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DECEMBER 31, 2019
Not FDIC Insured - May Lose Value - No Bank Guarantee
2019 Annual Report
BlackRock Variable Series Funds, Inc.
• BlackRock Advantage Large Cap Core V.I. Fund
Dear Shareholder,
solid.
blackrock.com
The Markets in Review
Rob KapitoPresident, BlackRock Advisors, LLC
Total Returns as of December 31, 2019
6-Month 12-Month
U.S. large cap equities (S&P 500® Index)®
10.92% 31.49%
U.S. small cap equities (Russell 2000® Index)®
7.30 25.52
International equities(MSCI Europe, Australasia,Far East Index)
7.01 22.01
Emerging market equities(MSCI Emerging MarketsIndex)
7.09 18.42
3-month Treasury bills(ICE BofAML 3-Month U.S.Treasury Bill Index)
1.03 2.28
U.S. Treasury securities(ICE BofAML 10-Year U.S. Treasury Index)
1.36 8.91
U.S. investment grade bonds(Bloomberg Barclays U.S.Aggregate Bond Index)
2.45 8.72
Tax-exempt municipal bonds(S&P Municipal Bond Index)
2.21 7.26
U.S. high yield bonds(Bloomberg Barclays U.S.Corporate High Yield 2%Issuer Capped Index)
3.98 14.32
Past performance is no guarantee of future results. Indexperformance is shown for illustrative purposes only. Youcannot invest directly in an index.
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
Fund Summary as of December 31, 2019
2
BlackRock Advantage Large Cap Core V.I. Fund
Investment ObjectiveBlackRock Advantage Large Cap Core V.I. Fund’s (the “Fund”) investment objective is to seek high total investment return.
Portfolio Management Commentary
How did the Fund perform?For the 12-month period ended on December 31, 2019, the Fund underperformed its benchmark, the Russell 1000® Index.®
The Fund’s relative returns were challenged during the latter half of the year, with underperformance primarily driven by the sentiment-based group of insights, which
of informed bond investors was the top individual detractor for the period. The signal’s more defensive properties went unrewarded through much of the year, and a steady decline in interest rates, most pronounced in the third quarter, created a challenging environment for the insight. Broadly speaking, the Fund’s sentiment-based insights were
value opportunities were very challenged early in the year as investors sought out speculative growth opportunities at the expense of company fundamentals. Macro thematic
sector- and industry-neutral approach, maintaining a modest overweight position in the biotechnology industry was a drag on relative performance, as the industry struggled early in the year and underperformed the broader market in 2019.
Describe recent portfolio activity.
transactions. In addition, an insight that evaluates trade volumes to determine broker concentration and identify overcrowded trades was introduced to the portfolio. Finally,the investment adviser improved upon an existing signal, expanding the data sources used to identify trends in company hiring as an indication of future company growth.
Describe portfolio positioning at period end.Relative to the Russell 1000®®
industrials sectors and slight underweight positions in the real estate and consumer discretionary sectors.
These views are not intended to be a forecast of future events and are no guarantee of future results.
2 0 1 9 B L A C K R O C K 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 December 31, 2019 (continued)
3F U N D S U M M A R Y
BlackRock Advantage Large Cap Core V.I. Fund
TOTAL RETURN BASED ON A $10,000 INVESTMENT
(a)
(b) Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in large cap equity securities and derivatives that have similar economic characteristics to such securities. The Fund’s total returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under
(c) ® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 92% of the total market capitalization of the Russell 3000® Index.
Performance Summary for the Period Ended December 31, 2019
(a)
6-Month Total Returns (a) 1 Year 5 Years 10 Years
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.87 % 28.92 % 10.68 % 12.12 %(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.75 28.67 10.49 11.94 (b) 8.69 28.56 10.36 11.82
Russell 1000® Index 10.59 31.43 11.48 13.54
(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)
shares.
Fund Summary as of December 31, 2019 (continued)
4
BlackRock Advantage Large Cap Core V.I. Fund
Expense Example(a)
Beginning Account Value
(07/01/19)
Ending Account Value
(12/31/19)
Expenses Paid During
the Period (b)
Beginning Account Value
(07/01/19)
Ending Account Value
(12/31/19)
Expenses Paid During
the Period (b)
Annualized Expense
Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000.00 $ 1,088.70 $ 3.00 $ 1,000.00 $ 1,022.33 $ 2.91 0.57 %. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 1,087.50 3.89 1,000.00 1,021.48 3.77 0.74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000.00 1,086.90 4.47 1,000.00 1,020.92 4.33 0.85
(a)
(b)
year period shown).
SECTOR ALLOCATION
SectorPercent of Net Assets
Information Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 %. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Financials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Industrials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
. . . . . . . . . . . . . . . . . . . . . (4 )
ease.
2 0 1 9 B L A C K R O C K 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
Disclosure of Expenses
5D I S C L O S U R E O F E X P E N S E S / D E R I V A T I V E F I N A N C I A L I N S T R U M E N T S
fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypotheticalinvestment of $1,000 invested on July 1, 2019 and held through December 31, 2019) is intended to assist shareholders both in calculating expenses based on an investmentin 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
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.
if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owningdifferent funds. If these transactional expenses were included, shareholder expenses would have been higher.
Derivative Financial Instruments
without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency
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
2 0 1 9 B L A C K R O C K 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
BlackRock Advantage Large Cap Core V.I. Fund
6
(Percentages shown are based on Net Assets)
December 31, 2019
SecuritysharesShares Value
Common Stocks — 99.4%Aerospace & Defense — 2.9%
. . . . . . . . . . . . . . . . . . . 693 $ 225,752 . . . . . . . . . . . . . . . . . 564 79,462
. . . . . . . . . . . . . . . . . . . . . 1,947 222,250. . . . . . . . . . . . . . . . 1,008 90,246
(a) . . . . . . . . . . . . . . . . . . . . . 4,030 295,439 . . . . . . . . . . . . . . . 17,862 6,955,106
. . . . . . . . . . . . . 4,153 1,428,507 . . . . . . . . . . . . . . . . . . . . . 9,538 2,095,880
Teledyne Technologies, Inc.(b) . . . . . . . . . . . 7,435 2,576,525
13,969,167Air Freight & Logistics — 0.1%
. 3,731 291,093 . . . . . . 641 75,035
366,128Airlines — 0.5%
. . . . . . . . . . . . . . . . 10,849 735,020 . . . . . . . . . . . . . . . . . 2,575 150,586
(b) . . . . . . . . . . 16,687 1,469,958
2,355,564Auto Components — 0.1%Dana, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 12,856 233,979
. . . . . . . 31,558 490,885
724,864Automobiles — 0.6%
. . . . . . . . . . . . . . . . . . . . 103,858 965,879 . . . . . . . . . . . . . . . . . 25,776 943,402
. . . . . . . . . . . . . . . . 1,731 64,376Tesla, Inc.(a)(b) . . . . . . . . . . . . . . . . . . . . . 1,795 750,902
2,724,559Banks — 3.7%
(a) . . . . . . . . . . . . . . 114,593 4,035,965 . . . . . . . . . . . . . . . . . . . . . . . 3,817 116,438
. . . . . . . . . . . . . . . . . . . . 29,543 1,348,047 . . . . . . . . . . 25,265 1,026,012
(a) . . . . . . . . . . . . 8,197 801,503 . . . . . . . . . . . . . . 15,714 765,272
. . . . . . . . . . . . 9,153 151,574 . . . . . . . . . . . . . . 40,791 5,686,265
PacWest Bancorp . . . . . . . . . . . . . . . . . . 2,430 92,996 . . 1,171 186,927
Truist . . . . . . . . . . . . . . . . 6,791 382,469 . . . . . . . . . . . . . . . . . . . . . . 9,380 556,140
. . . . . . . . . . . . . . . . . . 51,794 2,786,517
17,936,125Beverages — 1.2%
. . . . . . . . . . . . . . . . 6,782 375,384 . . . . . . . . 8,487 431,819
(a) . . . . . 4,896 263,894(b) . . . . . . . . . . . . . 18,242 1,159,279
. . . . . . . . . . . . . . . . . . . . . 26,176 3,577,474
5,807,850Biotechnology — 3.8%
(a) . . . . . . . . . . . . . . . . . . . . . 35,973 3,185,049(b) . . . . . . . . . 3,615 390,962
. . . . . . . . . . . . . . . . . . . . . . 9,070 2,186,505Biogen, Inc.(b) . . . . . . . . . . . . . . . . . . . . . 3,981 1,181,282
. . . . . . . . . . . . . . . . 101,833 6,617,108Incyte (b) . . . . . . . . . . . . . . . . . . . . . 4,614 402,895Regeneron Pharmaceuticals, Inc.(a)(b) . . . . . . 4,986 1,872,143
SecuritysharesShares Value
Biotechnology (continued)(b) . . . . . . . . . . . . 6,294 $ 554,376
(b) . . . . . . . . . . 10,237 2,241,391
18,631,711Building Products — 0.9%
. . . . . . . . . . . . . . . . . . . . . . . 34,782 4,331,750Resideo Technologies, Inc.(b) . . . . . . . . . . . 11,723 139,856
4,471,606Capital Markets — 4.0%
(a) . . . . . . . . 5,628 476,917 . . . . . 12,916 650,062
. . . . . . . . . . . 37,517 1,784,308 . . . . . . . . . . . . . . . . . . . 8,470 1,700,098
. . . . . . . . . . . . . . . 4,691 350,699 . . . . . . . . . 7,251 1,945,443
. . . . . . . . . 31,546 2,919,582 . . . . . . . . . . . . . . . . . . . . . 5,187 1,231,446
. . . . . . . . . . . . . . . . . . . . 67,365 3,443,699 . . . . . . . . . . . . . . . . . . . . . . 501 53,657
. . . . . . . . . . . . . . . . . . . 14,337 3,914,718 . . . . . . . . . . . . . . . . . 1,147 75,106
. . . . . . . . . . . 15,624 776,513
19,322,248Chemicals — 1.4%
. . . . . . . . . . 5,665 1,331,218 . . . . . . . . . . . . 9,582 457,445
. . . . . . . . . . . . . . . . . . . . . . 11,348 2,190,051LyondellBasell . . . . . 8,155 770,484
. . . . . . . . . . . . . . . . . . . 26,739 578,632 . . . . . . . . . . . 999 106,074
. . . . . . . . . . . . 2,535 1,479,274
6,913,178Commercial Services & Supplies — 0.2%
. . . . . . . . . . . . . . . . . . . . . . . . 18,027 142,954 . . . . . . . . . . . . . . . . . . . . . . 1,628 438,062
, Inc.(b) . . . . . . . . . . . . . . . . . . . . . 2,476 225,168
806,184Communications Equipment — 0.7%
(b) . . . . . . . . . . . . . . . . . . . . . 13,537 577,895 . . . . . . . . . . . . . . . . . 53,596 2,570,464
3,148,359Construction & Engineering — 0.3%
(b) . . . . . . . . . . . . . . . . . . . . . . . . 2,488 107,308 . . . . . . . . . . . . . . . . . 678 58,511
. . . . . . . . . . . . . . . . . . . . . . . 26,464 499,640MasTec, Inc.(b) . . . . . . . . . . . . . . . . . . . . . 14,655 940,265
1,605,724Consumer Finance — 1.2%
. . . . . . . . . . . . . . . . . . 41,558 1,270,012 . . . . . . . . . . . . . . . 19,693 2,451,582
. . . . . . . . . . . . 18,034 1,855,879
5,577,473Containers & Packaging — 0.2%Westrock . . . . . . . . . . . . . . . . . . . . . 21,958 942,218
Distributors — 0.0% . . . . . . . . . . . . . . . . . . . . . . . 638 135,498
. . . . . . . . . . . . . . . . . . . . 33,268 781,133
BlackRock Advantage Large Cap Core V.I. Fund
S C H E D U L E O F I N V E S T M E N T S 7
(Percentages shown are based on Net Assets) (continued)
December 31, 2019
SecuritysharesShares Value
(a) . . . . . . . . . . 7,575 $ 187,708(b) . . . . . . 36,384 8,240,976
8,428,684
. . . . . . . . . . . . . . . . . . . . . . . . 85,999 3,360,841 . . . . . . . . . . . . . . . . . . . 38,787 512,376
. . . . . . . . . . 85,617 5,256,884
9,130,101Electric Utilities — 1.3%
. . . . . . . . . . . . . . . . . 9,010 493,027 . . . . . . . . . . . . . . . . . . . . 5,971 637,703
. . . . . . . . . . . 7,742 696,238 . . . . . . . . . . . . . . . . . . . 66,891 4,246,910
6,073,878Electrical Equipment — 0.9%
. . . . . . . . . . . . . . . . . . . . . 27,563 2,749,134(b) . . . . . . . . . . . . . . 1,222 122,921
. . . . . . . . . . . . . . . . . . . . . . 10,160 1,501,851
4,373,906Electronic Equipment, Instruments & Components — 0.9%
. . . . . . . . . . . . . . . . . . . . . . . 4,837 205,282 . . . . . . . . . . . . . . . . . . . . . . . 17,664 2,523,126
. . . . . . . . . . . . 37,980 1,608,073
4,336,481Energy Equipment & Services — 0.2%
. . . . . . . . . . . . 23,527 247,033 plc. . . . . . . . . . . . . . . . . . . . 4,000 85,760
Transocean Ltd.(b) . . . . . . . . . . . . . . . . . . 95,354 656,036
988,829Entertainment — 1.4%
. . . . . . . . . . . . . . . 1,636 97,211 . . . . . . . . . . . . . . 13,627 461,274
(b) . . . . . . . . . . . . . . . . 5,648 607,217(b) . . . . . . . . 13,001 929,181
(b) . . . . . . . . . . . . . . . . . . . . . . 1,495 483,737(b) . . . . . . . . . . . . . . 3,360 502,488
(b) . . . . . . 8,160 999,029 . . . . . . . . . . . . . . . 11,862 1,715,601
(b) . . . . . . . . . . . . . . . . 124,008 758,929
6,554,667Equity Real Estate Investment Trusts (REITs) — 2.9%Boston Properties, Inc. . . . . . . . . . . . . . . . 6,642 915,666Brandywine Realty Trust . . . . . . . . . . . . . . 5,556 87,507
. . . . . . . . . . . . . . . . . . 6,809 550,984(a) . . . . . . . . . . . 18,174 337,128
. . . . . . . . . . . . . . . . 44,403 1,330,758 . . . . . . . . . 19,829 1,769,936 . . . . . . . . . . 4,686 251,263
Media, Inc. . . . . . . . . . . . . . . . . . 15,658 419,948(a) . . . . . . . . . . . 90,394 2,338,493
Prologis, Inc. . . . . . . . . . . . . . . . . . . . . . . 11,057 985,621 . . . . . . . . . . . . . . 1,508 95,140
RLJ Lodging Trust . . . . . . . . . . . . . . . . . . 69,885 1,238,362 . . . . . . . . . . . . 24,657 3,672,907
UDR, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 2,575 120,252
14,113,965Food & Staples Retailing — 1.7%
(a) . . . . . . . . . . . . . 20,652 6,070,036(b) . . . . . . . . . 28,358 1,459,870
SecuritysharesShares Value
Food & Staples Retailing (continued)Walmart, Inc. . . . . . . . . . . . . . . . . . . . . . . 6,676 $ 793,376
8,323,282Food Products — 0.9%
. . . . . . . . . . . . . . . . . . 26,007 3,822,509(a) . . . . . . . . . . . . . . . . 7,412 334,355
4,156,864Gas Utilities — 0.2%
. . . . . . . . . . . . . . . . . 611 68,346 . . . . . . . . . . 12,338 937,318
1,005,664Health Care Equipment & Supplies — 2.5%
. . . . . . . . . . . . . . . . . . . . 2,028 311,257, Inc.(b) . . . . . . . . . . . . . . . . . . . . 3,738 817,650
(b) . . . . . . . . . . 10,410 2,428,549, Inc.(b) . . . . . . . . . . . . . . . . . . . . . 21,605 1,127,997
(b) . . . . . . . . . . . . . 4,164 1,087,345Medtronic plc . . . . . . . . . . . . . . . . . . . . . 10,008 1,135,408
. . . . . . . . . . . . . . . . . . . . . 24,972 5,242,622
12,150,828Health Care Providers & Services — 2.5%
. . . . . . . . . . . . . 13,796 1,172,936 . . . . . . . . . . . . . . . . . . . . . . 12,500 3,775,375
. . . . . . . . . . . . . . . . . . . . . . 3,681 752,728 . . . . . . . . . . . . . . . . . . 39,102 2,904,888
. . . . . . . . . . . . . . . . . . . . . 1,545 566,273 . . . . . . . . . . . . . . . . . . . 1,325 183,274
. . . . . . . . . . . . . . 8,842 2,599,371(b) . . . . . . . . . . . 728 240,393
12,195,238
(b) . . . . . . . . . 9,130 1,284,226
Hotels, Restaurants & Leisure — 2.3% . . . . . . . . . . . . . . . . . 14,949 447,573
. . . . . . . . . . . . . . . . . . . . . 12,636 642,288(b) . . . . . . . . . . . 254 212,626
(a) . . . . . . . . 21,920 2,267,186Darden Restaurants, Inc. . . . . . . . . . . . . . 26,257 2,862,275
. . . . . . . . . . . . 988 74,633 . . . . . . . . . . . 81,215 1,206,855
. . . . . . . 7,426 111,167 . . . . . . . . . . . . . . . . . . 11,388 2,250,383
(b) . . . . . . . . . . . 16,265 415,733Texas Roadhouse, Inc. . . . . . . . . . . . . . . . 10,246 577,055
11,067,774Household Durables — 0.3%
. . . . . . . . . . . . . . . . . . . . 22,498 1,186,769(b) . . . . . . . . . . . . . . . . . 430 77,310
1,264,079Household Products — 1.5%
. . . . . . . . . . . . . 33,042 2,324,174 . . . . . . . . . . . 38,255 4,778,050
7,102,224Industrial Conglomerates — 0.8%
. . . . . . . . . . . . . . . . . . 973 157,470(a) . . . . . . . . . . 11,632 2,058,864
Roper Technologies, Inc. . . . . . . . . . . . . . . 4,641 1,643,982
3,860,316
2 0 1 9 B L A C K R O C K 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
BlackRock Advantage Large Cap Core V.I. Fund
8
(Percentages shown are based on Net Assets) (continued)
December 31, 2019
SecuritysharesShares Value
Insurance — 3.1% . . . . . . . . . . . . . . . . . . . . . . . . 2,667 $ 141,084
. . . . . . . . . . . . . . . . . 23,913 2,689,017 . . . . . . . . . . . . . . 13,936 1,327,125
. . . . . . . . . . . . . . . . . 7,403 292,270(a) . . . . . . . . . . . . 9,802 1,030,680
. . . . . . . . . . 34,504 2,012,273 . . . . . . . . . . . . . . . . . . . . 12,230 1,287,208
. . . . . . . . . . . . . . . 10,330 609,573(a) . . . . . . . . . 5,206 580,001
MetLife, Inc. . . . . . . . . . . . . . . . . . . . . . . 12,410 632,538 . . . . . . . . . . . . . . 7,623 551,829
Prudential Financial, Inc. . . . . . . . . . . . . . . 20,239 1,897,204 . . . . . . . . . . . . . 6,051 828,684
. . . . . . . . . . . . . . . . . . . . . . 17,358 506,159Willis Towers Watson plc . . . . . . . . . . . . . . 2,041 412,160
. . . . . . . . . . . . . . . . . . 5,116 353,516
15,151,321Interactive Media & Services — 4.7%(b)
. . . . . . . . . . . . . . . 4,486 6,008,504 . . . . . . . . . . . . . . . 4,917 6,574,127 . . . . . . . . . . . . . . 40,893 8,393,288
. . . . . . . . . . . . . . . 20,631 384,562 . . . . . . . . . . . . . . . . . . . . 14,564 442,454
Twitter, Inc. . . . . . . . . . . . . . . . . . . . . . . . 15,955 511,358 . . . . . . . . . . . . . . . . . . . . . . . . 9,772 340,359
22,654,652Internet & Direct Marketing Retail — 3.0%
(b) . . . . . . . . . . . . . . . . . 7,904 14,605,327
IT Services — 5.3% . . . . . . . . . . . . . . . . . . . . . . 6,096 440,070
. . . . . . . . . 27,285 4,652,092 . . . . . . . 3,529 251,018
Broadridge . . . . . . 9,364 1,156,828 . . . . . . . . . . . . . . . . 7,765 291,886
(b) . . . . . . . . . . . . . . 17,430 1,183,846 . . . . 348 46,646
. . . . . . . . . . 4,980 725,437Mastercard . . . . . . . . . . . . . . 32,525 9,711,640Paychex, Inc. . . . . . . . . . . . . . . . . . . . . . 45,989 3,911,824
(b) . . . . . . . . . . . . . . . 507 54,842 . . . . . . . . . . . . . . . . . . 17,914 3,366,041
25,792,170Life Sciences Tools & Services — 0.1%Thermo . . . . . . . . . . . 1,450 471,062
Machinery — 2.3% . . . . . . . . . . . . . . . . . . . . . . 6,135 473,929
. . . . . . . . . . . . . . . . . . . . . . . 7,795 1,340,740Ingersoll-Rand plc . . . . . . . . . . . . . . . . . . 1,064 141,427
. . . . . . . . . . . . . . . . . . . . 26,714 2,528,480 . . . . . . . . . . . . . . . . . . . . . 73,019 5,775,803
. . . . . . . . . . . . . . . . . . . . . 5,943 1,006,744
11,267,123
(b) . . . . . . . . . . 25,092 991,134 . . . . . . . . . . . . . . 38,496 1,731,165(b) . . . . . . . . . . . . . 37,696 1,234,167
. . . . . . 123,284 2,847,861(b) 1,362 65,839
(a) . . . 4,686 156,231
SecuritysharesShares Value
Media (continued)(a) . . . . . . . . . . . . . 346,045 $ 2,474,222
9,500,619Metals & Mining — 0.3%
(b) . . . . . . . . . . . . . . . . . . . . . 35,945 773,177 . . . . . . . . . 5,997 718,201
. . . . . . . . . . . . . . . . . 1,679 57,153
1,548,531Multiline Retail — 0.7%
. . . . . . . . . . . . . . . . 16,444 2,564,935 . . . . . . . . . . . . . . . . . . . . . . 6,351 814,262
3,379,197Multi-Utilities — 1.1%
. . . . . . . . . . . . . . . . . . . . . 19,442 1,493,146 . . . . . . . . . . . . . 19,497 1,763,893
. . . . . . . . . . . . . . . . . . . 17,307 2,247,660
5,504,699Oil, Gas & Consumable Fuels — 3.5%
. . . . . . . . . . . . . . . . . . . . 20,915 1,360,103(b) . . . . . . . . . . . 19,730 676,739
. . . . . . . . . . . . . . . . . 3,309 85,935 . . . . . . . . . . . . . . . . 25,549 2,139,984
. . . . . . . . . . . . . . . . . . 103,554 7,225,998 . . . . . . . . . . . . . . . . . . 8,084 109,781
. . . . . . . . . . . . 29,413 1,772,133Phillips 66 . . . . . . . . . . . . . . . . . . . . . . . . 2,598 289,443
. . . . . . . . . . . . . . . . . 31,570 1,035,496 . . . . . . . . . . . . . . . . . 10,773 1,008,891
. . . . . . . . . . . . . . 44,926 1,065,645
16,770,148Paper & Forest Products — 0.2%
(a) . . . . . . . . . . . . . . . . . . . . 30,514 1,166,855
Personal Products — 0.7% . . . . 15,900 3,283,986
Pharmaceuticals — 4.8% . . . . . . . . . . . . . . 65,028 4,174,147
. . . . . . . . . . . . . . . . . 56,990 8,313,131(a) . . . . . . . . . . . . . . . . . . 52,411 4,766,781
(b) . . . . . . . . . . . . . . . . . . . . . . . 32,281 648,848 . . . . . . . . . . . . . . . . . . . . . . . 57,932 2,269,776 . . . . . . . . . . . . . . . . . . . . . . . 24,529 3,246,413
23,419,096Professional Services — 0.3%
(b) . . . . . . . . . . . . . . . . . 475 284,192Markit Ltd.(b) . . . . . . . . . . . . . . . . . . . 2,763 208,192
. . . . . . . . . . . 18,705 1,181,221
1,673,605
. . . . . . . . . . . . . . . . . . . . . . . 3,793 274,461Landstar . . . . . . . . . . . . . . . . 10,945 1,246,307
(b) . . . . . . . . . . . . . . . . . . 4,834 207,959 . . . . . . . . . 1,787 339,137
(a) . . . . . . . . . . . . . . . . 4,564 247,871
2,315,735Semiconductors & Semiconductor Equipment — 3.8%
. . . . . . . . . . . . . . . 46,058 2,811,380(b) . . . . . . . . . . . . . . . . . . 20,019 1,649,766
. . . . . . . . . . 5,944 138,674 . . . . . . . . . . . . . . . . . . . . . . . 75,919 4,543,752
BlackRock Advantage Large Cap Core V.I. Fund
S C H E D U L E O F I N V E S T M E N T S 9
(Percentages shown are based on Net Assets) (continued)
December 31, 2019
SecuritysharesShares Value
Semiconductors & Semiconductor Equipment (continued) . . . . . . . . . . . . . . . . 7,313 $ 2,138,321
Micron Technology, Inc.(b) . . . . . . . . . . . . . 10,966 589,752 . . . . . . . . . . . . . . . . . . . . . 13,826 3,253,258
. . . . . . . . . . . . . . . . . . 10,900 961,707 . . . . . . . . . . . . . . 5,607 677,774
Texas Instruments, Inc. . . . . . . . . . . . . . . . 13,412 1,720,625
18,485,009Software — 7.7%
(b) . . . . . . . . . . . . . . . . . . . . . . 11,003 3,628,899(b) . . . . . . . . 741 51,396
(b) . . . . . . . . . . . . . . 11,856 212,341Intuit, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 14,315 3,749,528
(b) . . . . . . . . . . . 4,120 328,570 . . . . . . . . . . . . . . . . . . . . 130,475 20,575,908
Paylocity (b) . . . . . . . . . . . . . 6,142 742,076salesforce.com, Inc.(b) . . . . . . . . . . . . . . . . 25,560 4,157,078
, Inc.(b) . . . . . . . . . . . . . . . . . . 10,268 2,898,862(b) . . . . . . . . . . . . . . 6,953 1,143,421
37,488,079Specialty Retail — 1.2%
(b). . . . . . . . . . . . . . . . . . . 1,223 59,475(b) . . . . . . . . . . . . . . . . . . . 179 213,245
. . . . . . . . . . . . . . 22,501 4,913,768(b) . . . . . . . . . . . . . 555 243,234
. . . . . . . . . . . . . . . . . . . 2,569 299,083(a) . . . . . . . . . . . . . . . . . 2,301 215,005
5,943,810Technology Hardware, Storage & Peripherals — 4.7%
. . . . . . . . . . . . . . . . . . . . . . . 75,843 22,271,297 . . . . . . . . . . . . . . . . . . . . . . . . . 26,135 537,074
22,808,371Textiles, Apparel & Luxury Goods — 1.0%Lululemon (b) . . . . . . . . . . . . . 3,151 729,992
. . . . . . . . . . . . . . . . . 33,368 3,380,512(a) . . . . . . . . . . . . . . . . 4,748 556,561
4,667,065Thrifts & Mortgage Finance — 0.2%
(b) . . . . . . . . . . . . . . . . . 8,196 426,110LendingTree, Inc.(a)(b) . . . . . . . . . . . . . . . . 214 64,936
. . . . . . . . . . . . . . 16,537 234,329
725,375Tobacco — 0.5%
. . . . . . . . . . . . . . . . . . . 34,298 1,711,813Philip Morris International, Inc. . . . . . . . . . . 9,047 769,809
2,481,622Trading Companies & Distributors — 0.3%
(a) . . . . . . . . . . . . . . . . . . . . . 18,993 1,573,570Watsco, Inc. . . . . . . . . . . . . . . . . . . . . . . 320 57,648
1,631,218Water Utilities — 0.8%
. . . . . . . . . 31,277 3,842,379
Wireless Telecommunication Services — 0.4% . . . . . . . . . 44,883 1,141,375
(b) . . . . . . . . . . 22,643 820,356
1,961,731
Total Common Stocks — 99.4% (Cost: $426,311,770) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481,169,380
SecuritysharesShares Value
Rights — 0.0%Pharmaceuticals — 0.0%(b)
. . . . . . . . . . . . . . 11,568 $ 34,820
Total Rights — 0.0% (Cost: $24,640) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,820
Total Long-Term Investments — 99.4%(Cost: $426,336,410) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481,204,200
Short-Term Securities — 4.9%(c)*BlackRock Liquidity Funds, T-Fund, Institutional
. . . . . . . . . . . . . . . . . . . 3,174,969 3,174,969
1.80%(d) . . . . . . . . . . . . . . . . . . . . . . . 20,681,570 20,685,706
Total Short-Term Securities — 4.9% (Cost: $23,860,482). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,860,675
Total Investments — 104.3% (Cost: $450,196,892). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505,064,875
Liabilities in Excess of Other Assets — (4.3)% . . . . . . . . . . . . (20,805,323)
Net Assets — 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 484,259,552
2 0 1 9 B L A C K R O C K 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
BlackRock Advantage Large Cap Core V.I. Fund
10
(continued)December 31, 2019
(a)
(b)
(c)
(d)
*
Shares Held at
12/31/18 Net
Activity
Shares Held at
12/31/19Value at
12/31/19 Income
Net Realized
Gain (Loss) (a)
Change inUnrealized
Appreciation (Depreciation)
. . . . . . . . 4,753,078 (1,578,109) 3,174,969 $ 3,174,969 $ 82,866 $ 7 $ — . . . . . . . . . . . . . 13,426,942 7,254,628 20,681,570 20,685,706 69,576(b) 2,911 1,024
$ 23,860,675 $ 152,442 $ 2,918 $ 1,024
(a) Includes net capital gain distributions, if applicable.(b) Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from
borrowers of securities.
BlackRock Advantage Large Cap Core V.I. Fund
S C H E D U L E O F I N V E S T M E N T S 11
(continued)December 31, 2019
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
DescriptionNumber of Contracts
Expiration Date
Notional Amount (000)
Value/ Unrealized
Appreciation (Depreciation)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 03/20/20 $ 4,039 $ 60,977
Derivative Financial Instruments Categorized by Risk Exposure
Commodity Contracts
Credit Contracts
Equity Contracts
Foreign Currency
Exchange Contracts
Interest Rate
ContractsOther
Contracts TotalAssets — Derivative Financial InstrumentsFutures contracts
Unrealized appreciation on futures contracts (a) . . . . . $ — $ — $ 60,977 $ — $ — $ — $ 60,977
(a)
variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).
Credit Contracts
Equity Contracts
Foreign Currency
Exchange Contracts
Interest
Rate Contracts
Other Contracts
TotalNet Realized Gain (Loss) from:Futures contracts. . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 1,168,506 $ — $ — $ — $ 1,168,506
Net Change in Unrealized Appreciation (Depreciation) on:Futures contracts. . . . . . . . . . . . . . . . . . . . . . . — — 147,737 — — — 147,737
Average Quarterly Balances of Outstanding Derivative Financial Instruments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,315,594
2 0 1 9 B L A C K R O C K 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
BlackRock Advantage Large Cap Core V.I. Fund
12
(continued)December 31, 2019
Fair Value Hierarchy as of Period End
The following tables
Level 1 Level 2 Level 3 Total
Long-Term Investments (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 481,204,200 $ — $ — $ 481,204,200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,174,969 — — 3,174,969
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 484,379,169 $ — $ — $ 484,379,169
(b) 20,685,706 $ —
Total Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 505,064,875 $ —
Derivative Financial Instruments (c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,977 $ — $ — $ 60,977
(a)
(b)
(c)
December 31, 2019
13F I N A N C I A L S T A T E M E N T S
BlackRock
ASSETS19,757,126) (cost — $426,336,410). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 481,204,200
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,860,675 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,000
– . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,134
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,765
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580,461 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,482
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,759 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505,842,246
LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,682,368
– Board realignment and consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,325
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,401 Distribution fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,387 Investment advisory fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,384
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,373 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,982
Printing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,316 Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,886 Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255,263
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,009 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,582,694
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 484,259,552
NET ASSETS CONSIST OFPaid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 424,021,524
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,238,028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 484,259,552
NET ASSET VALUEClass I — Based on net assets of $169,742,735 and 6,177,583 shares outstanding, 200 million shares authorized, $0.10 par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27.48 Class II — Based on net assets of $4,986,393 and 181,226 shares outstanding, 100 million shares authorized, $0.10 par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27.51 Class III — Based on net assets of $309,530,424 and 11,369,472 shares outstanding, 100 million shares authorized, $0.10 par value . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27.22
2 0 1 9 B L A C K R O C K 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 S14
BlackRock
INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,866
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,340,392 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,576
Foreign taxes withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,230 )Total investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,488,604
Investment advisory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,198,740 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967,049
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768,217 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,840
Professional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,215 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,609
Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,671 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,629
Transfer agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,999 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,271
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,188,240 –
Fees waived and/or reimbursed by the Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,888 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (636,907 )
Total expenses after fees waived and/or reimbursed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,548,445 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,940,159
REALIZED AND UNREALIZED GAIN $ 112,742,867 $ –
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,911 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,576,023
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Futures contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,168,506
35,747,447
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,846,659
Futures contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,737 76,995,420
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,742,867 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 118,683,026
15F I N A N C I A L S T A T E M E N T S
Fund
2019 2018
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,940,159 $ 6,497,867
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,747,447 48,029,877 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,995,420 (75,978,029 )
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,683,026 (21,450,285 )
DISTRIBUTIONS TO SHAREHOLDERS (a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,956,570 ) (24,262,357 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (313,065 ) (685,736 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,446,891 ) (44,148,933 )
Decrease in net assets resulting from distributions to shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,716,526 ) (69,097,026 )
CAPITAL SHARE TRANSACTIONSfrom capital share transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39,726,187 ) (5,862,992 )
NET ASSETS
Total increase (decrease) in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,240,313 (96,410,303 )Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436,019,239 532,429,542
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 484,259,552 $ 436,019,239
(a)
Financial Highlights(For a share outstanding throughout each period)
2 0 1 9 B L A C K R O C K 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 S16
2019 2018 2017 2016 2015
Net asset value, beginning of year $ 22.80 $ 28.45 $ 31.91 $ 31.40 $ 33.26 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.38 0.42 (b) 0.44 0.39 0.36
. . . . . . . . . . . . . . . . . . . . . . . . . . . 6.20 (1.90 ) 6.64 2.91 (0.16 ). . . . . . . . . . . . . . . . . . . . 6.58 (1.48 ) 7.08 3.30 0.20
Distributions (c) – – – – –From net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.39 ) (0.44 ) (0.47 ) (0.40 ) (0.39 )From net realized gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.51 ) (3.73 ) (10.07 ) (2.39 ) (1.67 )
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.90 ) (4.17 ) (10.54 ) (2.79 ) (2.06 )
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27.48 $ 22.80 $ 28.45 $ 31.91 $ 31.40
Total Return (d) 28.92% (5.22)% 22.33% — —Based on net asset value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.92% (5.22)% 22.33% 10.55% 0.52%
Ratios to Average Net Assets Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.72% 0.74% 0.73% 0.72% 0.71%Total expenses after fees waived and/or reimbursed . . . . . . . . . . . . . . . . . . . . 0.57% 0.58% 0.58% 0.58% 0.56%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.43% 1.45%(b) 1.27% 1.26% 1.08%
Supplemental Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 169,743 $ 152,717 $ 185,938 $ 175,947 $ 184,151
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129% 149% 149% 50% 31%
(a) Based on average shares outstanding.(b)
(c)
(d) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.
Financial Highlights (continued)(For a share outstanding throughout each period)
17F I N A N C I A L H I G H L I G H T S
2019 2018 2017 2016 2015
Net asset value, beginning of year $ 22.83 $ 28.47 $ 31.93 $ 31.42 $ 33.27 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.34 0.37 (b) 0.38 0.34 0.30
. . . . . . . . . . . . . . . . . . . . . . . . . . . 6.19 (1.89 ) 6.64 2.90 (0.16 ). . . . . . . . . . . . . . . . . . . . 6.53 (1.52 ) 7.02 3.24 0.14
Distributions (c) – – – – –From net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.34 ) (0.39 ) (0.41 ) (0.34 ) (0.32 )From net realized gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.51 ) (3.73 ) (10.07 ) (2.39 ) (1.67 )
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.85 ) (4.12 ) (10.48 ) (2.73 ) (1.99 )
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27.51 $ 22.83 $ 28.47 $ 31.93 $ 31.42
Total Return (d) 28.67% (5.37)% 22.12% — —Based on net asset value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.67% (5.37)% 22.12% 10.37% 0.34%
Ratios to Average Net Assets Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.87% 0.89% 0.88% 0.88% 0.85%Total expenses after fees waived and/or reimbursed . . . . . . . . . . . . . . . . . . . . 0.74% 0.75% 0.75% 0.75% 0.73%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.26% 1.28%(b) 1.08% 1.09% 0.91%
Supplemental Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,986 $ 4,390 $ 4,862 $ 5,170 $ 5,333
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129% 149% 149% 50% 31%
(a) Based on average shares outstanding.(b)
(c)
(d) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.
Financial Highlights (continued)(For a share outstanding throughout each period)
2 0 1 9 B L A C K R O C K 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 S18
2019 2018 2017 2016 2015
Net asset value, beginning of year $ 22.60 $ 28.23 $ 31.74 $ 31.25 $ 33.11 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.30 0.34 (b) 0.34 0.31 0.27
. . . . . . . . . . . . . . . . . . . . . . . . . . . 6.14 (1.89 ) 6.59 2.88 (0.17 ). . . . . . . . . . . . . . . . . . . . 6.44 (1.55 ) 6.93 3.19 0.10
Distributions (c) – – – – –From net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.31 ) (0.35 ) (0.37 ) (0.31 ) (0.29 )From net realized gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.51 ) (3.73 ) (10.07 ) (2.39 ) (1.67 )
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.82 ) (4.08 ) (10.44 ) (2.70 ) (1.96 )
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27.22 $ 22.60 $ 28.23 $ 31.74 $ 31.25
Total Return (d) 28.56% (5.51)% 21.97% — —Based on net asset value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.56% (5.51)% 21.97% 10.26% 0.23%
Ratios to Average Net Assets Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.97% 0.99% 0.99% 0.97% 0.96%Total expenses after fees waived and/or reimbursed . . . . . . . . . . . . . . . . . . . . 0.85% 0.86% 0.86% 0.86% 0.84%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.15% 1.17%(b) 0.98% 0.98% 0.80%
Supplemental Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 309,530 $ 278,913 $ 341,630 $ 328,040 $ 306,567
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129% 149% 149% 50% 31%
(a) Based on average shares outstanding.(b)
(c)
(d) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.
Notes to Financial Statements
19N 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
1. ORGANIZATION
related to the distribution of such shares.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment Transactions and Income Recognition:
foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign
from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. 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 does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments
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
Segregation and Collateralization:
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:
maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
Other:
other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS Investment Valuation Policies:
instruments.
Fair Value Inputs and Methodologies:
Notes to Financial Statements (continued)
2 0 1 9 B L A C K R O C K 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 S20
•
which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.
•
•
• Futures contracts traded on exchanges are valued at their last sale price.
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the eventthat the 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
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
Fair Value Hierarchy:
• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•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)
•
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
companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and
associated with investing in those securities.
the fair value hierarchy.
4. SECURITIES AND OTHER INVESTMENTS Securities Lending:
105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returnedby the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receiveinterest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Notes to Financial Statements (continued)
21N 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
(including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral.In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the
connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation
Counterparty Securities
Loaned at ValueCash Collateral
Received (a)Net
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,586,825 $ (10,586,825 ) $ —
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,728,943 (1,728,943 ) — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,118 (95,118 ) —
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 801,905 (801,905 ) — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,638,311 (1,638,311 ) —
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,378,012 (4,378,012 ) — Toronto Dominion Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,012 (528,012 ) —
$ 19,757,126 $ (19,757,126 ) $ — (a)
and Liabilities.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate
collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash
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
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 thevalue of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
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
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, foreign currency exchange rates or underlying assets.
6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES Investment Advisory:
the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.
Notes to Financial Statements (continued)
2 0 1 9 B L A C K R O C K 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 S22
Average Daily Net AssetsInvestment
Advisory FeesFirst $250 Million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.500%$250 Million - $300 Million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.450$300 Million - $400 Million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.425
Million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.400
Distribution Fees:
Distribution Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15 %. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25
BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder distribution services to the Fund. The ongoing distribution fee compensates BRIL andeach broker-dealer for providing shareholder distribution related services to shareholders.
Distribution Fees
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,360
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 760,857 $ 768,217
Transfer Agent:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 334,083 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623,008
$ 967,049
Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees
$2,888.
of the outstanding voting securities of the Fund. For the year ended December 31, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to thisarrangement.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05 %. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.07 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.08
Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.
Notes to Financial Statements (continued)
23N 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
Transfer Agent Fees Waived and/or Reimbursed
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 251,164 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,519 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379,224
$ 636,907
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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.25 %. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.50
Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended December 31, 2019, there were no fees waived and/or reimbursed by the Manager.
Securities Lending:
private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.
and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.
an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.
December 31, 2019, the Fund paid BIM $21,718 for securities lending agent services.
Interfund Lending:
and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.
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
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 loanrate, as calculated according to a formula established by the Board.
During the year ended December 31, 2019, the Fund did not participate in the Interfund Lending Program.
7. PURCHASES AND SALES For the year ended December 31, 2019, purchases and sales of investments, excluding short-term securities, were $603,653,794 and $664,389,469, respectively.
Notes to Financial Statements (continued)
2 0 1 9 B L A C K R O C K 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 S24
8. INCOME TAX INFORMATION
tax returns generally remains open for each of the four years ended December 31, 2019. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Fund as of December 31, 2019, inclusive of the open tax return years, and does not believe
12/31/19 12/31/18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,466,519 $ 43,577,979 Long-term capital gains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,250,007 25,519,047
$ 30,716,526 $ 69,097,026
Undistributed ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,099,354 Undistributed long-term capital gains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,407,219
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,731,455 $ 60,238,028
(a) The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain futures contracts and the timing and recognition of partnership income.
Tax cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 451,518,141
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,362,979
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,816,245 )
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,546,734
9. BANK BORROWINGS
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
aggregate commitment available to them and relative net assets of Participating Funds. During the year ended December 31, 2019, the Fund did not borrow under the creditagreement.
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
the risks to which the Fund is subject.
may be subject to redemption gates or liquidity fees under certain circumstances.
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
Notes to Financial Statements (continued)
25N 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
of the individual results of the securities and other instruments in which the Fund invests.
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
Fund.
instrument. Losses can also occur if the counterparty does not perform under the contract.
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
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
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 intobankruptcy 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.
11. CAPITAL SHARE TRANSACTIONS
12/31/19
12/31/18
Shares Amount Shares Amount
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,377 $ 3,193,650 77,175 $ 2,212,730 . . . . . . . . . . . . . . . . . . . . . . . . 403,253 10,956,570 1,041,683 24,262,358
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,044,097 ) (27,816,664 ) (956,268 ) (28,134,590 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (521,467 ) $ (13,666,444 ) 162,590 $ (1,659,502 )
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,719 $ 577,422 36,314 $ 1,069,473 . . . . . . . . . . . . . . . . . . . . . . . . 11,505 313,065 29,415 685,735
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44,326 ) (1,190,547 ) (44,166 ) (1,311,866 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,102 ) $ (300,060 ) 21,563 $ 443,342
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411,381 $ 10,712,715 375,928 $ 10,947,281 . . . . . . . . . . . . . . . . . . . . . . . . 722,384 19,446,891 1,909,440 44,148,933
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,104,593 ) (55,919,289 ) (2,048,354 ) (59,743,046 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (970,828 ) $ (25,759,683 ) 237,014 $ (4,646,832 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,503,397 ) $ (39,726,187 ) 421,167 $ (5,862,992 )
12. SUBSEQUENT EVENTS
Report of Independent Registered Public Accounting Firm
2 0 1 9 B L A C K R O C K 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 S26
Opinion on the Financial Statements and Financial Highlights
Basis for Opinion
a reasonable basis for our opinion.
Boston, MassachusettsFebruary 14, 2020
We have served as the auditor of one or more BlackRock investment companies since 1992.
Glossary of Terms Used in this Report
272 0 1 9 B L A C K R O C K 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
Portfolio Abbreviation
Disclosure of Sub-Advisory Agreements
D I S C L O S U R E O F S U B - A D V I S O R Y A G R E E M E N T S
The Board of Directors (the “Board,” and the members of which are referred to as “Board Members”) of BlackRock Variable Series Funds II, Inc. (the “Corporation”), on behalf of its series BlackRock Total Return V.I. Fund (the “Fund”), met in person on July 29, 2019 (the “July Meeting”) to consider the initial approval of the sub-advisory agreements (the “Sub-Advisory Agreements”) between BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor, and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited with respect to the Fund. The Sub-Advisory Agreements were substantially similar to the sub-advisory agreements previously approvedwith respect to certain other portfolios in the BlackRock Fixed-Income Complex.
Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). Pursuant to the 1940 Act, the Board is required to consider the initial approval of the Sub-Advisory Agreements.
At the July Meeting, the Board reviewed materials relating to its consideration of the proposed Sub-Advisory Agreements. The Fund’s investment advisory agreement withthe Manager was most recently approved by the Board at in-person meetings on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”). A discussion of
30, 2019. The factors considered by the Board at the July Meeting in connection with approval of the proposed Sub-Advisory Agreements were substantially the same as thefactors considered at the May and June Meetings.
Following discussion, all the Board Members present at the July Meeting, including all the Independent Board Members present, approved the Sub-Advisory Agreements between the Manager and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited with respect to the Fund for a two-year term beginning on the effective date of the Sub-Advisory Agreements. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members,
to approve the Sub-Advisory 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.
Statement Regarding Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Board of Directors (the “Board”) of BlackRock Variable Series Funds, Inc., on behalf of 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 U.S. Total Market 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 International Index V.I. Fund, BlackRock International 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 met on November 12-13, 2019 and the Board of BlackRock Variable Series Funds II, Inc., on behalf of BlackRock High Yield V.I. Fund, BlackRock Total Return V.I. Fund and BlackRock U.S. Government Bond V.I. Fund met on November 14-15, 2019 (each, the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the BlackRock open-end funds, excluding money market funds (each, a “Fund”), pursuant to the Liquidity Rule. The Board has appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, providedthe Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’sHighly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).
less frequently than annually.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:
A. The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions: During the Program
borrowings were factored into the Program’s calculation of a Fund’s liquidity bucketing. Derivative exposure was also considered in such calculation.
During the Program Reporting Period, the
The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the
The Committee considered the terms of the credit facility applicable to the Funds, the
Committee also considered other types of borrowing available to the Funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.
There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that basedon the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
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D I R E C T O R A N D O F F I C E R I N F O R M A T I O N
BlackRock Variable Series Funds, Inc.
Independent Directors (a)
Name Year of Birth (b)
Position(s) Held (Length of Service) (c) Principal Occupation(s) During Past Five Years
Number of BlackRock-Advised Registered Investment Companies(“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company andOther Investment
Company DirectorshipsHeld During Past Five
YearsMark Stalnecker1951
Chair of the Board andDirector(Since 2019)
to 2013; Trustee and Chair of the Finance and InvestmentNone
Bruce R. Bond Director(Since 2007)
None
Susan J. Carter1956
Director(Since 2019)
None
Collette Chilton Director(Since 2019)
None
Neil A. Cotty Director(Since 2019)
None
Lena G. Goldberg Director(Since 2016)
None
Robert M. Hernandez Director(Since 2007)
(continued)
Name Year of Birth (b)
Position(s) Held (Length of Service) (c) Principal Occupation(s) During Past Five Years
Number of BlackRock-Advised Registered Investment Companies(“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company andOther Investment
Company DirectorshipsHeld During Past Five
YearsHenry R. Keizer1956
Director(Since 2016)
reinsurance) from 2013
Cynthia A. Montgomery1952
Director(Since 2019)
Donald C. Opatrny1952
Director(Since 2015)
None
Joseph P. Platt Director(Since 2019)
Kenneth L. Urish1951
Director(Since 2019)
None
Claire A. Walton1957
Director(Since 2019)
None
Independent Directors (a) (continued)
2 0 1 9 B L A C K R O C K 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
(continued)
D I R E C T O R A N D O F F I C E R I N F O R M A T I O N
Interested Directors (a)(d)
Name Year of Birth (b)
Position(s) Held (Length of Service) (c) Principal Occupation(s) During Past Five Years
Number of BlackRock-Advised Registered Investment Companies(“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company andOther Investment
Company DirectorshipsHeld During Past Five
YearsRobert Fairbairn 1965
Director(Since 2015)
®
None
John M. Perlowski (e) Director(Since 2015);Presidentand Chief
(Since 2010)
None
(a)
(c)
(d)
(e)
(continued)
(a)
NameYear of Birth(b)
Position(s) Held (Length of Service) Principal Occupation(s) During Past Five Years
Jennifer McGovern1977
Neal J. Andrews1966 (Since 2007)
®®
Jay M. Fife1970
Treasurer(Since 2007)
Charles Park1967
®®
iShares®®
Lisa Belle
(Since 2019)Janey Ahn1975 (Since 2019)
(a)
Investment Adviser and Administrator
Sub-Advisers(a)
(c)
(c)
Accounting Agent
Transfer Agent
Custodians
Independent Registered Public Accounting Firm
Distributor
Legal Counsel
Address of the Funds
(a)
(c)
2 0 1 9 B L A C K R O C K 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
D I R E C T O R A N D O F F I C E R I N F O R M A T I O N
BlackRock Variable Series Funds II, Inc.
Independent Directors (a)
Name Year of Birth (b)
Position(s) Held (Length of Service) (c) Principal Occupation(s) During Past Five Years
Number of BlackRock-Advised Registered Investment Companies(“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company andOther Investment
Company DirectorshipsHeld During Past Five
YearsRichard E. Cavanagh1946
Co-Chair of the Board andDirector(Since 2019)
Director, The Guardian Life Insurance Company of America
organization) from 2015 to 2018 (board member since 2009);Director, Arch Chemicals (chemical and allied products) from1999 to 2011; Trustee, Educational Testing Service from 1997 to2009 and Chairman thereof from 2005 to 2009; Senior Advisor,The Fremont Group since 2008 and Director thereof since 1996;Faculty Member/Adjunct Lecturer, Harvard University since 2007and Executive Dean from 1987 to 1995; President and Chief
86 RICs consisting of 110 Portfolios None
Karen P. Robards1950
Co-Chair of the Board andDirector(Since 2019)
Principal of Robards & Company, LLC (consulting andprivate investing) since 1987; Co-founder and Director of the
organization) since 1987; Director of Enable Injections, LLC(medical devices) since 2019; Investment Banker at Morgan
86 RICs consisting of 110 Portfolios
devices) from 2000 until2017
Michael J. Castellano1946
Director(Since 2019)
June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee,Domestic Church Media Foundation since 2012; Director,
86 RICs consisting of 110 Portfolios None
Cynthia L. Egan1955
Director(Since 2019)
86 RICs consisting of 110 Portfolios Unum (insurance); TheHanover Insurance Group(insurance); Envestnet(investment platform) from2013 until 2016
Frank J. Fabozzi (d)
1948Director(Since 2019)
Editor of The Journal of Portfolio Management since 1986;Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in thePractice of Finance, Yale University School of Management from
Programs; Board Member, BlackRock Equity-Liquidity Funds
87 RICs consisting of 111 Portfolios None
Henry Gabbay1947
Director(Since 2007)
Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity andBlackRock Closed-End Fund Boards from 2007 through 2014;
of BlackRock Funds and BlackRock Allocation Target Shares(formerly, BlackRock Bond Allocation Target Shares) from 2005 to2007 and Treasurer of certain closed-end funds in the BlackRock
86 RICs consisting of 110 Portfolios None
R. Glenn Hubbard1958
Director(Since 2019)
Dean, Columbia Business School from 2004 to 2019; Faculty 86 RICs consisting of 110 Portfolios ADP (data and information services); Metropolitan Life Insurance Company
2004 until 2014
(continued)
Name Year of Birth (b)
Position(s) Held (Length of Service) (c) Principal Occupation(s) During Past Five Years
Number of BlackRock-Advised Registered Investment Companies(“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company andOther Investment
Company DirectorshipsHeld During Past Five
YearsW. Carl Kester (d)
1951Director(Since 2019) Harvard Business School since 2008; Deputy Dean for Academic
Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard
87 RICs consisting of 111 Portfolios None
Catherine A. Lynch (d)
1961Director(Since 2019) other positions, National Railroad Retirement Investment Trust
from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to2003; Assistant Treasurer, Episcopal Church of America from
87 RICs consisting of 111 Portfolios None
Interested Directors (a)(e)
Robert Fairbairn 1965
Director(Since 2015)
Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from
®
123 RICs consisting of 287 Portfolios None
John M. Perlowski (d)
1964Director(Since 2015);Presidentand ChiefExecutive
(Since 2010)
BlackRock Global Accounting and Product Services since 124 RICs consisting of 288 Portfolios None
(a)
(b)
(c)
(d)
(e)
Independent Directors (a) (continued)
2 0 1 9 B L A C K R O C K 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
(continued)
D I R E C T O R A N D O F F I C E R I N F O R M A T I O N
(a)
NameYear of Birth(b)
Position(s) Held (Length of Service) Principal Occupation(s) During Past Five Years
Jennifer McGovern1977
Vice President (Since 2014)
Neal J. Andrews1966 (Since 2007)
®®
Jay M. Fife1970
Treasurer(Since 2007)
Charles Park1967 (Since 2014)
®®
iShares®®
Lisa Belle1968
Anti-Money Laundering
(Since 2019)JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for
Janey Ahn 1975
Secretary(Since 2019)
(a)
(b)
Investment Adviser and AdministratorBlackRock Advisors, LLCWilmington, DE 19809
Sub-Advisers(a)
BlackRock International LimitedEdinburgh, EH3 8BL
BlackRock (Singapore) Limited079912 Singapore
Accounting Agent
Transfer Agent
Wilmington, DE 19809
Custodian
Independent Registered Public Accounting FirmDeloitte & Touche LLPBoston, MA 02116
DistributorBlackRock Investments, LLC
Legal CounselWillkie Farr & Gallagher LLP
Address of the Funds
Wilmington, DE 19809
(a)
Additional Information
General Information
Householding
The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multipleaccounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder
be combined with those for other members of your household, please call the Funds at (800) 441-7762.
Availability of Quarterly Schedule of Investments
Availability of Proxy Voting Policies and Procedures
(1) by calling (800) 441-7762; (2) at blackrock.com/prospectus/insurance
Availability of Proxy Voting Record
blackrock.com/prospectus/insurance
BlackRock’s Mutual Fund Family
blackrock.com for more information.
Shareholder Privileges
Account Information
also visit blackrock.com for more information.
Automatic Investment Plans
any of the BlackRock funds.
Systematic Withdrawal Plans
Retirement Plans
2 0 1 9 B L A C K R O C K 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
Additional Information (continued)
BlackRock Privacy Principles
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.
receive from a consumer reporting agency; and (iv) from visits to our websites.
to use it only for its intended purpose.
procedures relating to the proper storage and disposal of such information.
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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-12/19-AR