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N-CSRS 1 d89584dncsrs.htm BLACKROCK FINANCIAL INSTITUTIONS SERIES TRUST BLACKROCK FINANCIAL INSTITUTIONS SERIES TRUST

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: 811-03189

Name of Fund:

BlackRock Summit Cash Reserves Fund of BlackRock Financial Institutions Series Trust

Fund Address:

100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer,
BlackRock Summit Cash Reserves Fund of BlackRock Financial Institutions Series Trust, 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 04/30/2021

Date of reporting period: 10/31/2020

Item 1 – Report to Stockholders


		OCTOBER 31, 2020

2020 Semi-Annual Report

(Unaudited)

BlackRock Financial Institutions Series Trust

BlackRock Summit Cash Reserves Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at www.blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2020 has been a time of sudden change in global financial markets, as the emergence and spread of the coronavirus (or “COVID-19”) led to a vast disruption in the global economy and financial markets. Prior to the outbreak of the virus, U.S. equities and bonds both delivered solid returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.

After markets hit their lowest point of the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. Many equity indices neared or surpassed all-time highs in early September 2020 before retreating amid concerns about a second wave of infections. In the United States, large-capitalization stocks advanced, outperforming small-capitalization stocks, which declined marginally during the reporting period. International equities from developed economies declined, significantly lagging emerging market stocks, which rebounded sharply.

During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment, and posted solid returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) touched an all-time low. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.

The Fed took an accommodative monetary stance in late 2019 to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to continue as economic activity resumes. Several risks remain, however, including a potential resurgence of the coronavirus amid loosened restrictions, policy fatigue among governments already deep into deficit spending, and structural damage to the financial system from lengthy economic interruptions.

Overall, we favor a moderately positive stance toward risk, and in particular toward credit given the extraordinary central bank measures taken in recent months. This support extends beyond investment-grade corporates and into high-yield, leading to attractive opportunities in that end of the market. 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. We remain neutral on equities overall while favoring emerging market stocks and tilting toward the quality factor for its resilience.

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,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of October 31, 2020



	6-Month			12-Month

U.S. large cap equities (S&P 500^® Index)		13.29	%		9.71	%

U.S. small cap equities (Russell 2000^® Index)		18.13			(0.14	)

International equities (MSCI Europe, Australasia, Far East Index)		8.57			(6.86	)

Emerging market equities (MSCI Emerging Markets Index)		20.96			8.25

3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)		0.06			0.92

U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)		(1.63	)		8.92

U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)		1.27			6.19

Tax-exempt municipal bonds (S&P Municipal Bond Index)		4.87			3.55

U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		10.73			3.42



Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


2		T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T

Table of Contents


	Page
The Markets in Review		2
Semi-Annual Report:
Money Market Overview		4
Fund Summary		5
Disclosure of Expenses		5
Financial Statements:
Schedule of Investments		6
Statement of Assets and Liabilities		9
Statement of Operations		11
Statements of Changes in Net Assets		12
Financial Highlights		13
Notes to Financial Statements		16
Disclosure of Investment Advisory Agreement		20
Additional Information		23

LOGO


		3

Money Market Overview For the 6-Month Period Ended October 31, 2020

During the six-month period ended October 31, 2020, the Federal Open Market Committee (the “FOMC” or “the Committee”) left the range for the Federal Funds target rate unchanged at 0.00%-0.25%, noting that the ongoing public health crisis “poses considerable risks to the economic outlook over the medium term.”

The minutes from the September 16, 2020 FOMC meeting were released on October 7, 2020 but presented no notable changes to current policy. Commenting on the economy, the minutes stated “many participants noted that their economic outlook assumed additional fiscal support and that if future fiscal support was significantly smaller or arrived significantly later than they expected, the pace of the recovery could be slower than anticipated.”

In contrast, conditions in money markets have been relatively benign. Net new Treasury bill (“T-bill”) supply contracted more than $43 billion in October 2020, and three-month T-bills were generally offered with yields below 0.10%. Similarly, the secured overnight financing rate (“SOFR”)—a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities—was also below 0.10% for most of October. We believe this was driven by an excess of cash relative to available collateral. For many market participants, we believe there will eventually be agreement on additional fiscal stimulus in Washington, D.C. The size and timing of any measures—and in turn any corresponding increase in net new T-bill issuance—remain to be seen.

Money market fund industry assets declined about $56 billion between September 30, 2020 and October 28, 2020. Of this, government money market funds saw $51 billion in outflows, while assets of prime money market funds fell nearly $4 billion. We are prepared for the possibility that an increase in market volatility around the U.S. election could prompt flight-to-quality flows into government money market funds.

Assets of municipal money market funds across the industry fell approximately $1 billion for the month as of October 28, 2020. Dealer inventory of variable rate demand notes (“VRDNs”) was largely manageable in October, in our view. The Securities Industry and Financial Markets Association Index of seven-day VRDNs stood at 0.12% as of October 28, up only slightly from the end of September 2020.

Credit spreads remained tight over October 2020 and the three-month London Interbank Offered Rate overnight-indexed swap spread (a gauge of stress in the financial system) stood at 0.13% as of October 30. This was just 0.01% above the previous 12-month low of 0.12%. Also impacting the prime money market space in October was increased discussion among various official institutions about possible changes to the regulatory framework.

Our strategic allocations in October were broadly consistent with the positioning for the majority of the summer months. In setting strategy, we have maintained a bias toward higher-quality issuers of commercial paper and U.S. dollar-denominated certificates of deposit when adding investments in three- to six-month tenors. When analyzing overall risk markets in October, we noticed significantly elevated levels of volatility priced in the equity options markets. At the same time, we believe that short-term credit valuations are quite expensive.

As a result, the platform employed slightly elevated liquidity buffers to the prime funds to mitigate against potential volatility associated with an upcoming U.S. presidential election, and U.S.-China trade disputes amongst other such risks. As such, we have increased our exposure to Treasuries and securities that mature within six months. To help preserve the yield of the funds, we were selective with opportunities further out the curve on fixed and floating rate securities that we believe represent convincing relative value.

With the Fed continuing its pledge support to markets, front-end credit markets have remained calm. We continue to monitor credit ratings activity and are cautious of the uncertainty that lies ahead when setting strategy. As a result, we continue to be conservative in sectors that are subject to heightened risk of downgrade. Our focus on liquidity means we have maintained elevated levels of liquidity relative to historical positioning.

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


4		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S


Fund Summary as of October 31, 2020		BlackRock Summit Cash Reserves Fund

Investment Objective

BlackRock Summit Cash Reserves Fund’s (the “Fund”) investment objective is to seek current income, preservation of capital and liquidity available from investing in a diversified portfolio of short-term money market securities.

CURRENT SEVEN-DAY YIELDS


	7-Day SEC Yield			7-Day Yield
Institutional		0.01	%		0.01	%
Investor A		0.02			0.02
Investor C		0.03			0.03

The 7-Day SEC Yield may differ from the 7-Day Yield shown above due to the fact that the 7-Day SEC Yield excludes distributed capital gains.

Past performance is not an indication of future results.

PORTFOLIO COMPOSITION


Asset Type	Percent of Net Assets
Repurchase Agreements		35	%
U.S. Treasury Obligations		33
U.S. Government Sponsored Agency Obligations		31
Other Assets Less Liabilities		1

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees and other fund expenses. The expense example shown (which is based on a hypothetical investment of $1,000 invested on May 1, 2020 and held through October 31, 2020) 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 Fund and 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.

Expense Example


	Actual					Hypothetical^(a)
		Beginning Account Value (05/01/20)	Ending Account Value (10/31/20)	Expenses Paid During the Period	^(b)		Beginning Account Value (05/01/20)	Ending Account Value (10/31/20)	Expenses Paid During the Period	^(b)	Annualized Expense Ratio
Institutional		$ 1,000.00	$ 1,000.00	$ 1.21			$ 1,000.00	$ 1,024.00	$ 1.22		0.24	%
Investor A		1,000.00	1,000.00	1.21			1,000.00	1,024.00	1.22		0.24
Investor C		1,000.00	1,000.00	1.31			1,000.00	1,023.89	1.33		0.26

^(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 184/365 (to reflect the six-month period shown).


F U N D S U M M A R Y / D I S C L O S U R E O F E X P E N S E S		5

Schedule of Investments (unaudited)

October 31, 2020

BlackRock Summit Cash Reserves Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Short-Term Securities

U.S. Government Sponsored Agency Obligations — 31.2%
Fannie Mae, 1.38%, 10/07/21	$	1,060	$	1,072,172
Fannie Mae Variable Rate Notes^(a)
(Secured Overnight Financing Rate + 0.07%), 0.16%, 12/11/20		1,300		1,300,000
(Secured Overnight Financing Rate + 0.29%), 0.38%, 10/04/21		5,000		5,000,000
(Secured Overnight Financing Rate + 0.35%), 0.44%, 04/07/22		4,120		4,120,000
(Secured Overnight Financing Rate + 0.39%), 0.48%, 04/15/22		2,805		2,805,000
Federal Farm Credit Bank Variable Rate Notes^(a)0.25%, 12/13/21		900		899,002
(1 mo. LIBOR US + 0.03%), 0.17%, 12/14/20		1,670		1,669,992
(1 mo. LIBOR US + 0.05%), 0.19%, 04/16/21		1,855		1,855,000
(1 mo. LIBOR US + 0.11%), 0.26%, 07/09/21 - 11/12/21		770		770,000
(1 mo. LIBOR US + 0.13%), 0.27%, 10/08/21		300		300,000
(3 mo.Treasury money market yield + 0.23%), 0.33%, 07/08/21		755		755,000
(3 mo.Treasury money market yield + 0.26%), 0.36%, 06/17/21		1,365		1,364,916
(3 mo.Treasury money market yield + 0.28%), 0.38%, 02/08/22		3,000		3,000,000
(Fed Funds Rate + 0.10%), 0.19%, 12/16/20		165		165,000
(Fed Funds Rate + 0.18%), 0.27%, 07/20/22		5,720		5,719,028
(Secured Overnight Financing Rate + 0.08%), 0.17%, 01/14/21 - 10/14/22		2,735		2,735,000
(Secured Overnight Financing Rate + 0.08%), 0.19%, 11/03/22		2,375		2,375,000
(Secured Overnight Financing Rate + 0.10%), 0.19%, 09/02/22		730		730,000
(Secured Overnight Financing Rate + 0.11%), 0.20%, 01/15/21		1,100		1,100,000
(Secured Overnight Financing Rate + 0.18%), 0.27%, 01/14/22		1,480		1,480,000
(Secured Overnight Financing Rate + 0.19%), 0.28%, 11/18/21		650		650,000
Federal Farm Credit Discount Notes^(b)1.52%, 12/08/20		4,930		4,922,381
0.34%, 01/19/21		2,240		2,238,329
0.89%, 01/20/21		480		479,061
0.43%, 02/12/21		1,990		1,987,552
0.27%, 03/17/21		2,045		2,042,914
0.15%, 04/01/21 - 07/01/21		9,650		9,642,165
0.19%, 06/01/21		2,850		2,846,811
Federal Home Loan Bank Discount Notes^(b)0.10%, 11/04/20 - 01/29/21		20,215		20,211,254
0.11%, 11/12/20 - 12/23/20		3,075		3,074,692
0.70%, 12/04/20		2,140		2,138,627
0.16%, 01/04/21		450		449,873
0.21%, 04/12/21		2,130		2,127,987
0.20%, 04/29/21 - 06/11/21		4,895		4,889,637
Federal Home Loan Bank Notes 0.12%, 06/04/21		2,700		2,699,818
0.20%, 06/17/21		2,140		2,139,896
0.11%, 06/29/21		2,070		2,069,915
(1 mo. LIBOR US - 0.01%), 0.13%, 04/05/21 - 05/03/21^(a)		4,030		4,030,000
(1 mo. LIBOR US - 0.02%), 0.14%, 04/27/21^(a)		1,400		1,399,803
(3 mo. LIBOR US - 0.13%), 0.10%, 12/21/20^(a)		2,165		2,165,000


Security	Par (000)		Value

U.S. Government Sponsored Agency Obligations (continued)
Federal Home Loan Bank Notes (continued)
(3 mo. LIBOR US - 0.17%), 0.06%, 01/08/21^(a)	$	1,195	$	1,195,000
(Secured Overnight Financing Rate + 0.04%), 0.13%, 02/09/21^(a)		3,105		3,104,856
(Secured Overnight Financing Rate + 0.05%), 0.14%, 01/22/21^(a)		525		525,000
(Secured Overnight Financing Rate + 0.07%), 0.16%, 04/28/22^(a)		780		780,000
(Secured Overnight Financing Rate + 0.08%), 0.17%, 03/04/21 - 07/23/21^(a)		2,815		2,815,000
(Secured Overnight Financing Rate + 0.09%), 0.18%, 09/10/21^(a)		3,855		3,855,000
(Secured Overnight Financing Rate + 0.11%), 0.20%, 03/25/21^(a)		1,010		1,010,000
(Secured Overnight Financing Rate + 0.12%), 0.21%, 03/12/21 - 02/28/22^(a)		8,500		8,500,000
(Secured Overnight Financing Rate + 0.15%), 0.24%, 09/03/21^(a)		3,000		3,000,000
(Secured Overnight Financing Rate + 0.16%), 0.25%, 05/07/21^(a)		3,515		3,515,000
Federal Home Loan Mortgage Corp.^(a)
(Secured Overnight Financing Rate + 0.03%), 0.12%, 02/26/21		1,240		1,240,000
(Secured Overnight Financing Rate + 0.12%), 0.21%, 06/04/21		3,820		3,815,420
(Secured Overnight Financing Rate + 0.18%), 0.27%, 12/13/21		2,655		2,655,000
(Secured Overnight Financing Rate + 0.20%), 0.29%, 03/11/22		1,435		1,435,000
(Secured Overnight Financing Rate + 0.32%), 0.41%, 09/23/21		2,735		2,735,000
Freddie Mac, 1.13%, 08/12/21		760		765,833


				152,366,934

U.S. Treasury Obligations
U.S. Treasury Bills^(b)0.18%, 11/10/20 - 02/25/21		7,720		7,716,979
0.10%, 11/17/20 - 02/23/21		86,300		86,286,724
0.11%, 11/19/20 - 04/29/21		23,135		23,128,190
0.09%, 12/03/20 - 12/22/20		9,360		9,359,162
0.14%, 01/28/21		19,040		19,033,817
0.17%, 03/25/21		5,000		4,996,600
0.16%, 05/20/21		3,375		3,372,000
U.S. Treasury Notes 1.75%, 11/15/20		330		330,017
2.63%, 11/15/20		915		915,339
1.63%, 11/30/20		365		364,988
2.00%, 11/30/20 - 01/15/21		885		887,294


6		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (unaudited) (continued)

October 31, 2020

BlackRock Summit Cash Reserves Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

U.S. Treasury Obligations (continued)
U.S. Treasury Notes (continued)
(3 mo.Treasury money market yield + 0.12%), 0.22%, 01/31/21^(a)	$	5,000	$	5,000,000
(3 mo.Treasury money market yield + 0.14%), 0.24%, 04/30/21^(a)		290		289,884

				161,680,994


Total Short-Term Securities — 64.4% (Cost: $314,047,928)				314,047,928


Total Repurchase Agreements — 34.5% (Cost: $168,000,000)				168,000,000


Total Investments — 98.9% (Cost: $482,047,928^(c))				482,047,928

Other Assets Less Liabilities — 1.1%				5,356,928


Net Assets — 100.0%			$	487,404,856

^(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)	Rates are discount rates or a range of discount rates as of period end.

^(c)	Cost for U.S. federal income tax purposes.

Repurchase Agreements


	Repurchase Agreements												Collateral
Counterparty	Coupon Rate			Purchase Date		Maturity Date		Par (000)		At Value (000)		Proceeds Including Interest	Position	Original Par	Position Received At Value
BNP Paribas S.A.		0.07	%		10/30/20		11/02/20	$	20	$	20,000	$ 20,000,117	U.S. Treasury Obligation, 0.00% to 0.63%, due 03/25/21 to 08/15/30	$20,785,500	$ 20,400,037
		0.10			10/30/20		11/02/20		10		10,000	10,000,083	U.S. Treasury Obligation, 0.00% to 6.88%, due 02/15/21 to 02/15/49	9,543,872	10,200,019

Total BNP Paribas S.A.										$	30,000				$ 30,600,056

J.P. Morgan Securities LLC		0.07			10/30/20		11/02/20		35		35,000	35,000,204	U.S. Treasury Obligation, 0.00% to 1.63%, due 03/02/21 to 12/15/22	34,424,700	35,700,097
Merrill Lynch, Pierce, Fenner & Smith, Inc.		0.07			10/30/20		11/02/20		10		10,000	10,000,058	U.S. Treasury Obligation, 1.63%, due 11/30/26	9,501,600	10,200,012
		0.09			10/30/20		11/02/20		25		25,000	25,000,188	U.S. Government Sponsored Agency Obligation, 1.13% to 3.04%, due 03/20/70 to 08/20/70	23,438,494	25,500,000

Total Merrill Lynch, Pierce, Fenner & Smith, Inc.										$	35,000				$ 35,700,012

Mizuho Securities USA, Inc.		0.09			10/30/20		11/02/20		35		35,000	35,000,263	U.S. Treasury Obligation, 2.38%, due 04/30/26	31,987,400	35,700,032
TD Securities (USA) LLC		0.07			10/30/20		11/02/20		33		33,000	33,000,193	U.S. Treasury Obligation, 1.25%, due 07/31/23	32,611,600	33,660,097

										$	168,000				$ 171,360,294


S C H E D U L E O F I N V E S T M E N T S		7

Schedule of Investments (unaudited) (continued)

October 31, 2020

BlackRock Summit Cash Reserves Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For 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 investments categorized in the disclosure hierarchy. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.


	Level 1		Level 2		Level 3		Total
Assets
Investments
Short-Term Securities
Repurchase Agreements	$	—	$	168,000,000	$	—	$	168,000,000
U.S. Government Sponsored Agency Obligations		—		152,366,934		—		152,366,934
U.S. Treasury Obligations		—		161,680,994		—		161,680,994

	$	—	$	482,047,928	$	—	$	482,047,928

See notes to financial statements.


8		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Statement of Assets and Liabilities (unaudited)

October 31, 2020


	BlackRock Summit Cash Reserves Fund

ASSETS
Investments at value — unaffiliated^(a)		$	314,047,928
Cash			956,460
Repurchase agreements at value^(b)			168,000,000
Receivables:
Investments sold			7,000,000
Capital shares sold			940,135
Interest — unaffiliated			56,324
Prepaid expenses			70,998

Total assets			491,071,845


LIABILITIES
Payables:
Investments purchased			2,375,000
Accounting services fees			32,168
Capital shares redeemed			1,128,677
Income dividend distributions			205
Investment advisory fees			35,296
Trustees’ and Officer’s fees			4,236
Other accrued expenses			56,805
Other affiliates			2,206
Professional fees			32,396

Total liabilities			3,666,989


NET ASSETS		$	487,404,856


NET ASSETS CONSIST OF
Paid-in capital		$	487,247,397
Accumulated earnings			157,459

NET ASSETS		$	487,404,856


^(a)Investments at cost — unaffiliated		$	314,047,928
^(b)Repurchase agreements at cost		$	168,000,000


F I N A N C I A L S T A T E M E N T S		9

Statement of Assets and Liabilities (unaudited) (continued)

October 31, 2020


	BlackRock Summit Cash Reserves Fund

NET ASSET VALUE
Institutional
Net assets	$	90,858,428

Shares outstanding		90,860,598

Net asset value	$	1.00

Shares authorized		unlimited

Par value	$	0.10


Investor A
Net assets	$	395,263,094

Shares outstanding		395,272,551

Net asset value	$	1.00

Shares authorized		unlimited

Par value	$	0.10


Investor C
Net assets	$	1,283,334

Shares outstanding		1,283,364

Net asset value	$	1.00

Shares authorized		unlimited

Par value	$	0.10

See notes to financial statements.


10		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Statement of Operations (unaudited)

Six Months Ended October 31, 2020


	BlackRock Summit Cash Reserves Fund

INVESTMENT INCOME
Interest — unaffiliated		$	582,159

Total investment income			582,159


EXPENSES
Investment advisory			1,205,595
Transfer agent — class specific			61,938
Registration			54,421
Professional			49,234
Offering			26,126
Printing and postage			22,552
Accounting services			14,341
Custodian			11,351
Trustees and Officer			6,890
Distribution — class specific			5,803
Miscellaneous			13,909

Total expenses			1,472,160
Less:
Fees waived and/or reimbursed by the Manager			(829,429	)
Distribution fees waived and/or reimbursed — class specific			(5,803	)
Transfer agent fees waived and/or reimbursed — class specific			(61,938	)

Total expenses after fees waived and/or reimbursed			574,990

Net investment income			7,169


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from:
Investments — unaffiliated			954

Net realized and unrealized gain			954


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	8,123

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		11

Statements of Changes in Net Assets


	BlackRock Summit Cash Reserves Fund
	Six Months Ended 10/31/20 (unaudited)				Year Ended 04/30/20

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income		$	7,169			$	4,751,339
Net realized gain			954				6,154

Net increase in net assets resulting from operations			8,123				4,757,493


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Institutional			(357	)			(718,757	)
Investor A			(6,809	)			(4,049,086	)
Investor C			(3	)			(3,497	)

Decrease in net assets resulting from distributions to shareholders			(7,169	)			(4,771,340	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions			(18,030,008	)			184,837,428


NET ASSETS
Total increase (decrease) in net assets			(18,029,054	)			184,823,581
Beginning of period			505,433,910				320,610,329

End of period		$	487,404,856			$	505,433,910

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


12		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights

(For a share outstanding throughout each period)


	BlackRock Summit Cash Reserves Fund

	Institutional
		Six Months Ended				Period from
		10/31/20						07/15/19	^(a)
		(unaudited)				to 04/30/20

Net asset value, beginning of period			$	1.00			$	1.00

Net investment income				0.0000	^(b)			0.0098
Net realized and unrealized gain				0.0000	^(b)			0.0000	^(b)

Net increase from investment operations				0.0000				0.0098


Distributions^(c)
From net investment income				(0.0000	)^(d)			(0.0098	)
From net realized gain				(0.0000	)^(d)			(0.0000	)^(d)

Total distributions				(0.0000	)			(0.0098	)


Net asset value, end of period			$	1.00			$	1.00


Total Return^(e)
Based on net asset value				0.00	%^(f)			0.98	%^(f)


Ratios to Average Net Assets
Total expenses				0.62	%^(g)(h)			0.64	%^(g)(h)

Total expenses after fees waived and/or reimbursed				0.24	%^(g)(h)			0.42	%^(g)(h)

Net investment income				0.00	%^(h)			1.20	%^(h)


Supplemental Data
Net assets, end of period (000)			$	90,858			$	97,718

^(a)	Commencement of operations.

^(b)	Amount is less than $0.00005 per share.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Amount is greater than $(0.00005) per share.

^(e)	Where applicable, assumes the reinvestment of distributions.

^(f)	Aggregate total return.

^(g)

Includes non-recurring expenses of offering, organization and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed and paid indirectly would have been 0.61% and 0.23% for six months ended 10/31/20, respectively and 0.62% and 0.39% for the period ended 04/30/2020, respectively.

^(h)	Annualized.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		13

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock Summit Cash Reserves Fund (continued)
	Investor A

	Six Months Ended 10/31/20				Year Ended April 30,
	(unaudited)				2020			2019			2018			2017			2016

Net asset value, beginning of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00

Net investment income			0.0000	^(a)		0.0142			0.0135			0.0025			0.0000	^(a)		0.0000	^(a)
Net realized and unrealized gain			0.0000	^(a)		0.0000	^(a)		0.0000	^(a)		0.0001			0.0000	^(a)		0.0000	^(a)

Net increase from investment operations			0.0000			0.0142			0.0135			0.0026			0.0000			0.0000


Distributions^(b)
From net investment income			(0.0000	)^(c)		(0.0142	)		(0.0135	)		(0.0025	)		(0.0000	)^(c)		(0.0000	)^(c)
From net realized gain			(0.0000	)^(c)		(0.0000	)^(c)		(0.0000	)^(c)		(0.0001	)		(0.0000	)^(c)		(0.0000	)^(c)

Total distributions			(0.0000	)		(0.0142	)		(0.0135	)		(0.0026	)		(0.0000	)		(0.0000	)


Net asset value, end of period		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00


Total Return^(d)
Based on net asset value			0.00	%^(e)		1.43	%		1.35	%		0.26	%		0.00	%		0.00	%


Ratios to Average Net Assets
Total expenses			0.61	%^(f)(g)		0.64	%^(f)		0.82	%^(f)		0.93	%		0.81	%		0.84	%

Total expenses after fees waived and/or reimbursed			0.24	%^(f)(g)		0.42	%^(f)		0.52	%^(f)		0.93	%		0.51	%		0.30	%

Net investment income			0.00	%^(g)		1.36	%		1.86	%		0.25	%		0.00	%		0.00	%


Supplemental Data
Net assets, end of period (000)		$	395,263		$	405,760		$	319,960		$	45,365		$	55,609		$	63,096

^(a)	Amount is less than $0.00005 per share.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Amount is greater than $(0.00005) per share.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Aggregate total return.

^(f)

Includes non-recurring expenses of offering, organization and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed and paid indirectly would have been 0.60% and 0.23% for the six months ended 10/31/20, respectively, 0.61% and 0.40% for the year ended 04/30/20, respectively and 0.72% and 0.42% for the year ended 04/30/19, respectively.

^(g)	Annualized.

See notes to financial statements.


14		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock Summit Cash Reserves Fund (continued)

	Investor C
		Six Months Ended								Period from
		10/31/20				Year Ended						08/10/18	^(a)
		(unaudited)				April 30, 2020				to 04/30/19

Net asset value, beginning of period			$	1.00			$	1.00			$	1.00

Net investment income				0.0000	^(b)			0.0075				0.0058
Net realized and unrealized gain				0.0000	^(b)			0.0000	^(b)			0.0000	^(b)

Net increase from investment operations				0.0000				0.0075				0.0058


Distributions^(c)
From net investment income				(0.0000	)^(d)			(0.0075	)			(0.0058	)
From net realized gain				(0.0000	)^(d)			(0.0000	)^(d)			(0.0000	)^(d)

Total distributions				(0.0000	)			(0.0075	)			(0.0058	)


Net asset value, end of period			$	1.00			$	1.00			$	1.00


Total Return^(e)
Based on net asset value				0.00	%^(f)			0.75	%			0.58	%^(f)


Ratios to Average Net Assets
Total expenses				1.40	%^(g)(h)			1.52	%^(g)			1.47	%^(g)(h)

Total expenses after fees waived and/or reimbursed				0.26	%^(g)(h)			0.90	%^(g)			1.20	%^(g)(h)

Net investment income				0.00	%^(h)			0.51	%			1.25	%^(h)


Supplemental Data
Net assets, end of period (000)			$	1,283			$	1,956			$	651

^(a)	Commencement of operations.

^(b)	Amount is less than $0.00005 per share.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Amount is greater than $(0.00005) per share.

^(e)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(f)	Aggregate total return.

^(g)

Includes non-recurring expenses of offering, organization and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed and paid indirectly would have been 1.39% and 0.25% for the six months ended 10/31/20, respectively, 1.49% and 0.87% for the year ended 04/30/20, respectively, and 1.38% and 1.11% for the period ended 04/30/19, respectively.

^(h)	Annualized.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		15

Notes to Financial Statements (unaudited)

1. ORGANIZATION

BlackRock Financial Institutions Series Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. BlackRock Summit Cash Reserves Fund (the “Fund”) is a series of the Trust. The Fund is classified as diversified.

The Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional Shares are sold without a sales charge and only to certain eligible investors. Investor A and Investor C Shares may be subject to a contingent deferred sales charge (“CDSC”). Investor A Shares are generally available through financial intermediaries. Investor C Shares are available only through exchanges and dividend and capital gain reinvestments by current holders. Investor C Shares automatically convert to Investor A Shares after approximately ten years. Effective November 23, 2020, the automatic conversion feature will be modified to reduce the conversion period from ten years to eight years. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.

The Fund operates as a “government money market fund” under Rule 2a-7 under the 1940 Act. The Fund is not subject to liquidity fees or temporary suspensions of redemptions due to declines in the Fund’s weekly liquid assets.

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 equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. 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.

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are distributed at least annually and are recorded on the ex-dividend dates. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Offering Costs: Offering costs are amortized over a 12-month period beginning with the commencement of operations of a class of shares.

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: U.S. GAAP defines fair value as the price the 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’s investments are valued under the amortized cost method which approximates current market value in accordance with Rule 2a-7 under the 1940 Act. Under this method, investments are valued at cost when purchased and, thereafter, a constant proportionate accretion of discounts and amortization of premiums are recorded until the maturity of the security. The Fund seeks to maintain its net asset value (“NAV”) per share at $1.00, although there is no assurance that it will be able to do so on a continuing basis.

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)

•

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the BlackRock Global Valuation Methodologies Committee’s assumptions used in determining the fair value of financial instruments)


16		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (unaudited) (continued)

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. 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

Repurchase Agreements: Repurchase agreements are commitments to purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed upon repurchase amount. Repurchase agreements may be traded bilaterally, in a tri-party arrangement or may be centrally cleared through a sponsoring agent. Subject to the custodial undertaking associated with a tri-party repurchase arrangement and for centrally cleared repurchase agreements, a third party custodian maintains accounts to hold collateral for the fund and its counterparties. Typically, the fund and counterparty are not permitted to sell, re-pledge or use the collateral absent a default by the counterparty or the fund, respectively.

In the event the counterparty defaults and the fair value of the collateral declines, the fund could experience losses, delays and costs in liquidating the collateral.

Repurchase agreements are entered into by the fund under Master Repurchase Agreements (each, an “MRA”). The MRA permits the fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, the fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, the fund would recognize a liability with respect to such excess collateral. The liability reflects the fund’s obligation under bankruptcy law to return the excess to the counterparty.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, 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 0.50% of the average daily value of the Fund’s net assets.

For the six months ended October 31, 2020, the Fund reimbursed the Manager for certain accounting services, which is included in accounting services in the Statement of Operations. The reimbursements were $2,397.

Distribution Fees: The Trust, 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 annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:


Share Class	Distribution Fees
Investor C		0.75	%

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 October 31, 2020, the following table shows the class specific distribution fees borne directly by each share class of the Fund:


	Investor C
Distribution fees — class specific	$	5,803

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended October 31, 2020, the Fund did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended October 31, 2020, the Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:


Fund Name	Investor A
BlackRock Summit Cash Reserves Fund	$	4,676


N O T E S T O F I N A N C I A L S T A T E M E N T S		17

Notes to Financial Statements (unaudited) (continued)

For the six months ended October 31, 2020, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:


	Institutional		Investor A		Investor C		Total
Transfer agent fees — class specific	$	14,167	$	47,233	$	538	$	61,938

Other Fees: For the six months ended October 31, 2020, affiliates received CDSCs of $25,161 for Investor A Shares.

Expense Limitations, Waivers and Reimbursements: With respect to the Fund, 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 limitation as a percentage of average daily net assets is as follows:


Share Class	Expense Limitation
Institutional		0.42	%
Investor A		0.42
Investor C		1.17

The Manager has agreed not to reduce or discontinue these contractual expense limitations through August 31, 2021, unless approved by the Board, including a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended October 31, 2020, the Manager waived and/or reimbursed $390,356 which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed-class specific in the Statement of Operations. For the six months ended October 31, 2020, class specific expense waivers and/or reimbursements are as follows:


	Institutional		Investor A		Investor C		Total
Transfer agent fees — class specific	$	14,070	$	41,442	$	536	$	56,048

The Manager and BRIL have also voluntarily agreed to waive a portion of their respective management, investment advisory and service and distribution fees and/or reimburse operating expenses to enable the Fund to maintain minimum levels of daily net investment income if applicable. These amounts, if any, are reported in the Statement of Operations as fees waived and/or reimbursed by the Manager, Distribution fees waived and/or reimbursed — class specific and transfer agent fees waived and/or reimbursed — class specific. The Manager and BRIL may discontinue the waiver and/or reimbursement at any time. For the six months ended October 31, 2020, the amounts waived and/or reimbursed were as follows:


	Institutional		Investor A		Investor C		Total
Transfer agent fees — class specific	$	97	$	5,791	$	2	$	5,890


	Investor C
Distribution fees — class specific	$	5,803

Fees waived/and or reimbursed by the Manager	$	439,073

Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Trustees and Officer in the Statement of Operations.

6. 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 October 31, 2020, 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.

7. 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;


18		2 0 2 0 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (unaudited) (continued)

(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: 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.

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.

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.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. 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.

8. CAPITAL SHARE TRANSACTIONS

The number of shares sold, reinvested and redeemed corresponds to the net proceeds from the sale of shares, reinvestment of all distributions and cost of shares redeemed, respectively, since shares are sold and redeemed at $1.00 per share.

Transactions in capital shares for each class were as follows:



	Six Months Ended 10/31/20			Year Ended 04/30/20

Institutional^(a)
Shares sold		28,297,309			148,647,061
Shares issued in reinvestment of distributions		309			712,035
Shares redeemed		(35,157,878	)		(51,638,238	)

		(6,860,260	)		97,720,858

Investor A^(b)
Shares sold and automatic conversion of shares		105,148,819			317,062,024
Shares issued in reinvestment of distributions		6,461			3,865,439
Shares redeemed		(115,652,415	)		(235,116,113	)

		(10,497,135	)		85,811,350

Investor C
Shares sold		875,674			2,656,375
Shares issued in reinvestment of distributions		2			2,928
Shares redeemed and automatic conversion of shares		(1,548,289	)		(1,354,083	)

		(672,613	)		1,305,220

		(18,030,008	)		184,837,428

^(a)

The share class commenced operation on July 15, 2019.

^(b)

On July 15, 2019, a portion of the outstanding Investor A Shares were converted into Institutional Shares.

As of October 31, 2020, BlackRock Financial Management, Inc., an affiliate of the Fund, owned 50,000 Investor C Shares of the Fund.

9. 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.


N O T E S T O F I N A N C I A L S T A T E M E N T S		19

Disclosure of Investment Advisory Agreement

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Financial Institutions Series Trust (the “Trust”) met on April 7, 2020 (the “April Meeting”) and May 11-13, 2020 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Agreement”) between the Trust, on behalf of BlackRock Summit Cash Reserves Fund (the “Fund”), a series of the Trust, and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), the Trust’s investment advisor.

Activities and Composition of the Board

On the date of the May Meeting, the Board consisted of fourteen individuals, twelve of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Trust and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Ad Hoc Topics Committee, which also has one interested Board Member).

The Agreement

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreement on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreement, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to the Fund. 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, considers information that is relevant to its annual consideration of the renewal of the Agreement, 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. This additional information is discussed further in the section titled “Board Considerations in Approving the Agreement.” 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 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; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Trust’s valuation and liquidity procedures; (k) an analysis of management fees 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.

Board Considerations in Approving the Agreement

The Approval Process: : Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreement. The Independent Board Members are 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 the Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of the Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreement 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 Fund; (g) a summary of aggregate amounts paid by the Fund to BlackRock; (h) sales and redemption data regarding the Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreement. 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 the Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to its Expense Peers; (e) the existence and


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Disclosure of Investment Advisory Agreement (continued)

sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made 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 did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of 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 the Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the 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 the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to the Fund. BlackRock and its affiliates provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide the Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Fund and BlackRock

The Board, including the Independent Board Members, also reviewed and considered the performance history of the Fund. 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, 2019, 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 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 the 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- and three-year periods reported, the Fund underperformed 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 and BlackRock reviewed the Fund’s underperformance relative to its Benchmark Weighted Average during the applicable periods.

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 Fund

The Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered 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).


D I S C L O S U R E O F I N V E S T M E N T A D V I S O R Y A G R E E M E N T		21

Disclosure of Investment Advisory Agreement (continued)

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 the Fund. The Board reviewed BlackRock’s estimated profitability with respect to the Fund and other funds the Board currently oversees for the year ended December 31, 2019 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 BlackRock 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 BlackRock, 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 Agreement 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 Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Fund’s contractual management fee rate ranked in the fourth quartile, and that the actual management fee rate and total expense ratio ranked in the third and second quartiles, respectively, relative to the Fund’s Expense Peers. In addition, the Board noted that BlackRock and the Board agreed to a contractual expense cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the 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 the 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 the Fund to more fully participate in these economies of scale. The Board considered the Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. The Board also 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 Agreement, 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 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 the Agreement between the Manager and the Trust, on behalf of the Fund, for a one-year term ending June 30, 2021. 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 Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the 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.


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Additional Information

General Information

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial adviser. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Transfer AgentFund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The 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 and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 626-1960; (2) at blackrock.com; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Fund voted proxies relating to securities held in the Fund’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com; or by calling (800) 626-1960 and (2) on the SEC’s website at sec.gov.

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.


A D D I T I O N A L I N F O R M A T I O N		23

Additional Information (continued)

Fund and Service Providers

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Custodian and Accounting Agent

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Fund

100 Bellevue Parkway

Wilmington, DE 19809


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Want to know more?

blackrock.com | 800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless preceded or accompanied by the Fund’s current prospectus. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Funds 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. The 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.

SUMMITMM-10/20-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 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

(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 Summit Cash Reserves Fund of BlackRock Financial Institutions Series Trust


		By:		/s/ John M. Perlowski
				John M. Perlowski
				Chief Executive Officer (principal executive officer) of
				BlackRock Summit Cash Reserves Fund of BlackRock Financial Institutions Series Trust

Date: December 31, 2020

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 Summit Cash Reserves Fund of BlackRock Financial Institutions Series Trust

Date: December 31, 2020


		By:		/s/ Neal J. Andrews
				Neal J. Andrews
				Chief Financial Officer (principal financial officer) of
				BlackRock Summit Cash Reserves Fund of BlackRock Financial Institutions Series Trust

Date: December 31, 2020