONS 
Transactions
in
capital
shares
for
each
class
were
as
follows:
12.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Six
Months
Ended
06/30/21
Year
Ended
12/31/20
Shares
Amount
Shares
Amount
Class
I
Shares
sold
.............................................
702,209‌
$
8,488,702‌
1,409,606‌
$
17,882,074‌
Shares
issued
in
reinvestment
of
distributions
........................
176,285‌
2,139,669‌
1,381,177‌
17,237,300‌
Shares
redeemed
.........................................
(1,213,968‌)
(14,724,901‌)
(2,687,856‌)
(33,738,108‌)
Net
increase
(decrease)
.......................................
(335,474‌)
$
(4,096,530‌)
102,927‌
$
1,381,266‌
Class
III
Shares
sold
.............................................
10,914,825‌
$
130,671,653‌
10,034,207‌
$
125,585,927‌
Shares
issued
in
reinvestment
of
distributions
........................
319,022‌
3,824,176‌
2,475,459‌
30,474,770‌
Shares
redeemed
.........................................
(1,166,818‌)
(13,923,224‌)
(6,049,934‌)
(74,455,385‌)
Net
increase
...............................................
10,067,029‌
$
120,572,605‌
6,459,732‌
$
81,605,312‌
Total
Net
Increase
9,731,555‌
$
116,476,075‌
6,562,659‌
$
82,986,578‌
Glossary
of
Terms
Used
in
this
Report
59
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviations
BRL
Brazilian
Real
CAD
Canadian
Dollar
CLP
Chilean
Peso
CNY
Chinese
Yuan
COP
Colombian
Peso
EUR
Euro
GBP
British
Pound
IDR
Indonesian
Rupiah
JPY
Japanese
Yen
KRW
South
Korean
Won
KZT
Kazakhstani
Tenge
MXN
Mexican
Peso
PLN
Polish
Zloty
RUB
New
Russian
Ruble
TRY
Turkish
Lira
USD
United
States
Dollar
ZAR
South
African
Rand
Portfolio
Abbreviations
ABS
Asset-Backed
Security
BZDIOVER
Overnight
Brazil
CETIP
—
Interbank
Rate
CLO
Collateralized
Loan
Obligation
CMT
Constant
Maturity
Treasury
CSMC
Credit
Suisse
Mortgage
Capital
CWABS
Countrywide
Asset-Backed
Certificates
DAC
Designated
Activity
Company
GO
General
Obligation
Bonds
JIBAR
Johannesburg
Interbank
Average
Rate
LIBOR
London
Interbank
Offered
Rate
OTC
Over-the-counter
PCL
Public
Company
Limited
PIK
Payment-In-Kind
RB
Revenue
Bonds
REMIC
Real
Estate
Mortgage
Investment
Conduit
SCA
Svenska
Cellulosa
Aktiebolaget
SOFR
Secured
Overnight
Financing
Rate
TBA
To-be-announced
WIBOR
Warsaw
Interbank
Offered
Rate
June
30,
2021
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2021
Semi-Annual
Report
(Unaudited)
BlackRock
Variable
Series
Funds
II,
Inc.
BlackRock
U.S.
Government
Bond
V.I.
Fund
Fund
Summary
as
of
June
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
2
BlackRock
U.S.
Government
Bond
V.I.
Fund
Investment
Objective
BlackRock
U.S.
Government
Bond
V.I.
Fund’s
(the
“Fund”)
investment
objective
is
to
seek
to
maximize
total
return,
consistent
with
income
generation
and
prudent
investment
management.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
June
30,
2021,
the
Fund
outperformed
its
benchmark,
the
Bloomberg
Barclays
U.S.
Government/Mortgage
Index.
What
factors
influenced
performance?
Positive
contributors
to
performance
relative
to
the
benchmark
included
the
Fund’s
below-benchmark
stance
with
respect
to
duration
(and
corresponding
interest
rate
sensitivity)
along
with
yield
curve
positioning
as
U.S.
Treasury
yields
rose
in
the
first
quarter
of
2021.
An
allocation
to
commercial
mortgage-backed
securities
(“CMBS”)
also
proved
additive.
Finally,
selection
within
30-year
MBS
contributed
positively
for
the
period.
The
largest
detractors
from
the
Fund's
performance
relative
to
the
benchmark
included
overweight
allocations
to
both
30-year
and
15-year
agency
mortgage-backed
securities
("MBS").
Exposure
to
Canadian
interest
rates
also
weighed
on
relative
returns.
Describe
recent
portfolio
activity.
During
the
reporting
period,
the
Fund
shifted
from
an
underweight
to
a
neutral
allocation
to
agency
MBS
as
valuations
improved
and
the
technical
environment
remained
supportive,
driven
by
the
near-term
supply
and
demand
outlook.
While
the
Fund
continued
to
hold
an
allocation
to
higher-coupon,
call-protected
pools
within
agency
MBS,
recent
additions
have
favored
more
generic
to-be-announced
collateral
and
current
coupons.
Allocations
to
emerging
market
sovereigns
was
marginally
increased
along
with
positioning
in
select
single
asset-single
borrower
CMBS.
The
Fund
had
a
modestly
elevated
cash
position
at
period
end
due
to
the
investment
adviser’s
preference
for
using
forward
contracts
to
gain
MBS
exposure
as
opposed
to
holding
cash
bonds.
The
Fund’s
cash
position
did
not
have
any
material
impact
on
Fund
performance
over
the
six
months.
During
the
period,
the
portfolio
held
a
small
percentage
of
assets
in
derivatives
as
a
hedge
to
allocations
in
MBS
and
securitized
assets.
The
Fund’s
use
of
derivatives
had
a
positive
impact
on
Fund
performance.
Describe
portfolio
positioning
at
period
end.
At
period
end,
the
Fund’s
positioning
reflected
the
investment
adviser’s
view
that
U.S.
economic
growth
will
remain
well
supported
and
above
trend
through
the
third
quarter
of
2021
before
moderating
into
the
end
of
the
year,
and
that
inflation
should
remain
elevated
before
easing
slightly
into
2022.
Because
of
this
outlook,
the
Fund
continued
to
hold
a
duration
underweight
relative
to
the
benchmark
while
being
more
neutral
on
curve
exposures
in
anticipation
of
elevated
sensitivity
to
incoming
data,
particularly
between
two
and
five
years.
The
Fund
maintained
out-of-benchmark
allocations
to
sectors
such
as
CMBS
although
some
of
the
exposures
more
sensitive
to
changing
credit
spreads
were
trimmed
in
the
period
in
order
to
rotate
assets
into
agency
MBS.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
50‌
%
U.S.
Treasury
Obligations
.............................
39‌
Non-Agency
Mortgage-Backed
Securities
..................
6‌
Foreign
Government
Obligations
........................
3‌
Asset-Backed
Securities
..............................
2‌
(a)
Excludes
short-term
securities,
options
purchased,
options
written
and
TBA
sale
commitments.
Fund
Summary
as
of
June
30,
2021
(continued)
3
Fund
Summary
BlackRock
U.S.
Government
Bond
V.I.
Fund
Performance
Summary
for
the
Period
Ended
June
30,
2021
Average
Annual
Total
Returns
(a)
Standardized
30-Day
Yields
(b)
Unsubsidized
30-Day
Yields
(b)
6-Month
Total
Returns
(a)
1
Year
5
Years
10
Years
Class
I
(c)(d)
.......................................
0.72‌%
0.27‌%
(1.47‌)%
(1.02‌)%
1.99‌%
2.41‌%
Class
III
(c)(d)
......................................
0.41‌
0.08‌
(1.53‌)
(1.23‌)
1.69‌
2.12‌
(e)
Bloomberg
Barclays
U.S.
Government/Mortgage
Index
(f)
—‌
—‌
(1.79‌)
(2.01‌)
2.25‌
2.72‌
Bloomberg
Barclays
U.S.
Mortgage-Backed
Securities
Index
(g
)
.
—‌
—‌
(0.77‌)
(0.42‌)
2.27‌
2.64‌
(a)
For
a
portion
of
the
period,
the
Fund’s
investment
adviser
waived
a
portion
of
its
fee.
Without
such
waiver,
the
Fund’s
performance
would
have
been
lower.
(b)
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
(c)
Average
annual
and
cumulative
total
returns
are
based
on
changes
in
net
asset
value
("NAV")
for
the
periods
shown,
and
assume
reinvestment
of
all
distributions
at
NAV
on
the
ex-dividend/
payable
date.
Insurance-related
fees
and
expenses
are
not
reflected
in
these
returns.
(d)
The
Fund
invests,
under
normal
circumstances,
at
least
80%
of
its
assets
in
fixed-income
securities
that
are
issued
or
guaranteed
by
the
U.S.
Government
and
its
agencies.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
U.S.
Government
Bond
V.I.
Fund
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Variable
Series
Funds,
Inc.,
through
a
tax-free
reorganization
(the
“Reorganization”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
The
Fund’s
total
returns
prior
to
October
1,
2011
are
the
returns
of
the
Predecessor
Fund
when
it
followed
a
different
investment
objective
and
different
investment
strategies
under
the
name
“BlackRock
Government
Income
V.I.
Fund”.
(e)
The
returns
for
Class
III
Shares
prior
to
July
15,
2013,
the
recommencement
of
operations
of
Class
III
Shares,
are
based
upon
the
performance
of
the
Predecessor
Fund’s
Class
I
Shares.
The
returns
for
Class
III
Shares,
however,
are
adjusted
to
reflect
the
distribution
(12b-1)
fees
applicable
to
Class
III
Shares.
(f)
An
index
that
measures
debt
issued
by
the
U.S.
Government,
and
its
agencies,
as
well
as
mortgage-backed
pass-through
securities
of
Ginnie
Mae,
Fannie
Mae
and
Freddie
Mac.
(g)
An
unmanaged
index
that
includes
the
mortgage-backed
pass-through
securities
of
Ginnie
Mae,
Fannie
Mae
and
Freddie
Mac
that
meet
certain
maturity
and
liquidity
criteria.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
The
Benefits
and
Risks
of
Leveraging
2021
BlackRock
Semi-Annual
Report
to
Shareholders
4
The
Fund
may
utilize
leverage
to
seek
to
enhance
returns
and
net
asset
value
(“NAV”).
However,
there
is
no
guarantee
that
these
objectives
can
be
achieved
in
all
interest
rate
environments.  
The
Fund
may
utilize
leverage
by
entering
into
reverse
repurchase
agreements. 
In
general,
the
concept
of
leveraging
is
based
on
the
premise
that
the
financing
cost
of
leverage,
which
is
based
on
short-term
interest
rates,
is
normally
lower
than
the
income
earned
by
the
Fund
on
its
longer-term
portfolio
investments
purchased
with
the
proceeds
from
leverage.
To
the
extent
that
the
total
assets
of
the
Fund
(including
the
assets
obtained
from
leverage)
are
invested
in
higher-yielding
portfolio
investments,
the
Fund’s
shareholders
benefit
from
the
incremental
net
income.
The
interest
earned
on
securities
purchased
with
the
proceeds
from
leverage
is
distributed
to
the
Fund’s
shareholders,
and
the
value
of
these
portfolio
holdings
is
reflected
in
the
Fund’s
per
share
NAV.
However,
in
order
to
benefit
shareholders,
the
return
on
assets
purchased
with
leverage
proceeds
must
exceed
the
ongoing
costs
associated
with
the
leverage.
If
interest
and
other
ongoing
costs
of
leverage
exceed
the
Fund’s
return
on
assets
purchased
with
leverage
proceeds,
income
to
shareholders
is
lower
than
if
the
Fund
had
not
used
leverage.
Furthermore,
the
value
of
the
Fund’s
portfolio
investments
generally
varies
inversely
with
the
direction
of
long-term
interest
rates,
although
other
factors
can
also
influence
the
value
of
portfolio
investments.
As
a
result,
changes
in
interest
rates
can
influence
the
Fund’s
NAV
positively
or
negatively
in
addition
to
the
impact
on
the
Fund’s
performance
from
leverage.
Changes
in
the
direction
of
interest
rates
are
difficult
to
predict
accurately,
and
there
is
no
assurance
that
the
Fund’s
leveraging
strategy
will
be
successful.
The
use
of
leverage
also
generally
causes
greater
changes
in
the
Fund’s
NAV
and
dividend
rates
than
comparable
portfolios
without
leverage.
In
a
declining
market,
leverage
is
likely
to
cause
a
greater
decline
in
the
NAV
of the
Fund’s
shares
than
if
the
Fund
were
not
leveraged.
In
addition,
the
Fund
may
be
required
to
sell
portfolio
securities
at
inopportune
times
or
at
distressed
values
in
order
to
comply
with
regulatory
requirements
applicable
to
the
use
of
leverage
or
as
required
by
the
terms
of
the
leverage
instruments,
which
may
cause
the
Fund
to
incur
losses.
The
use
of
leverage
may
limit the
Fund’s
ability
to
invest
in
certain
types
of
securities
or
use
certain
types
of
hedging
strategies.
The
Fund
incurs
expenses
in
connection
with
the
use
of
leverage,
all
of
which
are
borne
by
the
Fund’s
shareholders
and
may
reduce
income.
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
on January
1,
2021 and
held
through
June
30,
2021)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.” 
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds. 
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only,
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Actual
Hypothetical
(a)
Including
Interest
Expense
and
Fees
Excluding
Interest
Expense
and
Fees
Including
Interest
Expense
and
Fees
Excluding
Interest
Expense
and
Fees
Beginning
Account
Value
(01/01/21)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(
b)
Expenses
Paid
During
the
Period
(c)
Beginning
Account
Value
(01/01/21)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(b)
Ending
Account
Value
(06/30/21)
Expenses
Paid
During
the
Period
(c)
Class
I
..................
$
1,000.00
$
985.30
$
2.8
6
$
2.81
$
1,000.00
$
1,021.
9
2
$
2.
91
$
1,021.97
$
2.86
Class
III
.................
1,000.00
984.70
4.38
4.
3
3
1,000.00
1,020.38
4.46
1,020.
43
4.4
1
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
365.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class
(0.58%
for
Class
I
and
0.89%
for
Class
III),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
(c)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class
(0.57%
for
Class
I
and
0.88%
for
Class
III),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
Derivative
Financial
Instruments
5
Derivative
Financial
Instruments
The
Fund
may
invest
in
various
derivative
financial
instruments.
These
instruments
are
used
to
obtain
exposure
to
a
security,
commodity,
index,
market,
and/or
other
assets
without
owning
or
taking
physical
custody
of
securities,
commodities
and/or
other
referenced
assets
or
to
manage
market,
equity,
credit,
interest
rate,
foreign
currency
exchange
rate,
commodity
and/or
other
risks.
Derivative
financial
instruments
may
give
rise
to
a
form
of
economic
leverage
and
involve
risks,
including
the
imperfect
correlation
between
the
value
of
a
derivative
financial
instrument
and
the
underlying
asset,
possible
default
of
the
counterparty
to
the
transaction
or
illiquidity
of
the
instrument.
The
Fund’s
successful
use
of
a
derivative
financial
instrument
depends
on
the
investment
adviser’s
ability
to
predict
pertinent
market
movements
accurately,
which
cannot
be
assured.
The
use
of
these
instruments
may
result
in
losses
greater
than
if
they
had
not
been
used,
may
limit
the
amount
of
appreciation
the
Fund
can
realize
on
an
investment
and/or
may
result
in
lower
distributions
paid
to
shareholders.
The
Fund’s
investments
in
these
instruments,
if
any,
are
discussed
in
detail
in
the
Notes
to
Financial
Statements.
2021
BlackRock
Semi-Annual
Report
To
Shareholders
BlackRock
U.S.
Government
Bond
V.I.
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
—
2.1%
(a)(b)
Dryden
XXVIII
Senior
Loan
Fund,
Series
2013-
28A,
Class
A1LR,
(LIBOR
USD
3
Month
+
1.20%),
1.36%,
08/15/30
.............
USD
700
$
700,116
Romark
WM-R
Ltd.,
Series
2018-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.03%),
1.22%,
04/20/31
.......................
495
494,715
Total
Asset-Backed
Securities
—
2.1%
(Cost:
$1,194,809)
...............................
1,194,831
Foreign
Government
Obligations
—
4.0%
China
—
4.0%
People's
Republic
of
China:
1.99%,
04/09/25
..................
CNY
7,690
1,148,948
2.68%,
05/21/30
..................
7,150
1,062,609
2,211,557
Total
Foreign
Government
Obligations
—
4.0%
(Cost:
$2,094,249)
...............................
2,211,557
Non-Agency
Mortgage-Backed
Securities
—
7.5%
Commercial
Mortgage-Backed
Securities
—
6.6%
280
Park
Avenue
Mortgage
Trust,
Series
2017-280P,
Class
A,
(LIBOR
USD
1
Month
+
0.88%),
0.95%,
09/15/34
(a)(b)
..........
USD
139
139,000
BFLD
Trust,
Series
2020-EYP,
Class
A,
(LIBOR
USD
1
Month
+
1.15%),
1.22%,
10/15/35
(a)(b)
143
143,889
BX
Commercial
Mortgage
Trust
(b)
:
Series
2019-XL,
Class
A,
(LIBOR
USD
1
Month
+
0.92%),
0.99%,
10/15/36
(a)
...
100
99,709
Series
2019-XL,
Class
D,
(LIBOR
USD
1
Month
+
1.45%),
1.52%,
10/15/36
(a)
...
272
271,843
Series
2020-FOX,
Class
B,
(LIBOR
USD
1
Month
+
1.35%),
1.42%,
11/15/32
(a)
...
150
150,686
Series
2020-VIV4,
Class
A,
2.84%,
03/09/44
198
207,979
Series
2021-VINO,
Class
A,
(LIBOR
USD
1
Month
+
0.65%),
0.73%,
05/15/38
(a)
...
144
143,957
BX
Trust
(b)
:
Series
2019-OC11,
Class
A,
3.20%,
12/09/41
.....................
300
323,179
Series
2021-MFM1,
Class
C,
(LIBOR
USD
1
Month
+
1.20%),
1.27%,
01/15/34
(a)
...
36
36,000
Series
2021-VIEW,
Class
A,
(LIBOR
USD
1
Month
+
1.28%),
1.43%,
06/15/23
(a)
...
60
60,000
Citigroup
Commercial
Mortgage
Trust,
Series
2016-P6,
Class
B,
4.38%,
12/10/49
(a)
....
55
60,651
Commercial
Mortgage
Trust:
Series
2017-COR2,
Class
AM,
3.80%,
09/10/50
.....................
22
24,058
Series
2017-PANW,
Class
A,
3.24%,
10/10/29
(b)
....................
440
457,665
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2020-NET,
Class
A,
2.26%,
08/15/37
(b)
......................
100
103,237
CSAIL
Commercial
Mortgage
Trust:
Series
2018-CX11,
Class
A5,
4.03%,
04/15/51
(a)
....................
51
57,549
Series
2019-C16,
Class
A3,
3.33%,
06/15/52
157
171,491
Series
2019-C17,
Class
C,
3.93%,
09/15/52
85
90,552
GCT
Commercial
Mortgage
Trust,
Series
2021-GCT,
Class
A,
(LIBOR
USD
1
Month
+
0.80%),
0.87%,
02/15/38
(a)(b)
..........
100
100,119
Great
Wolf
Trust,
Series
2019-WOLF,
Class
A,
(LIBOR
USD
1
Month
+
1.03%),
1.11%,
12/15/36
(a)(b)
.....................
135
135,084
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
GS
Mortgage
Securities
Corp.
Trust,
Series
2020-TWN3,
Class
A,
(LIBOR
USD
1
Month
+
2.00%),
2.07%,
11/15/37
(a)(b)
.........
USD
308
$
309,525
Hudson
Yards
Mortgage
Trust,
Series
2019-
30HY,
Class
D,
3.56%,
07/10/39
(a)(b)
.....
101
106,435
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust,
Series
2020-609M,
Class
A,
(LIBOR
USD
1
Month
+
1.37%),
1.44%,
10/15/33
(a)(b)
.....................
100
100,249
KKR
Industrial
Portfolio
Trust,
Series
2020-AIP,
Class
A,
(LIBOR
USD
1
Month
+
1.04%),
1.11%,
03/15/37
(a)(b)
................
38
37,641
Morgan
Stanley
Capital
I
Trust
(a)
:
Series
2018-H3,
Class
B,
4.62%,
07/15/51
.
39
43,756
Series
2018-SUN,
Class
A,
(LIBOR
USD
1
Month
+
0.90%),
0.97%,
07/15/35
(b)
...
145
145,088
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2021-FCMT,
Class
A,
(LIBOR
USD
1
Month
+
1.20%),
1.27%,
05/15/31
(a)(b)
....
160
160,401
3,679,743
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.9%
(a)
BANK,
Series
2021-BN33,
Class
XA,
1.18%,
05/15/64
.......................
1,757
143,748
Benchmark
Mortgage
Trust,
Series
2020-B20,
Class
XA,
1.74%,
10/15/53
...........
1,168
126,573
CSAIL
Commercial
Mortgage
Trust,
Series
2019-C16,
Class
XA,
1.72%,
06/15/52
...
1,727
172,657
UBS
Commercial
Mortgage
Trust,
Series
2019-
C17,
Class
XA,
1.63%,
10/15/52
.......
1,007
96,508
539,486
Total
Non-Agency
Mortgage-Backed
Securities
—
7.5%
(Cost:
$4,171,295)
...............................
4,219,229
U.S.
Government
Sponsored
Agency
Securities
—
64.7%
Agency
Obligations
—
1.1%
Federal
Home
Loan
Bank,
4.00%, 04/10/28
..
500
592,505
Collateralized
Mortgage
Obligations
—
0.4%
Federal
Home
Loan
Mortgage
Corp.
Multifamily
Structured
Pass-Through
Certificates
Variable
Rate
Notes,
Series
K104,
Class
X1,
1.25%, 02/25/52
(a)
.................
205
17,206
Federal
National
Mortgage
Association,
Series
2011-8,
Class
ZA,
4.00%, 02/25/41
......
103
110,564
Government
National
Mortgage
Association
Variable
Rate
Notes,
Series
2014-107,
Class
WX,
6.78%, 07/20/39
(a)
..............
96
111,543
239,313
Commercial
Mortgage-Backed
Securities
—
0.7%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(a)
:
Series
2019-SB60,
Class
A10F,
3.31%, 01/25/29
................
204
215,865
Series
2019-SB61,
Class
A10F,
3.17%, 01/25/29
................
145
152,913
368,778
Interest
Only
Collateralized
Mortgage
Obligations
—
0.3%
Federal
National
Mortgage
Association:
Series
2020-32,
4.00%, 05/25/50
.......
135
19,616
Series
2020-32,
Class
PI,
4.00%, 05/25/50
152
22,083
Government
National
Mortgage
Association:
Series
2020-115,
Class
IM,
3.50%, 08/20/50
178
23,853
Series
2020-146,
Class
DI,
2.50%, 10/20/50
192
24,194
BlackRock
U.S.
Government
Bond
V.I.
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Par
(000)
Value
Interest
Only
Collateralized
Mortgage
Obligations
(continued)
Series
2020-162,
Class
TI,
2.50%, 10/20/50
USD
385
$
48,655
Series
2020-175,
Class
DI,
2.50%, 11/20/50
97
12,272
Series
2020-185,
Class
MI,
2.50%, 12/20/50
292
38,883
189,556
Interest
Only
Commercial
Mortgage-Backed
Securities
—
1.2%
Federal
Home
Loan
Mortgage
Corp.,
Series
2015-K718,
Class
X2A,
0.10%, 02/25/48
(b)
.
18,278
2,530
Federal
Home
Loan
Mortgage
Corp.
Multifamily
Structured
Pass-Through
Certificates
Variable
Rate
Notes
(a)
:
Series
K094,
Class
X1,
1.02%, 06/25/29
..
210
13,199
Series
K105,
Class
X1,
1.64%, 03/25/53
..
769
88,089
Series
K107,
Class
X1,
1.71%, 01/25/30
..
185
22,196
Series
K109,
Class
X1,
1.70%, 04/25/30
..
141
16,825
Series
K113,
Class
X1,
1.49%, 06/25/30
..
200
21,635
Series
K115,
Class
X1,
1.43%, 06/25/30
..
199
20,790
Series
K116,
Class
X1,
1.53%, 07/25/30
..
107
11,773
Series
K119,
Class
X1,
1.03%, 09/25/30
..
181
13,480
Series
K120,
Class
X1,
1.13%, 10/25/30
..
965
79,635
Series
K122,
Class
X1,
0.97%, 11/25/30
..
256
18,294
Federal
National
Mortgage
Association
ACES
Variable
Rate
Notes,
Series
2020-M21,
Class
AX,
1.94%, 01/25/58
(a)
..........
257
45,530
Government
National
Mortgage
Association
Variable
Rate
Notes
(a)
:
Series
2002-83,
0.00%, 10/16/42
(c)
......
439
—
Series
2003-17,
0.00%, 03/16/43
(c)
......
473
—
Series
2003-109,
0.00%, 11/16/43
......
780
30
Series
2016-22,
0.77%, 11/16/55
.......
1,682
60,161
Series
2016-45,
0.89%, 02/16/58
.......
827
41,178
Series
2016-92,
0.81%, 04/16/58
.......
242
11,224
Series
2016-113,
(LIBOR
USD
1
Month
+
0.00%),
1.09%, 02/16/58
..........
844
53,393
Series
2016-151,
1.02%, 06/16/58
......
713
40,705
Series
2017-30,
0.61%, 08/16/58
.......
376
14,785
Series
2017-44,
0.67%, 04/17/51
.......
384
15,471
Series
2017-53,
0.62%, 11/16/56
.......
1,107
45,671
Series
2017-61,
0.73%, 05/16/59
.......
304
15,914
Series
2017-64,
0.75%, 11/16/57
.......
197
10,506
663,014
Mortgage-Backed
Securities
—
61.0%
Federal
Home
Loan
Mortgage
Corp.:
2.50%, 03/01/30
-
04/01/31
...........
138
145,254
3.00%, 09/01/27
-
12/01/46
...........
260
275,499
3.50%, 04/01/31
-
01/01/48
...........
346
377,332
4.00%, 08/01/40
-
12/01/45
...........
51
55,481
4.50%, 02/01/39
-
07/01/47
...........
143
159,026
5.00%, 10/01/41
-
11/01/41
...........
96
108,990
5.50%, 06/01/41
..................
74
86,006
8.00%, 12/01/29
-
07/01/30
...........
16
18,917
Federal
National
Mortgage
Association:
3.50%, 11/01/46
..................
117
126,474
4.00%, 01/01/41
..................
5
5,031
Government
National
Mortgage
Association:
2.00%, 07/15/51
(d)
.................
1,263
1,286,287
2.50%, 07/15/51
(d)
.................
1,083
1,120,943
3.00%, 02/15/45
-
06/20/50
...........
74
76,951
3.00%, 07/15/51
-
08/15/51
(d)
..........
2,056
2,144,455
3.50%, 01/15/42
-
10/20/46
...........
761
812,614
3.50%, 07/15/51
(d)
.................
273
287,078
4.00%, 09/20/40
-
05/20/50
...........
421
453,576
4.00%, 07/15/51
(d)
.................
84
88,174
4.50%, 12/20/39
-
02/15/42
...........
670
745,613
5.00%, 12/15/38
-
07/20/42
...........
59
68,217
Security
Par
(000)
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
5.00%, 07/15/51
(d)
.................
USD
126
$
135,745
5.50%, 01/15/34
..................
228
259,947
Uniform
Mortgage-Backed
Securities:
1.50%, 07/25/36
(d)
.................
520
526,266
2.00%, 10/01/31
-
03/01/32
...........
78
80,952
2.00%, 07/25/36
-
09/25/51
(d)
..........
7,517
7,589,836
2.50%, 04/01/30
-
12/01/35
...........
583
613,910
2.50%, 07/25/51
-
08/25/51
(d)
..........
5,644
5,830,570
3.00%, 04/01/29
-
09/01/50
...........
2,839
2,993,531
3.00%, 07/25/51
(d)
.................
198
206,388
3.50%, 08/01/30
-
08/01/50
...........
1,479
1,596,711
3.50%, 07/25/36
-
07/25/51
(d)
..........
298
314,006
4.00%, 01/01/26
-
08/01/50
...........
2,704
2,904,855
4.00%, 07/25/51
-
08/25/51
(d)
..........
900
958,703
4.50%, 05/01/24
-
04/01/49
...........
579
632,832
4.50%, 07/25/51
(d)
.................
457
491,632
5.00%, 09/01/35
-
08/01/41
...........
148
168,303
5.00%, 07/25/51
(d)
.................
3
3,288
5.50%, 05/01/34
-
12/01/39
...........
161
186,139
6.00%, 04/01/35
-
06/01/41
...........
175
205,661
6.50%, 05/01/40
..................
32
37,456
34,178,649
Total
U.S.
Government
Sponsored
Agency
Securities
—
64.7%
(Cost:
$36,125,142)
...............................
36,231,815
U.S.
Treasury
Obligations
—
49.5%
U.S.
Treasury
Bonds:
4.25%, 05/15/39
-
11/15/40
...........
212
290,578
4.50%, 08/15/39
..................
170
239,687
4.38%, 11/15/39
..................
170
236,493
4.63%, 02/15/40
..................
42
60,290
3.88%, 08/15/40
..................
42
55,218
3.13%, 02/15/43
..................
660
788,597
2.88%, 05/15/43
-
11/15/46
...........
1,290
1,490,245
3.63%, 08/15/43
..................
660
850,059
3.75%, 11/15/43
..................
660
866,353
2.50%, 02/15/45
..................
154
166,621
2.75%, 11/15/47
..................
154
175,307
3.00%, 02/15/48
..................
784
934,552
2.25%, 08/15/49
..................
815
844,289
1.63%, 11/15/50
..................
85
76,341
U.S.
Treasury
Notes:
1.13%, 07/31/21
(e)
.................
2,840
2,842,541
1.75%, 07/31/21
-
11/15/29
...........
4,430
4,479,662
1.50%, 01/31/22
-
02/15/30
...........
4,401
4,477,095
2.13%, 12/31/22
-
05/15/25
...........
2,650
2,764,318
0.50%, 03/15/23
-
05/31/27
...........
873
863,215
0.25%, 04/15/23
..................
214
214,117
2.25%, 11/15/24
-
08/15/27
...........
1,627
1,735,470
2.00%, 02/15/25
..................
1,580
1,659,000
0.38%, 04/30/25
..................
367
363,058
0.63%, 03/31/27
..................
146
142,840
2.88%, 08/15/28
..................
380
422,616
3.13%, 11/15/28
..................
380
429,890
1.63%, 08/15/29
..................
266
272,058
Total
U.S.
Treasury
Obligations
—
49.5%
(Cost:
$26,948,745)
...............................
27,740,510
Total
Long-Term
Investments
—
127.8%
(Cost:
$70,534,240)
...............................
71,597,942
2021
BlackRock
Semi-Annual
Report
To
Shareholders
BlackRock
U.S.
Government
Bond
V.I.
Fund
8
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Security
Par
(000)
Pa
r
(
000)
Value
Short-Term
Securities
—
14.0%
Certificates
of
Deposit
—
2.1%
Yankee
—
2.1%
(f)
Credit
Suisse
AG,
New
York,
0.30%, 09/01/21
USD
1,200
$
1,200,353
Total
Certificates
of
Deposit
—
2.1%
(Cost:
$1,200,000)
...............................
1,200,353
Shares
Shares
Money
Market
Funds
—
3.1%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.01%
(g)(h)
..................
1,761,895
1,761,895
Total
Money
Market
Funds
—
3.1%
(Cost:
$1,761,895)
...............................
1,761,895
Par
(000)
Pa
r
(
000)
U.S.
Government
Sponsored
Agency
Securities
—
8.8%
Federal
Home
Loan
Bank
Discount
Notes,
0.05%, 09/17/21
(i)
................
4,900
4,899,469
Total
U.S.
Government
Sponsored
Agency
Securities
—
8.8%
(Cost:
$4,899,491)
...............................
4,899,469
Total
Short-Term
Securities
—
14.0%
(Cost:
$7,861,386)
...............................
7,861,717
Security
Par
(000)
Par
(000)
Value
Total
Options
Purchased
—
0.2%
(
Cost:
$83,040
)
.................................
$
95,472
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
142.0%
(Cost:
$78,478,666
)
...............................
79,555,131
Total
Options
Written
—
(0.4)%
(Premium
Received
—
$228,365)
.....................
(235,357)
TBA
Sale
Commitments
—
(17.1)%
(d)
Mortgage-Backed
Securities
—
(17.1)%
Government
National
Mortgage
Association:
2.50%
,
 07/15/51
..................
USD
2
(2,070)
3.00%
,
 07/15/51
..................
170
(177,375)
3.50%
,
 07/15/51
..................
53
(55,637)
4.00%
,
 07/15/51
..................
26
(27,455)
4.50%
,
 07/15/51
..................
527
(561,584)
Uniform
Mortgage-Backed
Securities:
2.50%
,
 07/25/36
-
07/25/51
...........
1,852
(1,916,387)
3.00%
,
 07/25/36
-
08/25/51
...........
1,088
(1,134,486)
3.50%
,
 07/25/36
..................
29
(30,969)
2.00%
,
 07/25/51
-
08/25/51
...........
3,424
(3,453,068)
4.00%
,
 07/25/51
-
08/25/51
...........
2,065
(2,198,740)
Total
TBA
Sale
Commitments
—
(17.1)%
(Proceeds:
$9,564,044)
............................
(9,557,771)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
124.5%
(Cost:
$68,686,257
)
...............................
69,762,003
Liabilities
in
Excess
of
Other
Assets
—
(24.5)%
............
(13,739,643)
Net
Assets
—
100.0%
...............................
$
56,022,360
(a)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(b)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(c)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(d)
Represents
or
includes
a
TBA
transaction.
(e)
All
or
a
portion
of
the
security
has
been
pledged
as
collateral
in
connection
with
outstanding
reverse
repurchase
agreements.
(f)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(g)
Annualized
7-day
yield
as
of
period
end.
(h)
Affiliate
of
the
Fund.
(i)
Rates
are
discount
rates
or
a
range
of
discount
rates
as
of
period
end.
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
six
months
ended
June
30,
2021
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
12/31/20
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
06/30/21
Shares
Held
at
06/30/21
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
2,156,232
$
—
$
(394,337)
$
—
$
—
$
1,761,895
1,761,895
$
123
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
BlackRock
U.S.
Government
Bond
V.I.
Fund
Schedule
of
Investments
9
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Reverse
Repurchase
Agreements
Counterparty
Interest
Rate
Trade
Date
Maturity
Date
Face
Value
Face
Value
Including
Accrued
Interest
Type
of
Non-Cash
Underlying
Collateral
Remaining
Contractual
Maturity
of
the
Agreements
Deutsche
Bank
Securities,
Inc.
..............
0.06
%
06/30/21
07/01/21  
$
2,861,300
$
2,861,305
U.S.
Treasury
Obligations
Overnight
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
V.I.
Fund
10
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
U.S.
Treasury
Long
Bond
....................................................
10
09/21/21
$
1,606
$
48,808
U.S.
Treasury
2
Year
Note
....................................................
49
09/30/21
10,796
(9,216)
U.S.
Treasury
5
Year
Note
....................................................
10
09/30/21
1,234
(6,520)
90-day
Eurodollar
.........................................................
3
09/18/23
742
(304)
32,768
Short
Contracts
U.S.
Treasury
10
Year
Note
...................................................
1
09/21/21
132
(230)
U.S.
Treasury
10
Year
Ultra
Note
...............................................
22
09/21/21
3,235
(43,291)
U.S.
Treasury
Ultra
Bond
....................................................
2
09/21/21
385
(14,304)
90-day
Eurodollar
.........................................................
6
09/19/22
1,495
1,342
(56,483)
$
(23,715)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
BRL
50,474
USD
10,000
Deutsche
Bank
AG
07/02/21
$
148
BRL
53,386
USD
10,000
UBS
AG
07/02/21
732
USD
10,000
BRL
49,660
Bank
of
America
NA
07/02/21
16
CLP
7,450,000
USD
10,000
Barclays
Bank
plc
07/21/21
139
MXN
205,080
USD
10,000
Goldman
Sachs
International
07/21/21
263
USD
11,914
EUR
10,000
HSBC
Bank
plc
07/21/21
52
USD
10,000
ZAR
141,844
Goldman
Sachs
International
07/21/21
91
USD
10,000
BRL
49,485
Goldman
Sachs
International
08/03/21
86
MXN
332,032
USD
16,016
UBS
AG
08/24/21
529
USD
10,932
MXN
217,887
Barclays
Bank
plc
08/24/21
75
USD
5,763
MXN
114,145
State
Street
Bank
and
Trust
Co.
08/24/21
75
MXN
5,701,000
USD
276,896
Citibank
NA
09/15/21
6,341
USD
20,655
CAD
25,000
State
Street
Bank
and
Trust
Co.
09/15/21
488
USD
368,902
CNY
2,397,000
Bank
of
New
York
Mellon
09/15/21
334
USD
1,119,134
CNY
7,191,665
Citibank
NA
09/15/21
13,327
USD
285,848
MXN
5,701,000
Royal
Bank
of
Canada
09/15/21
2,612
25,308
USD
10,000
BRL
53,406
Natwest
Markets
plc
07/02/21
(738)
COP
37,302,500
USD
10,000
BNP
Paribas
SA
07/21/21
(70)
MXN
197,732
USD
10,000
Bank
of
America
NA
07/21/21
(104)
USD
10,000
CLP
7,384,000
Barclays
Bank
plc
07/21/21
(50)
USD
10,000
MXN
207,332
State
Street
Bank
and
Trust
Co.
07/21/21
(376)
BRL
49,818
USD
10,000
Bank
of
America
NA
08/03/21
(19)
(1,357)
$
23,951
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
90-day
Eurodollar
September
2021
Futures
..........
28
09/10/21
USD
99.75
USD
7,000
$
8,575
90-day
Eurodollar
September
2021
Futures
..........
47
09/10/21
USD
99.38
USD
11,750
45,237
BlackRock
U.S.
Government
Bond
V.I.
Fund
Schedule
of
Investments
11
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Exchange-Traded
Options
Purchased
(continued)
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
90-day
Eurodollar
December
2021
Futures
..........
167
12/10/21
USD
99.38
USD
41,750
$
35,488
$
89,300
OTC
Interest
Rate
Swaptions
Purchased
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
Put
10-Year
Interest
Rate
Swap
(a)
2.25%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
02/22/22
2.25
%
USD
1,300
$
6,172
(a)
Forward
settling
swaption.
OTC
Interest
Rate
Swaptions
Written
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
Call
10-Year
Interest
Rate
Swap
(a)
1.69%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
10/20/21
1.69
%
USD
2,100
$
(55,207)
10-Year
Interest
Rate
Swap
(a)
1.71%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
11/04/21
1.71
USD
525
(14,452)
10-Year
Interest
Rate
Swap
(a)
1.71%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
11/04/21
1.71
USD
525
(14,452)
10-Year
Interest
Rate
Swap
(a)
1.75%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
03/02/22
1.75
USD
200
(6,399)
10-Year
Interest
Rate
Swap
(a)
1.84%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
04/20/22
1.84
USD
1,200
(45,096)
10-Year
Interest
Rate
Swap
(a)
1.99%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
10/28/22
1.99
USD
1,200
(55,848)
(191,454)
Put
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.75%
Semi-Annual
Deutsche
Bank
AG
03/02/22
1.75
USD
200
(2,927)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.84%
Semi-Annual
Barclays
Bank
plc
04/20/22
1.84
USD
1,200
(17,696)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.99%
Semi-Annual
Deutsche
Bank
AG
10/28/22
1.99
USD
1,200
(23,280)
(43,903)
$
(235,357)
(a)
Forward
settling
swaption.
Centrally
Cleared
Interest
Rate
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
0.72%
Annual
6
month
WIBOR
Semi-Annual
06/17/23
PLN
132
$
59
$
—
$
59
0.74%
Annual
6
month
WIBOR
Semi-Annual
06/17/23
PLN
132
48
—
48
0.76%
Annual
6
month
WIBOR
Semi-Annual
06/18/23
PLN
91
24
—
24
0.83%
Semi-Annual
6
month
WIBOR
Semi-Annual
06/22/23
PLN
213
(20)
—
(20)
0.51%
Semi-Annual
3
month
LIBOR
Quarterly
04/07/24
USD
72
(41)
—
(41)
1.03%
Semi-Annual
3
month
LIBOR
Quarterly
06/04/26
USD
900
(3,828)
—
(3,828)
3
month
LIBOR
Quarterly
0.89%
Semi-Annual
06/04/26
USD
900
(2,303)
—
(2,303)
2.85%
Semi-Annual
3
month
LIBOR
Quarterly
12/21/28
USD
300
(34,465)
—
(34,465)
1.61%
Semi-Annual
3
month
LIBOR
Quarterly
10/01/29
USD
400
(9,790)
—
(9,790)
3
month
LIBOR
Quarterly
1.58%
Semi-Annual
04/28/31
USD
1,050
15,067
—
15,067
3
month
LIBOR
Quarterly
1.58%
Semi-Annual
05/06/31
USD
263
3,775
—
3,775
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
V.I.
Fund
12
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Centrally
Cleared
Interest
Rate
Swaps
(continued)
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
3
month
LIBOR
Quarterly
1.60%
Semi-Annual
06/01/31
USD
263
$
3,835
$
—
$
3,835
$
(27,639)
$
—
$
(27,639)
Centrally
Cleared
Inflation
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1
month
USCPI
At
Termination
2.47%
At
Termination
04/26/31
USD
499
$
(4,841)
$
—
$
(4,841)
1
month
USCPI
At
Termination
2.54%
At
Termination
05/05/31
USD
130
(265)
—
(265)
1
month
USCPI
At
Termination
2.55%
At
Termination
05/05/31
USD
130
(84)
—
(84)
1
month
USCPI
At
Termination
2.64%
At
Termination
05/21/31
USD
250
2,740
—
2,740
1
month
USCPI
At
Termination
2.64%
At
Termination
05/21/31
USD
250
2,838
—
2,838
UK
Retail
Price
Index
All
Items
Monthly
At
Termination
3.38%
At
Termination
12/15/40
GBP
62
(5,839)
—
(5,839)
$
(5,451)
$
—
$
(5,451)
OTC
Interest
Rate
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1
day
BZDIOVER
At
Termination
7.21%
At
Termination
Citibank
NA
01/02/24
BRL
241
$
(407)
$
—
$
(407)
1
day
BZDIOVER
At
Termination
7.61%
At
Termination
Citibank
NA
01/02/24
BRL
133
(23)
—
(23)
1
day
BZDIOVER
At
Termination
7.70%
At
Termination
Citibank
NA
01/02/24
BRL
17
4
—
4
1
day
BZDIOVER
At
Termination
8.29%
At
Termination
JPMorgan
Chase
Bank
NA
01/02/29
BRL
75
(291)
—
(291)
1
day
BZDIOVER
At
Termination
8.42%
At
Termination
Citibank
NA
01/02/29
BRL
54
(121)
—
(121)
$
(838)
$
—
$
(838)
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1
day
BZDIOVER
.....................................
Overnight
Brazil
CETIP
—
Interbank
Rate
0.02
%
1
month
USCPI
.......................................
U.S.
Consumer
Price
Index
5.40
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.15
6
month
WIBOR
......................................
Warsaw
Interbank
Offered
Rate
0.15
BlackRock
U.S.
Government
Bond
V.I.
Fund
Schedule
of
Investments
13
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Balances
Reported
in
the
Statement
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps,
OTC
Swaps
and
Options
Written
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Centrally
Cleared
Swaps
(a)
...........................................
$
—
$
—
$
28,386
$
(61,476)
$
—
OTC
Swaps
.....................................................
—
—
4
(842)
—
Options
Written
...................................................
N/A
N/A
38,832
(45,824)
(235,357)
(a)
Includes
cumulative
appreciation
(depreciation)
on
centrally
cleared
swaps,
as
reported
in
the
Schedule
of
Investments.
Only
current
day’s
variation
margin
is
reported
within
the
Statement
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statement
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
.....
$
—
$
—
$
—
$
—
$
50,150
$
—
$
50,150
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
25,308
—
—
25,308
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
—
—
95,472
—
95,472
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
22,808
5,578
28,386
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
—
—
—
4
—
4
$
—
$
—
$
—
$
25,308
$
168,434
$
5,578
$
199,320
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
73,865
—
73,865
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
1,357
—
—
1,357
Options
written
(b)
Options
written
at
value
.....................
—
—
—
—
235,357
—
235,357
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
50,447
11,029
61,476
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
—
—
—
842
—
842
$
—
$
—
$
—
$
1,357
$
360,511
$
11,029
$
372,897
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statement
of
Assets
and
Liabilities,
only
current
day's
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
(b)
Includes
forward
settling
swaptions.
(c)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
V.I.
Fund
14
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
Derivative
Financial
Instruments
—
Offsetting
as
of
Period
End
For
the
six
months
ended
June
30,
2021,
the
effect
of
derivative
financial
instruments
in
the
Statement
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from:
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
(114,680)
$
—
$
(114,680)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(78,874)
—
—
(78,874)
Options
purchased
(a)
....................
—
—
—
(28,757)
282,490
—
253,733
Options
written
........................
—
—
—
12,209
37,897
—
50,106
Swaps
..............................
—
—
—
—
(40,593)
(37,706)
(78,299)
$
—
$
—
$
—
$
(95,422)
$
165,114
$
(37,706)
$
31,986
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
(46,329)
—
(46,329)
Forward
foreign
currency
exchange
contracts
....
—
—
—
43,165
—
—
43,165
Options
purchased
(b)
....................
—
—
—
—
13,507
—
13,507
Options
written
........................
—
—
—
—
(6,992)
—
(6,992)
Swaps
..............................
—
—
—
—
37,990
(1,890)
36,100
$
—
$
—
$
—
$
43,165
$
(1,824)
$
(1,890)
$
39,451
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
(b)
Options
purchased
are
included
in
net
change
in
unrealized
appreciation
(depreciation)
on
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts:
Average
notional
value
of
contracts
—
long
..................................................................................
$
15,937,560
Average
notional
value
of
contracts
—
short
.................................................................................
6,623,611
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
1,665,714
Average
amounts
sold
—
in
USD
........................................................................................
302,297
Options:
Average
value
of
option
contracts
purchased
................................................................................
129,278
Average
value
of
option
contracts
written
...................................................................................
1,199
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
1,300,000
Average
notional
value
of
swaption
contracts
written
...........................................................................
5,375,508
Interest
rate
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
1,261,294
Average
notional
value
—
receives
fixed
rate
................................................................................
1,539,384
Inflation
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
322,882
Average
notional
value
—
receives
fixed
rate
................................................................................
693,605
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
8,395
$
12,518
Forward
foreign
currency
exchange
contracts
.................................................................
25,308
1,357
Options
(a)(b)
........................................................................................
95,472
235,357
Swaps
—
Centrally
cleared
.............................................................................
532
—
Swaps
—
OTC
(c)
....................................................................................
4
842
Total
derivative
assets
and
liabilities
in
the
Statement
of
Assets
and
Liabilities
.............................................
$
129,711
$
250,074
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(98,227)
(12,518)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
31,484
$
237,556
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statement
of
Assets
and
Liabilities
and
reported
in
the
Schedule
of
Investments.
(b)
Includes
forward
settling
swaptions.
(c)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/received
in
the
Statement
of
Assets
and
Liabilities.
BlackRock
U.S.
Government
Bond
V.I.
Fund
Schedule
of
Investments
15
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
The
following
tables
present
the
Fund's
derivative
assets
and
liabilities
by
counterparty
net
of
amounts
available
for
offset
under
an
MNA
and
net
of
the
related
collateral
received
and
pledged
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(b)(c)
Bank
of
America
NA
..............................
$
16
$
(16)
$
—
$
—
$
—
Bank
of
New
York
Mellon
...........................
334
—
—
—
334
Barclays
Bank
plc
................................
214
(214)
—
—
—
Citibank
NA
....................................
19,672
(15,003)
—
—
4,669
Deutsche
Bank
AG
...............................
6,320
(6,320)
—
—
—
Goldman
Sachs
International
........................
440
—
—
—
440
HSBC
Bank
plc
..................................
52
—
—
—
52
Royal
Bank
of
Canada
.............................
2,612
—
—
—
2,612
State
Street
Bank
and
Trust
Co.
......................
563
(376)
—
—
187
UBS
AG
......................................
1,261
—
—
—
1,261
$
31,484
$
(21,929)
$
—
$
—
$
9,555
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
Net
Amount
of
Derivative
Liabilities
(c)(d)
Bank
of
America
NA
..............................
$
123
$
(16)
$
—
$
—
$
107
Barclays
Bank
plc
................................
77,294
(214)
—
—
77,080
BNP
Paribas
SA
.................................
70
—
—
—
70
Citibank
NA
....................................
15,003
(15,003)
—
—
—
Deutsche
Bank
AG
...............................
143,661
(6,320)
—
—
137,341
JPMorgan
Chase
Bank
NA
..........................
291
—
—
—
291
Natwest
Markets
plc
..............................
738
—
—
—
738
State
Street
Bank
and
Trust
Co.
......................
376
(376)
—
—
—
$
237,556
$
(21,929)
$
—
$
—
$
215,627
(a)
The
amount
of
derivatives
available
for
offset
is
limited
to
the
amount
of
derivative
assets
and/or
liabilities
that
are
subject
to
an
MNA.
(b)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(c)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(d)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
V.I.
Fund
16
Schedule
of
Investments
(unaudited)
(continued)
June
30,
2021
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
...................................
$
—
$
1,194,831
$
—
$
1,194,831
Foreign
Government
Obligations
..............................
—
2,211,557
—
2,211,557
Non-Agency
Mortgage-Backed
Securities
........................
—
4,219,229
—
4,219,229
U.S.
Government
Sponsored
Agency
Securities
....................
—
36,231,815
—
36,231,815
U.S.
Treasury
Obligations
...................................
—
27,740,510
—
27,740,510
Short-Term
Securities:
Certificates
of
Deposit
.....................................
—
1,200,353
—
1,200,353
Money
Market
Funds
......................................
1,761,895
—
—
1,761,895
U.S.
Government
Sponsored
Agency
Securities
....................
—
4,899,469
—
4,899,469
Options
Purchased:
Interest
rate
contracts
......................................
89,300
6,172
—
95,472
Liabilities:
Investments:
TBA
Sale
Commitments
....................................
—
(9,557,771)
—
(9,557,771)
$
1,851,195
$
68,146,165
$
—
$
69,997,360
Derivative
Financial
Instruments
(a)
Assets:
Foreign
currency
exchange
contracts
............................
$
—
$
25,308
$
—
$
25,308
Interest
rate
contracts
.......................................
50,150
22,812
—
72,962
Other
contracts
...........................................
—
5,578
—
5,578
Liabilities:
Foreign
currency
exchange
contracts
............................
—
(1,357)
—
(1,357)
Interest
rate
contracts
.......................................
(73,865)
(286,646)
—
(360,511)
Other
contracts
...........................................
—
(11,029)
—
(11,029)
$
(23,715)
$
(245,334)
$
—
$
(269,049)
(a)
Derivative
financial
instruments
are
swaps,
futures
contracts,
forward
foreign
currency
exchange
contracts
and
options
written.
Swaps,
futures
contracts
and
forward
foreign
currency
exchange
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument
and
options
written
are
shown
at
value.
The
Fund
may
hold
assets
and/or
liabilities
in
which
the
fair
value
approximates
the
carrying
amount
or
face
value,
including
accrued
interest,
for
financial
statement
purposes.
As
of
period
end,
reverse
repurchase
agreements
of
$2,861,305
are
categorized
as
Level
2
within
the
disclosure
hierarchy.
Statement
of
Assets
and
Liabilities
(unaudited)

June
30,
2021
17
Financial
Statements
BlackRock
U.S.
Government
Bond
V.I.
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
77,793,236‌
Investments,
at
value
—
affiliated
(b)
.........................................................................................
1,761,895‌
Cash
.............................................................................................................
21,968‌
Cash
pledged
for
centrally
cleared
swaps
.....................................................................................
108,943‌
Foreign
currency,
at
value
(c)
..............................................................................................
220,666‌
Receivables:
–‌
Investments
sold
....................................................................................................
7,524,083‌
TBA
sale
commitments
................................................................................................
9,564,044‌
Capital
shares
sold
...................................................................................................
142,768‌
Dividends
—
affiliated
.................................................................................................
7‌
Interest
—
unaffiliated
.................................................................................................
267,091‌
Variation
margin
on
futures
contracts
.......................................................................................
8,395‌
Variation
margin
on
centrally
cleared
swaps
..................................................................................
532‌
Unrealized
appreciation
on:
–‌
Forward
foreign
currency
exchange
contracts
.................................................................................
25,308‌
OTC
swaps
........................................................................................................
4‌
Prepaid
expenses
.....................................................................................................
1,194‌
Other
assets
.........................................................................................................
925‌
Total
assets
.........................................................................................................
97,441,059‌
LIABILITIES
Options
written,
at
value
(d)
................................................................................................
235,357‌
TBA
sale
commitments,
at
value
(e)
..........................................................................................
9,557,771‌
Reverse
repurchase
agreements,
at
value
.....................................................................................
2,861,305‌
Payables:
–‌
Investments
purchased
................................................................................................
28,527,870‌
Capital
shares
redeemed
...............................................................................................
228‌
Distribution
fees
.....................................................................................................
980‌
Income
dividend
distributions
............................................................................................
68,965‌
Investment
advisory
fees
..............................................................................................
11,080‌
Directors'
and
Officer's
fees
.............................................................................................
3,351‌
Other
affiliate
fees
...................................................................................................
378‌
Variation
margin
on
futures
contracts
.......................................................................................
12,518‌
Other
accrued
expenses
...............................................................................................
136,697‌
Unrealized
depreciation
on:
–‌
Forward
foreign
currency
exchange
contracts
.................................................................................
1,357‌
OTC
swaps
........................................................................................................
842‌
Total
liabilities
........................................................................................................
41,418,699‌
NET
ASSETS
........................................................................................................
$
56,022,360‌
NET
ASSETS
CONSIST
OF
Paid-in
capital
........................................................................................................
$
57,863,091‌
Accumulated
loss
.....................................................................................................
(1,840,731‌)
NET
ASSETS
........................................................................................................
$
56,022,360‌
(a)
  Investments,
at
cost
—
unaffiliated
........................................................................................
$
76,716,771‌
(b)
  Investments,
at
cost
—
affiliated
..........................................................................................
$
1,761,895‌
(c)
  Foreign
currency,
at
cost
...............................................................................................
$
212,575‌
(d)
  Premiums
received
..................................................................................................
$
228,365‌
(e)
  Proceeds
from
TBA
sale
commitments
.....................................................................................
$
9,564,044‌
See
notes
to
financial
statements.
Statement
of
Assets
and
Liabilities
(unaudited)
(continued)
June
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
18
See
notes
to
financial
statements.
BlackRock
U.S.
Government
Bond
V.I.
Fund
NET
ASSET
VALUE
Class
I
Net
assets
........................................................................................................
$
51,332,626‌
Shares
outstanding
.................................................................................................
4,859,674‌
Net
asset
value
....................................................................................................
$
10.56‌
Shares
authorized
..................................................................................................
300
million
Par
value
........................................................................................................
$
0.10‌
Class
III
Net
assets
........................................................................................................
$
4,689,734‌
Shares
outstanding
.................................................................................................
444,190‌
Net
asset
value
....................................................................................................
$
10.56‌
Shares
authorized
..................................................................................................
100
million
Par
value
........................................................................................................
$
0.10‌
Statement
of
Operations
(unaudited)

Six
Months
Ended
June
30,
2021
19
Financial
Statements
See
notes
to
financial
statements.
BlackRock
U.S.
Government
Bond
V.I.
Fund
INVESTMENT
INCOME
Dividends
—
affiliated
.................................................................................................
$
123‌
Interest
—
unaffiliated
................................................................................................
393,628‌
Foreign
taxes
withheld
................................................................................................
(148‌)
Total
investment
income
.................................................................................................
393,603‌
EXPENSES
Investment
advisory
..................................................................................................
146,717‌
Transfer
agent
—
class
specific
..........................................................................................
57,467‌
Professional
.......................................................................................................
37,296‌
Accounting
services
..................................................................................................
33,105‌
Custodian
.........................................................................................................
12,468‌
Distribution
—
class
specific
............................................................................................
7,496‌
Transfer
agent
......................................................................................................
2,458‌
Miscellaneous
......................................................................................................
12,933‌
Total
expenses
excluding
interest
expense
.....................................................................................
309,940‌
Interest
expense
......................................................................................................
960‌
Total
expenses
.......................................................................................................
310,900‌
Less:
–‌
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(76,611‌)
Transfer
agent
fees
reimbursed
—
class
specific
...............................................................................
(55,668‌)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
178,621‌
Net
investment
income
..................................................................................................
214,982‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
(1,134,412‌)
Net
realized
gain
(loss)
from:
$
–‌
Investments
—
unaffiliated
...........................................................................................
202,130‌
Forward
foreign
currency
exchange
contracts
...............................................................................
(78,874‌)
Foreign
currency
transactions
.........................................................................................
11,556‌
Futures
contracts
..................................................................................................
(114,680‌)
Options
written
...................................................................................................
50,106‌
Short
sales
—
unaffiliated
............................................................................................
1,658‌
Swaps
.........................................................................................................
(78,299‌)
A
(6,403‌)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
...........................................................................................
(1,151,015‌)
Forward
foreign
currency
exchange
contracts
...............................................................................
43,165‌
Foreign
currency
translations
..........................................................................................
(2,938‌)
Futures
contracts
..................................................................................................
(46,329‌)
Options
written
...................................................................................................
(6,992‌)
Swaps
.........................................................................................................
36,100‌
A
(1,128,009‌)
Net
realized
and
unrealized
loss
............................................................................................
(1,134,412‌)
NET
DECREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
.................................................................
$
(919,430‌)
Statements
of
Changes
in
Net
Assets

2021
BlackRock
Semi-Annual
Report
to
Shareholders
20
See
notes
to
financial
statements.
BlackRock
U.S.
Government
Bond
V.I.
Fund
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
12/31/20
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
(loss)
..........................................................................
$
214,982‌
$
962,550‌
Net
realized
gain
(loss)
..............................................................................
(6,403‌)
1,833,792‌
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
(1,128,009‌)
1,337,365‌
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.....................................................
(919,430‌)
4,133,707‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
  Class
I
........................................................................................
(359,500‌)
(1,011,925‌)
  Class
III
.......................................................................................
(31,343‌)
(133,418‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(390,843‌)
(1,145,343‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
...........................................
(4,781,161‌)
2,562,829‌
NET
ASSETS
Total
increase
(decrease)
in
net
assets
.....................................................................
(6,091,434‌)
5,551,193‌
Beginning
of
period
..................................................................................
62,113,794‌
56,562,601‌
End
of
period
......................................................................................
$
56,022,360‌
$
62,113,794‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
21
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
excludes
insurance-related
fees
and
expenses
and
assumes
the
reinvestment
of
distributions.
(d)
Aggregate
total
return.
(e)
Annualized.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
V.I.
Fund
Class
I
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
period
...............
$
10.79‌
$
10.32‌
$
9.93‌
$
10.12‌
$
10.18‌
$
10.23‌
Net
investment
income
(loss)
(a)
...................
0.04‌
0.16‌
0.23‌
0.21‌
0.16‌
0.15‌
Net
realized
and
unrealized
gain
(loss)
.............
(0.20‌)
0.50‌
0.40‌
(0.18‌)
(0.01‌)
(0.01‌)
Net
increase
(decrease)
from
investment
operations
......
(0.16‌)
0.66‌
0.63‌
0.03‌
0.15‌
0.14‌
Distributions
from
net
investment
income
(b)
..........
(0.07‌)
(0.19‌)
(0.24‌)
(0.22‌)
(0.21‌)
(0.19‌)
Net
asset
value,
end
of
period
....................
$
10.56‌
$
10.79‌
$
10.32‌
$
9.93‌
$
10.12‌
$
10.18‌
Total
Return
(c)
(1.47)%
6.46%
6.36%
0.29%
1.52%
—
Based
on
net
asset
value
........................
(1.47)%
(d)
6.46%
6.36%
0.29%
1.52%
1.33%
Ratios
to
Average
Net
Assets
Total
expenses
...............................
1.04%
(e)
1.09%
(f)
1.70%
1.85%
1.31%
1.02%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.58%
(e)
0.63%
(f)
1.31%
1.27%
1.01%
0.76%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
......................
0.57%
(e)
0.54%
(f)
0.74%
0.82%
0.87%
0.70%
Net
investment
income
(loss)
.....................
0.77%
(e)
1.54%
(f)
2.22%
2.10%
1.58%
1.43%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
51,333‌
$
55,191‌
$
53,865‌
$
54,820‌
$
65,100‌
$
72,433‌
Portfolio
turnover
rate
(g)
.........................
350%
672%
699%
737%
1,052%
1,140%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
..............
195%
415%
445%
435%
681%
705%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
22
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
excludes
insurance-related
fees
and
expenses
and
assumes
the
reinvestment
of
distributions.
(d)
Aggregate
total
return.
(e)
Annualized.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
V.I.
Fund
Class
III
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
period
...............
$
10.78‌
$
10.32‌
$
9.92‌
$
10.11‌
$
10.18‌
$
10.22‌
Net
investment
income
(loss)
(a)
...................
0.02‌
0.13‌
0.19‌
0.18‌
0.13‌
0.11‌
Net
realized
and
unrealized
gain
(loss)
.............
(0.18‌)
0.49‌
0.42‌
(0.18‌)
(0.02‌)
—‌
Net
increase
(decrease)
from
investment
operations
......
(0.16‌)
0.62‌
0.61‌
0.00‌
0.11‌
0.11‌
Distributions
from
net
investment
income
(b)
..........
(0.06‌)
(0.16‌)
(0.21‌)
(0.19‌)
(0.18‌)
(0.15‌)
Net
asset
value,
end
of
period
....................
$
10.56‌
$
10.78‌
$
10.32‌
$
9.92‌
$
10.11‌
$
10.18‌
Total
Return
(c)
(1.53)%
6.03%
6.14%
(0.01)%
1.10%
—
Based
on
net
asset
value
........................
(1.53)%
(d)
6.03%
6.14%
(0.01)%
1.10%
1.08%
Ratios
to
Average
Net
Assets
Total
expenses
...............................
1.24%
(e)
1.28%
(f)
1.89%
2.03%
1.45%
1.27%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.89%
(e)
0.92%
(f)
1.61%
1.57%
1.30%
1.08%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
......................
0.88%
(e)
0.84%
(f)
1.03%
1.13%
1.17%
1.01%
Net
investment
income
(loss)
.....................
0.45%
(e)
1.19%
(f)
1.86%
1.86%
1.30%
1.09%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
4,690‌
$
6,923‌
$
2,698‌
$
3,305‌
$
1,785‌
$
2,758‌
Portfolio
turnover
rate
(g)
.........................
350%
672%
699%
737%
1,052%
1,140%
Six
Months
Ended
06/30/21
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
..............
195%
415%
445%
435%
681%
705%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
23
Notes
to
Financial
Statements
1.
ORGANIZATION 
BlackRock
Variable
Series
Funds
II,
Inc. (the
"Company")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"),
as
an
open-end
management
investment
company.
The
Company
is
organized
as
a
Maryland
corporation
that
is
comprised
of
3 separate
funds.
The
funds
offer shares
to
insurance
companies
for
their
separate
accounts
to
fund
benefits
under
certain
variable
annuity
and
variable
life
insurance
contracts. The
financial
statements
presented
are
for
BlackRock
U.S.
Government
Bond
V.I.
Fund (the
"Fund"). The
Fund
is
classified
as
diversified.
Class
I
and
Class
III
Shares
have
equal
voting,
dividend,
liquidation
and
other
rights,
except
that
only
shares
of
the
respective
classes
are
entitled
to
vote
on
matters
concerning
only
that
class.
In
addition,
Class
III
Shares
bear
certain
expenses
related
to
the
distribution
of
such
shares.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
"Manager") or
its
affiliates,
is
included
in
a
complex
of
non-
index
fixed-income
mutual
funds
and
all
BlackRock-advised
closed-end
funds
referred
to
as
the
BlackRock
Fixed-Income
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies: 
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed
(the
“trade
dates”)
.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Foreign
Currency
Translation:
The
Fund’s
books
and
records
are
maintained
in
U.S.
dollars.
Securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
using
exchange
rates
determined
as
of
the
close
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”)
.
Purchases
and
sales
of
investments
are
recorded
at
the
rates
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Generally,
when
the
U.S.
dollar
rises
in
value
against
a
foreign
currency,
the
investments
denominated
in
that
currency
will
lose
value;
the
opposite
effect
occurs
if
the
U.S.
dollar
falls
in
relative
value. 
The
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statement
of
Operations
from
the
effects
of
changes
in
market
prices
of
those
investments,
but
are
included
as
a
component
of
net
realized
and
unrealized
gain
(loss)
from
investments.
The
Fund
reports
realized
currency
gains
(losses)
on
foreign
currency
related
transactions
as
components
of
net
realized
gain
(loss)
for
financial
reporting
purposes,
whereas
such
components
are
generally
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes.
Foreign
Taxes:
The
Fund
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
the
Fund
and
are
reflected
in
its
Statement
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Foreign
taxes
withheld”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
June
30,
2021
,
if
any,
are
disclosed
in
the Statement
of
Assets
and
Liabilities.
The
Fund
files
withholding
tax
reclaims
in
certain
jurisdictions
to
recover
a
portion
of
amounts
previously
withheld.
The
Fund
may
record
a
reclaim
receivable
based
on
collectability,
which
includes
factors
such
as
the
jurisdiction’s
applicable
laws,
payment
history
and
market
convention.
The
Statement
of
Operations
includes
tax
reclaims
recorded
as
well
as
professional
and
other
fees,
if
any,
associated
with
recovery
of
foreign
withholding
taxes.
Segregation
and
Collateralization:
In
cases
where the
Fund
enters
into
certain
investments
(e.g.,
dollar
rolls,
TBA
sale
commitments,
futures
contracts,
forward
foreign
currency
exchange
contracts,
options
written
and
swaps)
or
certain
borrowings
(e.g.,
reverse
repurchase
transactions)
that
would
be
treated
as
“senior
securities”
for
1940
Act
purposes, the
Fund
may
segregate
or
designate
on
its
books
and
records
cash
or
liquid
assets
having
a
market
value
at
least
equal
to
the
amount
of
its
future
obligations
under
such
investments
or
borrowings.
Doing
so
allows
the
investment
or
borrowings
to
be
excluded
from
treatment
as
a
“senior
security.” 
Furthermore,
if
required
by
an
exchange
or
counterparty
agreement,
the
Fund
may
be
required
to
deliver/deposit
cash
and/or
securities
to/with
an
exchange,
or
broker-dealer
or
custodian
as
collateral
for
certain
investments
or
obligations.  
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly. 
Distributions
of
capital
gains
are
recorded
on
the
ex-dividend
dates
and
made
at
least
annually.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP.  
Deferred
Compensation
Plan:
Under
the
Deferred
Compensation
Plan
(the
“Plan”)
approved
by
the
Board
of
Directors
of
the
Company
(the
“Board”), the directors
who
are
not
“interested
persons”
of
the
Fund,
as
defined
in
the
1940
Act
(“Independent
Directors”),
may
defer
a
portion
of
their
annual
complex-wide
compensation.
Deferred
amounts
earn
an
approximate
return
as
though
equivalent
dollar
amounts
had
been
invested
in
common
shares
of
certain
funds
in
the
BlackRock
Fixed-Income
Complex
selected
by
the
Independent
Directors
.
This
has
the
same
economic
effect
for
the
Independent 
Directors
as
if
the
Independent 
Directors
had
invested
the
deferred
amounts
directly
in
certain
funds
in
the
BlackRock
Fixed-Income
Complex.  
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
24
The
Plan
is
not
funded
and
obligations
thereunder
represent
general
unsecured
claims
against
the
general
assets
of
the
Fund,
as
applicable.
Deferred
compensation
liabilities,
if
any, are
included
in
the
Directors’
and
Officer’s
fees
payable
in
the
Statement
of
Assets
and
Liabilities
and
will
remain
as
a
liability
of
the
Fund
until
such
amounts
are
distributed
in
accordance
with
the
Plan. 
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Fund
and
other
shared
expenses
prorated
to
the
Fund
are
allocated
daily
to
each
class
based
on
its
relative
net
assets
or
other
appropriate
methods.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager
,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods.  
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 The
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
policies
approved
by
the
Board.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value.
The
BlackRock
Global
Valuation
Methodologies
Committee
(the
“Global
Valuation
Committee”)
is
the
committee
formed
by
management
to
develop
global
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund’s
assets
and
liabilities: 
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
or
current
market
quotations
provided
by
independent
dealers
or
third
party
pricing
services.
Pricing
services
generally
value
fixed-income
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
a
fund
may
hold
or
transact
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
may
trade
at
lower
prices
than
institutional
round
lots.
The
pricing
services
may
use
matrix
pricing
or
valuation
models
that
utilize
certain
inputs
and
assumptions
to
derive
values,
including
transaction
data
(e.g.,
recent
representative
bids
and
offers),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day's
published net
asset
value
(“NAV”). 
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
or
trade price
on
the
exchange
where
the
contract
is
traded.
Forward
foreign
currency
exchange
contracts
are
valued
at
the
mean
between
the
bid
and
ask
prices
and
are
determined
as
of
the
close
of
trading
on
the
NYSE
based
on
that
day’s
prevailing
forward
exchange
rate
for
the
underlying
currencies.
Exchange-traded
options
are
valued
at
the
mean
between
the
last bid
and
ask
prices
at
the
close
of
the
options
market in
which
the
options
trade.
An
exchange-traded
option
for
which there
is
no
mean
price
is
valued
at
the
last
bid
(long
positions)
or
ask
(short
positions)
price.
If
no
bid
or
ask
price
is
available,
the
prior
day's
price will
be
used,
unless
it
is
determined
that
the
prior
day's
price
no
longer
reflects
the
fair
value
of
the
option.
OTC
options
and
options
on
swaps
(“swaptions”)
are
valued
by
an
independent
pricing
service
using
a
mathematical
model,
which
incorporates
a
number
of
market
data
factors,
such
as
the
trades
and
prices
of
the
underlying
instruments.
Swap
agreements
are
valued
utilizing
quotes
received
daily
by
independent pricing
services
or
through
brokers,
which
are
derived
using
daily
swap
curves
and
models
that
incorporate
a
number
of
market
data
factors,
such
as
discounted
cash
flows,
trades
and
values
of
the
underlying
reference
instruments. 
If
events
(e.g.,
a
market
closure,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Global
Valuation
Committee,
or
its
delegate,
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the
Global
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Global
Valuation
Committee,
or
its
delegate,
seeks
to
determine
the
price
that
the
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm’s-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the
Global
Valuation
Committee,
or
its
delegate,
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
The
pricing
of
all
Fair
Valued
Investments
is
subsequently
reported
to
the
Board
or
a
committee
thereof
on
a
quarterly
basis.
Notes
to
Financial
Statements
(unaudited)
(continued)
25
Notes
to
Financial
Statements
For
investments
in
equity
or
debt
issued
by
privately
held
companies
or
funds
(“Private
Company”
or
collectively,
the
“Private
Companies”)
and
other
Fair
Valued
Investments,
the
fair
valuation
approaches
that
are
used
by
the
Global
Valuation
Committee
and
third
party
pricing
services
utilize
one
or
a
combination
of,
but
not
limited
to,
the
following
inputs.  
Investments
in
series
of
preferred
stock
issued
by
Private
Companies
are
typically
valued
utilizing
market
approach
in
determining
the
enterprise
value
of
the
company.
Such
investments
often
contain
rights
and
preferences
that
differ
from
other
series
of
preferred
and
common
stock
of
the
same
issuer.
Enterprise
valuation
techniques
such
as
an
option
pricing
model
(“OPM”),
a
probability
weighted
expected
return
model
(“PWERM”),
current
value
method or
a
hybrid
of
those
techniques
are
used,
as
deemed
appropriate
under
the
circumstances.
The
use
of these
valuation techniques
involve
a
determination
of
the
exit
scenarios
of
the
investment
in
order
to
appropriately
allocate
the
enterprise
value
of
the
company
among
the
various
parts
of
its
capital
structure. 
The
Private
Companies
are
not
subject
to
the
public
company
disclosure,
timing,
and
reporting
standards
applicable
to other
investments
held
by the
Fund.
Typically,
the
most
recently
available
information
by
a
Private
Company
is
as
of
a
date
that
is
earlier
than
the
date the
Fund
is
calculating
its
NAV.
This
factor
may
result
in
a
difference
between
the
value
of
the
investment
and
the
price the
Fund
could
receive
upon
the
sale
of
the
investment.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows: 
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
—
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market–corroborated
inputs);
and 
Level
3 —
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Global
Valuation
Committee's assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Global
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
Private
Companies
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
SECURITIES
AND
OTHER
INVESTMENTS 
Asset-Backed
and
Mortgage-Backed
Securities:
Asset-backed
securities
are
generally
issued
as
pass-through
certificates
or
as
debt
instruments.
Asset-backed
securities
issued
as
pass-through
certificates
represent
undivided
fractional
ownership
interests
in
an
underlying
pool
of
assets.
Asset-backed
securities
issued
as
debt
instruments,
which
are
also
known
as
collateralized
obligations,
are
typically
issued
as
the
debt
of
a
special
purpose
entity
organized
solely
for
the
purpose
of
owning
such
assets
and
issuing
such
debt.
Asset-backed
securities
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
The
yield
characteristics
of
certain
asset-backed
securities
may
differ
from
traditional
debt
securities.
One
such
major
difference
is
that
all
or
a
principal
part
of
the
obligations
may
be
prepaid
at
any
time
because
the
underlying
assets
(i.e.,
loans)
may
be
prepaid
at
any
time.
As
a
result,
a
decrease
in
interest
rates
in
the
market
may
result
in
increases
in
the
level
of
prepayments
as
borrowers,
particularly
mortgagors,
refinance
and
repay
their
loans.
An
increased
prepayment
rate
with
respect
to
an
asset-backed
security
will
have
the
effect
of
shortening
the
maturity
of
the
security.
In
addition,
a
fund
may
subsequently
have
to
reinvest
the
proceeds
at
lower
interest
rates.
If
a
fund
has
purchased
such
an
asset-backed
security
at
a
premium,
a
faster
than
anticipated
prepayment
rate
could
result
in
a
loss
of
principal
to
the
extent
of
the
premium
paid. 
For
mortgage
pass-through
securities
(the
“Mortgage
Assets”)
there
are
a
number
of
important
differences
among
the
agencies
and
instrumentalities
of
the
U.S.
Government
that
issue
mortgage-related
securities
and
among
the
securities
that
they
issue.
For
example,
mortgage-related
securities
guaranteed
by
Ginnie
Mae
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
Ginnie
Mae
and
such
guarantee
is
backed
by
the
full
faith
and
credit
of
the
United
States.
However,
mortgage-related
securities
Standard
Inputs
Generally
Considered
By
Third
Party
Pricing
Services
Market
approach
........................
(i)        
recent
market
transactions,
including
subsequent
rounds
of
financing,
in
the
underlying
investment
or
comparable  
            issuers;
(ii)        recapitalizations
and
other
transactions
across
the
capital
structure;
and
(iii)      
market
multiples
of
comparable
issuers.
Income
approach
..........................
(i)        
future
cash
flows
discounted
to
present
and
adjusted
as
appropriate
for
liquidity,
credit,
and/or
market
risks;
(ii)        quoted
prices
for
similar
investments
or
assets
in
active
markets;
and
(iii)      
other
risk
factors,
such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks,
            recovery
rates,
liquidation
amounts
and/or
default
rates.
Cost
approach
............................
(i)        
audited
or
unaudited
financial
statements,
investor
communications
and
financial
or
operational
metrics
            issued
by
the
Private
Company;
(ii)        changes
in
the
valuation
of
relevant
indices
or
publicly
traded
companies
comparable
to
the
Private
Company;
(iii)      
relevant
news
and
other
public
sources;
and
(iv)      
known
secondary
market
transactions
in
the
Private
Company’s
interests
and
merger
or
acquisition
activity
            in
companies
comparable
to
the
Private
Company.
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
26
issued
by
Freddie
Mac
and
Fannie
Mae,
including
Freddie
Mac
and
Fannie
Mae
guaranteed
mortgage
pass-through
certificates,
which
are
solely
the
obligations
of
Freddie
Mac
and
Fannie
Mae,
are
not
backed
by
or
entitled
to
the
full
faith
and
credit
of
the
United
States,
but
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Treasury. 
Non-agency
mortgage-backed
securities
are
securities
issued
by
non-governmental
issuers
and
have
no
direct
or
indirect
government
guarantees
of
payment
and
are
subject
to
various
risks.
Non-agency
mortgage
loans
are
obligations
of
the
borrowers
thereunder
only
and
are
not
typically
insured
or
guaranteed
by
any
other
person
or
entity.
The
ability
of
a
borrower
to
repay
a
loan
is
dependent
upon
the
income
or
assets
of
the
borrower.
A
number
of
factors,
including
a
general
economic
downturn,
acts
of
God,
terrorism,
social
unrest
and
civil
disturbances,
may
impair
a
borrower’s
ability
to
repay
its
loans.
Multiple
Class
Pass-Through
Securities:
Multiple
class
pass-through
securities,
including
collateralized
mortgage
obligations
(“CMOs”)
and
commercial
mortgage-backed
securities,
may
be
issued
by
Ginnie
Mae,
U.S.
Government
agencies
or
instrumentalities
or
by
trusts
formed
by
private
originators
of,
or
investors
in,
mortgage
loans.
In
general,
CMOs
are
debt
obligations
of
a
legal
entity
that
are
collateralized
by
a
pool
of
residential
or
commercial
mortgage
loans
or
Mortgage
Assets.
The
payments
on
these
are
used
to
make
payments
on
the
CMOs
or
multiple
pass-through
securities.
Multiple
class
pass-through
securities
represent
direct
ownership
interests
in
the
Mortgage
Assets.
Classes
of
CMOs
include
interest
only
(“IOs”),
principal
only
(“POs”),
planned
amortization
classes
and
targeted
amortization
classes.
IOs
and
POs
are
stripped
mortgage-backed
securities
representing
interests
in
a
pool
of
mortgages,
the
cash
flow
from
which
has
been
separated
into
interest
and
principal
components.
IOs
receive
the
interest
portion
of
the
cash
flow
while
POs
receive
the
principal
portion.
IOs
and
POs
can
be
extremely
volatile
in
response
to
changes
in
interest
rates.
As
interest
rates
rise
and
fall,
the
value
of
IOs
tends
to
move
in
the
same
direction
as
interest
rates.
POs
perform
best
when
prepayments
on
the
underlying
mortgages
rise
since
this
increases
the
rate
at
which
the
principal
is
returned
and
the
yield
to
maturity
on
the
PO.
When
payments
on
mortgages
underlying
a
PO
are
slower
than
anticipated,
the
life
of
the
PO
is
lengthened
and
the
yield
to
maturity
is
reduced.
If
the
underlying
Mortgage
Assets
experience
greater
than
anticipated
prepayments
of
principal,
a
fund’s
initial
investment
in
the
IOs
may
not
fully
recoup. 
Stripped
Mortgage-Backed
Securities:
Stripped
mortgage-backed
securities
are
typically
issued
by
the
U.S.
Government,
its
agencies
and
instrumentalities.
Stripped
mortgage-backed
securities
are
usually
structured
with
two
classes
that
receive
different
proportions
of
the
interest
(IOs)
and
principal
(POs)
distributions
on
a
pool
of
Mortgage
Assets.
Stripped
mortgage-backed
securities
may
be
privately
issued.
TBA
Commitments:
TBA
commitments
are
forward
agreements
for
the
purchase
or
sale
of
securities,
including
mortgage-backed
securities
for
a
fixed
price,
with
payment
and
delivery
on
an
agreed
upon
future
settlement
date.
The
specific
securities
to
be
delivered
are
not
identified
at
the
trade
date.
However,
delivered
securities
must
meet
specified
terms,
including
issuer,
rate
and
mortgage
terms.
When
entering
into
TBA
commitments,
a
fund
may
take
possession
of
or
deliver
the
underlying
mortgage-backed
securities
but
can
extend
the
settlement
or
roll
the
transaction.
TBA
commitments
involve
a
risk
of
loss
if
the
value
of
the
security
to
be
purchased
or
sold
declines
or
increases,
respectively,
prior
to
settlement
date,
if
there
are
expenses
or
delays
in
connection
with
the
TBA
transactions,
or
if
the
counterparty
fails
to
complete
the
transaction.
In
order
to
better
define
contractual
rights
and
to
secure
rights
that
will
help
a
fund
mitigate its
counterparty
risk,
TBA
commitments
may
be
entered
into
by
a
fund
under
Master
Securities
Forward
Transaction
Agreements
(each,
an
“MSFTA”).
An
MSFTA
typically
contains,
among
other
things,
collateral
posting
terms
and
netting
provisions
in
the
event
of
default
and/or
termination
event. The
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement
and
comparing
that
amount
to
the
value
of
the
collateral
currently
pledged
by
a
fund
and
the
counterparty. Cash
collateral
that
has
been
pledged
to
cover
the
obligations
of
a
fund
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statement
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
for
TBA
commitments
or
cash
received
as
collateral
for
TBA
commitments,
respectively.
Non-cash
collateral
pledged
by
a
fund,
if
any,
is
noted
in
the
Schedule
of
Investments. Typically,
a
fund
is
permitted
to
sell,
re-pledge
or
use
the
collateral
it
receives;
however,
the
counterparty
is
not
permitted
to
do
so.
To
the
extent
amounts
due
to
a
fund
are
not
fully
collateralized,
contractually
or
otherwise,
a
fund
bears
the
risk
of
loss
from
counterparty
non-performance.
Mortgage
Dollar
Roll
Transactions
:
The
Fund
may
sell
TBA
mortgage-backed
securities
and
simultaneously
contract
to
repurchase
substantially
similar
(i.e.,
same
type,
coupon
and
maturity)
securities
on
a
specific
future
date
at
an
agreed
upon
price.
During
the
period
between
the
sale
and
repurchase,
a
fund
is
not
entitled
to
receive
interest
and
principal
payments
on
the
securities
sold.
Mortgage
dollar
roll
transactions
are
treated
as
purchases
and
sales
and
a
fund realizes
gains
and
losses
on
these
transactions.
Mortgage
dollar
rolls
involve
the
risk
that
the
market
value
of
the
securities
that
a
fund
is
required
to
purchase
may
decline
below
the
agreed
upon
repurchase
price
of
those
securities.
Reverse
Repurchase
Agreements:
Reverse
repurchase
agreements
are
agreements
with
qualified
third
party
broker
dealers
in
which
a
fund
sells
securities
to
a
bank
or
broker-dealer
and
agrees
to
repurchase
the
same
securities
at
a
mutually
agreed
upon
date
and
price.
A
fund
receives
cash
from
the
sale
to
use
for
other
investment
purposes.
During
the
term
of
the
reverse
repurchase
agreement,
a
fund
continues
to
receive
the
principal
and
interest
payments
on
the
securities
sold.
Certain
agreements
have
no
stated
maturity
and
can
be
terminated
by
either
party
at
any
time.
Interest
on
the
value
of
the
reverse
repurchase
agreements
issued
and
outstanding
is
based
upon
competitive
market
rates
determined
at
the
time
of
issuance.
A
fund
may
utilize
reverse
repurchase
agreements
when
it
is
anticipated
that
the
interest
income
to
be
earned
from
the
investment
of
the
proceeds
of
the
transaction
is
greater
than
the
interest
expense
of
the
transaction.
Reverse
repurchase
agreements
involve
leverage
risk.
If
a
fund
suffers
a
loss
on
its
investment
of
the
transaction
proceeds
from
a
reverse
repurchase
agreement,
a
fund
would
still
be
required
to
pay
the
full
repurchase
price.
Further,
a
fund
remains
subject
to
the
risk
that
the
market
value
of
the
securities
repurchased
declines
below
the
repurchase
price.
In
such
cases,
a
fund
would
be
required
to
return
a
portion
of
the
cash
received
from
the
transaction
or
provide
additional
securities
to
the
counterparty. 
Cash
received
in
exchange
for
securities
delivered
plus
accrued
interest
due
to
the
counterparty
is
recorded
as
a
liability
in
the
Statement
of
Assets
and
Liabilities
at
face
value
including
accrued
interest.
Due
to
the
short-term
nature
of
the
reverse
repurchase
agreements,
face
value
approximates
fair
value.
Interest
payments
made
by
a
fund
to
the
counterparties
are
recorded
as
a
component
of
interest
expense
in
the
Statement
of
Operations.
In
periods
of
increased
demand
for
the
security,
a
fund
may
receive
a
fee
for
the
use
of
the
security
by
the
counterparty,
which
may
result
in
interest
income
to
a
fund.
For
the
six
months
ended
June
30,
2021,
the
average
amount
of
reverse
repurchase
agreements
outstanding and
the
daily
weighted
average
interest
rate
for
the
Fund
were
$2,396,106
and
0.07%,
respectively.
Reverse
repurchase
transactions are
entered
into
by
a
fund
under
Master
Repurchase
Agreements
(each,
an
“MRA”),
which
permit
a
fund,
under
certain
circumstances,
including
an
event
of
default
(such
as
bankruptcy
or
insolvency),
to
offset
payables
and/or
receivables
under
the
MRA
with
collateral
held
and/or
posted
to
the
counterparty
and
create
one
single
net
payment
due
to
or
from
a
fund.
With
reverse
repurchase
transactions,
typically
a
fund
and
counterparty
under
an
MRA
are
permitted
to
sell,
re-
Notes
to
Financial
Statements
(unaudited)
(continued)
27
Notes
to
Financial
Statements
pledge,
or
use
the
collateral
associated
with
the
transaction.
Bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
the
MRA
counterparty’s
bankruptcy
or
insolvency.
Pursuant
to
the
terms
of
the
MRA,
a
fund
receives
or
posts
securities
and
cash
as
collateral
with
a
market
value
in
excess
of
the
repurchase
price
to
be
paid
or
received
by
a
fund
upon
the
maturity
of
the
transaction.
Upon
a
bankruptcy
or
insolvency
of
the
MRA
counterparty,
a
fund
is
considered
an
unsecured
creditor
with
respect
to
excess
collateral
and,
as
such,
the
return
of
excess
collateral
may
be
delayed.
As
of
period
end,
the
following
table
is
a
summary
of
the
Fund’s
open
reverse
repurchase
agreements
by
counterparty
which
are
subject
to
offset
under
an
MRA on
a
net
basis: 
(a)
Collateral
with
a
value
of
$2,855,869
has
been
pledged
in
connection
with
open
reverse
repurchase
agreements.
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(b)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
5.
Derivative
Financial
Instruments
The
Fund
engages
in
various
portfolio
investment
strategies
using
derivative
contracts
both
to
increase
the
returns
of
the
Fund
and/or
to
manage
its
exposure
to
certain
risks
such
as
credit
risk,
equity
risk,
interest
rate
risk,
foreign
currency
exchange
rate
risk,
commodity
price
risk
or
other
risks
(e.g.,
inflation
risk).
Derivative
financial
instruments
categorized
by
risk
exposure
are
included
in
the
Schedule
of
Investments.
These
contracts
may
be
transacted
on
an
exchange or
OTC.
Futures
Contracts:
Futures
contracts
are
purchased
or
sold
to
gain
exposure
to,
or
manage
exposure
to,
changes
in
interest
rates
(interest
rate
risk)
and
changes
in
the
value
of
equity
securities
(equity
risk)
or
foreign
currencies
(foreign
currency
exchange
rate
risk).  
Futures
contracts
are
exchange-traded agreements
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
specific
quantity
of
an
underlying
instrument
at
a
specified
price
and
on
a
specified
date.
Depending
on
the
terms
of
a
contract,
it
is
settled
either
through
physical
delivery
of
the
underlying
instrument
on
the
settlement
date
or
by
payment
of
a
cash
amount
on
the
settlement
date.
Upon
entering
into
a
futures
contract,
the
Fund
is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
a
contract’s
size
and
risk
profile.
The
initial
margin
deposit
must
then
be
maintained
at
an
established
level
over
the
life
of
the
contract.
Amounts
pledged,
which
are
considered
restricted,
are
included
in
cash
pledged
for
futures
contracts
in
the Statement
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
an
amount
of
cash
equal
to
the
daily
fluctuation
in
market
value
of
the
contract
(“variation
margin”).
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and,
if
any,
shown
as
variation
margin
receivable
(or
payable)
on
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
notional
amount
of
the
contract
at
the
time
it
was
opened
and
the
notional
amount
at
the
time
it
was
closed.
The
use
of
futures
contracts
involves
the
risk
of
an
imperfect
correlation
in
the
movements
in
the
price
of
futures
contracts
and
interest
rates,
foreign
currency
exchange
rates
or
underlying
assets.
Forward
Foreign
Currency
Exchange
Contracts
:
Forward
foreign
currency
exchange
contracts
are
entered
into
to
gain
or
reduce
exposure
to
foreign
currencies
(foreign
currency
exchange
rate
risk).
A
forward
foreign
currency
exchange
contract
is
an
agreement
between
two
parties
to
buy
and
sell
a
currency
at
a
set
exchange
rate
on
a
specified
date.
These
contracts
help
to
manage
the
overall
exposure
to
the
currencies
in
which
some
of
the
investments
held
by
the
Fund
are
denominated
and
in
some
cases,
may
be
used
to
obtain
exposure
to
a
particular
market.
The
contracts
are
traded
OTC
and
not
on
an
organized
exchange.
The
contract
is
marked-to-market
daily
and
the
change
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
in
the
Statement
of
Assets
and
Liabilities.
When
a
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
value
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
Non-deliverable
forward
foreign
currency
exchange
contracts
are
settled
with
the
counterparty
in
cash
without
the
delivery
of
foreign
currency.
The
use
of
forward
foreign
currency
exchange
contracts
involves
the
risk
that
the
value
of
a
forward
foreign
currency
exchange
contract
changes
unfavorably
due
to
movements
in
the
value
of
the
referenced
foreign
currencies,
and
such
value
may
exceed
the
amount(s)
reflected
in
the
Statement
of
Assets
and
Liabilities.
Cash
amounts
pledged
for
forward
foreign
currency
exchange
contracts
are
considered
restricted
and
are
included
in
cash
pledged
as
collateral
for
OTC
derivatives
in
the
Statement
of
Assets
and
Liabilities.
A
Fund’s
risk
of
loss
from
counterparty
credit
risk
on
OTC
derivatives
is
generally
limited
to
the
aggregate
unrealized
gain
netted
against
any
collateral
held
by
the
Fund.
Options:
The
Fund
may purchase
and
write
call
and
put
options
to
increase
or
decrease
its
exposure
to
the
risks
of
underlying
instruments,
including
equity
risk,
interest
rate
risk
and/or
commodity
price
risk
and/or,
in
the
case
of
options
written,
to
generate
gains
from
options
premiums.
A
call
option
gives
the
purchaser
(holder)
of
the
option
the
right
(but
not
the
obligation)
to
buy,
and
obligates
the
seller
(writer)
to
sell
(when
the
option
is
exercised)
the
underlying
instrument
at
the
exercise
or
strike
price
at
any
time
or
at
a
specified
time
during
the
option
period.
A
put
option
gives
the
holder
the
right
to
sell
and
obligates
the
writer
to
buy
the
underlying
instrument
at
the
exercise
or
strike
price
at
any
time
or
at
a
specified
time
during
the
option
period.
Premiums
paid
on
options
purchased
and
premiums
received
on
options
written,
as
well
as
the
daily
fluctuation
in
market
value,
are
included
in
investments
at
value
–
unaffiliated
and
options
written
at
value,
respectively,
in
the
Statement
of
Assets
and
Liabilities.
When
an
instrument
is
purchased
or
sold
through
the
exercise
of
an
option,
the
premium
is
offset
against
the
cost
or
proceeds
of
the
underlying
instrument.
When
an
option
expires,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
to
the
extent
of
the
premiums
received
or
paid.
When
an
option
is
closed
or
sold,
a
gain
or
loss
is
recorded
in
the
Statement
of
Operations
to
the
extent
the
cost
of
the
closing
transaction
exceeds
the
premiums
received
or
paid.
When
the
Fund
writes
a
call
option,
such
option
is
typically
“covered,”
meaning
that
it
holds
the
underlying
instrument
Counterparty
Reverse
Repurchase
Agreements
Fair
Value
of
Non-cash
Collateral
Pledged
Including
Accrued
Interest
(a)
Cash
Collateral
Pledged/Received
Net
Amount
(b)
Deutsche
Bank
Securities,
Inc.
.......................
$
(2,861,305‌)
$
2,855,869‌
$
—‌
$
(5,436‌)
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
28
subject
to
being
called
by
the
option
counterparty.
When
the
Fund
writes
a
put
option,
cash
is
segregated in
an
amount
sufficient
to
cover
the
obligation.
These
amounts,
which
are
considered
restricted,
are
included
in
cash
pledged
as
collateral
for
options
written
in
the
Statement
of
Assets
and
Liabilities.
Swaptions
–
The
Fund
may purchase
and
write
options
on
swaps
(“swaptions”)
primarily
to
preserve
a
return
or
spread
on
a
particular
investment
or
portion
of
the
Fund’s
holdings,
as
a
duration
management
technique
or
to
protect
against
an
increase
in
the
price
of
securities
it
anticipates
purchasing
at
a
later
date.
The
purchaser
and
writer
of
a
swaption
is
buying
or
granting
the
right
to
enter
into
a
previously
agreed
upon
interest
rate
or
credit
default
swap
agreement
(interest
rate
risk
and/or
credit
risk)
at
any
time
before
the
expiration
of
the
option. 
Interest
rate
caps
and
floors
—
Interest
rate
caps
and
floors
are
entered
into
to
gain
or
reduce
exposure
to
interest
rates
(interest
rate
risk).
Caps
are
agreements
whereby
one
party
agrees
to
make
payments
to
the
other,
in
return
for
a
premium,
to
the
extent
that
interest
rate
indexes
exceed
a
specified
rate,
or
“cap.”
Floors
are
agreements
whereby
one
party
agrees
to
make
payments
to
the
other,
in
return
for
a
premium,
to
the
extent
that
interest
rate
indexes
fall
below
a
specified
rate,
or
“floor.”
The
maximum
potential
amount
of
future
payments
that
the
Fund
would
be
required
to
make
under
an
interest
rate
cap
would
be
the
notional
amount
times
the
percentage
increase
in
interest
rates
determined
by
the
difference
between
the
interest
rate
index
current
value
and
the
value
at
the
time
the
cap
was
entered
into.
In
purchasing
and
writing
options,
the
Fund
bears
the
risk
of
an
unfavorable
change
in
the
value
of
the
underlying
instrument
or
the
risk
that
it
may
not
be
able
to
enter
into
a
closing
transaction
due
to
an
illiquid
market.
Exercise
of
a
written
option
could
result
in
the
Fund
purchasing
or
selling
a
security
when
it
otherwise
would
not,
or
at
a
price
different
from
the
current
market
value.
Swaps:
Swap
contracts
are
entered
into
to
manage
exposure
to
issuers,
markets
and
securities.
Such
contracts
are
agreements
between
the
Fund
and
a
counterparty
to
make
periodic
net
payments
on
a
specified
notional
amount
or
a
net
payment
upon
termination.
Swap
agreements
are
privately
negotiated
in
the
OTC
market
and
may
be
entered
into
as
a
bilateral
contract
(“OTC
swaps”)
or
centrally
cleared
(“centrally
cleared
swaps”).
For
OTC
swaps,
any
upfront
premiums
paid
and
any
upfront
fees
received
are
shown
as
swap
premiums
paid
and
swap
premiums
received,
respectively,
in
the
Statement
of
Assets
and
Liabilities
and
amortized
over
the
term
of
the
contract.
The
daily
fluctuation
in
market
value
is
recorded
as
unrealized
appreciation
(depreciation)
on
OTC
Swaps
in
the
Statement
of
Assets
and
Liabilities.
Payments
received
or
paid
are
recorded
in
the
Statement
of
Operations
as
realized
gains
or
losses,
respectively.
When
an
OTC
swap
is
terminated,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
proceeds
from
(or
cost
of)
the
closing
transaction
and
the
Fund’s
basis
in
the
contract,
if
any.
Generally,
the
basis
of
the
contract
is
the
premium
received
or
paid.
In
a
centrally
cleared
swap,
immediately
following
execution
of
the
swap
contract,
the
swap
contract
is
novated
to
a
central
counterparty
(the
“CCP”)
and
the
CCP
becomes
the Fund’s
counterparty
on
the
swap.
The
Fund
is
required
to
interface
with
the
CCP
through
the
broker.
Upon
entering
into
a
centrally
cleared
swap,
the
Fund
is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
the
size
and
risk
profile
of
the
particular
swap. Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited
is
shown
as
cash
pledged
for
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities. Amounts
pledged,
which
are
considered
restricted
cash,
are
included
in
cash
pledged
for
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Fund
agrees
to
receive
from
or
pay
to
the
broker
variation
margin.
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and
shown
as
variation
margin
receivable
(or
payable)
on
centrally
cleared
swaps
in
the
Statement
of
Assets
and
Liabilities.
Payments
received
from
(paid
to)
the
counterparty
are
amortized
over
the
term
of
the
contract
and
recorded
as
realized
gains
(losses)
in
the
Statement
of
Operations,
including
those
at
termination.
Interest
rate
swaps
—
Interest
rate
swaps
are
entered
into
to
gain
or
reduce
exposure
to
interest
rates
or
to
manage
duration,
the
yield
curve
or
interest
rate
(interest
rate
risk).
Interest
rate
swaps
are
agreements
in
which
one
party
pays
a
stream
of
interest
payments,
either
fixed
or
floating,
in
exchange
for
another
party’s
stream
of
interest
payments,
either
fixed
or
floating,
on
the
same
notional
amount
for
a
specified
period
of
time.
In
more
complex
interest
rate
swaps,
the
notional
principal
amount
may
decline
(or
amortize)
over
time.
Inflation
swaps
—
Inflation
swaps
are
entered
into
to
gain
or
reduce
exposure
to
inflation
(inflation
risk).
In
an
inflation
swap,
one
party
makes
fixed
interest
payments
on
a
notional
principal
amount
in
exchange
for
another
party’s
variable
payments
based
on
an
inflation
index,
such
as
the
Consumer
Price
Index.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risk
in
excess
of
the
amounts
recognized
in
the
Statement
of
Assets
and
Liabilities.
Such
risks
involve
the
possibility
that
there
will
be
no
liquid
market
for
these
agreements,
that
the
counterparty
to
the
agreements
may
default
on
its
obligation
to
perform
or
disagree
as
to
the
meaning
of
the
contractual
terms
in
the
agreements,
and
that
there
may
be
unfavorable
changes
in
interest
rates
and/or
market
values
associated
with
these
transactions.
Master
Netting
Arrangements:
In
order
to
define
its
contractual
rights
and
to
secure
rights
that
will
help
it mitigate its
counterparty
risk, the
Fund
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
its
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between a
Fund
and
a
counterparty
that
governs
certain
OTC
derivatives
and
typically
contains,
among
other
things,
collateral
posting
terms
and
netting
provisions
in
the
event
of
a
default
and/or
termination
event.
Under
an
ISDA
Master
Agreement, a
Fund
may,
under
certain
circumstances,
offset
with
the
counterparty
certain
derivative
financial
instruments’
payables
and/or
receivables
with
collateral
held
and/or
posted
and
create
one
single
net
payment.
The
provisions
of
the
ISDA
Master
Agreement
typically
permit
a
single
net
payment
in
the
event
of
default
including
the
bankruptcy
or
insolvency
of
the
counterparty.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
the
right
of
offset
in
bankruptcy,
insolvency
or
other
events.
Collateral
Requirements:
For
derivatives
traded
under
an
ISDA
Master
Agreement,
the
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement
and
comparing
that
amount
to
the
value
of
any
collateral
currently
pledged
by
the
Fund
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
obligations
of
the
Fund
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statement
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
and
cash
received
as
collateral,
respectively.
Non-cash
collateral
pledged
by
the
Fund,
if
any,
is
noted
in
the
Schedule
of
Notes
to
Financial
Statements
(unaudited)
(continued)
29
Notes
to
Financial
Statements
Investments.
Generally,
the
amount
of
collateral
due
from
or
to
a
counterparty
is
subject
to
a
certain
minimum
transfer
amount
threshold
before
a
transfer
is
required,
which
is
determined
at
the
close
of
business
of
the
Fund.
Any
additional
required
collateral
is
delivered
to/pledged
by
the
Fund
on
the
next
business
day.
Typically,
the
counterparty
is
not
permitted
to
sell,
re-pledge
or
use
cash
and
non-cash
collateral
it
receives.
The
Fund
generally
agrees
not
to
use
non-cash
collateral
that
it
receives
but
may,
absent
default
or
certain
other
circumstances
defined
in
the
underlying
ISDA
Master
Agreement,
be
permitted
to
use
cash
collateral
received.
In
such
cases,
interest
may
be
paid
pursuant
to
the
collateral
arrangement
with
the
counterparty.
To
the
extent
amounts
due
to
the
Fund
from the
counterparties
are
not
fully
collateralized, the
Fund bears
the
risk
of
loss
from
counterparty
non-performance.
Likewise,
to
the
extent
the
Fund
has
delivered
collateral
to
a
counterparty
and
stands
ready
to
perform
under
the
terms
of
its
agreement
with
such
counterparty, the
Fund bears the
risk
of
loss
from
a
counterparty
in
the
amount
of
the
value
of
the
collateral
in
the
event
the
counterparty
fails
to
return
such
collateral.
Based
on
the
terms
of
agreements,
collateral
may
not
be
required
for
all
derivative
contracts.
For
financial
reporting
purposes,
the
Fund
does
not
offset
derivative
assets
and
derivative
liabilities
that
are
subject
to
netting
arrangements,
if
any,
in
the
Statement
of
Assets
and
Liabilities.
6.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES 
Investment
Advisory:
The
Company,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”)
,
to
provide
investment
advisory
and
administrative
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
the
following
percentages
of
the
average
daily
value
of
the
Fund’s
net
assets:
For
the six
months
ended
June
30,
2021,
the
Fund
reimbursed
the
Manager $360
for
certain
accounting
services,
which
is
included
in
accounting
services
in
the
Statement
of
Operations.
The
Manager
entered
into
a
sub-advisory
agreement
with
BlackRock
International
Limited
(“BIL”),
an
affiliate
of
the
Manager.
The
Manager
pays
BIL
for
services
it
provides
for
that
portion
of
the
Fund
for
which
BIL
acts
as
sub-adviser
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
the
Fund
to
the
Manager.
Distribution
Fees:
 The
Company
,
on behalf
of
the
Fund,
entered
into
a
Distribution
Agreement
and
a Distribution Plan
with
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
the
Manager.
Pursuant
to
the
Distribution
Plan
and
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Fund
pays
BRIL
ongoing
service
and
distribution
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
an
annual
rate
of
0.25%
based
upon
the
average
daily
net
assets
attributable
to
Class
III.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
distribution
services to
the
Fund.
The
ongoing
distribution
fee
compensates
BRIL
and
each
broker-dealer
for
providing
shareholder
distribution related
services
to
shareholders.
For
the six
months
ended
June
30,
2021,
the
class
specific
distribution
fees
borne
directly
by
Class
III
were
$7,496.
Transfer
Agent:
On
behalf
of
the
Fund,
the
Manager
entered
into
agreements
with
insurance
companies
and
other
financial
intermediaries
(“Service
Organizations”),
some
of
which
may
be
affiliates.
Pursuant
to
these
agreements,
the
Service
Organizations
provide
the
Fund
with
administrative,
networking,
recordkeeping,
sub-transfer
agency
and
shareholder
services
to
underlying
investor
accounts.
For
these
services,
the
Service
Organizations
receive
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets
of
Fund
shareholders
serviced
by
the
Service
Organizations
which
is
shown
as
transfer
agent
–
class
specific.
For
the
six
months
ended
June
30,
2021
,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
In
addition,
the
Fund
pays
the
transfer
agent,
which
is
not
an
affiliate,
a
fee
for
the
issuance,
transfer
and
redemption
of
shares
and
the
opening
and
maintenance
of
shareholder
accounts,
which
is
included
in
transfer
agent
in
the
Statement
of
Operations.
For
the
six
months ended
June
30,
2021,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Expense
Limitations,
Waivers
and
Reimbursements:
The
Manager
voluntarily
agreed
to
waive
0.26%
of
its
investment
advisory
fees
paid
by
the
Fund.
This
voluntary
waiver
may
be
reduced
or
discontinued
at
any
time
without
notice.
This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2021,
the
amount
waived
was
$76,293.
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
the
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
June
30,
2023.
The
contractual
agreement
may
be
terminated upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
Billion
.........................................................................................................
0.50%
$1
Billion
-
$3
Billion
.....................................................................................................
0.47
$3
Billion
-
$5
Billion
.....................................................................................................
0.45
$5
Billion
-
$10
Billion
....................................................................................................
0.44
Greater
than
$10
Billion
..................................................................................................
0.43
Class
I
..........................................................................................................
$
52,972‌
Class
III
.........................................................................................................
4,495‌
$
57,467‌
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
30
of
fees
and
expenses
made
pursuant
to
the
expense
limitation
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver. This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2023,
the
amount
waived
was
$318.
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund’s
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2023.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
six
months
ended
June
30,
2021,
there
were
no
fees
waived
and/or
reimbursed
by
the
Manager
pursuant
to
this
arrangement.
The
Manager
has
contractually
agreed
to
reimburse
certain
transfer
agent
fees
in
order
to
limit
such
expenses
to
a
percentage
of
average
daily
net
assets
as
follows:  
The
Manager
has
agreed
not
to
reduce
or
discontinue
the
contractual
expense
limitations
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
These
amounts
are
included
in
transfer
agent
fees
reimbursed
–
class
specific
in
the
Statement
of
Operations.
For
the
six
months
ended
June
30,
2021,
class
specific
expense
reimbursements
were
as
follows: 
The
Manager
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
tax
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
The
Manager
has
agreed
not
to
reduce
or
discontinue
these
contractual
expense
limitations
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of the
Fund. For
the
six
months
ended
June
30,
2021,
there
were
no
fees
waived
and/
or
reimbursed
by
the
Manager
pursuant
to
this
agreement.
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to borrow
under
the
Interfund
Lending
Program. 
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets,
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board. 
During the
period
ended
June
30,
2021,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Directors
and
Officers:
Certain
directors
and/or
officers
of
the
Company
are
directors
and/or
officers
of
BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the
Company's
Chief
Compliance
Officer,
which
is
included
in
Directors
and
Officer
in
the
Statement
of
Operations.
7.
PURCHASES
AND
SALES 
For
the
six
months ended
June
30,
2021,
purchases
and
sales
of
investments,
including
paydowns
and
mortgage
dollar
rolls and
excluding
short-term
investments,
were
as
follows:
RULE-ABOVE
For
the
six
months ended
June
30,
2021,
purchases
and
sales
related
to
mortgage
dollar
rolls
were
$100,727,474
and
$100,819,164,
respectively. 
Class
I
................................................................................................................
0.00‌%
Class
III
...............................................................................................................
0.06‌
Fund
Name/Share
Class                            
Transfer
Agent
Fees
Reimbursed
BlackRock
U.S.
Government
Bond
V.I.
Fund
Class
I
..........................................................................................................
$
52,972‌
Class
III
.........................................................................................................
2,696‌
$
55,668‌
Class
I
.............................................................................................................
1.25‌%
Class
III
............................................................................................................
1.50‌
U.S.
Government
Securities
Other
Securities
Purchases
Sales
Purchases
Sales
U.S.
Government
Bond
V.I
..............................................
$
11,337,743‌
$
11,562,431‌
$
220,066,052‌
$
215,680,524‌
Notes
to
Financial
Statements
(unaudited)
(continued)
31
Notes
to
Financial
Statements
8.
INCOME
TAX
INFORMATION 
It
is
the
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required. 
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction. 
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
June
30,
2021,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
As
of
December
31,
2020, the Fund
had
non-expiring
capital
loss
carryforward
available
to
offset
future
realized
capital
gains
of
$2,937,146. 
As
of
June
30,
2021, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows: 
9.
BANK
BORROWINGS 
The
Company,
on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
(“Participating
Funds”),
is
a
party
to
a
364-day,
$2.25
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Fund
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Fund,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
one-month
London
Interbank
Offered
Rate
(“LIBOR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum
or
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed.
The
agreement
expires
in
April
2022
unless
extended
or
renewed.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
six
months ended
June
30,
2021,
the
Fund
did
not
borrow
under
the
credit
agreement.
10.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject. 
Market Risk:
The
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
the
Fund
to
reinvest
in
lower
yielding
securities. The
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
the
Fund’s
portfolio
will
decline
if
the Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
the
Fund
portfolio’s
current
earnings
rate.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund's
investments.
The duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
Valuation
Risk:
The
price the
Fund
could
receive
upon
the
sale
of
any
particular
portfolio
investment
may
differ
from the
Fund’s
valuation
of
the
investment,
particularly
for
securities
that
trade
in
thin
or
volatile
markets
or
that
are
valued
using
a
fair
valuation
technique
or
a
price
provided
by
an
independent
pricing
service.
Changes
to
significant
unobservable
inputs
and
assumptions
(i.e.,
publicly
traded
company
multiples,
growth
rate,
time
to
exit)
due
to
the
lack
of
observable
inputs
may
significantly
impact
the
resulting
fair
value
and
therefore
the
Fund’s
results
of
operations.
As
a
result,
the
price
received
upon
the
sale
of
an
investment
may
be
less
than
the
value
ascribed
by the
Fund,
and the
Fund
could
realize
a
greater
than
expected
loss
or
lesser
than
expected
gain
upon
the
sale
of
the
investment. The
Fund’s
ability
to
value
its
investments
may
also
be
impacted
by
technological
issues
and/or
errors
by
pricing
services
or
other
third
party
service
providers. 
Counterparty
Credit
Risk:
The
Fund
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Fund
manages
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Fund
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
U.S.
Government
Bond
V.I.
Fund
...............................
$
78,526,124‌
$
1,750,198‌
$
(755,602‌)
$
994,596‌
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
32
receivables
due
from
counterparties.
The
extent
of
the
Fund’s
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statement
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Fund. 
A
derivative
contract
may
suffer
a
mark-to-market
loss
if
the
value
of
the
contract
decreases
due
to
an
unfavorable
change
in
the
market
rates
or
values
of
the
underlying
instrument.
Losses
can
also
occur
if
the
counterparty
does
not
perform
under
the
contract.
For
OTC
options
purchased,
the
Fund
bears
the
risk
of
loss
in
the
amount
of
the
premiums
paid
plus
the
positive
change
in
market
values
net
of
any
collateral
held
by
the
Fund
should
the
counterparty
fail
to
perform
under
the
contracts.
Options
written
by
the
Fund
do
not
typically
give
rise
to
counterparty
credit
risk,
as
options
written
generally
obligate
the
Fund,
and
not
the
counterparty,
to
perform.
The
Fund
may
be
exposed
to
counterparty
credit
risk
with
respect
to
options
written
to
the
extent
the
Fund
deposits
collateral
with
its
counterparty
to
a
written
option. 
With
exchange-traded
options
purchased
and
exchange-traded
futures
and
centrally
cleared
swaps,
there
is
less
counterparty
credit
risk
to
the
Fund
since
the
exchange
or
clearinghouse,
as
counterparty
to
such
instruments,
guarantees
against
a
possible
default.
The
clearinghouse
stands
between
the
buyer
and
the
seller
of
the
contract;
therefore,
credit
risk
is
limited
to
failure
of
the
clearinghouse.
While
offset
rights
may
exist
under
applicable
law, the
Fund
does
not
have
a
contractual
right
of
offset
against
a
clearing
broker
or
clearinghouse
in
the
event
of
a
default
(including
the
bankruptcy
or
insolvency).
Additionally,
credit
risk
exists
in exchange-traded
futures
and
centrally
cleared
swaps
with
respect
to
initial
and
variation
margin
that
is
held
in
a
clearing
broker’s
customer
accounts.
While
clearing
brokers
are
required
to
segregate
customer
margin
from
their
own
assets,
in
the
event
that
a
clearing
broker
becomes
insolvent
or
goes
into
bankruptcy
and
at
that
time
there
is
a
shortfall
in
the
aggregate
amount
of
margin
held
by
the
clearing
broker
for
all
its
clients,
typically
the
shortfall
would
be
allocated
on
a
pro
rata
basis
across
all
the
clearing
broker’s
customers,
potentially
resulting
in
losses
to
the
Fund. 
Concentration
Risk:
 A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
the
Fund's
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
fixed-income
securities
and/or
uses
derivatives
tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may
affect
the
value
and/or
liquidity
of
such
investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
increase
as
interest
rates
fall
and
decrease
as
interest
rates
rise.
The
Fund
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
backed
by
commercial
or
residential
mortgage
loans
or
in
issuers
that
hold
mortgage
and
other
asset-backed
securities.
When
a
Fund
concentrates
its
investments
in
this
manner,
it
assumes
a
greater
risk
of
prepayment
or
payment
extension
by
securities
issuers. Changes
in
economic
conditions,
including
delinquencies
and/or
defaults
on
assets
underlying
these
securities,
can
affect
the
value,
income
and/or
liquidity
of
such
positions.
Investment
percentages
in
these
securities
are
presented
in
the
Schedule
of
Investments.
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a phase
out of
the
LIBOR.
Although
many
LIBOR
rates
will
be
phased
out
by
the
end
of
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
Fund
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against,
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Fund
is
uncertain. 
11.
CAPITAL
SHARE
TRANSACTIONS 
Transactions
in
capital
shares
for
each
class
were
as
follows:
12.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Six
Months
Ended
06/30/21
Year
Ended
12/31/20
Shares
Amount
Shares
Amount
Class
I
Shares
sold
.............................................
251,217‌
$
2,663,941‌
677,367‌
$
7,262,948‌
Shares
issued
in
reinvestment
of
distributions
........................
33,084‌
351,689‌
97,090‌
1,041,697‌
Shares
redeemed
.........................................
(540,981‌)
(5,730,502‌)
(875,669‌)
(9,410,157‌)
Net
decrease
..............................................
(256,680‌)
$
(2,714,872‌)
(101,212‌)
$
(1,105,512‌)
Class
III
Shares
sold
.............................................
463,782‌
$
4,946,853‌
2,446,165‌
$
25,979,537‌
Shares
issued
in
reinvestment
of
distributions
........................
3,005‌
31,941‌
12,220‌
131,707‌
Shares
redeemed
.........................................
(664,658‌)
(7,045,083‌)
(2,077,768‌)
(22,442,903‌)
Net
increase
(decrease)
.......................................
(197,871‌)
$
(2,066,289‌)
380,617‌
$
3,668,341‌
Total
Net
Increase
(Decrease)
(454,551‌)
$
(4,781,161‌)
279,405‌
$
2,562,829‌
Glossary
of
Terms
Used
in
this
Report
33
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviations
BRL
Brazilian
Real
CAD
Canadian
Dollar
CLP
Chilean
Peso
CNY
Chinese
Yuan
COP
Colombian
Peso
EUR
Euro
GBP
British
Pound
MXN
Mexican
Peso
PLN
Polish
Zloty
USD
United
States
Dollar
ZAR
South
African
Rand
Portfolio
Abbreviations
BZDIOVER
Overnight
Brazil
CETIP
—
Interbank
Rate
LIBOR
London
Interbank
Offered
Rate
OTC
Over-the-counter
TBA
To-be-announced
WIBOR
Warsaw
Interbank
Offered
Rate
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
The
Board
of
Directors
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Variable
Series
Funds,
Inc.
(the
“Corporation”)
met
on
April
7,
2021
(the
“April
Meeting”)
and
May
10-12,
2021
(the
“May
Meeting”)
to
consider
the
approval
to
continue
the
investment
advisory
agreement
(the
“Advisory
Agreement”)
between
the
Corporation,
on
behalf
of
BlackRock
Advantage
Large
Cap
Core
V.I.
Fund
(“Large
Cap
Core
V.I.
Fund”),
BlackRock
Advantage
Large
Cap
Value
V.I.
Fund
(“Large
Cap
Value
V.I.
Fund”),
BlackRock
Advantage
SMID
Cap
V.I.
Fund
(“SMID
Cap
V.I.
Fund”),
BlackRock
Basic
Value
V.I.
Fund
(“Basic
Value
V.I.
Fund”),
BlackRock
Capital
Appreciation
V.I.
Fund
(“Capital
Appreciation
V.I.
Fund”),
BlackRock
Equity
Dividend
V.I.
Fund
(“Equity
Dividend
V.I.
Fund”),
BlackRock
Global
Allocation
V.I.
Fund
(“Global
Allocation
V.I.
Fund”),
BlackRock
Government
Money
Market
V.I.
Fund
(“Government
Money
Market
V.I.
Fund”),
BlackRock
International
V.I.
Fund
(“International
V.I.
Fund”),
BlackRock
International
Index
V.I.
Fund
(“International
Index
V.I.
Fund”),
BlackRock
60/40
Target
Allocation
ETF
V.I.
Fund
(“60/40
Target
Allocation
ETF
V.I.
Fund”),
BlackRock
Large
Cap
Focus
Growth
V.I.
Fund
(“Large
Cap
Focus
Growth
V.I.
Fund”),
BlackRock
Managed
Volatility
V.I.
Fund
(“Managed
Volatility
V.I.
Fund”),
BlackRock
Small
Cap
Index
V.I.
Fund
(“Small
Cap
Index
V.I.
Fund”)
and
BlackRock
S&P
500
Index
V.I.
Fund
(“S&P
500
Index
V.I.
Fund”)
(each,
a
“Fund,”
and
collectively
the
“Funds”),
and
BlackRock
Advisors,
LLC
(the
“Manager”),
each
Fund’s
investment
advisor.
The
Board
also
considered
the
approval
of
the
sub-advisory
agreement
between
the
Manager
and
(a)
BlackRock
International
Limited
(“BIL”)
with
respect
to
International
V.I.
Fund
and
Managed
Volatility
V.I.
Fund
(the
“BIL
Sub-Advisory
Agreements”);
(b)
BlackRock
Asset
Management
North
Asia
Limited
(“BNA”)
with
respect
to
Managed
Volatility
V.I.
Fund
(the
“BNA
Sub-Advisory
Agreement”);
and
(c)
BlackRock
(Singapore)
Limited
(“BSL”
and
together
with
BIL
and
BNA,
the
“Sub-Advisors”)
with
respect
to
Managed
Volatility
V.I.
Fund
(the
“BSL
Sub-Advisory
Agreement”
and
together
with
the
BIL
Sub-Advisory
Agreements
and
the
BNA
Sub-Advisory
Agreement,
the
“Sub-Advisory
Agreements”).
The
Manager
and
the
Sub-Advisor
are
referred
to
herein
as
“BlackRock.”
The
Advisory
Agreement
and
the
Sub-Advisory
Agreements
are
referred
to
herein
as
the
“Agreements.”
The
Approval
Process:
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Board
considers
the
approval
of
the
continuation
of
the
Agreements
for
each
Fund
on
an
annual
basis.
The
Board
members
whom
are
not
“interested
persons”
of
the
Corporation,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board’s
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock’s
various
services
to
each
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
a
fifth
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
Agreements.
In
particular,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
the
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
the
Fund’s
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock’s
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considered
information
that
was
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreements,
including
the
services
and
support
provided
by
BlackRock
to
the
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
an
applicable
benchmark,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management’s
and
portfolio
managers’
analyses
of
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
the
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
the
Fund;
(d)
the
resources
devoted
to
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
the
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
the
Corporation’s
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services,
as
available;
(g)
BlackRock’s
and
other
service
providers’
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock’s
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
the
use
of
brokerage
commissions
and
execution
quality
of
portfolio
transactions;
(j)
BlackRock’s
implementation
of
the
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
paid
to
BlackRock
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
(“ETF”),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
the
Fund;
(l)
BlackRock’s
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals’
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock’s
business.
Prior
to
and
in
preparation
for
the
April
Meeting,
the
Board
received
and
reviewed
materials
specifically
relating
to
the
renewal
of
the
Agreements.
The
Independent
Board
Members
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
April
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
each
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
each
Fund
as
compared
with
a
peer
group
of
funds
(“Performance
Peers”);
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge’s
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreements
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
the
Funds;
(g)
a
summary
of
aggregate
amounts
paid
by
each
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
each
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock’s
and
the
Funds’
operations.
At
the
April
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreements.
As
a
result
of
the
discussions
that
occurred
during
the
April
Meeting,
and
as
a
culmination
of
the
Board’s
year-long
deliberative
process,
the
Board
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
May
Meeting.
At
the
May
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
the
Funds;
(d)
each
Fund’s
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock’s
relationship
with
the
Funds;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock’s
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock’s
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
members
of
the
Board
gave
attention
to
all
of
the
information
that
was
furnished,
and
each
Board
Member
placed
varying
degrees
of
importance
on
the
various
pieces
of
information
that
were
provided
to
them.
The
Board
evaluated
the
information
available
to
it
on
a
fund
by
fund
basis.
The
following
paragraphs
provide
more
information
about
some
of
the
primary
factors
that
were
relevant
to
the
Board’s
decision.
The
Board
Members
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock:
The
Board,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services
and
the
resulting
performance
of
each
Fund.
Throughout
the
year,
the
Board
compared
each
Fund’s
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmark,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock’s
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
each
Fund’s
portfolio
management
team
discussing
the
Fund’s
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
number,
education
and
experience
of
investment
personnel
generally
and
each
Fund’s
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock’s
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock’s
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock’s
compensation
structure
with
respect
to
each
Fund’s
portfolio
management
team
and
BlackRock’s
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
each
Fund.
BlackRock
and
its
affiliates
provide
the
Funds
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
the
Funds
by
third-parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
the
Funds.
In
particular,
BlackRock
and
its
affiliates
provide
the
Funds
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers,
including,
among
others,
each
Fund’s
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
the
Funds,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
each
Fund’s
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock’s
fund
administration,
shareholder
services,
and
legal
and
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
The
Board
considered
the
operation
of
BlackRock’s
business
continuity
plans,
including
in
light
of
the
ongoing
COVID-19
pandemic.
B.
The
Investment
Performance
of
the
Funds
and
BlackRock:
The
Board,
including
the
Independent
Board
Members,
reviewed
and
considered
the
performance
history
of
the
Fund
throughout
the
year
and
at
the
April
Meeting.
In
preparation
for
the
April
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
the
Fund’s
performance
as
of
December
31,
2020,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and,
with
respect
to
60/40
Target
Allocation
ETF
V.I.
Fund,
Large
Cap
Focus
Growth
V.I.
Fund,
Capital
Appreciation
V.I.
Fund,
Large
Cap
Core
V.I.
Fund,
Large
Cap
Value
V.I.
Fund,
Global
Allocation
V.I.
Fund,
Basic
Value
V.I.
Fund,
SMID
Cap
V.I.
Fund,
Equity
Dividend
V.I.
Fund
and
International
V.I.
Fund,
the
respective
Morningstar
open-end
fund
category
(“Morningstar
Open-End
Category”);
with
respect
to
Managed
Volatility
V.I.
Fund,
in
light
of
the
Fund’s
outcome-oriented
investment
objective,
certain
performance
metrics
(“Outcome-Oriented
Performance
Metrics”);
with
respect
to
International
Index
V.I.
Fund,
Small
Cap
Index
V.I.
Fund
and
S&P
500
Index
V.I.
Fund,
the
performance
of
the
Fund
as
compared
with
its
benchmark;
and,
with
respect
to
Government
Money
Market
V.I.
Fund,
a
weighted
average
benchmark
of
similar
funds,
as
defined
by
BlackRock
(“Benchmark
Weighted
Average”).
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
each
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
each
of
Capital
Appreciation
V.I.
Fund,
Global
Allocation
V.I.
Fund,
International
V.I.
Fund
and
Large
Cap
Focus
Growth
V.I.
Fund
ranked
in
the
first
quartile
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
each
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
the
one-,
three-,
and
five-year
periods
reported,
60/40
Target
Allocation
ETF
V.I.
Fund
ranked
in
the
second,
first
and
first
quartiles,
respectively,
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
SMID
Cap
V.I.
Fund
ranked
in
the
second,
second
and
first
quartiles,
respectively
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
also
noted
that
effective
February
9,
2021,
the
Fund
had
undergone
a
change
in
its
investment
strategy
and
in
that
connection
had
changed
its
name
from
BlackRock
Advantage
U.S.
Total
Market
V.I.
Fund
to
BlackRock
Advantage
SMID
Cap
V.I.
Fund.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
Equity
Dividend
V.I.
Fund
ranked
in
the
second,
second
and
first
quartiles,
respectively,
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
each
of
Large
Cap
Core
V.I.
Fund
and
Large
Cap
Value
V.I.
Fund
ranked
in
the
second
quartile
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
each
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
Basic
Value
V.I.
Fund
ranked
in
the
second,
third
and
third
quartiles,
respectively,
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
the
Fund’s
underperformance
relative
to
its
Morningstar
Open-End
Category
during
the
applicable
periods.
The
Board
reviewed
Government
Money
Market
V.I.
Fund’s
performance
within
the
context
of
the
low
yield
environment.
In
addition
to
reviewing
the
Fund’s
performance
and
current
yield,
it
also
reviews
the
liquidity,
duration,
credit
quality
and
other
risk
factors
of
the
Fund’s
portfolio.
The
Board
noted
that
for
each
of
the
one-and
three-year
periods
reported,
the
Fund
outperformed
its
Benchmark
Weighted
Average.
The
Board
noted
that
BlackRock
believes
that
the
Benchmark
Weighted
Average
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
the
one-year
period
reported,
each
of
S&P
500
Index
V.I.
Fund’s
and
Small
Cap
Index
V.I.
Fund’s
net
performance
was
within
the
tolerance
range
of
its
benchmark.
The
Board
noted
that
BlackRock
believes
that
net
performance
relative
to
the
benchmark
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
reviewed
and
considered
Managed
Volatility
V.I.
Fund’s
performance
relative
to
the
Fund’s
Outcome-Oriented
Performance
Metrics
including
a
total
return
target.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
the
Fund
underperformed
its
total
return
target.
The
Board
noted
that
BlackRock
believes
that
the
Outcome-Oriented
Performance
Metrics
are
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
the
Fund’s
underperformance
relative
to
its
total
return
target
during
the
applicable
periods.
The
Board
noted
that
for
the
one-year
period
reported,
International
Index
V.I.
Fund’s
net
performance
was
above
the
tolerance
range
of
its
benchmark.
The
Board
noted
that
BlackRock
believes
that
net
performance
relative
to
the
benchmark
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
the
Fund’s
above
tolerance
performance
relative
to
its
benchmark
over
the
period.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
the
Funds:
The
Board,
including
the
Independent
Board
Members,
reviewed
each
Fund’s
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
each
Fund’s
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund’s
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
The
Board
received
and
reviewed
statements
relating
to
BlackRock’s
financial
condition.
The
Board
reviewed
BlackRock’s
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
each
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
each
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2020
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock’s
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock’s
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly-traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock’s
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreements
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock’s
commitment
of
time,
assumption
of
risk,
and
liability
profile
in
servicing
the
Funds,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
noted
that
International
Index
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Small
Cap
Index
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
The
Board
noted
that
S&P
500
Index
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Finally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
SMID
Cap
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Equity
Dividend
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
second
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
BlackRock
has
reviewed
with
the
Board
that
the
varying
fee
structure
for
fund
of
funds
can
limit
the
value
of
management
fee
comparisons.
The
Board
noted
that
60/40
Target
Allocation
ETF
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
second
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
further
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
Basic
Value
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
third
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Large
Cap
Core
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
first
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Managed
Volatility
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
first
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Finally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
International
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
third
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
In
addition,
the
Board
noted
that
BlackRock
and
the
Board
agreed
to
a
lower
contractual
expense
cap,
on
a
class-by-class
basis.
After
discussions
between
the
Board,
including
Independent
Board
Members,
and
BlackRock,
the
Board
and
BlackRock
agreed
to
a
continuation
of
the
contractual
cap.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Capital
Appreciation
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
third
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Large
Cap
Focus
Growth
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
third
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
noted
that
Global
Allocation
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
third
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
second
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
The
Board
reviewed
the
Government
Money
Market
V.I.
Fund’s
expenses
within
the
context
of
the
low
yield
environment,
and
any
consequent
expense
waivers
and
reimbursements
necessary
to
maintain
minimum
levels
of
daily
net
investment
income,
as
applicable.
The
Board
noted
that
Government
Money
Market
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
fourth
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
Large
Cap
Value
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
fourth
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
first
quartiles,
respectively,
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
Additionally,
the
Board
noted
that
BlackRock
had
voluntarily
agreed
to
waive
a
portion
of
the
advisory
fee
payable
by
the
Fund.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Finally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Fund
on
a
class-by-class
basis.
D.
Economies
of
Scale:
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
the
Funds
increase,
including
the
existence
of
fee
waivers
and/or
expense
caps,
as
applicable,
noting
that
any
contractual
fee
waivers
and
contractual
expense
caps
had
been
approved
by
the
Board.
In
its
consideration,
the
Board
further
considered
the
continuation
and/or
implementation
of
fee
waivers
and/or
expense
caps,
as
applicable.
The
Board
also
considered
the
extent
to
which
the
Funds
benefit
from
such
economies
of
scale
in
a
variety
of
ways
and
whether
there
should
be
changes
in
the
advisory
fee
rate
or
breakpoint
structure
in
order
to
enable
the
Funds
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
each
Fund’s
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members:
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
“fall-out”
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock’s
respective
relationships
with
the
Funds,
both
tangible
and
intangible,
such
as
BlackRock’s
ability
to
leverage
its
investment
professionals
who
manage
other
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock’s
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock’s
affiliates
as
service
providers
to
the
Funds,
including
for
administrative,
distribution,
securities
lending
and
cash
management
services.
The
Board
also
considered
BlackRock’s
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreements,
the
Board
also
received
information
regarding
BlackRock’s
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
the
pertinent
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
the
Fund.
Conclusion
The
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
(i)
the
Advisory
Agreement
between
the
Manager
and
the
Corporation,
on
behalf
of
each
Fund,
(ii)
the
BIL
Sub-Advisory
Agreements
between
the
Manager
and
BIL
with
respect
to
International
V.I.
Fund
and
Managed
Volatility
V.I.
Fund,
(iii)
the
BNA
Sub-Advisory
Agreement
between
the
Manager
and
BNA
with
respect
to
Managed
Volatility
V.I.
Fund
and
(iv)
BSL
Sub-Advisory
Agreement
between
the
Manager
and
BSL
with
respect
to
Managed
Volatility
V.I.
Fund,
each
for
a
one-year
term
ending
June
30,
2022.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreements
were
fair
and
reasonable
and,
in
the
best
interest
of
each
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
Agreements,
the
Board
did
not
identify
any
single
factor
or
group
of
factors
as
all-important
or
controlling,
but
considered
all
factors
together,
and
different
Board
Members
may
have
attributed
different
weights
to
the
various
factors
considered.
The
Independent
Board
Members
were
also
assisted
by
the
advice
of
independent
legal
counsel
in
making
this
determination.
Disclosure
of
Investment
Sub-Advisory
Agreement
2021
BlackRock
Semi-Annual
Report
to
Shareholders
The
Board
of
Directors
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Variable
Series
Funds,
Inc.
(the
“Corporation”)
met
on
May
11,
2021
(the
“Meeting”)
to
consider
the
initial
approval
of
the
proposed
sub-advisory
agreement
(the
“Sub-Advisory
Agreement”)
between
BlackRock
Advisors,
LLC
(the
“Manager”),
the
Corporation’s
investment
advisor,
and
BlackRock
(Singapore)
Limited
(the
“Sub-Advisor”)
with
respect
to
Global
Allocation
V.I.
Fund
(the
“Fund”),
a
series
of
the
Corporation.
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
at
the
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Sub-Advisory
Agreement.
The
Board
Members
whom
are
not
“interested
persons”
of
the
Fund,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board
previously
met
on
May
11-13,
2020
(the
“May
2020
Meeting”)
to
consider
the
approval
of
the
continuation
of
the
Corporation’s
investment
advisory
agreement
(the
“Advisory
Agreement”)
between
the
Corporation
and
the
Manager.
At
the
May
2020
Meeting,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreement
for
a
one-year
term
ending
June
30,
2021.
A
discussion
of
the
basis
for
the
Board’s
approval
of
the
Advisory
Agreement
at
the
May
2020
Meeting
is
included
in
the
semi-annual
shareholder
report
for
the
Fund
for
the
period
ended
June
30,
2020.
The
factors
considered
by
the
Board
at
the
Meeting
in
connection
with
the
approval
of
the
proposed
Sub-Advisory
Agreement
were
substantially
the
same
as
the
factors
considered
at
the
May
2020
Meeting
with
respect
to
approval
of
the
Advisory
Agreement.
Following
discussion,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
Sub-Advisory
Agreement
between
the
Manager
and
the
Sub-Advisor,
with
respect
to
the
Fund,
for
a
two-year
term
beginning
on
the
effective
date
of
the
Sub-Advisory
Agreement.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
a
majority
of
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Sub-Advisory
Agreement
were
fair
and
reasonable
and
in
the
best
interest
of
the
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
Sub-Advisory
Agreement,
the
Board
did
not
identify
any
single
factor
or
group
of
factors
as
all-important
or
controlling,
but
considered
all
factors
together,
and
different
Board
Members
may
have
attributed
different
weights
to
the
various
factors
considered.
The
Independent
Board
Members
were
also
assisted
by
the
advice
of
independent
legal
counsel
in
making
this
determination.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
The
Board
of
Directors
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Variable
Series
Funds
II,
Inc.
(the
“Company”)
met
on
May
4,
2021
(the
“May
Meeting”)
and
June
8-9,
2021
(the
“June
Meeting”)
to
consider
the
approval
to
continue
the
investment
advisory
agreement
(the
“Advisory
Agreement”)
between
the
Company,
on
behalf
of
BlackRock
High
Yield
V.I.
Fund
(the
“High
Yield
V.I.
Fund”),
BlackRock
Total
Return
V.I.
Fund
(the
“Total
Return
V.I.
Fund”)
and
BlackRock
U.S.
Government
Bond
V.I.
Fund
(the
U.S.
Government
Bond
V.I.
Fund
and
together
with
the
High
Yield
V.I.
Fund
and
the
Total
Return
V.I.
Fund,
the
“Funds”
and
each,
a
“Fund”),
and
BlackRock
Advisors,
LLC
(the
“Manager”),
each
Fund’s
investment
advisor.
The
Board
also
considered
the
approval
to
continue
the
sub-advisory
agreements
(the
“Sub-Advisory
Agreements”)
between
the
Manager
and
BlackRock
International
Limited
(the
"Sub-Advisor"),
with
respect
to
each
Fund.
The
Manager
and
the
Sub-
Advisor
are
referred
to
herein
as
“BlackRock.”
The
Advisory
Agreement
and
the
Sub-Advisory
Agreements
are
referred
to
herein
as
the
“Agreements.”
The
Approval
Process:
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Board
considers
the
approval
of
the
continuation
of
the
Agreement
for
each
Fund
on
an
annual
basis.
The
Board
members
whom
are
not
“interested
persons”
of
the
Company,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board’s
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock’s
various
services
to
each
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
a
fifth
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
Agreements.
In
particular,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
each
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
each
Fund’s
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock’s
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considered
information
that
was
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreements,
including
the
services
and
support
provided
by
BlackRock
to
each
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
relevant
benchmarks,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management’s
and
portfolio
managers’
analyses
of
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
each
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
each
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
each
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
each
Fund’s
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services,
as
applicable;
(g)
BlackRock’s
and
other
service
providers’
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock’s
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
execution
quality
of
portfolio
transactions;
(j)
BlackRock’s
implementation
of
each
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
paid
to
BlackRock
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
(“ETF”),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
each
Fund;
(l)
BlackRock’s
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals’
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock’s
business.
Prior
to
and
in
preparation
for
the
May
Meeting,
the
Board
received
and
reviewed
materials
specifically
relating
to
the
renewal
of
the
Agreements.
The
Independent
Board
Members
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
May
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
each
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
each
Fund
as
compared
with
a
peer
group
of
funds
(“Performance
Peers”);
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge’s
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreements
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts,
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
each
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
each
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
each
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock’s
and
each
Fund’s
operations.
At
the
May
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreements.
As
a
result
of
the
discussions
that
occurred
during
the
May
Meeting,
and
as
a
culmination
of
the
Board’s
year-long
deliberative
process,
the
Board
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
June
Meeting.
At
the
June
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
each
Fund;
(d)
each
Fund’s
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock’s
relationship
with
each
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock’s
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock’s
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
Board
Members
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock:
The
Board,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services,
and
the
resulting
performance
of
each
Fund.
Throughout
the
year,
the
Board
compared
Fund
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmarks,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock’s
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
each
Fund’s
portfolio
management
team
discussing
each
Fund’s
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
number,
education
and
experience
of
investment
personnel
generally
and
each
Fund’s
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock’s
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock’s
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock’s
compensation
structure
with
respect
to
each
Fund’s
portfolio
management
team
and
BlackRock’s
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
each
Fund.
BlackRock
and
its
affiliates
provide
each
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
each
Fund
by
third
parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
each
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
each
Fund
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers
including,
among
others,
each
Fund’s
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
each
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
each
Fund’s
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock’s
fund
administration,
shareholder
services,
and
legal
and
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
The
Board
considered
the
operation
of
BlackRock’s
business
continuity
plans,
including
in
light
of
the
ongoing
COVID-19
pandemic.
B.
The
Investment
Performance
of
each
Fund
and
BlackRock:
The
Board,
including
the
Independent
Board
Members,
reviewed
and
considered
the
performance
history
of
each
Fund
throughout
the
year
and
at
the
May
meeting.
In
preparation
for
the
May
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
each
Fund’s
performance
as
of
December
31,
2020,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
the
respective
Morningstar
open-end
fund
category
(“Morningstar
Open-End
Category”).
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
each
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
the
High
Yield
V.I.
Fund
ranked
in
the
first,
first
and
second
quartiles,
respectively,
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
High
Yield
V.I.
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
the
Total
Return
V.I.
Fund
ranked
in
the
second,
second
and
third
quartiles,
respectively,
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
Total
Return
V.I.
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
the
Total
Return
V.I.
Fund’s
underperformance
relative
to
its
Morningstar
Open-End
Category
during
the
applicable
period.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
the
U.S.
Government
Bond
V.I.
Fund
ranked
in
the
second
quartile
against
its
Morningstar
Open-End
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Open-End
Category
is
an
appropriate
performance
metric
for
the
U.S.
Government
Bond
V.I.
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
each
Fund:
The
Board,
including
the
Independent
Board
Members,
reviewed
each
Fund’s
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
each
Fund’s
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund’s
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
The
Board
received
and
reviewed
statements
relating
to
BlackRock’s
financial
condition.
The
Board
reviewed
BlackRock’s
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
each
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
each
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2020
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock’s
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock’s
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock’s
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreements
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock’s
commitment
of
time,
assumption
of
risk,
and
liability
profile
in
servicing
each
Fund,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
noted
that
the
High
Yield
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile,
relative
to
the
High
Yield
V.I.
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
High
Yield
V.I.
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
aggregate
assets
of
the
High
Yield
V.I.
Fund,
combined
with
the
assets
of
the
Total
Return
V.I.
Fund,
increase
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
High
Yield
V.I.
Fund
or
the
Total
Return
V.I.
Fund
were
to
decrease,
the
High
Yield
V.I.
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
High
Yield
V.I.
Fund’s
total
expenses
as
a
percentage
of
the
High
Yield
V.I.
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
High
Yield
V.I.
Fund
on
a
class-by-class
basis.
The
Board
noted
that
the
Total
Return
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
first
quartiles,
respectively,
relative
to
the
Total
Return
V.I.
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Total
Return
V.I.
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
aggregate
assets
of
the
Total
Return
V.I.
Fund,
combined
with
the
assets
of
the
High
Yield
V.I.
Fund,
increase
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Total
Return
V.I.
Fund
or
the
High
Yield
V.I
Fund
were
to
decrease,
the
Total
Return
V.I.
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Total
Return
V.I.
Fund’s
total
expenses
as
a
percentage
of
the
Total
Return
V.I.
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
Total
Return
V.I.
Fund
on
a
class-by-class
basis.
The
Board
noted
that
the
U.S.
Government
Bond
V.I.
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
second
quartiles,
respectively,
relative
to
the
U.S.
Government
Bond
V.I.
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
U.S.
Government
Bond
V.I.
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
U.S.
Government
Bond
V.I.
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
U.S.
Government
Bond
V.I.
Fund
were
to
decrease,
the
U.S.
Government
Bond
V.I.
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
U.S.
Government
Bond
V.I.
Fund’s
total
expenses
as
a
percentage
of
the
U.S.
Government
Bond
V.I.
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
Additionally,
the
Board
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
certain
operational
and
recordkeeping
fees
for
the
U.S.
Government
Bond
V.I.
Fund
on
a
class-by-class
basis.
In
addition,
the
Board
noted
that
BlackRock
has
voluntarily
agreed
to
waive
a
portion
of
the
advisory
fee
payable
by
the
U.S.
Government
Bond
V.I.
Fund.
An
advisory
fee
waiver
has
been
in
effect
since
2016,
that
amount
of
which
may
have
varied
from
time
to
time.
After
discussion
between
the
Board,
including
the
Independent
Board
Members,
and
BlackRock,
the
Board
and
BlackRock
agreed
to
a
continuation
of
the
current
26
basis
point
voluntary
advisory
fee
waiver.
D.
Economies
of
Scale:
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
each
Fund
increase,
including
the
existence
of
fee
waivers
and/or
expense
caps,
as
applicable,
noting
that
any
contractual
fee
waivers
and
contractual
expense
caps
had
been
approved
by
the
Board.
In
its
consideration,
the
Board
further
considered
the
continuation
and/or
implementation
of
fee
waivers
and/or
expense
caps,
as
applicable.
The
Board
also
considered
the
extent
to
which
each
Fund
benefits
from
such
economies
of
scale
in
a
variety
of
ways,
and
whether
there
should
be
changes
in
the
advisory
fee
rate
or
breakpoint
structure
in
order
to
enable
each
Fund
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
each
Fund’s
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members:
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
“fall-
out”
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock’s
respective
relationships
with
each
Fund,
both
tangible
and
intangible,
such
as
BlackRock’s
ability
to
leverage
its
investment
professionals
who
manage
other
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock’s
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock’s
affiliates
as
service
providers
to
each
Fund,
including
for
administrative,
distribution,
securities
lending
and
cash
management
services.
The
Board
also
considered
BlackRock’s
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreements,
the
Board
also
received
information
regarding
BlackRock’s
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
each
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
each
Fund.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
Conclusion
The
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreements
between
the
Manager
and
the
Company,
on
behalf
of
each
Fund,
for
a
one-year
term
ending
June
30,
2022,
and
the
Sub-Advisory
Agreements
between
the
Manager
and
the
Sub-Advisor,
with
respect
to
each
Fund,
for
a
one-year
term
ending
June
30,
2022.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreements
were
fair
and
reasonable
and
in
the
best
interest
of
each
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
Agreements,
the
Board
did
not
identify
any
single
factor
or
group
of
factors
as
all-important
or
controlling,
but
considered
all
factors
together,
and
different
Board
Members
may
have
attributed
different
weights
to
the
various
factors
considered.
The
Independent
Board
Members
were
also
assisted
by
the
advice
of
independent
legal
counsel
in
making
this
determination.
Additional
Information
Additional
Information
Regulation
Regarding
Derivatives
On
October
28,
2020,
the
Securities
and
Exchange
Commission
(the
“SEC”)
adopted
new
regulations
governing
the
use
of
derivatives
by
registered
investment
companies
(“Rule
18f-4”).
The
Funds
will
be
required
to
implement
and
comply
with
Rule
18f-4
by
August
19, 2022.
Once
implemented,
Rule
18f-4
will
impose
limits
on
the
amount
of
derivatives
a
fund
can
enter
into,
eliminate
the
asset
segregation
framework
currently
used
by
funds
to
comply
with
Section
18
of
the
1940
Act,
treat
derivatives
as
senior
securities
and
require
funds
whose
use
of
derivatives
is
more
than
a
limited
specified
exposure
amount
to
establish
and
maintain
a
comprehensive
derivatives
risk
management
program
and
appoint
a
derivatives
risk
manager.
General
Information 
Quarterly
performance,
semi-annual
and
annual
reports
and
other
information
regarding
the
Funds
may
be
found
on
BlackRock’s
website,
which
can
be
accessed
at
blackrock.com.
Any
reference
to
BlackRock’s
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Funds
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock’s
website
in
this
report.
Householding
The
Funds
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports
and
proxy
statements,
to
shareholders
with
multiple
accounts
at
the
same
address.
This
practice
is
commonly
called
“householding”
and
is
intended
to
reduce
expenses
and
eliminate
duplicate
mailings
of
shareholder
documents.
Mailings
of
your
shareholder
documents
may
be
householded
indefinitely
unless
you
instruct
us
otherwise.
If
you
do
not
want
the
mailing
of
these
documents
to
be
combined
with
those
for
other
members
of
your
household,
please
call
the
Funds at
(800)
441-7762.
Availability
of
Quarterly
Schedule
of
Investments
The
Funds
(except
BlackRock
Government
Money
Market
V.I.
Fund)
file
their
complete
schedules
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to their
reports
on
Form
N-PORT.
The
Funds’
Forms
N-PORT are
available
on
the
SEC’s
website
at
sec.gov
.
The
BlackRock
Government
Money
Market
V.I.
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
each
month
on
Form
N-MFP.
The
Fund’s
reports
on
Form
N-MFP
are
available
on
the
SEC’s
website
at
sec.gov
.
The
Fund
makes
portfolio
holdings
available
to
shareholders
on
its
website
at
blackrock.com
.
Availability
of
Proxy
Voting
Policies,
Procedures
and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Funds
use
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
Funds
voted
proxies
relating
to
securities
held
in
the
Funds'
portfolios
during
the
most
recent
12-month
period
ended
June
30 is
available
without
charge,
upon
request (1)
by
calling
(800)
441-
7762
;
(2)
on
the
BlackRock
website
at
blackrock.com/prospectus/insurance
;
and
(3)
on
the
SEC’s
website
at
sec.gov
.
BlackRock’s
Mutual
Fund
Family
BlackRock
offers
a
diverse
lineup
of
open-end
mutual
funds
crossing
all
investment
styles
and
managed
by
experts
in
equity,
fixed-income
and
tax-exempt
investing.
Visit
blackrock.com
for
more
information.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
441-7762
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
Additional
Information
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Privacy
Principles
BlackRock
is
committed
to
maintaining
the
privacy
of
its
current
and
former
fund
investors
and
individual
clients
(collectively,
“Clients”)
and
to
safeguarding
their
non-public
personal
information.
The
following
information
is
provided
to
help
you
understand
what
personal
information
BlackRock
collects,
how
we
protect
that
information
and
why
in
certain
cases
we
share
such
information
with
select
parties.
If
you
are
located
in
a
jurisdiction
where
specific
laws,
rules
or
regulations
require
BlackRock
to
provide
you
with
additional
or
different
privacy-related
rights
beyond
what
is
set
forth
below,
then
BlackRock
will
comply
with
those
specific
laws,
rules
or
regulations.
BlackRock
obtains
or
verifies
personal
non-public
information
from
and
about
you
from
different
sources,
including
the
following:
(i)
information
we
receive
from
you
or,
if
applicable,
your
financial
intermediary,
on
applications,
forms
or
other
documents;
(ii)
information
about
your
transactions
with
us,
our
affiliates,
or
others;
(iii)
information
we
receive
from
a
consumer
reporting
agency;
and
(iv)
from
visits
to
our
websites.
BlackRock
does
not
sell
or
disclose
to
non-affiliated
third
parties
any
non-public
personal
information
about
its
Clients,
except
as
permitted
by
law
or
as
is
necessary
to
respond
to
regulatory
requests
or
to
service
Client
accounts.
These
non-affiliated
third
parties
are
required
to
protect
the
confidentiality
and
security
of
this
information
and
to
use
it
only
for
its
intended
purpose.
We
may
share
information
with
our
affiliates
to
service
your
account
or
to
provide
you
with
information
about
other
BlackRock
products
or
services
that
may
be
of
interest
to
you.
In
addition,
BlackRock
restricts
access
to
non-public
personal
information
about
its
Clients
to
those
BlackRock
employees
with
a
legitimate
business
need
for
the
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Advisers
BlackRock
International
Limited
(a)
Edinburgh,
EH3
8BL
United
Kingdom
BlackRock
Asset
Management
North
Asia
Limited
(b)
Hong
Kong
BlackRock
(Singapore)
Limited
(c)
079912
Singapore
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodians
JPMorgan
Chase
Bank,
N.A.
(d)
New
York,
NY
10179
Brown
Brothers
Harriman
&
Co.
(e)
Boston,
MA
02109
Independent
Registered
Public
Accounting
Firm
Deloitte
&
Touche
LLP
Boston,
MA
02116
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10022
Legal
Counsel
Sidley
Austin
LLP
(f)
New
York,
NY
10019
Willkie
Farr
&
Gallagher
LLP
(g)
New
York,
NY
10019
Address
of
the
Funds
100
Bellevue
Parkway
Wilmington,
DE
19809
(a)
For
BlackRock
High
Yield
V.I.
Fund,
BlackRock
International
V.I.
Fund,
BlackRock
Managed
Volatility
V.I.
Fund,
BlackRock
Total
Return
V.I.
Fund
and
BlackRock
U.S.
Government
Bond
V.I.
Fund.
(b)
For
BlackRock
Managed
Volatility
V.I.
Fund.
(c)
For
BlackRock
Global
Allocation
V.I.
Fund,
BlackRock
Managed
Volatility
V.I.
Fund
and
BlackRock
Total
Return
V.I.
Fund.
(d)
For
BlackRock
60/40
Target
Allocation
ETF
V.I.
Fund,
BlackRock
Advantage
Large
Cap
Core
V.I.
Fund,
BlackRock
Advantage
Large
Cap
Value
V.I.
Fund,
BlackRock
Advantage
SMID
Cap
V.I.
Fund,
BlackRock
Basic
Value
V.I.
Fund,
BlackRock
Capital
Appreciation
V.I.
Fund,
BlackRock
Equity
Dividend
V.I.
Fund,
BlackRock
Government
Money
Market
V.I.
Fund,
BlackRock
High
Yield
V.I.
Fund,
BlackRock
International
Index
V.I.
Fund,
BlackRock
Managed
Volatility
V.I.
Fund,
BlackRock
S&P
500
Index
V.I.
Fund,
BlackRock
Small
Cap
Index
V.I.
Fund,
BlackRock
Total
Return
V.I.
Fund
and
BlackRock
U.S.
Government
Bond
V.I.
Fund.
(e)
For
BlackRock
Global
Allocation
V.I.
Fund,
BlackRock
International
V.I.
Fund
and
BlackRock
Large
Cap
Focus
Growth
V.I.
Fund.
(f)
For
BlackRock
60/40
Target
Allocation
ETF
V.I.
Fund,
BlackRock
Advantage
Large
Cap
Core
V.I.
Fund,
BlackRock
Advantage
Large
Cap
Value
V.I.
Fund,
BlackRock
Advantage
SMID
Cap
V.I.
Fund,
BlackRock
Basic
Value
V.I.
Fund,
BlackRock
Capital
Appreciation
V.I.
Fund,
BlackRock
Equity
Dividend
V.I.
Fund,
BlackRock
Global
Allocation
V.I.
Fund,
BlackRock
Government
Money
Market
V.I.
Fund,
BlackRock
International
V.I.
Fund,
BlackRock
International
Index
V.I.
Fund,
BlackRock
Large
Cap
Focus
Growth
V.I.
Fund,
BlackRock
Managed
Volatility
V.I.
Fund,
BlackRock
S&P
500
Index
V.I.
Fund
and
BlackRock
Small
Cap
Index
V.I.
Fund.
(g)
For
BlackRock
High
Yield
V.I.
Fund,
BlackRock
Total
Return
V.I.
Fund
and
BlackRock
U.S.
Government
Bond
V.I.
Fund.
Want
to
know
more?
blackrock.com
|
800-441-7762
This
report
is
only
for
distribution
to
shareholders
of
the
Funds
of
BlackRock
Variable
Series
Funds,
Inc.
and
BlackRock
Variable
Series
Funds
II,
Inc.
Past
performance
results
shown
in
this
report
should
not
be
considered
a
representation
of
future
performance.
Investment
return
and
principal
value
of
non-money
market
fund
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
You
could
lose
money
by
investing
in
the
Funds.
Although
BlackRock
Government
Money
Market
V.I.
Fund
seeks
to
preserve
the
value
of
your
investment
at
$1.00
per
share,
it
cannot
guarantee
it
will
do
so.
An
investment
in
BlackRock
Government
Money
Market
V.I.
Fund
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
BlackRock
Government
Money
Market
V.I.
Fund’s
sponsor
has
no
legal
obligation
to
provide
financial
support
to
the
Fund
at
any
time.
Performance
data
quoted
represents
past
performance
and
does
not
guarantee
future
results.
Total
return
information
assumes
reinvestment
of
all
distributions.
Current
performance
may
be
higher
or
lower
than
the
performance
data
quoted.
For
current
month-end
performance
information,
call
(800)
626-1960.
BlackRock
Government
Money
Market
V.I.
Fund’s
current
7-day
yield
more
closely
reflects
the
current
earnings
of
the
Fund
than
the
total
returns
quoted.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
VS-6/21-SAR
Item 2 – Code of Ethics – Not Applicable to this semi-annual report
Item 3 –  Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –  Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –  Audit Committee of Listed Registrant – Not Applicable
Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
 
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –
Disclosure of Securities Lending Activities for Closed-End Management Investment
   Companies
– Not Applicable                  
 
Item 13 – Exhibits attached hereto
              (a)(1) Code of Ethics – Not Applicable to this semi-annual report
              (a)(2) Section 302 Certifications are attached
             
section302
(a)(3) Not Applicable
(a)(4) Not Applicable
(b) Section 906 Certifications are attached

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
BlackRock Variable Series Funds II, Inc.
 
By:     /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Variable Series Funds II, Inc.
 
Date: August 26, 2021
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
By:     /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Variable Series Funds II, Inc.
 
 
Date: August 26, 2021
 
By:     /s/ Trent Walker
          Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Variable Series Funds II, Inc.
 
Date: August 26, 2021