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0.0052 0.0134 0.0140 0.0197 0.0299 0.0156 -0.0005 0.0080 2024-11-22 N-1A BLACKROCK FUNDS 2024-11-27 2024-11-27 Fund Overview Key Facts About BlackRock Short Obligations Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Short Obligations Fund (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Short Obligations Fund</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> or the “Fund”), a series of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> (the “Trust”), is to seek current income consistent with preservation of capital.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">other fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">More information about these fees and expenses is available from your Financial Intermediary and in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the “Details About the Share Classes” and the “Intermediary-Defined Sales Charge Waiver Policies” sections on pages </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">23</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A-1</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, respectively, of the Fund’s prospectus and in the “Purchase of Shares” section on page </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">II-93</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> of Part II of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund’s Statement of Additional Information.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Shareholder Fees (fees paid directly from your investment) 0 0 0 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0025 0.0025 0.0025 0 0.0013 0.0014 0.0063 0.0039 -0.0003 -0.0004 0.0060 0.0035 <div style="float: left; line-height: 7.44pt; margin-left: 9.6pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 7.44pt;">There is no contingent deferred sales charge (“CDSC”) on Investor A Shares purchased directly. However, a CDSC of up to 1.00% may apply to certain redemptions of the Fund’s Investor A Shares purchased in an exchange transaction for Investor A Shares of a fund advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such fund (each, an “Investor A Load-Waived BlackRock Fund”) as part of an investment of $1,000,000 (lesser amounts may apply depending on the Investor A Load-Waived BlackRock Fund) or more. The Investor A Shares CDSC is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such Investor A Shares of the Investor A Load-Waived BlackRock Fund (a shorter holding period may apply depending on the Investor A Load-Waived BlackRock Fund), unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding period as applicable) as measured from your original purchase of Investor A Shares that you exchanged into Investor A Shares of the Fund or if you purchase Investor A Shares of the Fund not through an exchange.</span></div> June 30, 2026 Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 61 199 348 783 36 121 215 489 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the fiscal year ended July 31, 2024, the Fund’s portfolio turnover rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">34</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.34 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal market conditions, Short Obligations Fund will invest in U.S. dollar-denominated investment grade and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">short-term fixed and floating rate debt securities maturing in three years or less (with certain exceptions) and will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">maintain a dollar-weighted average maturity of 180 days or less and a dollar-weighted average life of 365 days or less.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To achieve its investment objective, the Fund may invest in corporate securities, mortgage- and asset-backed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and money market instruments, including government, U.S. and foreign bank and commercial obligations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations issued by or on behalf of states, territories and possessions of the United States, the District of Columbia </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and their respective authorities, agencies, instrumentalities and political subdivisions and derivative securities such as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">beneficial interests in municipal trust certificates and partnership trusts, and repurchase agreements.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in variable and floating rate instruments and when-issued and delayed delivery securities.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund invests a significant portion of its assets in securities issued by financial services companies, including </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">banks, broker-dealers and insurance companies, and repurchase agreements secured by such obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment grade securities purchased by the Fund (or the issuers of such securities) will carry a rating of BBB-, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equivalent, or higher by at least one nationally recognized statistical rating organization (“NRSRO”) and short-term </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments (or the issuers of such securities) will carry a rating in the highest two rating categories of at least one </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">NRSRO (e.g., A-2, P-2 or F2 or better by Standard &amp; Poor’s Ratings Services, Moody’s Investors Service, Inc., or Fitch </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Ratings Inc., respectively), or if such investments are unrated, determined to be of comparable quality by BlackRock, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">at the time of investment.</span></div> Principal Risks of Investing in the Fund You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will be unable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or unwilling to make timely payments of interest and principal when due or otherwise honor their obligations. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also adversely </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affect the value of the Fund’s investment in that issuer.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Interest Rate Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Interest rate risk is the risk that the value of a debt security may fall when interest rates rise. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In general, the market price of debt securities with longer maturities will go up or down more in response to changes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in interest rates than the market price of shorter-term securities. Due to fluctuations in interest rates, the market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of such securities may vary during the period shareholders own shares of the Fund. Very low or negative </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rates may magnify interest rate risk. During periods of very low or negative interest rates, the Fund may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">unable to maintain positive returns or pay dividends to Fund shareholders. The Fund may be subject to a greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk of rising interest rates during a period of historically low interest rates. The Federal Reserve has raised the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">federal funds rate as part of its efforts to address rising inflation. Changing interest rates may have unpredictable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effects on markets, may result in heightened market volatility and may detract from the Fund’s ability to achieve its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment objective.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Financial Services Industry Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Because the Fund invests a significant portion of its assets in the financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">services industry, the Fund will be more susceptible to any economic, business, political or other developments </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which generally affect this industry sector. As a result, the Fund will be exposed to a large extent to the risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">associated with that industry, such as government regulation, the availability and cost of capital funds (including the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">availability and stability of deposits in the case of deposit-taking institutions), consolidation and general economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conditions. Financial services companies are also exposed to losses if borrowers and other counterparties </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">experience financial problems and/or cannot repay their obligations.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">When interest rates go up, the value of securities issued by many types of financial services companies generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">goes down. In many countries, financial services and the companies that provide them are regulated by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governmental entities, which can increase costs for new services or products and make it difficult to pass </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increased costs on to consumers. In certain areas, deregulation of financial services companies has resulted in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increased competition and reduced profitability for certain companies.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The profitability of many types of financial services companies may be adversely affected in certain market cycles, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Because </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">many types of financial services companies are vulnerable to these economic cycles, the Fund’s investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lose value during such periods.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Extension Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these securities to fall.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Foreign Exposure Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Securities issued or supported by foreign entities, including foreign banks and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">corporations, may involve additional risks and considerations. Extensive public information about the foreign issuer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may not be available, and unfavorable political, economic or governmental developments in the foreign country </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involved could affect the payment of principal and interest.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An outbreak of an infectious coronavirus (COVID-19) that was first detected in December 2019 developed into a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leaving general concern and uncertainty. Although vaccines have been developed and approved for use by various </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governments, the duration of the pandemic and its effects cannot be predicted with certainty. The impact of this </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mortgage- and Asset-Backed Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Mortgage- and asset-backed securities represent interests in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain mortgage-backed securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Prepayment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Repurchase Agreements Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If the other party to a repurchase agreement defaults on its obligation under the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">If the seller fails to repurchase the security and the market value of the security declines, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Treasury Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Direct obligations of the U.S. Treasury have historically involved little risk of loss of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal if held to maturity. However, due to fluctuations in interest rates, the market value of such securities may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">vary during the period shareholders own shares of the Fund. In addition, notwithstanding that U.S. Treasury </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations are backed by the full faith and credit of the United States, circumstances could arise that could prevent </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the timely payment of interest or principal, such as reaching the legislative “debt ceiling.” Such non-payment could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">result in losses to the Fund and substantial negative consequences for the U.S. economy and the global financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">system.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable and Floating Rate Instrument Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Variable and floating rate securities provide for periodic adjustment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit risk and default risk, which could impair their value.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">When-Issued and Delayed Settlement Transactions Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When-issued and delayed delivery securities involve the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be issued or that the other party to the transaction will not meet its obligation. If this occurs, the Fund may lose </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares of the Fund commenced operations on March 9, 2018. As a result, the returns in the table for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares, prior to commencement of operations on March 9, 2018, are based on the Fund’s Class K Shares </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(designated BlackRock Shares prior to September 1, 2015), adjusted to reflect the fees and expenses applicable to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investor A Shares.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the performance for the Fund has varied year by year and provides some indication of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg U.S. Aggregate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Bond Index and the ICE BofA 6-Month U.S. Treasury Bill Index. The ICE BofA 6-Month U.S. Treasury Bill Index is </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. To the extent that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dividends and distributions have been paid by the Fund, the performance for the Fund in the chart and table assumes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reinvestment of the dividends and distributions. As with all such investments, past performance (before and after </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">taxes) is not an indication of future results. The table includes all applicable fees. If BlackRock and its affiliates had </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not waived or reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Updated information on the Fund’s performance, including its current net asset value, can be obtained by visiting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">www.blackrock.com/cash or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the performance for the Fund has varied year by year and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com/cash (800) 882-0052 Institutional Shares ANNUAL TOTAL RETURNS BlackRock Short Obligations Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 1.76% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2023) and the lowest return for a quarter was -0.62% (quarter ended March 31, 2022). The year-to-date return as of September 30, 2024 was 4.22%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0176 2023-12-31 lowest return -0.0062 2022-03-31 year-to-date return 2024-09-30 0.0422 For the periods ended 12/31/23 Average Annual Total Returns 0.0550 0.0208 0.0157 0.0364 0.0129 0.0093 0.0323 0.0125 0.0092 0.0516 0.0184 0.0132 0.0553 0.0110 0.0181 0.0514 0.0202 0.0139 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Institutional Shares only, and the after-tax returns for Investor A Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Shares only, and the after-tax returns for Investor A Shares will vary. Fund OverviewKey Facts About BlackRock Short Obligations Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Short Obligations Fund (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Short Obligations Fund</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> or the “Fund”), a series of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> (the “Trust”), is to seek current income consistent with preservation of capital.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of Short </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Obligations Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay other fees, such as brokerage commissions and other fees to your financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">professional or your selected securities dealer, broker, investment adviser, service provider or industry professional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(including BlackRock Advisors, LLC (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">not reflected in the table and example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0025 0 0.0010 0.0035 -0.0005 0.0030 June 30, 2026 Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 31 107 191 438 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the fiscal year ended July 31, 2024, the Fund’s portfolio turnover rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">34</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.34 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal market conditions, Short Obligations Fund will invest in U.S. dollar-denominated investment grade and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">short-term fixed and floating rate debt securities maturing in three years or less (with certain exceptions) and will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">maintain a dollar-weighted average maturity of 180 days or less and a dollar-weighted average life of 365 days or less.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To achieve its investment objective, the Fund may invest in corporate securities, mortgage- and asset-backed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and money market instruments, including government, U.S. and foreign bank and commercial obligations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations issued by or on behalf of states, territories and possessions of the United States, the District of Columbia </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and their respective authorities, agencies, instrumentalities and political subdivisions and derivative securities such as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">beneficial interests in municipal trust certificates and partnership trusts, and repurchase agreements.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in variable and floating rate instruments and when-issued and delayed delivery securities.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund invests a significant portion of its assets in securities issued by financial services companies, including </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">banks, broker-dealers and insurance companies, and repurchase agreements secured by such obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment grade securities purchased by the Fund (or the issuers of such securities) will carry a rating of BBB-, or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equivalent, or higher by at least one nationally recognized statistical rating organization (“NRSRO”) and short-term </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments (or the issuers of such securities) will carry a rating in the highest two rating categories of at least one </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">NRSRO (e.g., A-2, P-2 or F2 or better by Standard &amp; Poor’s Ratings Services, Moody’s Investors Service, Inc., or Fitch </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Ratings Inc., respectively), or if such investments are unrated, determined to be of comparable quality by BlackRock, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">at the time of investment.</span></div> Principal Risks of Investing in the Fund You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will be unable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or unwilling to make timely payments of interest and principal when due or otherwise honor their obligations. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also adversely </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affect the value of the Fund’s investment in that issuer.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Interest Rate Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Interest rate risk is the risk that the value of a debt security may fall when interest rates rise. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">In general, the market price of debt securities with longer maturities will go up or down more in response to changes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in interest rates than the market price of shorter-term securities. Due to fluctuations in interest rates, the market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of such securities may vary during the period shareholders own shares of the Fund. Very low or negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rates may magnify interest rate risk. During periods of very low or negative interest rates, the Fund may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">unable to maintain positive returns or pay dividends to Fund shareholders. The Fund may be subject to a greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk of rising interest rates during a period of historically low interest rates. The Federal Reserve has raised the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">federal funds rate as part of its efforts to address rising inflation. Changing interest rates may have unpredictable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effects on markets, may result in heightened market volatility and may detract from the Fund’s ability to achieve its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment objective.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Financial Services Industry Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Because the Fund invests a significant portion of its assets in the financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">services industry, the Fund will be more susceptible to any economic, business, political or other developments </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which generally affect this industry sector. As a result, the Fund will be exposed to a large extent to the risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">associated with that industry, such as government regulation, the availability and cost of capital funds (including the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">availability and stability of deposits in the case of deposit-taking institutions), consolidation and general economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conditions. Financial services companies are also exposed to losses if borrowers and other counterparties </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">experience financial problems and/or cannot repay their obligations.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">When interest rates go up, the value of securities issued by many types of financial services companies generally </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">goes down. In many countries, financial services and the companies that provide them are regulated by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governmental entities, which can increase costs for new services or products and make it difficult to pass </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increased costs on to consumers. In certain areas, deregulation of financial services companies has resulted in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increased competition and reduced profitability for certain companies.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The profitability of many types of financial services companies may be adversely affected in certain market cycles, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and </span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Because </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">many types of financial services companies are vulnerable to these economic cycles, the Fund’s investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lose value during such periods.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Extension Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these securities to fall.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Foreign Exposure Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Securities issued or supported by foreign entities, including foreign banks and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">corporations, may involve additional risks and considerations. Extensive public information about the foreign issuer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may not be available, and unfavorable political, economic or governmental developments in the foreign country </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">involved could affect the payment of principal and interest.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. This means you may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An outbreak of an infectious coronavirus (COVID-19) that was first detected in December 2019 developed into a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leaving general concern and uncertainty. Although vaccines have been developed and approved for use by various </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">governments, the duration of the pandemic and its effects cannot be predicted with certainty. The impact of this </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Mortgage- and Asset-Backed Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Mortgage- and asset-backed securities represent interests in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain mortgage-backed securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Prepayment Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Repurchase Agreements Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — If the other party to a repurchase agreement defaults on its obligation under the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">If the seller fails to repurchase the security and the market value of the security declines, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Treasury Obligations Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Direct obligations of the U.S. Treasury have historically involved little risk of loss of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">principal if held to maturity. However, due to fluctuations in interest rates, the market value of such securities may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">vary during the period shareholders own shares of the Fund. In addition, notwithstanding that U.S. Treasury </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations are backed by the full faith and credit of the United States, circumstances could arise that could prevent </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the timely payment of interest or principal, such as reaching the legislative “debt ceiling.” Such non-payment could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">result in losses to the Fund and substantial negative consequences for the U.S. economy and the global financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">system.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable and Floating Rate Instrument Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Variable and floating rate securities provide for periodic adjustment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the interest rate paid on the securities. Securities with floating or variable interest rates can be less sensitive to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rate changes than securities with fixed interest rates, but may decline in value if their coupon rates do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of the same maturity. These securities will not generally increase in value if interest rates decline. A </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decline in interest rates may result in a reduction in income received from variable and floating rate securities held </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund and may adversely affect the value of the Fund’s shares. These securities may be subject to greater </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquidity risk than other fixed income securities, meaning the absence of an active market for these securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could make it difficult for the Fund to dispose of them at any given time. Floating rate securities generally are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund needs to liquidate such loans. Benchmark interest rates may not accurately track market interest rates. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Although floating rate securities are less sensitive to interest rate risk than fixed-rate securities, they are subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">credit risk and default risk, which could impair their value.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">When-Issued and Delayed Settlement Transactions Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When-issued and delayed delivery securities involve the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be issued or that the other party to the transaction will not meet its obligation. If this occurs, the Fund may lose </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the performance for the Fund has varied year by year and provides some indication of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the risks of investing in the Fund. Prior to September 1, 2015, Class K Shares of the Fund were designated BlackRock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares. The table compares the Fund’s performance to that of the Bloomberg U.S. Aggregate Bond Index and the ICE </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">BofA 6-Month U.S. Treasury Bill Index. The ICE BofA 6-Month U.S. Treasury Bill Index is relevant to the Fund because it </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">has characteristics similar to the Fund’s investment strategy. To the extent that dividends and distributions have been </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">paid by the Fund, the performance for the Fund in the chart and table assumes reinvestment of the dividends and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions. As with all such investments, past performance (before and after taxes) is not an indication of future </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">results. The table includes all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance, including its current net asset value, can be obtained by visiting www.blackrock.com/cash or can be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the performance for the Fund has varied year by year and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com/cash (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS BlackRock Short Obligations Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 1.68% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2023) and the lowest return for a quarter was -0.50% (quarter ended March 31, 2022). The year-to-date return as of September 30, 2024 was 4.28%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0168 2023-12-31 lowest return -0.0050 2022-03-31 year-to-date return 2024-09-30 0.0428 For the periods ended 12/31/23 Average Annual Total Returns 0.0547 0.0213 0.0164 0.0358 0.0131 0.0098 0.0321 0.0128 0.0097 0.0553 0.0110 0.0181 0.0514 0.0202 0.0139 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 36, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 36, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.60% (for Investor A Shares) and 0.35% (for Institutional Shares) of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. These expense figures do not reflect the imposition of the CDSC which may be deducted upon the redemption of Investor A Shares of the Fund received in an exchange transaction for Investor A Shares of an Investor A Load-Waived BlackRock Fund as described in the applicable prospectuses. No CDSC is deducted upon the redemption of Investor A Shares of the Fund that are not acquired by exchange. There is no contingent deferred sales charge (“CDSC”) on Investor A Shares purchased directly. However, a CDSC of up to 1.00% may apply to certain redemptions of the Fund’s Investor A Shares purchased in an exchange transaction for Investor A Shares of a fund advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such fund (each, an “Investor A Load-Waived BlackRock Fund”) as part of an investment of $1,000,000 (lesser amounts may apply depending on the Investor A Load-Waived BlackRock Fund) or more. The Investor A Shares CDSC is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such Investor A Shares of the Investor A Load-Waived BlackRock Fund (a shorter holding period may apply depending on the Investor A Load-Waived BlackRock Fund), unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding period as applicable) as measured from your original purchase of Investor A Shares that you exchanged into Investor A Shares of the Fund or if you purchase Investor A Shares of the Fund not through an exchange. The Fund has added this broad-based index in response to new regulatory requirements. On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 6-month U.S. Treasury Bill Index (the “Index”). Index data prior to March 1, 2021 is for the Index’s standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index’s new standard pricing time of 4pm. The change of the Index’s standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 27, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 27, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.30% of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Fund has added this broad-based index in response to new regulatory requirements. On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 6-month U.S. Treasury Bill Index (the “Index”). Index data prior to March 1, 2021 is for the Index’s standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index’s new standard pricing time of 4pm. The change of the Index’s standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023.