Home
File Metadata
pro-bf-k-us.pdf
Annotation: open/document-extraction

open/document-extraction

Added by Kamaji | Added: 2026-10-02 11:58 | Views: 14 | Model: dorsalhub/pdf-extractor

This view of the annotation often reflects the precision of the extraction model or annotator, as well as the complexity of the document.

SEPTEMBER 28, 2026

Prospectus

BlackRock Balanced Fund, Inc. | Class K Shares Class K: MKCPX

This Prospectus contains information you should know before investing, including information about risks. Please read it before you invest and keep it for future reference. The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

Not FDIC Insured • May Lose Value • No Bank Guarantee

NM0926U-5977344-1/48

Page 2

Table of Contents

Fund Overview Key facts and details about the Fund, including investment objective, principal investment strategies, principal risk factors, fee and expense information and historical per formance information Investment Objective .............................................................................. 3 Fees and Expenses of the Fund ............................................................... 3 Principal Investment Strategies of the Fund .............................................. 4 Principal Risks of Investing in the Fund .................................................... 4 Per formance Information ........................................................................ 9 Investment Manager and Sub-Adviser....................................................... 10 Por tfolio Managers ................................................................................. 11 Purchase and Sale of Fund Shares .......................................................... 11 Tax Information....................................................................................... 11 Payments to Broker/Dealers and Other Financial Intermediaries ................ 11

Details About the Fund Information about how the Fund invests, including investment objective, investment process, principal strategies and risk factors How the Fund Invests.............................................................................. 13 Investment Risks.................................................................................... 15

Account Information Information about account services, sales charges and waivers, shareholder transactions, and distributions and other payments Details About the Share Class ................................................................. 30 How to Buy, Sell, Exchange and Transfer Shares ....................................... 31 Fund’s Rights ......................................................................................... 36 Shor t-Term Trading Policy ........................................................................ 36

Management of the Fund Information about BlackRock and the Por tfolio Managers BlackRock .............................................................................................. 38 Por tfolio Manager Information ................................................................. 39 Conflicts of Interest ................................................................................ 39 Valuation of Fund Investments ................................................................. 40 Dividends, Distributions and Taxes........................................................... 41

Financial Highlights Financial Per formance of the Fund ........................................................... 43

General Information Shareholder Documents.......................................................................... 44 Cer tain Fund Policies .............................................................................. 44 Statement of Additional Information ......................................................... 45

Glossary Glossary of Investment Terms ................................................................. 46

For More Information Fund and Service Providers ............................................... Inside Back Cover Additional Information....................................................... Back Cover

NM0926U-5977344-2/48

Page 3

Fund Overview

Key Facts About BlackRock Balanced Fund, Inc.

Investment Objective

The investment objective of BlackRock Balanced Fund, Inc. (the “Fund”) is to seek the highest total investment return through a fully managed investment policy utilizing equity, debt (including money market) and convertible securities.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. Amounts in the table are rounded to the nearest basis point, which in some cases may be “0.00.” You may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are not reflected in the table and example below.

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Class K Management Fee 1 0.42% Distribution and/or Service (12b-1) Fees None Other Expenses 0.06% Acquired Fund Fees and Expenses 2 0.02% Total Annual Fund Operating Expenses 2 0.50% Fee Waivers and/or Expense Reimbursements 1 (0.01)% Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements 1 0.49% 1 As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 38, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested directors of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. 2 The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. Example: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 Year 3 Years 5 Years 10 Years Class K $50 $159 $279 $627

Portfolio Turnover: The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 132% of the average value of its portfolio.

NM0926U-5977344-3/48

Page 4

Principal Investment Strategies of the Fund

The Fund invests in a combination of equity securities, fixed-income securities and derivatives. The proportion the Fund invests in each category at any given time depends on Fund management’s view of how attractive that category appears relative to the others. The Fund intends to invest at least 25% of its assets in equity securities and at least 25% of its assets in senior fixed income securities, such as U.S. government debt securities, corporate debt securities, and mortgage-backed and asset-backed securities.

With respect to the Fund’s equity investments, the Fund primarily intends to invest in equity securities or other financial instruments that are components of, or have characteristics similar to, the securities included in the MSCI All Country World Index (the “ACWI”). The ACWI is a capitalization-weighted index from a broad range of industries chosen for market size, liquidity and industry group representation. In selecting equity investments, the Fund primarily uses proprietary return forecast models that incorporate quantitative analysis. Equity securities include common stock and preferred stock. The Fund primarily seeks to buy common stock and may also invest in preferred stock. From time to time, the Fund may invest in shares of companies through “new issues” or initial public offerings (“IPOs”). The Fund may also purchase convertible securities. The Fund may invest in securities of both U.S. or non-U.S. issuers without limit, which can be U.S. dollar based or non-U.S. dollar based and may be currency hedged or unhedged. The Fund may invest in securities of companies of any market capitalization.

With respect to the Fund’s fixed-income investments, the Fund will invest primarily using model-based asset allocation and security selection models. The Fund may invest in obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities; mortgage-backed securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage pass-through securities; commercial mortgage-backed securities; mortgage to-be-announced (“TBA”) securities; debt obligations of U.S. issuers, including corporate bonds; municipal securities; asset-backed securities; and U.S.-registered dollar-denominated debt obligations of foreign issuers. The Fund may invest in bonds issued by companies located in countries other than the United States, including companies in emerging markets. These securities may have all types of interest rate payment and reset terms, including fixed rate, adjustable rate, floating rate, zero coupon, contingent, deferred, payment in kind and auction rate features. The Fund seeks to invest a substantial portion of its assets in U.S.-registered, dollar denominated bonds. The Fund may invest up to 10% of its assets in securities rated below investment grade (“high yield” or “junk” bonds). The Fund may invest in bonds of any maturity or duration.

The Fund may invest a significant portion of its fixed income holdings in U.S. agency mortgage pass-through securities, which are securities issued by entities such as the Government National Mortgage Association (“GNMA”) and the Federal National Mortgage Association that are backed by pools of mortgages. Most transactions in mortgage pass through securities occur through standardized contracts for future delivery in which the exact mortgage-backed securities to be delivered are not specified until a few days prior to settlement. The Fund expects to enter into such contracts on a regular basis.

The Fund may use derivatives, including options, futures, swaps (including, but not limited to, total return swaps), forward contracts and various other instruments, both to seek to increase the return of the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the securities markets. The Fund may also invest in indexed and inverse securities.

Principal Risks of Investing in the Fund

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The following is a summary description of principal risks of investing in the Fund. The relative significance of each risk factor below may change over time and you should review each risk factor carefully. Equity Securities Risk — Stock markets are volatile. The price of equity securities fluctuates based on changes in a company’s financial condition and overall market and economic conditions. Debt Securities Risk — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, extension risk, and prepayment risk, each of which are described in further detail below: Credit Risk — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.

NM0926U-5977344-4/48

Page 5

Interest Rate Risk — The market value of bonds and other fixed-income securities changes in response to interest rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund management. To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage backed securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate debt securities. These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in value when interest rates change. A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could hurt the Fund’s performance. Extension Risk — When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these obligations to fall. Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields. Foreign Securities Risk — Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks include: The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory oversight. Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio. The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position. The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer currency, securities, derivatives or other assets. Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are comparable to U.S. securities laws. Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments. The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, which will adversely affect the Fund’s net asset value. Convertible Securities Risk — The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible

NM0926U-5977344-5/48

Page 6

securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock, including the potential for increased volatility in the price of the convertible security. Corporate Loans Risk — Commercial banks and other financial institutions or institutional investors make corporate loans to companies that need capital to grow or restructure. Borrowers generally pay interest on corporate loans at rates that change in response to changes in market interest rates such as the Secured Overnight Financing Rate (“SOFR”) or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads. In addition, transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional cash, sell investments or temporarily borrow from banks and other lenders. Derivatives Risk — The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or increase volatility. Derivatives involve significant risks, including: Leverage Risk — The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market movements may result in large changes in the value of a derivatives position and can result in losses that greatly exceed the amount originally invested. Market Risk — Some derivatives are more sensitive to interest rate changes and market price fluctuations than other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s derivatives positions to lose value. Counterpar ty Risk — Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated exposure to such a counterparty. Illiquidity Risk — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Operational Risk — The use of derivatives includes the risk of potential operational issues, including documentation issues, settlement issues, systems failures, inadequate controls and human error. Legal Risk — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or enforceability of a contract. Volatility and Correlation Risk — Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate with the overall securities markets. Valuation Risk — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them. Hedging Risk — Hedges are sometimes subject to imperfect matching between the derivative and the underlying security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging may result in certain adverse tax consequences. Tax Risk — Certain aspects of the tax treatment of derivative instruments, including swap agreements and commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund realizes from its investments. Emerging Markets Risk — Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less liquidity than developed markets.

NM0926U-5977344-6/48

Page 7

High Portfolio Turnover Risk — The Fund may engage in active and frequent trading of its portfolio securities. High portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects of higher than normal portfolio turnover may adversely affect Fund performance. High Yield Bonds Risk — Although junk bonds generally pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that are considered speculative and may cause income and principal losses for the Fund.

Indexed and Inverse Securities Risk — Indexed and inverse securities provide a potential return based on a particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index levels move in a way Fund management does not anticipate. Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet the applicable requirements of the Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market movements and over longer periods during market downturns. Securities or other investments held by the Fund may underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of a security or other asset may decline due to changes in general market conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. The success of the Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, currency exchange controls, and local, regional or global events such as war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health issues, recessions, or other events. The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis and is subject to “Model Risk” as described below. Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where the Fund invests. Mid Cap Securities Risk — The securities of mid cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies. Model Risk — The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis. Investments selected using these models may perform differently than as forecasted due to the factors incorporated into the models and the weighting of each factor, changes from historical trends, and issues in the construction and implementation of the models (including, but not limited to, software issues, issues related to the use of artificial intelligence and machine learning (“AI”), and other technological issues). There is no guarantee that BlackRock’s use of these models will result in effective investment decisions for the Fund. The information and data used in the models may be supplied by third parties. Inaccurate or incomplete data may limit the effectiveness of the models. In addition, some of the data that BlackRock uses may be historical data, which may not accurately predict future market movement. There is a risk that the models will not be successful in selecting investments or in determining the weighting of investment positions that will enable the Fund to achieve its investment objective.

NM0926U-5977344-7/48

Page 8

Money Market Securities Risk — If market conditions improve while the Fund has invested some or all of its assets in high quality money market securities, this strategy could result in reducing the potential gain from the market upswing, thus reducing the Fund’s opportunity to achieve its investment objective. Mortgage- and Asset-Backed Securities Risks — Mortgage- and asset-backed securities represent interests in “pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- and asset backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities. Municipal Securities Risks — Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, and federal governments upon which the issuers may be relying for funding may also impact municipal securities. These risks include: General Obligation Bonds Risks — Timely payments depend on the issuer’s credit quality, ability to raise tax revenues and ability to maintain an adequate tax base. Revenue Bonds Risks — These payments depend on the money earned by the particular facility or class of facilities, or the amount of revenues derived from another source.

Private Activity Bonds Risks — Municipalities and other public authorities issue private activity bonds to finance development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment. Moral Obligation Bonds Risks — Moral obligation bonds are generally issued by special purpose public authorities of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral commitment, but not a legal obligation, of the state or municipality. Municipal Notes Risks — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the anticipated proceeds, the notes may not be fully repaid and the Fund may lose money. Municipal Lease Obligations Risks — In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property. Tax-Exempt Status Risk — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds and payments under derivative securities. Neither the Fund nor its investment manager will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its shareholders to substantial tax liabilities. “New Issues” Risk — “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the IPO. Operational and Technology Risks — The Fund is directly and indirectly susceptible to operational and technology risks, including those related to human errors, processing errors, communication errors, systems failures, cybersecurity incidents, and the use of AI, which may result in losses for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are required to have appropriate operational, information security and cybersecurity risk management policies and procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such issuers to lose value. Preferred Securities Risk — Preferred securities may pay fixed or adjustable rates of return. Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s preferred securities generally pay dividends only after the company makes required payments to holders of its bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred securities of smaller companies may be more vulnerable to adverse developments than preferred securities of larger companies. Sovereign Debt Risk — Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in

NM0926U-5977344-8/48

Page 9

relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. Structured Securities Risk — Because structured securities of the type in which the Fund may invest typically involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive payments only from the structured security, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may decline in value or default; and the possibility that the structured securities are subordinate to other classes. The Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the right of payment of another class. Subordinated structured securities typically have higher yields and present greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement transactions, and there currently is no active trading market for structured securities. Structured securities are based upon the movement of one or more factors, including currency exchange rates, interest rates, reference bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be “investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such securities may be limited by certain investment restrictions contained in the Investment Company Act. U.S. Government Issuer Risk — Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. U.S. Government Mortgage-Related Securities Risk — There are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the Treasury.

Performance Information

The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. Class K Shares commenced operations on January 25, 2018. As a result, the returns shown below for Class K Shares prior to January 25, 2018 are those of the Fund’s Institutional Shares, which are not offered in this prospectus. The performance of Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares are invested in the same portfolio of securities and performance would differ only to the extent that Institutional Shares and Class K Shares have different expenses. The actual returns of Class K Shares would have been higher than those of Institutional Shares because Class K Shares have lower expenses than Institutional Shares.

Effective March 3, 2025, the Fund changed its name, investment process and investment strategies. Performance for the periods prior to March 3, 2025 shown below is based on the investment process and investment strategies utilized by the Fund under the name “BlackRock Sustainable Balanced Fund, Inc.” Effective April 8, 2022, the Fund changed its name, investment process and investment strategies. Performance for the periods prior to April 8, 2022 shown below is based on the investment process and investment strategies utilized by the Fund under the name “BlackRock Balanced Capital Fund, Inc.” The table compares the Fund’s performance to that of the MSCI All Country World Index (Net), the Bloomberg U.S. Aggregate Bond Index and a customized weighted index comprised of the returns of the MSCI All Country World Index (Net) (60%) and the Bloomberg U.S. Aggregate Bond Index (40%) (the “Custom Benchmark”). The Bloomberg U.S. Aggregate Bond Index and the Custom Benchmark are relevant to the Fund because they have characteristics similar to the Fund’s investment strategies. To the extent that dividends and distributions have been paid by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. As with all such investments, past performance (before and after

NM0926U-5977344-9/48

Page 10

taxes) is not an indication of future results. The table includes all applicable fees. If the Fund’s investment manager and its affiliates had not waived or reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at (800) 882-0052.

Class K Shares ANNUAL TOTAL RETURNS BlackRock Balanced Fund, Inc. As of 12/31

8.53%

14.62%

-3.10%

21.98% 15.48% 16.67%

-15.41%

16.95% 12.80% 15.69%

-20%

-10%

10%

20%

30%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 During the ten-year period shown in the bar chart, the highest return for a quarter was 15.52% (quarter ended June 30, 2020) and the lowest return for a quarter was -12.99% (quarter ended March 31, 2020). The year-to-date return as of June 30, 2026 was 7.84%.

For the periods ended 12/31/25 Average Annual Total Returns 1 Year 5 Years 10 Years BlackRock Balanced Fund, Inc. — Class K Shares Return Before Taxes 15.69% 8.54% 9.84% Return After Taxes on Distributions 12.54% 6.25% 7.47% Return After Taxes on Distributions and Sale of Fund Shares 10.08% 5.96% 7.10% MSCI All Country World Index (Net) 1 (Reflects no deduction for fees, expenses or taxes, except for withholding taxes on reinvested dividends) 22.34% 11.19% 11.72 Bloomberg U.S. Aggregate Bond Index (Reflects no deduction for fees, expenses or taxes) 7.30% (0.36)% 2.01% Custom Benchmark (Reflects no deduction for fees, expenses or taxes, except for withholding taxes on reinvested dividends as noted above) 16.22% 6.57% 7.96% 1 Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any. For additional comparative performance information for the MSCI All Country World Index, please see the Fund’s Statement of Additional Information.

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.

Investment Manager and Sub-Adviser

The Fund’s investment manager is BlackRock Advisors, LLC (previously defined as “BlackRock”). The Fund’s sub adviser is BlackRock International Limited. Where applicable when discussing the Fund’s investment strategies and risks, “BlackRock” refers to both BlackRock Advisors, LLC and BlackRock International Limited.

NM0926U-5977344-10/48

Page 11

Portfolio Managers

Portfolio Manager

Portfolio Manager of the Fund Since Title Philip Green 2006 Managing Director of BlackRock, Inc. Michael Pensky, CFA 2022 Managing Director of BlackRock, Inc. Daniel Felder, CFA 2022 Director of BlackRock, Inc. Raffaele Savi 2022 Senior Managing Director of BlackRock, Inc. Richard Mathieson 2022 Managing Director of BlackRock, Inc. Anna Hawley, CFA 2022 Managing Director of BlackRock, Inc. Scott Radell 2022 Managing Director of BlackRock, Inc. Jasmita Mohan 2023 Director of BlackRock, Inc.

Purchase and Sale of Fund Shares

Class K Shares of the Fund are available only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Fund’s distributor to purchase such shares, (iii) “Institutional Investors,” which include, but are not limited to, endowments, foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and insurance company separate accounts, each of which may purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Fund’s distributor to purchase such shares, (iv) clients of private banks that purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Fund’s distributor to sell such shares, (v) fee-based advisory platforms of a Financial Intermediary that (a) has specifically acknowledged in a written agreement with the Fund’s distributor and/or its affiliate(s) that the Financial Intermediary shall offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held Class K Shares of the Fund in the same account since August 15, 2016.

You may purchase or redeem shares of the Fund each day the New York Stock Exchange is open. Purchase orders may also be placed by calling (800) 537-4942, by mail (c/o BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 152534429), or online at www.blackrock.com. Institutional Investors are subject to a $5 million minimum initial investment requirement. Other investors, including Employer-Sponsored Retirement Plans, have no minimum initial investment requirement. There is no minimum investment amount for additional purchases.

Tax Information

Different income tax rules apply depending on whether you are invested through a qualified tax-exempt plan described in section 401(a) of the Internal Revenue Code of 1986, as amended. If you are invested through such a plan (and Fund shares are not “debt-financed property” to the plan), then the dividends paid by the Fund and the gain realized from a redemption or exchange of Fund shares will generally not be subject to U.S. federal income taxes until you withdraw or receive distributions from the plan. If you are not invested through such a plan, then the Fund’s dividends and gain from a redemption or exchange may be subject to U.S. federal income taxes and may be taxed as ordinary income or capital gains, unless you are a tax-exempt investor.

Payments to Broker/Dealers and Other Financial Intermediaries

If you purchase shares of the Fund through a Financial Intermediary, the Fund and BlackRock Investments, LLC, the Fund’s distributor, or its affiliates may pay the Financial Intermediary for the sale of Fund shares and related services.

These payments may create a conflict of interest by influencing the Financial Intermediary and your individual financial professional to recommend the Fund over another investment.

NM0926U-5977344-11/48

Page 12

Class K Shares are only available through a Financial Intermediary if the Financial Intermediary will not receive from Fund assets, or the Fund’s distributor’s or an affiliate’s resources, any commission payments, shareholder servicing fees (including sub-transfer agent and networking fees), or distribution fees (including Rule 12b-1 fees) with respect to assets invested in Class K Shares.

Ask your individual financial professional or visit your Financial Intermediary’s website for more information.

NM0926U-5977344-12/48

Page 13

Details About the Fund

Included in this prospectus are sections that tell you about buying and selling shares, management information, shareholder features of BlackRock Balanced Fund, Inc. (the “Fund”) and your rights as a shareholder.

How the Fund Invests

Investment Objective The investment objective of the Fund is to seek the highest total investment return through a fully managed investment policy utilizing equity, debt (including money market) and convertible securities.

This investment objective is a fundamental policy of the Fund and may not be changed without approval of a majority of the Fund’s outstanding voting securities, as defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).

Investment Process Fund management utilizes a top-down asset allocation strategy to determine the Fund’s overall exposure to equities versus fixed-income securities, as well as identify investment opportunities within equities, fixed-income and currency markets at the country and/or sector level.

Within the Fund’s equity and fixed income allocations, Fund management primarily selects individual securities for the Fund by using methods that rely on proprietary quantitative models and investment insights.

The Fund has no minimum holding period for investments, and will buy or sell securities whenever Fund management sees an appropriate opportunity.

Principal Investment Strategies The Fund invests in a combination of equity securities, fixed-income securities and derivatives. The proportion the Fund invests in each category at any given time depends on Fund management’s view of how attractive that category appears relative to the others. The Fund intends to invest at least 25% of its assets in equity securities and at least 25% of its assets in senior fixed income securities, such as U.S. government debt securities, corporate debt securities, and mortgage-backed and asset-backed securities.

NM0926U-5977344-13/48

Page 14

The Fund may use derivatives, including options, futures, swaps (including, but not limited to, total return swaps) forward contracts and various other instruments, both to seek to increase the return of the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the securities markets. The Fund may also invest in indexed and inverse securities.

Other Strategies Applicable to the Fund In addition to the principal investment strategies discussed above, the Fund may also invest or engage in the following investments/strategies: Borrowing — The Fund may borrow up to the limits set forth under the Investment Company Act, the rules and regulations thereunder and any applicable exemptive relief. Collateralized Debt Obligations — The Fund may invest up to 10% of its net assets in collateralized debt obligations (“CDOs”), of which 5% (as a percentage of the Fund’s net assets) may be in collateralized loan obligations (“CLOs”). CDOs are types of asset-backed securities. CLOs are ordinarily issued by a trust or other special purpose entity and are typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans, held by such issuer. Illiquid Investments — The Fund may not acquire any illiquid investment if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. Investment Companies — The Fund has the ability to invest in other investment companies, such as exchange traded funds (“ETFs”), unit investment trusts, and open-end and closed-end funds, subject to the applicable limits under the Investment Company Act and the rules thereunder. The Fund may invest in affiliated investment companies, including affiliated money market funds and affiliated ETFs. Real Estate Investment Trusts — The Fund may invest in real estate investment trusts (“REITs”). Real Estate-Related Securities — The Fund may also invest in securities of companies that derive a significant proportion of their revenues and profits from, or have a significant proportion of their assets invested in, (i) the development, construction, management, or sale of real estate; (ii) real estate holdings; or (iii) products or services related to the real estate industry. Securities Lending — The Fund may lend securities with a value up to 33 1⁄ 1⁄3 ⁄3 % of its total assets to financial institutions that provide cash or securities issued or guaranteed by the U.S. Government as collateral. Short Sales — The Fund may make short sales of securities, either as a hedge against potential declines in value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value. The Fund will not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 10% of the value of its total assets. The Fund may also make short sales “against-the-box” without regard to this restriction. In this type of short sale, at the time of the sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost. Small Cap and Emerging Growth Securities — The Fund may invest in equity securities of issuers with limited product lines or markets. Standby Commitment Agreements — Standby commitment agreements commit the Fund, for a stated period of time, to purchase a stated amount of securities that may be issued and sold to the Fund at the option of the issuer. Temporary Defensive Strategies — For temporary defensive purposes, for example, to respond to adverse market, economic, political or other conditions, the Fund may depart from its principal investment strategies and may restrict the markets in which it invests and may invest without limitation in cash, cash equivalents, money market securities, such as U.S. Treasury and agency obligations, other U.S. Government securities, short-term debt obligations of corporate issuers, certificates of deposit, bankers acceptances, commercial paper (short-term, unsecured, negotiable promissory notes of a domestic or foreign issuer) or other high quality fixed income securities. Temporary defensive positions may affect the Fund’s ability to achieve its investment objective.

NM0926U-5977344-14/48

Page 15

When-Issued and Delayed Delivery Securities and Forward Commitments — The purchase or sale of securities on a when-issued basis, on a delayed delivery basis or through a forward commitment involves the purchase or sale of securities by the Fund at an established price with payment and delivery taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous price to the Fund at the time of entering into the transaction.

ABOUT THE PORTFOLIO MANAGEMENT TEAM OF THE FUND

The Fund is managed by a team of financial professionals. Philip Green, Michael Pensky, CFA, Daniel Felder, CFA, Raffaele Savi, Richard Mathieson, Anna Hawley, CFA, Scott Radell and Jasmita Mohan are the portfolio managers and are jointly and primarily responsible for the day-to-day management of the Fund. Please see “Management of the Fund — Portfolio Manager Information” for additional information about the portfolio management team.

Investment Risks

This section contains a discussion of the general risks of investing in the Fund. The “Investment Objectives and Policies” section in the Statement of Additional Information (“SAI”) also includes more information about the Fund, its investments and the related risks. As with any fund, there can be no guarantee that the Fund will meet its investment objective or that the Fund’s performance will be positive for any period of time. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or by any bank or governmental agency. The order of the below risk factors does not indicate the significance of any particular risk factor.

Principal Risks of Investing in the Fund

Convertible Securities Risk — The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock, including the potential for increased volatility in the price of the convertible security. Corporate Loans Risk — Commercial banks and other financial institutions or institutional investors make corporate loans to companies that need capital to grow or restructure. Borrowers generally pay interest on corporate loans at rates that change in response to changes in market interest rates such as the Secured Overnight Financing Rate (“SOFR”) or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less exposed to the adverse effects of shifts in market interest rates than investments that pay a fixed rate of interest. However, because the trading market for certain corporate loans may be less developed than the secondary market for bonds and notes, the Fund may experience difficulties in selling its corporate loans. Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of corporate loans may not be readily available to make additional investments or to meet the Fund’s redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional cash, sell investments or temporarily borrow from banks and other lenders. Leading financial institutions often act as agent for a broader group of lenders, generally referred to as a syndicate. The syndicate’s agent arranges the corporate loans, holds collateral and accepts payments of principal and interest. If the agent develops financial problems, the Fund may not recover its investment or recovery may be delayed. By investing in a corporate loan, the Fund may become a member of the syndicate.

The market for corporate loans may be subject to irregular trading activity and wide bid/ask spreads.

The corporate loans in which the Fund invests are subject to the risk of loss of principal and income. Although borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit the Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of a bankruptcy, the holder of a corporate loan may not recover its principal, may experience a long delay in recovering its investment and may not receive interest during the delay. Debt Securities Risk — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, extension risk, and prepayment risk, each of which is described in further detail below:

NM0926U-5977344-15/48

Page 16

Credit Risk — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.

The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund management.

To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage backed securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate debt securities.

These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in value when interest rates change.

Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Fund’s performance. A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from mutual funds that hold large amounts of fixed-income securities. Heavy redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could hurt the Fund’s performance. During periods of very low or negative interest rates, the Fund may be unable to maintain positive returns. Certain countries have recently experienced negative interest rates on certain fixed-income instruments. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, may result in heightened market volatility and may detract from Fund performance to the extent the Fund is exposed to such interest rates.

Extension Risk — When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these obligations to fall. Rising interest rates tend to extend the duration of securities, making them more sensitive to changes in interest rates. The value of longer-term securities generally changes more in response to changes in interest rates than shorter-term securities. As a result, in a period of rising interest rates, securities may exhibit additional volatility and may lose value.

Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields. In periods of falling interest rates, the rate of prepayments tends to increase (as does price fluctuation) as borrowers are motivated to pay off debt and refinance at new lower rates. During such periods, reinvestment of the prepayment proceeds by the management team will generally be at lower rates of return than the return on the assets that were prepaid. Prepayment reduces the yield to maturity and the average life of the security. Derivatives Risk — The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or increase volatility. Derivatives involve significant risks, including: Leverage Risk — The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market movements may result in large changes in the value of a derivatives position and can result in losses that greatly exceed the amount originally invested. Market Risk — Some derivatives are more sensitive to interest rate changes and market price fluctuations than other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated

NM0926U-5977344-16/48

Page 17

market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s derivatives positions to lose value. Counterpar ty Risk — Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated exposure to such a counterparty. Illiquidity Risk — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately. Operational Risk — The use of derivatives includes the risk of potential operational issues, including documentation issues, settlement issues, systems failures, inadequate controls and human error.

Legal Risk — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or enforceability of a contract. Volatility and Correlation Risk — The Fund’s use of derivatives may reduce the Fund’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate with the overall securities markets. Valuation Risk — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them. Derivatives may also expose the Fund to greater risk and increase its costs. Certain transactions in derivatives involve substantial leverage risk and may expose the Fund to potential losses that exceed the amount originally invested by the Fund. Hedging Risk — When a derivative is used as a hedge against a position that the Fund holds, any loss generated by the derivative generally should be substantially offset by gains on the hedged investment, and vice versa. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. Hedges are sometimes subject to imperfect matching between the derivative and the underlying security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging may result in certain adverse tax consequences noted below. Tax Risk — The federal income tax treatment of a derivative may not be as favorable as a direct investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary income rather than capital gains. In addition, certain derivatives are subject to mark-to-market or straddle provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). If such provisions are applicable, there could be an increase (or decrease) in the amount of taxable dividends paid by the Fund. In addition, the tax treatment of certain derivatives, such as swaps, is unsettled and may be subject to future legislation, regulation or administrative pronouncements issued by the Internal Revenue Service (the “IRS”). Regulatory Risk — Derivative contracts are subject to regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in the United States and under comparable regimes in Europe, Asia and other non-U.S. jurisdictions. Under the Dodd-Frank Act, with respect to uncleared swaps, swap dealers are required to exchange variation margin with the Fund and may be required by applicable regulations to collect and/or exchange initial margin with the Fund. Both initial and variation margin may be comprised of cash and/or securities, subject to applicable regulatory haircuts. In certain cases, shares of investment companies may not be posted as collateral under applicable regulations. In addition, regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of their affiliates to include in certain financial contracts, including many derivatives contracts, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. The implementation of these requirements with respect to derivatives, as well as regulations under global regulations regarding clearing, mandatory trading and margining of other derivatives, may increase the costs and risks to the Fund of trading in these instruments and, as a result, may affect returns to investors in the Fund. Future regulatory developments may impact the Fund’s ability to invest or remain invested in certain derivatives. Legislation or regulation may also change the way in which the Fund itself is regulated. BlackRock cannot predict the effects of any new governmental regulation that may be implemented on the ability of the Fund to use swaps or any other financial derivative product, and there can be no assurance that any new governmental regulation will not adversely affect the Fund’s ability to achieve its investment objective.

NM0926U-5977344-17/48

Page 18

Risks Specific to Cer tain Derivatives Used by the Fund Swaps — Swap agreements, including total return swaps that may be referred to as contracts for difference, are two-party contracts entered into for periods ranging from a few days to more than one year. In a standard “swap” transaction, two parties agree to exchange the value(s) or cash flow(s) of one asset for another over a certain period of time. Swap agreements involve the risk that the party with whom the Fund has entered into the swap will default on its obligation to pay the Fund and the risk that the Fund will not be able to meet its obligations to pay the other party to the agreement. Swap agreements may also involve the risk that there is an imperfect correlation between the return on the Fund’s obligation to its counterparty and the return on the referenced asset. In addition, swap agreements are subject to market and illiquidity risk, leverage risk and hedging risk. Credit Default Swaps — Credit default swaps may have as reference obligations one or more securities that are not currently held by the Fund. The protection “buyer” may be obligated to pay the protection “seller” an up-front payment or a periodic stream of payments over the term of the contract, provided generally that no credit event on a reference obligation has occurred. Credit default swaps involve special risks in addition to those mentioned above because they are difficult to value, are highly susceptible to illiquid investments risk and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). Forward Foreign Currency Exchange Contracts — Forward foreign currency exchange transactions are OTC contracts to purchase or sell a specified amount of a specified currency or multinational currency unit at a price and future date set at the time of the contract. Forward foreign currency exchange contracts do not eliminate fluctuations in the value of non-U.S. securities but rather allow the Fund to establish a fixed rate of exchange for a future point in time. This strategy can have the effect of reducing returns and minimizing opportunities for gain. Futures — Futures are standardized, exchange-traded contracts that obligate a purchaser to take delivery, and a seller to make delivery, of a specific amount of an asset at a specified future date at a specified price. The primary risks associated with the use of futures contracts and options are: (a) the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract or option; (b) the possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the investment adviser’s inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors; and (e) the possibility that the counterparty will default in the performance of its obligations. Options — An option is an agreement that, for a premium payment or fee, gives the option holder (the purchaser) the right but not the obligation to buy (a “call option”) or sell (a “put option”) the underlying asset (or settle for cash in an amount based on an underlying asset, rate, or index) at a specified price (the “exercise price”) during a period of time or on a specified date. Investments in options are considered speculative. When the Fund purchases an option, it may lose the total premium paid for it if the price of the underlying security or other assets decreased, remained the same or failed to increase to a level at or beyond the exercise price (in the case of a call option) or increased, remained the same or failed to decrease to a level at or below the exercise price (in the case of a put option). If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. To the extent that the Fund writes or sells an option, if the decline or increase in the underlying asset is significantly below or above the exercise price of the written option, the Fund could experience a substantial loss. Emerging Markets Risk — The risks of foreign investments are usually much greater for emerging markets. Investments in emerging markets may be considered speculative. Emerging markets may include those in countries considered emerging or developing by the World Bank, the International Finance Corporation or the United Nations. Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. They are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging markets have far lower trading volumes and less liquidity than developed markets. Since these markets are often small, they may be more likely to suffer sharp and frequent price changes or long-term price depression because of adverse publicity, investor perceptions or the actions of a few large investors. In addition, traditional measures of investment value used in the United States, such as price to earnings ratios, may not apply to certain small markets. Also, there may be less publicly available information about issuers in emerging markets than would be available about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject. Many emerging markets have histories of political instability and abrupt changes in policies. As a result, their governments are more likely to take actions that are hostile or detrimental to private enterprise or foreign investment than those of more developed countries, including expropriation of assets, confiscatory taxation, high

NM0926U-5977344-18/48

Page 19

rates of inflation or unfavorable diplomatic developments. In the past, governments of such nations have expropriated substantial amounts of private property, and most claims of the property owners have never been fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that the Fund could lose the entire value of its investments in the affected market. Some countries have pervasive corruption and crime that may hinder investments. Certain emerging markets may also face other significant internal or external risks, including the risk of war, and ethnic, religious and racial conflicts. In addition, governments in many emerging market countries participate to a significant degree in their economies and securities markets, which may impair investment and economic growth. National policies that may limit the Fund’s investment opportunities include restrictions on investment in issuers or industries deemed sensitive to national interests. Emerging markets may also have differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments may adversely affect the Fund’s performance. Sometimes, they may lack or be in the relatively early development of legal structures governing private and foreign investments and private property. Many emerging markets do not have income tax treaties with the United States, and as a result, investments by the Fund may be subject to higher withholding taxes in such countries. In addition, some countries with emerging markets may impose differential capital gains taxes on foreign investors. Foreign companies with securities listed on U.S. exchanges may be delisted if they do not meet U.S. accounting standards and auditor oversight requirements, which may significantly decrease the liquidity and value of the securities. Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those in developed markets, in part because the Fund will need to use brokers and counterparties that are less well capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging markets, and, along with other factors, could result in ownership registration being completely lost. The Fund would absorb any loss resulting from such registration problems and may have no successful claim for compensation. In addition, communications between the United States and emerging market countries may be unreliable, increasing the risk of delayed settlements or losses of security certificates.

Equity Securities Risk — Common and preferred stocks represent equity ownership in a company. Stock markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio investing in equities. The value of equity securities purchased by the Fund could decline if the financial condition of the companies the Fund invests in declines or if overall market and economic conditions deteriorate. The value of equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages or an increase in production costs and competitive conditions within an industry. In addition, the value may decline due to general market conditions that are not specifically related to a company or industry, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in inflation, interest or currency rates or generally adverse investor sentiment. Foreign Securities Risk — Securities traded in foreign markets have often (though not always) performed differently from securities traded in the United States. However, such investments often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. In particular, the Fund is subject to the risk that because there may be fewer investors on foreign exchanges and a smaller number of securities traded each day, it may be more difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign securities may go up and down more than prices of securities traded in the United States. Cer tain Risks of Holding Fund Assets Outside the United States — The Fund generally holds its foreign securities and cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight of their operations. Also, the laws of certain countries limit the Fund’s ability to recover its assets if a foreign bank, depository or issuer of a security, or any of their agents, goes bankrupt. In addition, it is often more expensive for the Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased expense of investing in foreign markets reduces the amount the Fund can earn on its investments and typically results in a higher operating expense ratio for the Fund than for investment companies invested only in the United States. Currency Risk — Securities and other instruments in which the Fund invests may be denominated or quoted in currencies other than the U.S. dollar. For this reason, changes in foreign currency exchange rates can affect the value of the Fund’s portfolio. Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in that currency gains value because the currency is worth more

NM0926U-5977344-19/48

Page 20

U.S. dollars. This risk, generally known as “currency risk,” means that a strong U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase those returns. Should the Fund invest in a debt security denominated in U.S. dollars and issued by an issuer whose functional currency is a currency other than the U.S. dollar, and such currency decreases in value against the U.S. dollar, such issuer’s ability to repay its obligation under the U.S. dollar-denominated security may be negatively impacted. Foreign Economy Risk — The economies of certain foreign markets may not compare favorably with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of payments position. Certain foreign economies may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular country or countries, changes in international trading patterns, trade barriers and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events, military action and other conditions may, without prior warning, lead to the governments of certain countries, or the U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital controls and/or sanctions on foreign investments in the capital markets or certain industries in those countries. Capital controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency, securities, derivatives or other assets and may also include retaliatory actions of one government against another government, such as seizure of assets. Any of these actions could severely impair the Fund’s ability to purchase, sell, transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or liquidity of such assets or otherwise adversely affect the Fund’s operations, causing the Fund to decline in value. Other potential foreign market risks include foreign exchange controls, difficulties in pricing securities, defaults on foreign government securities, difficulties in enforcing legal judgments in foreign courts and political and social instability. Diplomatic and political developments, including rapid and adverse political changes, social instability, regional conflicts, terrorism and war, could affect the economies, industries and securities and currency markets, and the value of the Fund’s investments, in non-U.S. countries. These factors are extremely difficult, if not impossible, to predict and take into account with respect to the Fund’s investments. Governmental Supervision and Regulation/Accounting Standards — Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to the same extent as such regulations exist in the United States. They also may not have laws to protect investors that are comparable to U.S. securities laws. For example, some foreign countries may have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s securities based on material non-public information about that company. In addition, some countries may have legal systems that may make it difficult for the Fund to vote proxies, exercise shareholder rights, and pursue legal remedies with respect to its foreign investments. Accounting standards in other countries are not necessarily the same as in the United States. If the accounting standards in another country do not require as much detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a company’s financial condition. Settlement Risk — Settlement and clearance procedures in certain foreign markets differ significantly from those in the United States. Foreign settlement and clearance procedures and trade regulations also may involve certain risks (such as delays in payment for or delivery of securities) not typically associated with the settlement of U.S. investments. At times, settlements in certain foreign countries have not kept pace with the number of securities transactions. These problems may make it difficult for the Fund to carry out transactions. If the Fund cannot settle or is delayed in settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be uninvested with no return earned thereon for some period. If the Fund cannot settle or is delayed in settling a sale of securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to another party, the Fund could be liable for any losses incurred. Withholding Tax Reclaims Risk — The Fund may file claims to recover foreign withholding taxes on dividend and interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when the Fund will receive a withholding tax refund is within the control of the tax authorities in such countries. Where the Fund expects to recover withholding taxes, the net asset value of the Fund generally includes accruals for such tax refunds. The Fund regularly evaluates the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax regulation or approach in the foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in the Fund at the time

NM0926U-5977344-20/48

Page 21

an accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they were shareholders during the accrual period. Conversely, if the Fund receives a tax refund that has not been previously accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase in the Fund’s net asset value. High Portfolio Turnover Risk — The Fund may engage in active and frequent trading of its portfolio securities. High portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects of higher than normal portfolio turnover may adversely affect Fund performance. High Yield Bonds Risk — Although junk bonds generally pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that are considered speculative and may cause income and principal losses for the Fund. The major risks of junk bond investments include: Junk bonds may be issued by less creditworthy issuers. Issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of other creditors may have priority over the claims of junk bond holders, leaving few or no assets available to repay junk bond holders. Prices of junk bonds are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of junk bonds than on other higher rated fixed-income securities. Issuers of junk bonds may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments, or the unavailability of additional financing. Junk bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems junk bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income. Junk bonds may be less liquid than higher rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the junk bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers. Because they are less liquid than higher rated fixed-income securities, judgment may play a greater role in valuing junk bonds than is the case with securities trading in a more liquid market. The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer.

The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer. Indexed and Inverse Securities Risk — Indexed and inverse securities provide a potential return based on a particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index levels move in a way Fund management does not anticipate. Leverage Risk — Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. As an open-end investment company registered with the Securities and Exchange Commission (the “SEC”), the Fund is subject to the federal securities laws, including the Investment Company Act and the rules thereunder. Under Rule 18f-4 under the Investment Company Act, among other things, the Fund must either use derivatives in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet the applicable requirements of the Investment Company Act and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses leverage. Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market movements and over longer periods during market downturns. Securities or other investments held by the Fund may underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of

NM0926U-5977344-21/48

Page 22

a security or other asset may decline due to changes in general market conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. The success of the Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, currency exchange controls, and local, regional or global events such as war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health issues, recessions, or other events. The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis and is subject to “Model Risk” as described below. Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where the Fund invests. Mid Cap Securities Risk — The securities of mid cap companies generally trade in lower volumes and are generally subject to greater and less predictable price changes than the securities of larger capitalization companies. Model Risk — The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis. Investments selected using these models may perform differently than as forecasted due to the factors incorporated into the models and the weighting of each factor, as well as the level and scope of changes from historical trends. In addition, issues in the construction and implementation of the models, including software or hardware malfunction, power loss, software bugs, malicious code, viruses, system crashes, issues related to the use of artificial intelligence and machine learning (“AI”), and other technological failures or various other events or circumstances within or beyond the control of BlackRock, may adversely impact the Fund. Please see also “Operational and Technology Risks” below. There is no guarantee that BlackRock’s use of these models will result in effective investment decisions for the Fund. Some of the models used by BlackRock rely on historical data and may not accurately predict future market movements. The Fund bears the risk that the models used by BlackRock will not be successful in forecasting movements in the market or in determining the size, direction, and/or weighting of investment positions that will enable the Fund to achieve its investment objective. In addition, the models may not be reliable in the event of unusual or disruptive events that cause market movements, which may be inconsistent with the historical performance of individual markets. In such instances, the models may produce unexpected results, which can result in losses for the Fund. Furthermore, because predictive models may be constructed based on data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of such data. Money Market Securities Risk — If market conditions improve while the Fund has invested some or all of its assets in high quality money market securities, this strategy could result in reducing the potential gain from the market upswing, thus reducing the Fund’s opportunity to achieve its investment objective. Mortgage- and Asset-Backed Securities Risks — Mortgage-backed securities (residential and commercial) and asset-backed securities represent interests in “pools” of mortgages or other assets, including consumer loans or receivables held in trust. Although asset-backed and commercial mortgage-backed securities (“CMBS”) generally experience less prepayment than residential mortgage-backed securities, mortgage-backed and asset-backed securities, like traditional fixed-income securities, are subject to credit, interest rate, prepayment and extension risks. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities. The Fund’s investments in asset-backed securities are subject to risks similar to those associated with mortgage-related securities, as well as additional risks associated with the nature of the assets and the servicing of those assets. These securities also are subject to the risk of default on the underlying mortgages or assets, particularly during periods of economic downturn. Certain CMBS are issued in several classes with different levels of yield and credit protection. The Fund’s investments in CMBS with several classes may be in the lower classes that have greater risks than the higher classes, including greater interest rate, credit and prepayment risks. Mortgage-backed securities may be either pass-through securities or collateralized mortgage obligations (“CMOs”). Pass-through securities represent a right to receive principal and interest payments collected on a pool of mortgages, which are passed through to security holders. CMOs are created by dividing the principal and interest payments collected on a pool of mortgages into several revenue streams (“tranches”) with different priority rights to portions of the underlying mortgage payments. Certain CMO tranches may represent a right to receive interest only 22

NM0926U-5977344-22/48

Page 23

(“IOs”), principal only (“POs”) or an amount that remains after floating-rate tranches are paid (an “inverse floater”). These securities are frequently referred to as “mortgage derivatives” and may be extremely sensitive to changes in interest rates. Interest rates on inverse floaters, for example, vary inversely with a short-term floating rate (which may be reset periodically). Interest rates on inverse floaters will decrease when short-term rates increase, and will increase when short-term rates decrease. These securities have the effect of providing a degree of investment leverage. In response to changes in market interest rates or other market conditions, the value of an inverse floater may increase or decrease at a multiple of the increase or decrease in the value of the underlying securities. If the Fund invests in CMO tranches (including CMO tranches issued by government agencies) and interest rates move in a manner not anticipated by Fund management, it is possible that the Fund could lose all or substantially all of its investment. Certain mortgage-backed securities in which the Fund may invest may also provide a degree of investment leverage, which could cause the Fund to lose all or substantially all of its investment. The mortgage market in the United States has experienced difficulties that may adversely affect the performance and market value of certain of the Fund’s mortgage-related investments. Delinquencies and losses on mortgage loans (including subprime and second-lien mortgage loans) and a decline in or flattening of real estate values (in each case as has been experienced and may continue to be experienced in many housing markets) may exacerbate such delinquencies and losses. Also, a number of mortgage loan originators have experienced serious financial difficulties or bankruptcy. Reduced investor demand for mortgage loans and mortgage-related securities and increased investor yield requirements have caused limited liquidity in the secondary market for mortgage-related securities, which can adversely affect the market value of mortgage-related securities. It is possible that such limited liquidity in such secondary markets could continue or worsen. Asset-backed securities entail certain risks not presented by mortgage-backed securities, including the risk that in certain states it may be difficult to perfect the liens securing the collateral backing certain asset-backed securities. In addition, certain asset-backed securities are based on loans that are unsecured, which means that there is no collateral to seize if the underlying borrower defaults. Municipal Securities Risks — Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, and federal governments upon which the issuers may be relying for funding may also impact municipal securities. These risks include: General Obligation Bonds Risks — The full faith, credit and taxing power of the municipality that issues a general obligation bond secures payment of interest and repayment of principal. Timely payments depend on the issuer’s credit quality, ability to raise tax revenues and ability to maintain an adequate tax base. Revenue Bonds Risks — Payments of interest and principal on revenue bonds are made only from the revenues generated by a particular facility, class of facilities or the proceeds of a special tax or other revenue source. These payments depend on the money earned by the particular facility or class of facilities, or the amount of revenues derived from another source.

NM0926U-5977344-23/48

Page 24

ultimately determined to be incorrect or if events occur after the security is acquired that impact the security’s tax exempt status, the Fund and its shareholders could be subject to substantial tax liabilities. The IRS has generally not ruled on the taxability of the securities. An assertion by the IRS that a portfolio security is not exempt from U.S. federal income tax (contrary to indications from the issuer) could affect the Fund’s and its shareholders’ income tax liability for the current or past years and could create liability for information reporting penalties. In addition, an IRS assertion of taxability may impair the liquidity and the fair market value of the securities. “New Issues” Risk — “New issues” are IPOs of equity securities. Investments in companies that have recently gone public have the potential to produce substantial gains for the Fund. However, there is no assurance that the Fund will have access to profitable IPOs and therefore investors should not rely on these past gains as an indication of future performance. The investment performance of the Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when the Fund is able to do so. In addition, as the Fund increases in size, the impact of IPOs on the Fund’s performance will generally decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the IPO. When an IPO is brought to the market, availability may be limited and the Fund may not be able to buy any shares at the offering price, or, if it is able to buy shares, it may not be able to buy as many shares at the offering price as it would like. Operational and Technology Risks — The Fund and the entities with which it interacts directly or indirectly are susceptible to operational and technology risks, including those related to human errors, processing errors, communication errors, systems failures, cybersecurity incidents, and the use of AI, which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g., index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries, counterparties, market makers, authorized participants, listing exchanges, other financial market operators, and governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks. Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks, particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares, and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural disasters, equipment malfunctions and processing errors that threaten information and technology systems relied upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these systems, may also disrupt business operations or impact critical data. In addition, the risks of increased use of AI technologies, such as machine learning, include data risk, transparency risk, and operational risk. The AI technologies, which are generally highly reliant on the collection and analysis of large amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all relevant data into such technologies. The output or results of any such AI technologies may therefore be incomplete, erroneous, distorted or misleading. Further, AI tools may lack transparency as to how data is utilized and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into infrastructures and applications. The Fund and its shareholders could be negatively impacted as a result of these risks associated with AI technologies. AI technologies and their current and potential future applications, and the regulatory frameworks within which they operate, continue to quickly evolve, and it is impossible to anticipate the full scope of future AI capabilities or rules and the associated risks to the Fund. While the Fund’s service providers are required to have appropriate operational, information security and cybersecurity risk management policies and procedures, their methods of risk management may differ from those of the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls. The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including establishing business continuity plans and risk management systems. However, there are inherent limitations in

NM0926U-5977344-24/48

Page 25

such plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the systems, information security or other cybersecurity of the issuers in which it invests or its service providers, counterparties, and other third parties whose activities affect the Fund. Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial resources to monitor and implement required changes. Preferred Securities Risk — Preferred securities may pay fixed or adjustable rates of return. Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s preferred securities generally pay dividends only after the company makes required payments to holders of its bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred securities of smaller companies may be more vulnerable to adverse developments than preferred securities of larger companies. Sovereign Debt Risk — Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans. There is no legal process for collecting sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected. Structured Securities Risk — Because structured securities of the type in which the Fund may invest typically involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments, index or reference obligation and will also be subject to counterparty risk. The Fund may have the right to receive payments only from the structured security, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. In addition to the general risks associated with debt securities discussed herein, structured securities carry additional risks, including, but not limited to: the possibility that distributions from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may decline in value or default; and the possibility that the structured securities are subordinate to other classes. The Fund is permitted to invest in a class of structured securities that is either subordinated or unsubordinated to the right of payment of another class. Subordinated structured securities typically have higher yields and present greater risks than unsubordinated structured securities. Structured securities are typically sold in private placement transactions, and there currently is no active trading market for structured securities. Structured securities are based upon the movement of one or more factors, including currency exchange rates, interest rates, reference bonds and stock indices, and changes in interest rates and impact of these factors may cause significant price fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the structured security to be reduced to zero. Certain issuers of such structured securities may be deemed to be “investment companies” as defined in the Investment Company Act. As a result, the Fund’s investment in such securities may be limited by certain investment restrictions contained in the Investment Company Act. U.S. Government Issuer Risk — Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. U.S. Government Mortgage-Related Securities Risk — There are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”) are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as the case may be, and are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the Treasury.

NM0926U-5977344-25/48

Page 26

Other Risks of Investing in the Fund

The Fund may also be subject to certain other non-principal risks associated with its investments and investment strategies, including: Borrowing Risk — Borrowing may exaggerate changes in the net asset value of Fund shares and in the return on the Fund’s portfolio. Borrowing will cost the Fund interest expense and other fees. The costs of borrowing may reduce the Fund’s return. Borrowing may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations. Collateralized Debt Obligations Risk — In addition to the typical risks associated with fixed-income securities and asset-backed securities, CDOs, including CLOs, carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical rating organization; (iii) the Fund may invest in tranches of CDOs that are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may perform poorly. Expense Risk — Fund expenses are subject to a variety of factors, including fluctuations in the Fund’s net assets. Accordingly, actual expenses may be greater or less than those indicated. For example, to the extent that the Fund’s net assets decrease due to market declines or redemptions, the Fund’s expenses will increase as a percentage of Fund net assets. During periods of high market volatility, these increases in the Fund’s expense ratio could be significant.

Illiquid Investments Risk — The Fund may not acquire any illiquid investment if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. There can be no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an illiquid investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may reduce the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of traditional market participants to make a market in fixed-income securities or the lack of an active trading market. To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market and/or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be magnified in a rising interest rate environment or other circumstances where investor redemptions or sale of Fund shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions. Investment in Other Investment Companies Risk — As with other investments, investments in other investment companies, including ETFs, are subject to market and selection risk. In addition, if the Fund acquires shares of investment companies, including ones affiliated with the Fund, shareholders bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of the investment companies (to the extent not offset by BlackRock through waivers). To the extent the Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited. Large Shareholder and Large-Scale Redemption Risk — Certain shareholders, including a third-party investor, the Fund’s adviser or an affiliate of the Fund’s adviser, or another entity, may from time to time own or manage a substantial amount of Fund shares, including funds or accounts over which the Fund’s adviser has discretion, or may invest in the Fund and hold its investment for a limited period of time. There can be no assurance that any large shareholder or large group of shareholders would not redeem their investment or that the size of the Fund would be maintained. Redemptions of a large number of Fund shares by these shareholders may adversely affect the Fund’s liquidity and net assets. These redemptions may force the Fund to sell portfolio securities to meet redemption requests when it might not otherwise do so, which may negatively impact the Fund’s NAV and increase 26

NM0926U-5977344-26/48

Page 27

the Fund’s brokerage costs and/or accelerate the realization of taxable income and cause the Fund to make taxable distributions to its shareholders earlier than the Fund otherwise would have. In addition, under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately large taxable distribution during or with respect to such tax year. The effects of taxable income and/or gains resulting from such transactions would particularly impact non-redeeming shareholders who do not hold their Fund shares in an IRA, 401(k) plan or other tax-advantaged plan. To the extent that such transactions result in short-term capital gains, such gains will generally be taxed at the ordinary income tax rate for shareholders who hold Fund shares in a taxable account. The Fund also may be required to sell its more liquid Fund investments to meet a large redemption, in which case the Fund’s remaining assets may be less liquid, more volatile, and more difficult to price. In addition, large redemptions can result in the Fund’s current expenses being allocated over a smaller asset base, which generally results in an increase in the Fund’s expense ratio. Because large redemptions can adversely affect a portfolio manager’s ability to implement a fund’s investment strategy, the Fund also reserves the right to redeem in-kind, subject to certain conditions. In addition, large purchases of Fund shares may adversely affect the Fund’s performance to the extent that the Fund is delayed in investing new cash and is required to maintain a larger cash position than it ordinarily would, diluting its investment returns. Ownership Limitations Risk — If certain aggregate and/or fund-level ownership thresholds are reached through transactions undertaken by BlackRock, its affiliates or the Fund, or as a result of third-party transactions or actions by an issuer or regulator, the ability of BlackRock and its affiliates on behalf of clients (including the Fund) to purchase or dispose of investments, exercise rights or undertake business transactions may be restricted by law, regulation or rule or otherwise impaired. The capacity of the Fund to invest in certain securities or other assets may be affected by the relevant threshold limits, and such limitations may have adverse effects on the liquidity and performance of the Fund’s portfolio holdings. For example, ownership limits may apply to securities whose issuers operate in certain regulated industries or in certain international markets. Such limits also may apply where the investing entity (such as the Fund) is subject to corporate or regulatory ownership restrictions or invests in certain futures or other derivative transactions. In certain circumstances, aggregate and/or fund-level amounts invested or voted by BlackRock and its affiliates for client funds and accounts managed by BlackRock (including the Fund) may not exceed the relevant limits without the grant of a license or other regulatory or corporate approval, order, consent, relief or non-disapproval. However, there is no guarantee that permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no notice. In other cases, exceeding such thresholds may cause BlackRock and its affiliates, the Fund or other client accounts to suffer disadvantages or business restrictions. Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or regulatory approval, order, consent, relief or non-disapproval that was obtained. Real Estate-Related Securities Risk — The main risk of real estate-related securities is that the value of the underlying real estate may go down. Many factors may affect real estate values. These factors include both the general and local economies, vacancy rates, changes in rent schedules, tenant bankruptcies, the ability to re-lease space under expiring leases on attractive terms, the amount of new construction in a particular area, the laws and regulations (including zoning, environmental and tax laws) affecting real estate and the costs of owning, maintaining and improving real estate. The availability of mortgage financing and changes in interest rates may also affect real estate values. If the Fund’s real estate-related investments are concentrated in one geographic area or in one property type, the Fund will be particularly subject to the risks associated with that area or property type. Many issuers of real estate-related securities are highly leveraged, which increases the risk to holders of such securities. The value of the securities the Fund buys will not necessarily track the value of the underlying investments of the issuers of such securities. In addition, certain issuers of real estate-related securities may have developed or commenced development on properties and may develop additional properties in the future. Real estate development involves significant risks in addition to those involved in the ownership and operation of established properties. Real estate securities may have limited diversification and are, therefore, subject to risks inherent in operating and financing a limited number of projects. Real estate securities are also subject to heavy cash flow dependency and defaults by borrowers or tenants. Reference Rate Replacement Risk — The Fund’s investments, payment obligations and financing terms may be based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments) or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments imposed by a regulator or by counterparties or otherwise may adversely affect the Fund’s performance and/or net asset value. 27

NM0926U-5977344-27/48

Page 28

In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been the subject of ongoing national and international regulatory reform, including under the European Union (“EU”) regulation on indices used as benchmarks in financial instruments and financial contracts (known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the implementation of these reforms, the manner of administration of benchmarks has changed and may further change in the future, with the result that relevant benchmarks may perform differently than in the past, the use of benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other consequences which cannot be predicted. REIT Investment Risk — In addition to the risks facing real estate-related securities, such as a decline in property values due to increasing vacancies, a decline in rents resulting from unanticipated economic, legal or technological developments or a decline in the price of securities of real estate companies due to a failure of borrowers to pay their loans or poor management, investments in REITs involve unique risks. REITs may have limited financial resources, may trade less frequently and in limited volume, may engage in dilutive offerings of securities and may be more volatile than other securities. REIT issuers may also fail to maintain their exemptions from investment company registration or fail to qualify for the “dividends paid deduction” under the Internal Revenue Code, which allows REITs to reduce their corporate taxable income for dividends paid to their shareholders. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non-corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated investment company and the shareholder satisfy applicable holding period requirements. Reliance on Advisor Risk — The Fund is dependent upon services and resources provided by BlackRock, and therefore BlackRock’s parent, BlackRock, Inc. BlackRock is not required to devote its full time to the business of the Fund and there is no guarantee or requirement that any investment professional or other employee of BlackRock will allocate a substantial portion of his or her time to the Fund. The loss of, or changes in, BlackRock’s personnel could have a negative effect on the performance or the continued operation of the Fund. Securities Lending Risk — The Fund may engage in securities lending. Securities lending involves the risk that the Fund may lose money because the borrower of the loaned securities fails to return the securities in a timely manner or at all. The Fund could also lose money in the event of a decline in the value of collateral provided for loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for the Fund. Short Sales and Short Position Risk — Because making short sales or taking short positions in securities that it does not own would expose the Fund to the risks associated with those securities, such short sales or positions involve speculative exposure risk. In such situations, the Fund will incur a loss as a result of a short sale or position if the price of the reference instrument increases after the Fund entered into the short sale or position. The Fund may engage in short sales and gain short exposure through certain derivative instruments, such as futures, options or swaps. The Fund may lose more money than the actual cost of a short sale or position and the potential losses are theoretically unlimited on a short sale or position. Small Cap and Emerging Growth Securities Risk — Small cap or emerging growth companies may have limited product lines or markets. They may be less financially secure than larger, more established companies. They may depend on a small number of key personnel. If a product fails or there are other adverse developments, or if management changes, the Fund’s investment in a small cap or emerging growth company may lose substantial value. In addition, it is more difficult to get information on smaller companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by large investors and are followed by relatively few securities analysts. The securities of small cap and emerging growth companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger cap securities or the market as a whole. In addition, small cap and emerging growth securities may be particularly sensitive to changes in interest rates, borrowing costs and earnings. Investing in small cap and emerging growth securities requires a longer term view. Standby Commitment Agreements Risk — Standby commitment agreements involve the risk that the security the Fund buys will lose value prior to its delivery to the Fund and will no longer be worth what the Fund has agreed to

NM0926U-5977344-28/48

Page 29

pay for it. These agreements also involve the risk that if the security goes up in value, the counterparty will decide not to issue the security. In this case, the Fund loses both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s price. Valuation Risk — The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Pricing services that value fixed-income securities generally utilize a range of market-based and security-specific inputs and assumptions, as well as considerations about general market conditions, to establish a price. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities are sold could differ from the prices used by the Fund. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers. When-Issued and Delayed Delivery Securities and Forward Commitments Risk — When-issued and delayed delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s price.

NM0926U-5977344-29/48

Page 30

Account Information

Details About the Share Class

The Fund currently offers multiple share classes (Class K Shares in this prospectus), each with its own sales charge and expense structure, allowing you to invest in the way that best suits your needs. Each share class represents an ownership interest in the same investment portfolio of the Fund. When you choose your class of shares, you should consider the size of your investment and how long you plan to hold your shares. Only certain investors are eligible to buy Class K Shares. Either your financial professional or your selected securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock and its affiliates) (each a “Financial Intermediary”) can help you determine whether you are eligible to buy Class K Shares.

The Fund’s shares are distributed by BlackRock Investments, LLC (the “Distributor”), an affiliate of BlackRock.

The table below summarizes key features of Class K Shares of the Fund.

Class K Shares at a Glance

Availability Available only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Distributor to purchase such shares, (iii) “Institutional Investors,” which include, but are not limited to, endowments, foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and insurance company separate accounts, each of which may purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private banks that purchase shares of the Fund through a Financial Intermediary that has entered into an agreement with the Distributor to sell such shares; (v) fee-based advisory platforms of a Financial Intermediary that (a) has specifically acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the Financial Intermediary shall offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held Class K Shares of the Fund in the same account since August 15, 2016.

Minimum Investment $5 million minimum initial investment for Institutional Investors. There is no minimum initial investment requirement for any Employer-Sponsored Retirement Plans or any other eligible investors other than Institutional Investors. There is no minimum investment amount for additional purchases. Initial Sales Charge? No. Entire purchase price is invested in shares of the Fund. Deferred Sales Charge? No. Distribution and Service (12b-1) Fees? No. Redemption Fees? No.

The Fund reserves the right to modify or waive the above-stated policies at any time.

When Class K Shares are purchased through a customer’s account in an Employer-Sponsored Retirement Plan through procedures established by the Employer-Sponsored Retirement Plan, confirmation of share purchases and redemptions will be sent to the Employer-Sponsored Retirement Plan. A customer’s ownership of shares will be recorded by the Employer-Sponsored Retirement Plan and reflected in the account statements provided by the Employer-Sponsored Retirement Plan to its participants.

NM0926U-5977344-30/48

Page 31

If you purchased your shares through an Employer-Sponsored Retirement Plan and you transfer your investment from an Employer-Sponsored Retirement Plan to a type of account, such as an individual retirement account, that is not an eligible Class K Share investor in the Fund, you must liquidate your investment in Class K Shares of the Fund and purchase a share class of the Fund or another fund advised by BlackRock or its affiliates that is available for purchase by that type of account.

For investors not purchasing shares through an Employer-Sponsored Retirement Plan, please see below for information on how to buy, sell, exchange and transfer shares.

Right of Accumulation Investors have a “right of accumulation” under which any of the following may be combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge:

i. The current value of an investor’s existing Investor A and A1, Investor C, Investor P, Institutional, Class K and Premier Shares in most mutual funds sponsored and advised by BlackRock or its affiliates (“BlackRock Funds”),

ii. The current value of an investor’s existing shares of certain unlisted closed-end management investment companies sponsored and advised by BlackRock or its affiliates and

iii. The investment in the BlackRock CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children.

Financial Intermediaries may value current holdings of their customers differently for purposes of determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same Financial Intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of any previously purchased shares.

How to Buy, Sell, Exchange and Transfer Shares

The chart on the following pages summarizes how to buy, sell, exchange and transfer shares through your Financial Intermediary. If you are not purchasing shares through an Employer-Sponsored Retirement Plan, you may also buy, sell, exchange and transfer shares through BlackRock if your account is held directly with BlackRock. To learn more about buying, selling, exchanging or transferring shares through BlackRock, call (800) 537-4942. Because the selection of a mutual fund involves many considerations, your Financial Intermediary may help you with this decision.

With certain limited exceptions, the Fund is generally available only to investors residing in the United States and may not be distributed by a foreign Financial Intermediary. Under this policy, in order to accept new accounts or additional investments (including by way of exchange from another BlackRock Fund) into existing accounts, the Fund generally requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer identification number, and (ii) a Financial Intermediary or a shareholder that is an entity be domiciled in the United States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S. taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will also be restricted from making additional investments.

The Fund may reject any purchase order, modify or waive the minimum initial or subsequent investment requirements for any shareholders and suspend and resume the sale of any share class of the Fund at any time for any reason. In addition, the Fund may waive certain requirements regarding the purchase, sale, exchange or transfer of shares described below.

Under certain circumstances, if no activity occurs in an account within a time period specified by state law, a shareholder’s shares in the Fund may be transferred to that state.

How to Buy Shares

Your Choices Important Information for You to Know Initial Purchase Determine the amount of your investment

There is no minimum initial investment for any Employer-Sponsored Retirement Plans or any other investors other than Institutional Investors. For Institutional Investors, there is a $5 million minimum initial investment for all accounts.

NM0926U-5977344-31/48

Page 32

Your Choices Important Information for You to Know Initial Purchase (continued)

Have your Financial Intermediary submit your purchase order

The price of your shares is based on the next calculation of the Fund’s net asset value after your order is placed. Any purchase orders placed prior to the close of business on the New York Stock Exchange (the “NYSE”) (generally, 4:00 p.m. Eastern time) will be priced at the net asset value determined that day. Certain Financial Intermediaries, however, may require submission of orders prior to that time. Purchase orders placed after that time will be priced at the net asset value determined on the next business day. A broker-dealer or financial institution maintaining the account in which you hold shares may charge a separate account, service or transaction fee on the purchase or sale of Fund shares that would be in addition to the fees and expenses shown in the Fund’s “Fees and Expenses” table. The Fund may reject any order to buy shares and may suspend the sale of shares at any time. Certain Financial Intermediaries may charge a processing fee to confirm a purchase. Or contact BlackRock (for accounts held directly with BlackRock)

For investors not purchasing shares through an Employer-Sponsored Retirement Plan, to purchase shares directly from BlackRock, call (800) 537-4942 and request a new account application. Add to Your Investment

Purchase additional shares There is no minimum investment amount for additional purchases.

Have your Financial Intermediary submit your purchase order for additional shares

To purchase additional shares, you may contact your Financial Intermediary or Employer-Sponsored Retirement Plan.

Or contact BlackRock (for accounts held directly with BlackRock)

For investors not purchasing shares through an Employer-Sponsored Retirement Plan : Purchase by Telephone : Call the Fund at (800) 537-4942 and speak with one of our representatives. The Fund has the right to reject any telephone request for any reason. Purchase by Internet : You may purchase your shares, and view activity in your account, by logging onto the BlackRock website at www.blackrock.com. Purchases made on the Internet using the Automated Clearing House (“ACH”) will have a trade date that is the day after the purchase is made. Certain institutional clients’ purchase orders placed by wire prior to the close of business on the NYSE will be priced at the net asset value determined that day. Contact your Financial Intermediary or BlackRock for further information. Limits on amounts that may be purchased via Internet may vary. For additional information call BlackRock at (800) 537-4942. Please read the On-Line Services Disclosure Statement and User Agreement, the Terms and Conditions page and the Consent to Electronic Delivery Agreement (if you consent to electronic delivery), before attempting to transact online. The Fund employs reasonable procedures to confirm that transactions entered over the Internet are genuine. By entering into the User Agreement with the Fund in order to open an account through the website, the shareholder waives any right to reclaim any losses from the Fund or any of its affiliates incurred through fraudulent activity. Acquire additional shares by reinvesting dividends and capital gains

All dividends and capital gains distributions are automatically reinvested in shares of the Fund at net asset value. To make any changes to your dividend and/or capital gains distributions options, please call BlackRock at (800) 537-4942 (for investors who are not purchasing shares through an Employer-Sponsored Retirement Plan) or contact your Financial Intermediary.

NM0926U-5977344-32/48

Page 33

Your Choices Important Information for You to Know How to Pay for Shares

Making payment for purchases If you are purchasing shares through an Employer-Sponsored Retirement Plan, payment for an order must be made in Federal funds or other immediately available funds by the time specified by your Financial Intermediary, but in no event later than 4:00 p.m. (Eastern time) on the first business day following the receipt of the order. If payment is not received by this time, the order will be canceled and you and your Financial Intermediary will be responsible for any loss to the Fund. If you are not purchasing shares through an Employer-Sponsored Retirement Plan, payment for shares must normally be made in Federal funds or other immediately available funds by the time specified by your Financial Intermediary but in no event later than 4:00 p.m. (Eastern time) on the first business day following the receipt of the order. Payment may also, at the discretion of the Fund, be made in the form of securities that are permissible investments for the respective fund. If payment is not received by this time, the order will be canceled and you and your Financial Intermediary will be responsible for any loss to the Fund.

How to Sell Shares

Your Choices Important Information for You to Know Full or Partial Redemption of Shares

Have your Financial Intermediary submit your sales order

If you purchased shares through an Employer-Sponsored Retirement Plan, you can make redemption requests through your Financial Intermediary in accordance with the procedures applicable to your accounts. These procedures may vary according to the type of account and the Financial Intermediary involved, and customers should consult their Financial Intermediary in this regard. Financial Intermediaries are responsible for transmitting redemption orders and crediting their customers’ accounts with redemption proceeds on a timely basis. Information relating to such redemption services and charges to process a redemption of shares, if any, should be obtained by customers from their Financial Intermediaries. If you did not purchase your shares through an Employer-Sponsored Retirement Plan, you can make redemption requests through your Financial Intermediary. The price of Class K Shares is based on the next calculation of the Fund’s net asset value after your order is placed. For your redemption request to be priced at the net asset value on the day of your request, you must submit your request to your Financial Intermediary prior to that day’s close of business on the NYSE (generally 4:00 p.m. Eastern time). Certain Financial Intermediaries, however, may require submission of orders prior to that time. Any redemption request placed after that time will be priced at the net asset value at the close of business on the next business day. Regardless of the method the Fund uses to make payment of your redemption proceeds (check or wire), your redemption proceeds typically will be sent one business day after your request is submitted, but in any event, within seven days. Certain Financial Intermediaries may charge a fee to process a redemption of shares. The Fund may reject an order to sell shares under certain circumstances. Selling shares held directly with BlackRock

Methods of Redeeming if You Did Not Purchase Your Shares Through an Employer-Sponsored Retirement Plan Redeem by Telephone: You may sell shares held at BlackRock by telephone request. Call (800) 537-4942 for details. The Fund, its administrators and the Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. The Fund and its service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions

NM0926U-5977344-33/48

Page 34

Your Choices Important Information for You to Know Full or Partial Redemption of Shares (continued)

Selling shares held directly with BlackRock (continued)

that are reasonably believed to be genuine in accordance with such procedures. The Fund may refuse a telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods. Redeem by Internet: You may redeem in your account by logging onto the BlackRock website at www.blackrock.com. Proceeds from Internet redemptions will be sent via wire to the bank account of record. Redeem in Writing: Redemption requests may be sent in proper form to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429 or for overnight delivery, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh, Pennsylvania 15222. Under certain circumstances, a medallion signature guarantee will be required. Payment of Redemption Proceeds Redemption proceeds may be paid by check or, if the Fund has verified banking information on file, by wire transfer. Payment by Check: BlackRock will normally mail redemption proceeds within one business day following receipt of a properly completed request, but in any event within seven days. Shares can be redeemed by telephone and the proceeds sent by check to the shareholder at the address on record. Shareholders will pay $15 for redemption proceeds sent by check via overnight mail. You are responsible for any additional charges imposed by your bank for this service. The Fund reserves the right to reinvest any dividend or distribution amounts (e.g., income dividends or capital gains) which you have elected to receive by check should your check be returned as undeliverable or remain uncashed for more than 6 months. No interest will accrue on amounts represented by uncashed checks. Your check will be reinvested in your account at the net asset value next calculated, on the day of the investment. When reinvested, those amounts are subject to the risk of loss like any fund investment. If you elect to receive distributions in cash and a check remains undeliverable or uncashed for more than 6 months, your cash election may also be changed automatically to reinvest and your future dividend and capital gains distributions will be reinvested in the Fund at the net asset value as of the date of payment of the distribution. Payment by Wire Transfer: Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally made in Federal funds wired to the redeeming shareholder on the next business day, provided that the Fund’s custodian is also open for business. Payment for redemption orders received after 4:00 p.m. (Eastern time) or on a day when the Fund’s custodian is closed is normally wired in Federal funds on the next business day following redemption on which the Fund’s custodian is open for business. The Fund reserves the right to wire redemption proceeds within seven days after receiving a redemption order if, in the judgment of the Fund, an earlier payment could adversely affect the Fund. Shares can be redeemed by Federal wire transfer to a single previously designated bank account. No charge for wiring redemption payments with respect to Class K Shares is imposed by the Fund. You are responsible for any additional charges imposed by your bank for wire transfers. The Fund is not responsible for the efficiency of the Federal wire system or the shareholder’s firm or bank. To change the name of the single, designated bank account to receive wire redemption proceeds, it is necessary to send a written request to the Fund at the address on the back cover of this prospectus. ***

NM0926U-5977344-34/48

Page 35

Your Choices Important Information for You to Know Full or Partial Redemption of Shares (continued)

Selling shares held directly with BlackRock (continued)

If you make a redemption request before the Fund has collected payment for the purchase of shares, the Fund may delay mailing your proceeds. This delay will usually not exceed ten days. Redemption Proceeds Under normal circumstances, the Fund expects to meet redemption requests by using cash or cash equivalents in its portfolio or by selling portfolio assets to generate cash. During periods of stressed market conditions, when a significant portion of the Fund’s portfolio may be comprised of less-liquid investments, the Fund may be more likely to limit cash redemptions and may determine to pay redemption proceeds by (i) borrowing under a line of credit it has entered into with a group of lenders and/or (ii) transferring portfolio securities in-kind to you. The SAI includes more information about the Fund’s line of credit. If the Fund pays redemption proceeds by transferring portfolio securities in-kind to you, you may pay transaction costs to dispose of the securities, and you may receive less for them than the price at which they were valued for purposes of redemption.

How to Exchange Shares or Transfer Your Account

Your Choices Important Information for You to Know Exchange Privilege Selling shares of one BlackRock Fund to purchase shares of another BlackRock Fund (“exchanging”)

Class K Shares of the Fund are generally exchangeable for shares of the same class of another BlackRock Fund, to the extent such shares are offered by your Financial Intermediary. Investors who currently own Class K Shares of the Fund may make exchanges into Class K Shares of other BlackRock Funds except for investors holding shares through certain client accounts at Financial Intermediaries that are omnibus with the Fund and do not meet applicable minimums. There is no required minimum amount with respect to exchanges of Class K Shares. You may only exchange into Class K Shares of a BlackRock Fund that is open to new investors or in which you have a current account, if the BlackRock Fund is closed to new investors. To exercise the exchange privilege, you may contact your Financial Intermediary. Alternatively, if your account is held directly with BlackRock, you may: (i) call (800) 537-4942 and speak with one of our representatives, (ii) make the exchange via the Internet by accessing your account online at www.blackrock.com, or (iii) send a written request to the Fund at the address on the back cover of this prospectus. Please note, if you indicated on your new account application that you did not want the Telephone Exchange Privilege, you will not be able to place exchanges via the telephone until you update this option either in writing or by calling (800) 537-4942. The Fund has the right to reject any telephone request for any reason. Although there is currently no limit on the number of exchanges that you can make, the exchange privilege may be modified or terminated at any time in the future. The Fund may suspend or terminate your exchange privilege at any time for any reason, including if the Fund believes, in its sole discretion, that you are engaging in market timing activities. See “Short-Term Trading Policy” below. For U.S. federal income tax purposes a share exchange is a taxable event and a capital gain or loss may be realized. Please consult your tax adviser or other Financial Intermediary before making an exchange request. Transfer Shares to Another Financial Intermediary

Transfer to a participating Financial Intermediary

You may transfer your Class K Shares of the Fund only to another Financial Intermediary that has entered into an agreement with the Distributor. Certain shareholder services may not be available for the transferred shares. All future trading of these assets must be coordinated by the receiving firm. Please contact your Financial Intermediary to accomplish the transfer of your Class K Shares. Transfer to a non-participating Financial Intermediary

You must either: • Transfer your Class K Shares to an account with the Fund; or • Sell your Class K Shares.

NM0926U-5977344-35/48

Page 36

Your Choices Important Information for You to Know (continued) Transfer to a non-participating Financial Intermediary (continued)

Please contact your Financial Intermediary to accomplish the transfer of your Class K Shares.

Additional Purchase and Redemption Information Applicable to the Fund if You Are Not Purchasing Shares Through an Employer-Sponsored Retirement Plan If you are not purchasing shares through an Employer-Sponsored Retirement Plan, the Fund may authorize one or more banks, savings and loan associations and other financial institutions (each a “Service Organization”) to accept purchase and redemption orders on its behalf. Such Service Organizations may be authorized to designate other intermediaries to accept purchase and redemption orders on the Fund’s behalf. If you purchase or redeem shares through a Service Organization or its designee, that entity may have its own deadlines for the receipt of the purchase or redemption order that may be earlier than those stated in the prospectus. The Fund will be deemed to have received a purchase or redemption order when a Service Organization or, if applicable, that Service Organization’s authorized designee, accepts the order. These orders will be priced at the Fund’s net asset value per share next calculated after they are so accepted.

Fund’s Rights

The Fund may: Suspend the right of redemption if trading is halted or restricted on the NYSE or under other emergency conditions described in the Investment Company Act; Postpone the date of payment upon redemption if trading is halted or restricted on the NYSE or under other emergency conditions described in the Investment Company Act or if a redemption request is made before the Fund has collected payment for the purchase of shares; Redeem shares for property other than cash as may be permitted under the Investment Company Act; and Redeem shares involuntarily in certain cases, such as when the value of a shareholder account falls below a specified level.

Note on Low Balance Accounts. Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (the “Fund Minimum”), and may redeem the shares in your account if the net asset value of those shares in your account falls below $500 for any reason, including market fluctuation.

You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your Financial Intermediary.

Short-Term Trading Policy

The Board of Directors (the “Board”) has determined that the interests of long-term shareholders and the Fund’s ability to manage its investments may be adversely affected when shares are repeatedly bought, sold or exchanged in response to short-term market fluctuations — also known as “market timing.” The Fund is not designed for market timing organizations or other entities using programmed or frequent purchases and sales or exchanges. The exchange privilege is not intended as a vehicle for short-term trading. Excessive purchase and sale or exchange activity may interfere with portfolio management, increase expenses and taxes and may have an adverse effect on the performance of the Fund and its returns to shareholders. For example, large flows of cash into and out of the Fund may require the management team to allocate a significant amount of assets to cash or other short-term investments or sell securities, rather than maintaining such assets in securities selected to achieve the Fund’s investment objective. Frequent trading may cause the Fund to sell securities at less favorable prices, and transaction costs, such as brokerage commissions, can reduce the Fund’s performance.

A fund’s investment in non-U.S. securities is subject to the risk that an investor may seek to take advantage of a delay between the change in value of the fund’s portfolio securities and the determination of the fund’s net asset value as a result of different closing times of U.S. and non-U.S. markets by buying or selling fund shares at a price that does not

NM0926U-5977344-36/48

Page 37

reflect their true value. A similar risk exists for funds that invest in securities of small capitalization companies, securities of issuers located in emerging markets or high yield securities (junk bonds) that are thinly traded and therefore may have actual values that differ from their market prices. This short-term arbitrage activity can reduce the return received by long-term shareholders. The Fund will seek to eliminate these opportunities by using fair value pricing, as described in “Management of the Fund — Valuation of Fund Investments” below.

The Fund discourages market timing and seeks to prevent frequent purchases and sales or exchanges of Fund shares that it determines may be detrimental to the Fund or long-term shareholders. The Board has approved the policies discussed below to seek to deter market timing activity. The Board has not adopted any specific numerical restrictions on purchases, sales and exchanges of Fund shares because certain legitimate strategies will not result in harm to the Fund or its shareholders.

If as a result of its own investigation, information provided by a Financial Intermediary or other third party, or otherwise, the Fund believes, in its sole discretion, that your short-term trading is excessive or that you are engaging in market timing activity, it reserves the right to reject any specific purchase or exchange order. If the Fund rejects your purchase or exchange order, you will not be able to execute that transaction, and the Fund will not be responsible for any losses you therefore may suffer. For transactions placed directly with the Fund, the Fund may consider the trading history of accounts under common ownership or control for the purpose of enforcing these policies. Transactions placed through the same Financial Intermediary on an omnibus basis may be deemed part of a group for the purpose of this policy and may be rejected in whole or in part by the Fund. Certain accounts, such as omnibus accounts and accounts at Financial Intermediaries, however, include multiple investors and such accounts typically provide the Fund with net purchase or redemption and exchange requests on any given day where purchases, redemptions and exchanges of shares are netted against one another and the identity of individual purchasers, redeemers and exchangers whose orders are aggregated may not be known by the Fund. While the Fund monitors for market timing activity, the Fund may be unable to identify such activities because the netting effect in omnibus accounts often makes it more difficult to locate and eliminate market timers from the Fund. The Distributor has entered into agreements with respect to Financial Intermediaries that maintain omnibus accounts with the Transfer Agent pursuant to which such Financial Intermediaries undertake to cooperate with the Distributor in monitoring purchase, exchange and redemption orders by their customers in order to detect and prevent short-term or excessive trading in the Fund’s shares through such accounts. Identification of market timers may also be limited by operational systems and technical limitations. In the event that a Financial Intermediary is determined by the Fund to be engaged in market timing or other improper trading activity, the Fund’s Distributor may terminate such Financial Intermediary’s agreement with the Distributor, suspend such Financial Intermediary’s trading privileges or take other appropriate actions.

There is no assurance that the methods described above will prevent market timing or other trading that may be deemed abusive.

The Fund may from time to time use other methods that it believes are appropriate to deter market timing or other trading activity that may be detrimental to the Fund or long-term shareholders.

NM0926U-5977344-37/48

Page 38

Management of the Fund

BlackRock

BlackRock, the Fund’s investment adviser, manages the Fund’s investments and its business operations subject to the oversight of the Board of the Fund. While BlackRock is ultimately responsible for the management of the Fund, it is able to draw upon the trading, research and expertise of its asset management affiliates for portfolio decisions and management with respect to certain portfolio securities. BlackRock is an indirect, majority-owned subsidiary of BlackRock, Inc.

BlackRock, a registered investment adviser, was organized in 1994 to perform advisory services for investment companies. BlackRock International Limited, the Fund’s sub-adviser (the “Sub-Adviser”), is a registered investment adviser organized in 1995 and is an affiliate of BlackRock. BlackRock and its affiliates had approximately $15.3 trillion in investment company and other portfolio assets under management as of June 30, 2026.

The Fund has entered into a management agreement (the “Management Agreement”) with BlackRock. Under the Management Agreement, BlackRock receives for its services to the Fund a monthly fee as a percentage of the Fund’s average daily net assets. With respect to the Fund, the maximum annual management fees that can be paid to BlackRock (as a percentage of average daily net assets) are calculated as follows:

Average Daily Net Assets Rate of Management Fee First $250 million 0.500% $250 million – $300 million 0.450% $300 million – $400 million 0.425% Greater than $400 million 0.400%

BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non interested directors of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.

BlackRock has entered into a sub-advisory agreement with the Sub-Adviser, an affiliate of BlackRock, with respect to the Fund. Under the sub-advisory agreement, BlackRock pays the Sub-Adviser for services it provides for that portion of the Fund for which the Sub-Adviser acts as sub-adviser a fee equal to a percentage of the management fee paid to BlackRock under the Management Agreement with respect to the Fund.

A discussion of the basis for the Board’s approval of the Management Agreement with BlackRock and the sub-advisory agreement with the Sub-Adviser is available in the Fund’s reports filed on Form N-CSR for the fiscal year ended May 31, 2026.

For the fiscal year ended May 31, 2026, BlackRock received a management fee, net of management fee waivers, at the annual rate of 0.41% of the Fund’s average daily net assets.

From time to time, a manager, analyst, or other employee of BlackRock or its affiliates may express views regarding a particular asset class, company, security, industry, or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of BlackRock or any other person within the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and BlackRock disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for the Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of the Fund.

NM0926U-5977344-38/48

Page 39

Portfolio Manager Information

Information regarding the portfolio managers of the Fund is set forth below. Further information regarding the portfolio managers, including other accounts managed, compensation, ownership of Fund shares, and possible conflicts of interest, is available in the Fund’s SAI.

Portfolio Manager Primary Role Since Title and Recent Biography Philip Green Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund.

2006 Managing Director of BlackRock, Inc. since 2006.

Michael Pensky, CFA Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund.

2022 Managing Director of BlackRock, Inc. since 2021; Director of BlackRock, Inc. from 2018 to 2020.

Daniel Felder, CFA Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund.

2022 Director of BlackRock, Inc. since 2021; Vice President of BlackRock, Inc. from 2017 to 2020.

Raffaele Savi Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio.

2022 Senior Managing Director of BlackRock, Inc. since 2023; Managing Director of BlackRock, Inc. from 2009 to 2022. Richard Mathieson Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio.

2022 Managing Director of BlackRock, Inc. since 2011.

Anna Hawley, CFA

Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio.

2022 Managing Director of BlackRock, Inc. since 2022; Director of BlackRock, Inc. from 2009 to 2021. Scott Radell Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio.

2022 Managing Director of BlackRock, Inc. since 2009.

Jasmita Mohan Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio.

2023 Director of BlackRock, Inc. since 2019.

Conflicts of Interest

The investment activities of BlackRock and its affiliates (including BlackRock, Inc. and its subsidiaries (collectively, the “Affiliates”)), and their respective directors, officers or employees, in managing their own accounts and other accounts, may present conflicts of interest that could disadvantage the Fund and its shareholders.

BlackRock and its Affiliates are involved worldwide with a broad spectrum of financial services and asset management activities and in the ordinary course of business may engage in activities in which their interests or the interests of other clients may conflict with those of the Fund. BlackRock and its Affiliates act, or may act, as an investor, research provider, investment manager, commodity pool operator, commodity trading advisor, financier, underwriter, adviser, trader, lender, index provider, agent and/or principal. BlackRock and its Affiliates may have other direct and indirect interests in securities, currencies, commodities, derivatives and other assets in which the Fund may directly or indirectly invest.

BlackRock and its Affiliates may engage in proprietary trading and advise accounts and other funds that have investment objectives similar to those of the Fund and/or that engage in and compete for transactions in the same or similar types of securities, currencies and other assets as are held by the Fund. This may include transactions in securities issued by other open-end and closed-end investment companies, including investment companies that are affiliated with the Fund and BlackRock, to the extent permitted under the Investment Company Act. The trading activities of BlackRock and its Affiliates are carried out without reference to positions held directly or indirectly by the 39

NM0926U-5977344-39/48

Page 40

Fund. These activities may result in BlackRock or an Affiliate having positions in assets that are senior or junior to, or that have interests different from or adverse to, the assets held by the Fund.

The Fund may invest in securities issued by, or engage in other transactions with, entities with which an Affiliate has significant debt or equity investments or other interests. The Fund may also invest in issuances (such as debt offerings or structured notes) for which an Affiliate is compensated for providing advisory, cash management or other services. The Fund also may invest in securities of, or engage in other transactions with, entities for which an Affiliate provides or may provide research coverage or other analysis.

An Affiliate may have business relationships with, and receive compensation from, distributors, consultants or others who recommend the Fund or who engage in transactions with or for the Fund.

Neither BlackRock nor any Affiliate is under any obligation to share any investment opportunity, idea or strategy with the Fund. As a result, an Affiliate may compete with the Fund for appropriate investment opportunities. The results of the Fund’s investment activities, therefore, may differ from those of an Affiliate and of other accounts managed by an Affiliate. It is possible that the Fund could sustain losses during periods in which one or more Affiliates and other accounts achieve profits on their trading for proprietary or other accounts. The opposite result is also possible.

In addition, the Fund may enter into transactions in which BlackRock or an Affiliate or their directors, officers, employees or clients have an adverse interest. The Fund may be adversely impacted by the effects of transactions undertaken by BlackRock or an Affiliate or their directors, officers, employees or clients.

From time to time, BlackRock or its advisory clients (including other funds and accounts) may, subject to compliance with applicable law, purchase and hold shares of the Fund. The price, availability, liquidity, and (in some cases) expense ratio of the Fund may be impacted by purchases and sales of the Fund by BlackRock or its advisory clients.

The Fund’s activities may be limited because of regulatory restrictions applicable to BlackRock or an Affiliate or their policies designed to comply with such restrictions.

Under a securities lending program approved by the Board, the Fund has retained BlackRock Investment Management, LLC, an Affiliate of BlackRock, to serve as its securities lending agent to the extent that it participates in the securities lending program. For these services, the securities lending agent will receive a fee from the participating Fund based on the returns earned on the Fund’s lending activities, including the investment of the cash received as collateral for the loaned securities. In addition, one or more Affiliates may be among the entities to which the Fund may lend its portfolio securities under the securities lending program.

BlackRock and its Affiliates may benefit from a fund using a BlackRock index by creating increasing acceptance in the marketplace for such indexes. BlackRock and its Affiliates are not obligated to license an index to a fund, and no fund is under an obligation to use a BlackRock index. The terms of a fund’s index licensing agreement with BlackRock or its Affiliates may not be as favorable as the terms offered to other licensees.

The activities of BlackRock and its Affiliates and their respective directors, officers or employees, may give rise to other conflicts of interest that could disadvantage the Fund and its shareholders. BlackRock has adopted policies and procedures designed to address these potential conflicts of interest. Please see the SAI for further information.

Valuation of Fund Investments

When you buy shares, you pay the net asset value. This is the offering price. Shares are also redeemed at their net asset value, minus any applicable redemption fee. The net asset value used in determining your share price is the next one calculated after your purchase or redemption order is received. The net asset value of each class of shares normally is determined once daily Monday through Friday, generally as of the close of regular trading hours of the New York Stock Exchange (“NYSE”) (normally 4:00 p.m., Eastern time), on each day that the NYSE is open for trading, based on prices at the time of closing, provided that any Fund assets or liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the prevailing market rates on the date of valuation as quoted by one or more data service providers. The net asset value of shares is calculated by dividing the value of the net assets of each class of shares (i.e., the value of its total assets less total liabilities) by the total number of outstanding shares of the class, generally rounded to the nearest cent.

The value of the securities and other assets and liabilities held by the Fund is determined pursuant to BlackRock’s valuation policies and procedures. BlackRock has been designated by the Board as the valuation designee for the Fund pursuant to Rule 2a-5 under the Investment Company Act.

Equity securities and other equity instruments (except ETF options, equity index options or those that are customized) for which market quotations are readily available are valued at market value, which is generally determined using the

NM0926U-5977344-40/48

Page 41

last reported official closing price or, if a reported closing price is not available, the last traded price on the exchange or market on which the security or instrument is primarily traded at the time of valuation. Shares of underlying open end funds that are not traded on an exchange (including money market funds) are valued at net asset value. Shares of underlying exchange-traded closed-end funds or other ETFs are valued at their most recent closing price.

The Fund values fixed-income portfolio securities and certain derivative instruments using prices provided by dealers or prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in accordance with BlackRock’s valuation policies and procedures. Pricing services may use valuation models that utilize certain inputs and assumptions to derive values. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but the Fund may hold or transact in such securities in smaller odd lot sizes. Odd lots of securities in certain asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities are sold could differ from the prices used by the Fund. The amortized cost method of valuation may be used with respect to debt obligations with 60 days or less remaining to maturity unless BlackRock determines in good faith that such method does not represent fair value.

Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of regular trading hours of the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are determined as of such times. U.S. government securities, money market instruments and fixed income securities are generally priced as of close of regular trading hours on the NYSE.

When market quotations are not readily available or are believed by BlackRock to be unreliable, BlackRock will fair value the Fund’s investments in accordance with its policies and procedures. BlackRock may conclude that a market quotation is not readily available or is unreliable if a security or other asset or liability does not have a price source due to its lack of trading or other reasons, if a market quotation differs significantly from recent price quotations or otherwise no longer appears to reflect fair value, where the security or other asset or liability is thinly traded, when there is a significant event subsequent to the most recent market quotation, or if the trading market on which a security is listed is suspended or closed and no appropriate alternative trading market is available. A “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment prior to or at the time of pricing the Fund’s assets or liabilities, that the event is likely to cause a material change to the last exchange closing price or closing market price of one or more assets held by, or liabilities of, the Fund.

For certain foreign assets, a third-party vendor supplies evaluated, systematic fair value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of the Fund’s pricing time.

Fair value represents a good faith approximation of the value of an asset or liability. The fair value of an asset or liability held by the Fund is the amount the Fund might reasonably expect to receive from the current sale of that asset or the cost to extinguish that liability in an arm’s-length transaction. Valuing the Fund’s investments using fair value pricing will result in prices that may differ from current market valuations and that may not be the prices at which those investments could have been sold during the period in which the particular fair values were used.

The Fund may accept orders from certain authorized Financial Intermediaries or their designees. The Fund will be deemed to receive an order when accepted by the Financial Intermediary or designee, and the order will receive the net asset value next computed by the Fund after such acceptance. If the payment for a purchase order is not made by a designated later time, the order will be canceled and the Financial Intermediary could be held liable for any losses.

Dividends, Distributions and Taxes

BUYING A DIVIDEND

Unless your investment is in a tax-deferred account, you may want to avoid buying shares shortly before the Fund pays a dividend. The reason? If you buy shares when the Fund has declared but not yet distributed ordinary income or capital gains, you will pay the full price for the shares and then receive a portion of the price back in the form of a taxable dividend. Before investing you may want to consult your tax adviser.

The Fund will distribute net investment income, if any, and net realized capital gains, if any, at least annually. The Fund may also pay a special distribution at the end of the calendar year to comply with federal tax requirements. Dividends may be reinvested automatically in shares of the Fund at net asset value or may be taken in cash. If you would like to receive dividends in cash, contact your Financial Intermediary or the Fund.

NM0926U-5977344-41/48

Page 42

Your tax consequences from an investment in the Fund will depend on whether you have invested through a qualified tax-exempt plan described in section 401(a) of the Internal Revenue Code (a “Qualified Plan”).

Investments Through a Qualified Plan

Special tax rules apply to investments made through Qualified Plans. If you are invested through a Qualified Plan (and Fund shares are not “debt-financed property” to the plan), then you will not be subject to U.S. federal income tax on the dividends paid by the Fund or the gain realized from a redemption or exchange of Fund shares until you withdraw or receive distributions from the plan. Distributions you receive from the Qualified Plan may be subject to U.S. federal withholding tax depending on the kind of payment you receive.

Investments Not Made Through Qualified Plans

If you are not invested through a Qualified Plan, you will generally pay tax on dividends from the Fund whether you receive them in cash or additional shares. If you redeem Fund shares or exchange them for shares of another fund, you generally will be treated as having sold your shares and any gain on the transaction may be subject to tax. Fund distributions derived from qualified dividend income, which consists of dividends received from U.S. corporations and qualifying foreign corporations, and long-term capital gains, are eligible for taxation at a maximum rate of 15% or 20% for individuals, depending on whether their income exceeds certain threshold amounts, which are adjusted annually for inflation.

A 3.8% Medicare tax is imposed on the net investment income (which includes, but is not limited to, interest, dividends and net gain from investments) of U.S. individuals with income exceeding $200,000, or $250,000 if married filing jointly, and of trusts and estates.

Your dividends and redemption proceeds will be subject to backup withholding tax if you have not provided a taxpayer identification number or social security number or the number you have provided is incorrect.

Special Considerations for Non-U.S. Persons

If you are not invested through a Qualified Plan and you are neither a tax resident nor a citizen of the United States or if you are a foreign entity (other than a pass-through entity to the extent owned by U.S. persons), the Fund’s ordinary income dividends will generally be subject to a 30% U.S. withholding tax, unless a lower treaty rate applies. However, certain distributions paid to a foreign shareholder and reported by the Fund as capital gain dividends, interest-related dividends or short-term capital gain dividends may be eligible for an exemption from U.S. withholding tax.

Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to provide detailed information identifying each substantial U.S. owner or certify there are no such owners.

Dividends and interest received by the Fund and capital gains recognized by the Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. You may be able to claim a credit or take a deduction for foreign taxes paid by the Fund if certain requirements are met.

This section summarizes some of the consequences under current federal tax law of an investment in the Fund. It is not a substitute for individualized tax advice. Consult your tax adviser about the potential tax consequences of an investment in the Fund under all applicable tax laws.

NM0926U-5977344-42/48

Page 43

The financial highlights table is intended to help investors understand the Fund’s financial performance for the periods shown. Certain information reflects financial results for a single share of the Fund. The total returns in the tables represent the rate of return that an investor would have earned (or lost) on an investment in the Fund, assuming reinvestment of all dividends and distributions. The information has been audited by Deloitte & Touche LLP whose report, along with the Fund’s audited financial statements, is included in the Fund’s Annual Financial Statements and Additional Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR, which is available upon request and at www.blackrock.com. BlackRock Balanced Fund, Inc. Class K

(For a share outstanding throughout each period) Year Ended 05/31/26 Year Ended 05/31/25 Year Ended 05/31/24 Year Ended 05/31/23

Period from 10/01/21 to 05/31/22 Year Ended 09/30/21 Net asset value, beginning of period $ 27.00 $ 26.44 $ 23.23 $ 23.94 $ 28.28 $ 24.89 Net investment income (a) 0.70 0.67 0.60 0.54 0.20 0.25 Net realized and unrealized gain (loss) 4.55 1.89 3.38 (0.39) (1.27) 4.22 Net increase (decrease) from investment operations 5.25 2.56 3.98 0.15 (1.07) 4.47 Distributions (b) From net investment income (0.88) (1.10) (0.77) (0.14) (0.12) (0.26) From net realized gain (1.55) (0.90) — (0.72) (3.15) (0.82) Total distributions (2.43) (2.00) (0.77) (0.86) (3.27) (1.08) Net asset value, end of period $ 29.82 $ 27.00 $ 26.44 $ 23.23 $ 23.94 $ 28.28 Total Return (c) Based on net asset value 20.65% 10.07% 17.46% 0.91% (4.84)% (d) 18.36% Ratios to Average Net Assets (e) Total expenses 0.48% 0.47% 0.48% 0.49% 0.64% (f)(g) 0.69% (h) Total expenses after fees waived and/or reimbursed 0.47% 0.46% 0.47% 0.47% 0.44% (f)(g) 0.44% (h) Net investment income 2.50% 2.50% 2.47% 2.41% 1.15% (f)(g) 0.90% (h) Supplemental Data Net assets, end of period (000) $107,110 $89,184 $78,010 $70,918 $70,740 $72,222 Portfolio turnover rate of the Fund 132% (i) 101% (i) 127% (i) 152% (i) 296% (j) —% (j) Portfolio turnover rate of the Master Total Return Portfolio (i) N/A N/A N/A N/A N/A 459% Portfolio turnover rate of the Master Advantage Large Cap Core Portfolio N/A N/A N/A N/A N/A 111% (a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c) Where applicable, assumes the reinvestment of distributions. (d) Not annualized. (e) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. (f) Annualized. (g) From October 1, 2021 through April 1, 2022, the Fund invested in the Master Portfolios as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolios. Includes the Fund’s share of the Master Portfolios’ allocated fees waived of less than 0.01%. (h) Includes the Fund’s share of the Master Portfolios’ allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolios’ allocated fees waived of less than 0.01%. (i) Includes MDRs. Additional information regarding portfolio turnover rate is as follows:

Year Ended 05/31/26 Year Ended 05/31/25 Year Ended 05/31/24 Year Ended 05/31/23

Period from 10/01/21 to 05/31/22 Year Ended 09/30/21 Portfolio turnover rate 98% 79% 99% 117% N/A 161% (j) Excludes transactions in the Master Portfolios.

Financial Highlights

NM0926U-5977344-43/48

Page 44

General Information

Shareholder Documents

Electronic Access to Annual and Semi-Annual Reports, Annual and Semi-Annual Financial Statements and Additional Information and Prospectuses Electronic copies of most financial reports and prospectuses are available on BlackRock’s website. Shareholders can sign up for e-mail notifications of annual and semi-annual reports, Annual and Semi-Annual Financial Statements and Additional Information and prospectuses by enrolling in the Fund’s electronic delivery program. To enroll:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages: Please contact your Financial Intermediary. Please note that not all investment advisers, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly With BlackRock: Access the BlackRock website at http://www.blackrock.com/edelivery; and Log into your account.

Delivery of Shareholder Documents The Fund delivers only one copy of shareholder documents, including prospectuses, shareholder reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is known as “householding” and is intended to eliminate duplicate mailings and reduce expenses. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Fund at (800) 537-4942.

Certain Fund Policies

Anti-Money Laundering Requirements The Fund is subject to the USA PATRIOT Act (the “Patriot Act”). The Patriot Act is intended to prevent the use of the U.S. financial system in furtherance of money laundering, terrorism or other illicit activities. Pursuant to requirements under the Patriot Act, the Fund is required to obtain sufficient information from shareholders to enable it to form a reasonable belief that it knows the true identity of its shareholders. This information will be used to verify the identity of investors or, in some cases, the status of Financial Intermediaries. Such information may be verified using third party sources. This information will be used only for compliance with the Patriot Act or other applicable laws, regulations and rules in connection with money laundering, terrorism or economic sanctions.

The Fund reserves the right to reject purchase orders from persons who have not submitted information sufficient to allow the Fund to verify their identity. The Fund also reserves the right to redeem any amounts in the Fund from persons whose identity it is unable to verify on a timely basis. It is the Fund’s policy to cooperate fully with appropriate regulators in any investigations conducted with respect to potential money laundering, terrorism or other illicit activities.

BlackRock Privacy Principles BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your Financial Intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our website.

NM0926U-5977344-44/48

Page 45

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law, or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Statement of Additional Information

If you would like further information about the Fund, including how it invests, please see the SAI.

For a discussion of the Fund’s policies and procedures regarding the selective disclosure of its portfolio holdings, please see the SAI. The Fund makes its top ten holdings available on a monthly basis at www.blackrock.com generally within 5 business days after the end of the month to which the information applies.

NM0926U-5977344-45/48

Page 46

Glossary

This glossary contains an explanation of some of the common terms used in this prospectus. For additional information about the Fund, please see the SAI.

Acquired Fund Fees and Expenses — the Fund’s pro rata share of the fees and expenses incurred indirectly by the Fund as a result of investing in other investment companies.

Annual Fund Operating Expenses — expenses that cover the costs of operating the Fund.

Bloomberg U.S. Aggregate Bond Index — a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes U.S. Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate pass-throughs), asset-backed securities and commercial mortgage-backed securities (agency and non-agency).

Distribution Fees — fees used to support the Fund’s marketing and distribution efforts, such as compensating Financial Intermediaries, advertising and promotion.

Management Fee — a fee paid to BlackRock for managing the Fund.

MSCI All Country World Index (Net) — an index that captures large- and mid-cap representation across 23 developed markets and 24 emerging market countries. With 2,460 constituents, the index covers approximately 85% of the global investable equity opportunity set.

Other Expenses — include accounting, transfer agency, custody, professional fees and registration fees.

Service Fees — fees used to compensate Financial Intermediaries for certain shareholder servicing activities.

Shareholder Fees — fees paid directly by a shareholder, including sales charges that you may pay when you buy or sell shares of the Fund.

NM0926U-5977344-46/48

Page 47

For More Information

Fund and Service Providers

FUND BlackRock Balanced Fund, Inc. 100 Bellevue Parkway Wilmington, Delaware 19809 Written Correspondence: P.O. Box 534429 Pittsburgh, Pennsylvania 15253-4429 Overnight Mail: Attention: 534429 1350 Penn Avenue, Suite 102 Pittsburgh, Pennsylvania 15222 (800) 537-4942

MANAGER BlackRock Advisors, LLC 100 Bellevue Parkway Wilmington, Delaware 19809

SUB-ADVISER BlackRock International Limited Dundas House 20 Brandon Street Edinburgh, EH3 5PP United Kingdom

TRANSFER AGENT BNY Mellon Investment Servicing (US) Inc. 118 Flanders Road Westborough, Massachusetts 01581

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Deloitte & Touche LLP 115 Federal Street Boston, Massachusetts 02110

ACCOUNTING SERVICES PROVIDER The Bank of New York Mellon 240 Greenwich Street New York, New York 10286

DISTRIBUTOR BlackRock Investments, LLC 50 Hudson Yards New York, New York 10001

CUSTODIAN The Bank of New York Mellon 240 Greenwich Street New York, New York 10286

COUNSEL Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036

NM0926U-5977344-47/48

Page 48

Additional Information

For more information: This prospectus contains important information you should know before investing, including information about risks. Please read it before you invest and keep it for future reference. More information about the Fund is available at no charge upon request. This information includes:

Annual/Semi-Annual Reports and Form N-CSR The Fund’s annual and semi-annual reports and Form N CSR contain additional information about the Fund’s investments. The annual report describes the Fund’s performance, lists portfolio holdings, and discusses recent market conditions, economic trends and Fund investment strategies that significantly affected the Fund’s performance for the last fiscal year. In Form N-CSR, you will find the Fund’s financial statements.

Statement of Additional Information A Statement of Additional Information (“SAI”), dated September 28, 2026, has been filed with the Securities and Exchange Commission (the “SEC”). The SAI, which includes additional information about the Fund, may be obtained free of charge, along with the Fund’s annual and semi-annual reports and other information such as Fund financial statements, by calling (800) 537-4942. The SAI, as amended and/or supplemented from time to time, is incorporated by reference into this prospectus.

BlackRock Investor Services Representatives are available to discuss account balance information, mutual fund prospectuses, literature, programs and services available. Hours: 8:00 a.m. to 6:00 p.m. (Eastern time), on any business day. Call: (800) 537-4942.

Purchases and Redemptions Call your Financial Intermediary or BlackRock Investor Services at (800) 537-4942.

World Wide Web General Fund information and specific Fund performance, including the SAI, annual/semi-annual reports and other information such as Fund financial statements, can be accessed free of charge at www.blackrock.com/ prospectus. Mutual fund prospectuses and literature can also be requested via this website.

Written Correspondence BlackRock Balanced Fund, Inc. P. P.O. Box 534429 Pittsburgh, Pennsylvania 15253-4429

Overnight Mail BlackRock Balanced Fund, Inc. Attention: 534429 1350 Penn Avenue, Suite 102 Pittsburgh, Pennsylvania 15222

Internal Wholesalers/Broker Dealer Support Available on any business day to support investment professionals. Call: (800) 882-0052.

Portfolio Characteristics and Holdings A description of the Fund’s policies and procedures related to disclosure of portfolio characteristics and holdings is available in the SAI.

For information about portfolio holdings and characteristics, BlackRock fund shareholders and prospective investors may call (800) 882-0052.

Securities and Exchange Commission You may also view and copy public information about the Fund, including the SAI, by visiting the EDGAR database on the SEC’s website (http://www.sec.gov). Copies of this information can be obtained, for a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.

You should rely only on the information contained in this prospectus. No one is authorized to provide you with information that is different from information contained in this prospectus.

The SEC has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

INVESTMENT COMPANY ACT FILE # 811-02405

PRO-BF-K-0926

NM0926U-5977344-48/48

Truncated: This annotation is too large to fit. View the raw JSON.

{
  "annotation_id": "31cda3f3-ba20-4af1-a848-8b2fdac597f7",
  "date_created": "2026-10-02T11:58:44.082000Z",
  "date_modified": "2026-10-02T11:58:44.082000Z",
  "file_hash": "34841b663aac128a4d322230b177fc9b55b49fcdbf6252d41490cc3ce598af07",
  "private": false,
  "record": {
    "attributes": {
      "chunk_type": "page_range",
      "end_page": 48,
      "start_page": 1
    },
    "blocks": [
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 184,
          "x": 754,
          "y": 47
        },
        "id": "6a468a48-ac88-4fe2-b6d2-bc748a9f8bee",
        "page_number": 1,
        "text": "SEPTEMBER 28, 2026"
      },
      {
        "block_type": "box",
        "box": {
          "height": 32,
          "width": 259,
          "x": 106,
          "y": 175
        },
        "id": "ac89c204-12c5-4fa8-8bc6-819f3d9292ce",
        "page_number": 1,
        "text": "Prospectus"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 250,
          "x": 63,
          "y": 297
        },
        "id": "449e0e92-06c5-4bea-b4d8-c906d5fd9845",
        "page_number": 1,
        "text": "BlackRock Balanced Fund, Inc."
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 2,
          "x": 324,
          "y": 296
        },
        "id": "a208cbb7-4f9e-4d6f-a265-291f3168aa25",
        "page_number": 1,
        "text": "|"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 119,
          "x": 337,
          "y": 297
        },
        "id": "bf9e272e-b2c2-4e8e-9868-f0f17971aab9",
        "page_number": 1,
        "text": "Class K Shares"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 99,
          "x": 83,
          "y": 314
        },
        "id": "051756b7-87af-466b-8e70-db85de20c6a3",
        "page_number": 1,
        "text": "Class K: MKCPX"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 741,
          "x": 63,
          "y": 834
        },
        "id": "838b5c41-c63d-41bf-ad79-77a0d91753ec",
        "page_number": 1,
        "text": "This Prospectus contains information you should know before investing, including information about risks."
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 438,
          "x": 63,
          "y": 850
        },
        "id": "42017823-62ef-4c83-bda7-4a2ac2b972f0",
        "page_number": 1,
        "text": "Please read it before you invest and keep it for future reference."
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 749,
          "x": 63,
          "y": 870
        },
        "id": "80f922e2-2a51-4a81-9635-7a6103c1a5eb",
        "page_number": 1,
        "text": "The Securities and Exchange Commission has not approved or disapproved these securities or passed upon"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 615,
          "x": 63,
          "y": 886
        },
        "id": "ec3fc3cd-7fa1-4152-9262-1156e7c0968e",
        "page_number": 1,
        "text": "the adequacy of this Prospectus. Any representation to the contrary is a criminal offense."
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 112,
          "x": 101,
          "y": 916
        },
        "id": "357d880c-62c6-4a73-a228-e83d505bc664",
        "page_number": 1,
        "text": "Not FDIC Insured"
      },
      {
        "block_type": "box",
        "box": {
          "height": 3,
          "width": 5,
          "x": 218,
          "y": 919
        },
        "id": "1713b6f9-9de8-4e7e-9207-a45bddd9950a",
        "page_number": 1,
        "text": "\u2022"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 101,
          "x": 228,
          "y": 916
        },
        "id": "35b85a17-10c4-4fd5-8135-fc6adedfdc44",
        "page_number": 1,
        "text": "May Lose Value"
      },
      {
        "block_type": "box",
        "box": {
          "height": 3,
          "width": 4,
          "x": 334,
          "y": 919
        },
        "id": "a79dc3e2-9763-4540-acb2-75fed348ffa8",
        "page_number": 1,
        "text": "\u2022"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 127,
          "x": 344,
          "y": 916
        },
        "id": "7967bff1-563d-44ec-bdc0-ee7d52348b6a",
        "page_number": 1,
        "text": "No Bank Guarantee"
      },
      {
        "block_type": "box",
        "box": {
          "height": 7,
          "width": 138,
          "x": 757,
          "y": 969
        },
        "id": "1e539680-f7e6-4045-b190-c950758576df",
        "page_number": 1,
        "text": "NM0926U-5977344-1/48"
      },
      {
        "block_type": "box",
        "box": {
          "height": 18,
          "width": 255,
          "x": 371,
          "y": 82
        },
        "id": "45b0d12b-1f49-4dc1-b780-a437d410fe3c",
        "page_number": 2,
        "text": "Table of Contents"
      },
      {
        "block_type": "box",
        "box": {
          "height": 13,
          "width": 155,
          "x": 190,
          "y": 136
        },
        "id": "701e0f66-bc65-4309-8d40-193df3eb9bc5",
        "page_number": 2,
        "text": "Fund Overview"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 503,
          "x": 361,
          "y": 140
        },
        "id": "010d9855-60fe-4801-913f-847094007970",
        "page_number": 2,
        "text": "Key facts and details about the Fund, including investment objective,"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 517,
          "x": 360,
          "y": 155
        },
        "id": "bbd6f447-9999-400d-a9d0-f12b55c6394e",
        "page_number": 2,
        "text": "principal investment strategies, principal risk factors, fee and expense"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 374,
          "x": 361,
          "y": 169
        },
        "id": "e5e0041f-89ce-487e-9348-b0668f714673",
        "page_number": 2,
        "text": "information and historical per formance information"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 577,
          "x": 361,
          "y": 185
        },
        "id": "3c64d3eb-de38-483f-adca-4525130a9d19",
        "page_number": 2,
        "text": "Investment Objective .............................................................................. 3"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 577,
          "x": 361,
          "y": 200
        },
        "id": "0982d103-6a30-494f-877f-893232e26854",
        "page_number": 2,
        "text": "Fees and Expenses of the Fund ............................................................... 3"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 577,
          "x": 360,
          "y": 216
        },
        "id": "dcbfa628-f2a9-42b1-a876-10972b9e9c5f",
        "page_number": 2,
        "text": "Principal Investment Strategies of the Fund .............................................. 4"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 577,
          "x": 360,
          "y": 231
        },
        "id": "6d6e3ea2-ca14-4f1e-af38-edd48093c36f",
        "page_number": 2,
        "text": "Principal Risks of Investing in the Fund .................................................... 4"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 578,
          "x": 360,
          "y": 247
        },
        "id": "3884e5b3-d6b2-4692-b408-2cadbe986211",
        "page_number": 2,
        "text": "Per formance Information ........................................................................ 9"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 577,
          "x": 361,
          "y": 262
        },
        "id": "b3c163f0-7a78-4755-8b4d-a55bb04becb7",
        "page_number": 2,
        "text": "Investment Manager and Sub-Adviser....................................................... 10"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 577,
          "x": 360,
          "y": 278
        },
        "id": "40a13e5c-f117-43e0-9cfc-b4c16d19b410",
        "page_number": 2,
        "text": "Por tfolio Managers ................................................................................. 11"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 360,
          "y": 293
        },
        "id": "9cc239cf-3cc0-4cac-bd10-337daaf06535",
        "page_number": 2,
        "text": "Purchase and Sale of Fund Shares .......................................................... 11"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 576,
          "x": 361,
          "y": 309
        },
        "id": "530f8b3a-bbb7-4d8e-b917-66abef195a67",
        "page_number": 2,
        "text": "Tax Information....................................................................................... 11"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 577,
          "x": 360,
          "y": 324
        },
        "id": "db026f14-7662-4764-ab90-4c7b142915bd",
        "page_number": 2,
        "text": "Payments to Broker/Dealers and Other Financial Intermediaries ................ 11"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 242,
          "x": 102,
          "y": 348
        },
        "id": "f0ce0625-2488-4a4d-a230-aea6b39da477",
        "page_number": 2,
        "text": "Details About the Fund"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 524,
          "x": 361,
          "y": 351
        },
        "id": "46875b13-d6d6-4eb8-bd2d-2f78d933dfbb",
        "page_number": 2,
        "text": "Information about how the Fund invests, including investment objective,"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 412,
          "x": 361,
          "y": 366
        },
        "id": "cbc461a8-2072-4076-88e5-6ce1c65b58af",
        "page_number": 2,
        "text": "investment process, principal strategies and risk factors"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 361,
          "y": 382
        },
        "id": "613f92d6-74ec-4f64-a3df-b76692487cf7",
        "page_number": 2,
        "text": "How the Fund Invests.............................................................................. 13"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 361,
          "y": 397
        },
        "id": "0612ea77-a98c-45e6-867c-af80243c6478",
        "page_number": 2,
        "text": "Investment Risks.................................................................................... 15"
      },
      {
        "block_type": "box",
        "box": {
          "height": 13,
          "width": 215,
          "x": 128,
          "y": 420
        },
        "id": "45ddc614-3204-47d3-8a8e-41f9b99f2716",
        "page_number": 2,
        "text": "Account Information"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 468,
          "x": 361,
          "y": 424
        },
        "id": "8d690740-c10e-4366-9e09-f5aaa8a7fbe5",
        "page_number": 2,
        "text": "Information about account services, sales charges and waivers,"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 468,
          "x": 360,
          "y": 439
        },
        "id": "62289aa2-8634-4af2-827e-862cbd7abc57",
        "page_number": 2,
        "text": "shareholder transactions, and distributions and other payments"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 577,
          "x": 361,
          "y": 454
        },
        "id": "04a80aae-61b0-431e-afb6-c5014cbf64c4",
        "page_number": 2,
        "text": "Details About the Share Class ................................................................. 30"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 576,
          "x": 361,
          "y": 470
        },
        "id": "b4f41854-21c7-4d17-ac80-748908369b69",
        "page_number": 2,
        "text": "How to Buy, Sell, Exchange and Transfer Shares ....................................... 31"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 577,
          "x": 361,
          "y": 485
        },
        "id": "5865d395-aea8-4f4f-b78c-82336bf93bc4",
        "page_number": 2,
        "text": "Fund\u2019s Rights ......................................................................................... 36"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 577,
          "x": 361,
          "y": 501
        },
        "id": "ca0a36f4-9dcc-4e18-bfc7-f7b71198b1f2",
        "page_number": 2,
        "text": "Shor t-Term Trading Policy ........................................................................ 36"
      },
      {
        "block_type": "box",
        "box": {
          "height": 16,
          "width": 264,
          "x": 80,
          "y": 524
        },
        "id": "c48d9140-9d13-4eb2-b7c4-5274469a1588",
        "page_number": 2,
        "text": "Management of the Fund"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 415,
          "x": 361,
          "y": 528
        },
        "id": "ccb236ed-5591-4278-a8fc-7ede8aed5fd4",
        "page_number": 2,
        "text": "Information about BlackRock and the Por tfolio Managers"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 361,
          "y": 543
        },
        "id": "78118092-6fa3-4f30-994e-ec5615be100f",
        "page_number": 2,
        "text": "BlackRock .............................................................................................. 38"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 578,
          "x": 360,
          "y": 559
        },
        "id": "3e7c4d05-68b2-4d80-8281-94153d6119d0",
        "page_number": 2,
        "text": "Por tfolio Manager Information ................................................................. 39"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 361,
          "y": 574
        },
        "id": "ce4597af-5c8f-4c6d-8a12-42fa383a8fff",
        "page_number": 2,
        "text": "Conflicts of Interest ................................................................................ 39"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 576,
          "x": 362,
          "y": 590
        },
        "id": "ca5f12fe-6e14-4b0c-9fc2-e5840a475df5",
        "page_number": 2,
        "text": "Valuation of Fund Investments ................................................................. 40"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 576,
          "x": 361,
          "y": 605
        },
        "id": "04dbeff5-7594-404d-8fe3-5bec2c9b6bce",
        "page_number": 2,
        "text": "Dividends, Distributions and Taxes........................................................... 41"
      },
      {
        "block_type": "box",
        "box": {
          "height": 16,
          "width": 207,
          "x": 136,
          "y": 629
        },
        "id": "d6bada7e-bdc6-4d44-aa00-4297f68b2a31",
        "page_number": 2,
        "text": "Financial Highlights"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 361,
          "y": 632
        },
        "id": "7590fd27-6c51-49ce-92fe-308181db3e6d",
        "page_number": 2,
        "text": "Financial Per formance of the Fund ........................................................... 43"
      },
      {
        "block_type": "box",
        "box": {
          "height": 13,
          "width": 207,
          "x": 136,
          "y": 665
        },
        "id": "f63139ab-be0d-4dd7-8e56-2ec262793d3a",
        "page_number": 2,
        "text": "General Information"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 576,
          "x": 361,
          "y": 668
        },
        "id": "b8d4bd71-959e-46b3-80fd-bf2cf2a82edb",
        "page_number": 2,
        "text": "Shareholder Documents.......................................................................... 44"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 576,
          "x": 361,
          "y": 684
        },
        "id": "7e5f8b0b-5c01-4472-8ae0-cbd3de8a78cc",
        "page_number": 2,
        "text": "Cer tain Fund Policies .............................................................................. 44"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 577,
          "x": 361,
          "y": 699
        },
        "id": "88bd7e5a-f446-4650-a4d0-387bec23fab7",
        "page_number": 2,
        "text": "Statement of Additional Information ......................................................... 45"
      },
      {
        "block_type": "box",
        "box": {
          "height": 16,
          "width": 92,
          "x": 253,
          "y": 723
        },
        "id": "4d852678-bd0b-434d-a88b-bf8ae4fb71ab",
        "page_number": 2,
        "text": "Glossary"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 577,
          "x": 361,
          "y": 726
        },
        "id": "5bb98a55-96fc-418e-aca7-fd11ed2292c9",
        "page_number": 2,
        "text": "Glossary of Investment Terms ................................................................. 46"
      },
      {
        "block_type": "box",
        "box": {
          "height": 13,
          "width": 221,
          "x": 122,
          "y": 759
        },
        "id": "c7de198b-d8eb-47eb-8c40-94662e7552ed",
        "page_number": 2,
        "text": "For More Information"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 578,
          "x": 361,
          "y": 763
        },
        "id": "db980aaf-ff2d-4319-87f8-24550ed649a4",
        "page_number": 2,
        "text": "Fund and Service Providers ............................................... Inside Back Cover"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 580,
          "x": 359,
          "y": 778
        },
        "id": "cff8d66c-fb85-4169-a331-4d77750a527e",
        "page_number": 2,
        "text": "Additional Information....................................................... Back Cover"
      },
      {
        "block_type": "box",
        "box": {
          "height": 7,
          "width": 138,
          "x": 757,
          "y": 969
        },
        "id": "de0563f0-934e-411e-879a-8e9d73241ae1",
        "page_number": 2,
        "text": "NM0926U-5977344-2/48"
      },
      {
        "block_type": "box",
        "box": {
          "height": 27,
          "width": 315,
          "x": 64,
          "y": 82
        },
        "id": "965a2d09-9b24-4502-a8f3-c7dd3791b249",
        "page_number": 3,
        "text": "Fund Overview"
      },
      {
        "block_type": "box",
        "box": {
          "height": 14,
          "width": 435,
          "x": 62,
          "y": 156
        },
        "id": "9072b7f7-e946-4f09-a76e-afc5cde4ac8e",
        "page_number": 3,
        "text": "Key Facts About BlackRock Balanced Fund, Inc."
      },
      {
        "block_type": "box",
        "box": {
          "height": 14,
          "width": 191,
          "x": 62,
          "y": 187
        },
        "id": "eb71c6c2-1e6f-4ff9-b3b7-5f4416b5875a",
        "page_number": 3,
        "text": "Investment Objective"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 864,
          "x": 60,
          "y": 213
        },
        "id": "84cf342d-42f7-470b-b477-95cab16b7ac6",
        "page_number": 3,
        "text": "The investment objective of BlackRock Balanced Fund, Inc. (the \u201cFund\u201d) is to seek the highest total investment return"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 847,
          "x": 60,
          "y": 228
        },
        "id": "07285673-c3d4-44b2-8276-6b2606f0269f",
        "page_number": 3,
        "text": "through a fully managed investment policy utilizing equity, debt (including money market) and convertible securities."
      },
      {
        "block_type": "box",
        "box": {
          "height": 13,
          "width": 283,
          "x": 61,
          "y": 267
        },
        "id": "2419a776-6ecb-4a59-b750-207126c98b0a",
        "page_number": 3,
        "text": "Fees and Expenses of the Fund"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 839,
          "x": 60,
          "y": 293
        },
        "id": "2ceaffcd-2a48-4ee2-ba36-fc3ed0a25edf",
        "page_number": 3,
        "text": "This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund."
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 724,
          "x": 60,
          "y": 308
        },
        "id": "e0885306-2c21-4fed-9a6a-76d9f49a837d",
        "page_number": 3,
        "text": "Amounts in the table are rounded to the nearest basis point, which in some cases may be \u201c0.00.\u201d"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 138,
          "x": 790,
          "y": 308
        },
        "id": "595b1f8c-c69b-44d6-b0f3-2035e13683ae",
        "page_number": 3,
        "text": "You may pay other"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 824,
          "x": 60,
          "y": 323
        },
        "id": "d1c28250-8c9b-4623-a8bb-853907955e74",
        "page_number": 3,
        "text": "fees, such as brokerage commissions and other fees to your financial professional or your selected securities"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 835,
          "x": 61,
          "y": 338
        },
        "id": "d3626542-c9ed-4e97-b953-659b785a8542",
        "page_number": 3,
        "text": "dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 813,
          "x": 61,
          "y": 353
        },
        "id": "7f7a42af-f25d-4309-b7e4-2b870c270b5d",
        "page_number": 3,
        "text": "(\u201cBlackRock\u201d) and its affiliates) (each, a \u201cFinancial Intermediary\u201d), which are not reflected in the table and"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 114,
          "x": 61,
          "y": 368
        },
        "id": "552c6c1a-2b7a-4d11-afed-f6dc348bde62",
        "page_number": 3,
        "text": "example below."
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 222,
          "x": 69,
          "y": 404
        },
        "id": "4f1ea33e-fe91-4fec-b9f8-ae7ca875ee76",
        "page_number": 3,
        "text": "Annual Fund Operating Expenses"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 261,
          "x": 69,
          "y": 415
        },
        "id": "a69a8070-4bbe-4353-8dd2-4ac40637a1a4",
        "page_number": 3,
        "text": "(expenses that you pay each year as a"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 294,
          "x": 70,
          "y": 427
        },
        "id": "114289ce-aaf1-4f03-a29a-ad2cda857928",
        "page_number": 3,
        "text": "percentage of the value of your investment)"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 51,
          "x": 873,
          "y": 427
        },
        "id": "8a7cec21-d678-4d97-84c4-5a0c91c4c593",
        "page_number": 3,
        "text": "Class K"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 112,
          "x": 70,
          "y": 445
        },
        "id": "9e220420-2983-43a9-a5f0-691c8af81d78",
        "page_number": 3,
        "text": "Management Fee"
      },
      {
        "block_type": "box",
        "box": {
          "height": 4,
          "width": 4,
          "x": 183,
          "y": 445
        },
        "id": "4d6b2ba5-254c-481c-bf72-7f5d0a8f44ab",
        "page_number": 3,
        "text": "1"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 41,
          "x": 885,
          "y": 445
        },
        "id": "4724178b-36e5-44bf-adf0-67935904e4c4",
        "page_number": 3,
        "text": "0.42%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 266,
          "x": 70,
          "y": 463
        },
        "id": "b69bfed3-582f-4f2a-b72a-e73f59b783bf",
        "page_number": 3,
        "text": "Distribution and/or Service (12b-1) Fees"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 32,
          "x": 883,
          "y": 463
        },
        "id": "48cc5a7a-c8ac-45a4-b7e2-cce923875b0e",
        "page_number": 3,
        "text": "None"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 103,
          "x": 69,
          "y": 481
        },
        "id": "dc08e9e3-04c2-4e1a-8891-3dc1925c0130",
        "page_number": 3,
        "text": "Other Expenses"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 41,
          "x": 885,
          "y": 481
        },
        "id": "73430e91-7f5c-41bc-9db4-2cf7bcd072fe",
        "page_number": 3,
        "text": "0.06%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 225,
          "x": 69,
          "y": 499
        },
        "id": "1f6cff4c-5a97-4623-8092-72c50d1c9483",
        "page_number": 3,
        "text": "Acquired Fund Fees and Expenses"
      },
      {
        "block_type": "box",
        "box": {
          "height": 4,
          "width": 4,
          "x": 295,
          "y": 499
        },
        "id": "3bfb833c-7b0c-4406-a35a-11768357e92c",
        "page_number": 3,
        "text": "2"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 41,
          "x": 885,
          "y": 499
        },
        "id": "35f7f015-cc55-4cf9-b724-a29418b158c4",
        "page_number": 3,
        "text": "0.02%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 252,
          "x": 69,
          "y": 517
        },
        "id": "528f7c36-801a-4231-b9f1-6701b43747eb",
        "page_number": 3,
        "text": "Total Annual Fund Operating Expenses"
      },
      {
        "block_type": "box",
        "box": {
          "height": 4,
          "width": 4,
          "x": 322,
          "y": 517
        },
        "id": "a087a19f-580f-48f4-ac8f-ffcc2d65a074",
        "page_number": 3,
        "text": "2"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 41,
          "x": 885,
          "y": 517
        },
        "id": "c2e986f4-bd5b-42ae-953e-b688ecbb8b7c",
        "page_number": 3,
        "text": "0.50%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 304,
          "x": 70,
          "y": 535
        },
        "id": "e8e00e27-0fef-441b-818c-8ff5025b6b22",
        "page_number": 3,
        "text": "Fee Waivers and/or Expense Reimbursements"
      },
      {
        "block_type": "box",
        "box": {
          "height": 4,
          "width": 4,
          "x": 375,
          "y": 535
        },
        "id": "6e7e964f-f044-4ffd-b74e-5b2af369707d",
        "page_number": 3,
        "text": "1"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 50,
          "x": 881,
          "y": 535
        },
        "id": "bf891ffa-2af4-47c0-bf5b-5045e3be3c08",
        "page_number": 3,
        "text": "(0.01)%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 598,
          "x": 69,
          "y": 553
        },
        "id": "792a1c84-8787-4f0e-a7e1-e9a3f7eec90a",
        "page_number": 3,
        "text": "Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements"
      },
      {
        "block_type": "box",
        "box": {
          "height": 4,
          "width": 4,
          "x": 668,
          "y": 553
        },
        "id": "f93c8a2b-3ab6-4169-a1db-de5f61895009",
        "page_number": 3,
        "text": "1"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 41,
          "x": 885,
          "y": 553
        },
        "id": "f10d604d-fc62-4d9e-a3da-c35ff140d193",
        "page_number": 3,
        "text": "0.49%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 4,
          "width": 3,
          "x": 61,
          "y": 573
        },
        "id": "dd8e0cc1-595f-4482-aaa4-824d042328b8",
        "page_number": 3,
        "text": "1"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 837,
          "x": 81,
          "y": 573
        },
        "id": "d658b719-22c1-498e-8468-b005d3458126",
        "page_number": 3,
        "text": "As described in the \u201cManagement of the Fund\u201d section of the Fund\u2019s prospectus beginning on page 38, BlackRock has contractually agreed to"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 854,
          "x": 80,
          "y": 583
        },
        "id": "2b713274-ce63-46ae-9db7-d73582d7e979",
        "page_number": 3,
        "text": "waive the management fee with respect to any portion of the Fund\u2019s assets estimated to be attributable to investments in other equity and fixed"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 810,
          "x": 81,
          "y": 593
        },
        "id": "3a585508-69be-4033-b8bb-a66635396017",
        "page_number": 3,
        "text": "income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 832,
          "x": 81,
          "y": 604
        },
        "id": "75d360bb-6424-4c95-bfcd-c522e9c66768",
        "page_number": 3,
        "text": "June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 847,
          "x": 81,
          "y": 614
        },
        "id": "5282eda0-ffeb-4463-b2b5-681678bee546",
        "page_number": 3,
        "text": "Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028."
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 835,
          "x": 81,
          "y": 624
        },
        "id": "1a8ed191-3cab-44fb-b01e-123d80ca27dc",
        "page_number": 3,
        "text": "The contractual agreements may be terminated upon 90 days\u2019 notice by a majority of the non-interested directors of the Fund or by a vote of a"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 330,
          "x": 81,
          "y": 635
        },
        "id": "74dbb5ad-f521-4375-a442-072d2c7dcc27",
        "page_number": 3,
        "text": "majority of the outstanding voting securities of the Fund."
      },
      {
        "block_type": "box",
        "box": {
          "height": 3,
          "width": 3,
          "x": 61,
          "y": 648
        },
        "id": "3c132eb5-5522-45e9-a07b-15b111272c51",
        "page_number": 3,
        "text": "2"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 813,
          "x": 81,
          "y": 648
        },
        "id": "9a105bd7-db8a-4ef8-9f06-5735392f4ecd",
        "page_number": 3,
        "text": "The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets given in the Fund\u2019s most recent"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 662,
          "x": 81,
          "y": 658
        },
        "id": "d9d0a452-3cfd-489f-9260-4171842058fc",
        "page_number": 3,
        "text": "Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses."
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 74,
          "x": 61,
          "y": 676
        },
        "id": "872b71a3-a1c9-4d15-bb16-9994b4e742ce",
        "page_number": 3,
        "text": "Example:"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 830,
          "x": 60,
          "y": 692
        },
        "id": "c3211cfe-1849-40cc-a8c0-7a28358d6e2d",
        "page_number": 3,
        "text": "This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 832,
          "x": 61,
          "y": 706
        },
        "id": "d6ec9192-d7fc-4e50-ae90-ed0ee2e94c28",
        "page_number": 3,
        "text": "mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 832,
          "x": 61,
          "y": 722
        },
        "id": "39e9989c-d270-4330-8d7f-1be5273aec69",
        "page_number": 3,
        "text": "redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5%"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 859,
          "x": 61,
          "y": 737
        },
        "id": "9e9e33ee-c801-43f4-9466-80530f16ef4f",
        "page_number": 3,
        "text": "return each year and that the Fund\u2019s operating expenses remain the same. Although your actual costs may be higher"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 436,
          "x": 61,
          "y": 752
        },
        "id": "927cb05a-9fb4-40b2-8720-0ae1b099acd4",
        "page_number": 3,
        "text": "or lower, based on these assumptions your costs would be:"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 292,
          "x": 631,
          "y": 780
        },
        "id": "6a9ed709-b5e0-4aca-832a-19b9548062bd",
        "page_number": 3,
        "text": "1 Year 3 Years 5 Years 10 Years"
      },
      {
        "block_type": "box",
        "box": {
          "height": 8,
          "width": 51,
          "x": 69,
          "y": 798
        },
        "id": "dbd18aee-ffa7-4f3b-9919-97e5e5b3c424",
        "page_number": 3,
        "text": "Class K"
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 272,
          "x": 639,
          "y": 798
        },
        "id": "9efcb8e9-d2f5-4557-b18b-a51f3ad11de3",
        "page_number": 3,
        "text": "$50 $159 $279 $627"
      },
      {
        "block_type": "box",
        "box": {
          "height": 10,
          "width": 151,
          "x": 61,
          "y": 823
        },
        "id": "1aaf9534-627b-42f3-892f-1bde97428a04",
        "page_number": 3,
        "text": "Portfolio Turnover:"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 800,
          "x": 60,
          "y": 839
        },
        "id": "2c6eb3f6-85b6-4b13-99eb-a812b5348262",
        "page_number": 3,
        "text": "The Fund pays transaction costs, such as commissions, when it buys and sells securities (or \u201cturns over\u201d its"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 850,
          "x": 62,
          "y": 854
        },
        "id": "906a361a-6dd6-48e8-8225-cdace03d2965",
        "page_number": 3,
        "text": "portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 870,
          "x": 61,
          "y": 869
        },
        "id": "8acf1c56-f1b4-44dc-9759-47c5cdd8d04f",
        "page_number": 3,
        "text": "shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 839,
          "x": 62,
          "y": 884
        },
        "id": "7a9dee46-67dd-4901-bb17-596eaa0448df",
        "page_number": 3,
        "text": "Example, affect the Fund\u2019s performance. During the most recent fiscal year, the Fund\u2019s portfolio turnover rate was"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 307,
          "x": 62,
          "y": 898
        },
        "id": "25bdb496-9b88-43f7-a3a0-c2565e58da9c",
        "page_number": 3,
        "text": "132% of the average value of its portfolio."
      },
      {
        "block_type": "box",
        "box": {
          "height": 9,
          "width": 9,
          "x": 927,
          "y": 935
        },
        "id": "3925697a-a683-4fb2-8ece-3069cca2705e",
        "page_number": 3,
        "text": "3"
      },
      {
        "block_type": "box",
        "box": {
          "height": 7,
          "width": 138,
          "x": 757,
          "y": 969
        },
        "id": "f183a42f-9f9f-4892-bdff-938a59c44ac4",
        "page_number": 3,
        "text": "NM0926U-5977344-3/48"
      },
      {
        "block_type": "box",
        "box": {
          "height": 14,
          "width": 394,
          "x": 61,
          "y": 46
        },
        "id": "d30a5097-7853-4a99-9e8d-2d4652000065",
        "page_number": 4,
        "text": "Principal Investment Strategies of the Fund"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 876,
          "x": 60,
          "y": 73
        },
        "id": "396ab966-44f7-4f3b-ad30-3d9d5a5591d2",
        "page_number": 4,
        "text": "The Fund invests in a combination of equity securities, fixed-income securities and derivatives. The proportion the Fund"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 819,
          "x": 62,
          "y": 88
        },
        "id": "741806ab-710b-4974-a901-a5ed608d794b",
        "page_number": 4,
        "text": "invests in each category at any given time depends on Fund management\u2019s view of how attractive that category"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 853,
          "x": 61,
          "y": 102
        },
        "id": "8db6f41b-173d-42cf-a138-e1a57d38b0c2",
        "page_number": 4,
        "text": "appears relative to the others. The Fund intends to invest at least 25% of its assets in equity securities and at least"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 798,
          "x": 61,
          "y": 117
        },
        "id": "ab5e9a5b-5a85-44a6-8f84-3dd54ee5a8f9",
        "page_number": 4,
        "text": "25% of its assets in senior fixed income securities, such as U.S. government debt securities, corporate debt"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 454,
          "x": 61,
          "y": 132
        },
        "id": "806c0e7d-b5fa-49a6-812d-f1b2732b1bff",
        "page_number": 4,
        "text": "securities, and mortgage-backed and asset-backed securities."
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 813,
          "x": 60,
          "y": 155
        },
        "id": "41ae30e6-575f-4cf1-9bd2-5f24ec7da5e2",
        "page_number": 4,
        "text": "With respect to the Fund\u2019s equity investments, the Fund primarily intends to invest in equity securities or other"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 871,
          "x": 60,
          "y": 169
        },
        "id": "aa1c4c11-b57e-45be-b892-e0c943dea04f",
        "page_number": 4,
        "text": "financial instruments that are components of, or have characteristics similar to, the securities included in the MSCI All"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 868,
          "x": 61,
          "y": 184
        },
        "id": "380d6181-d54b-4019-b656-77fd8b1d4363",
        "page_number": 4,
        "text": "Country World Index (the \u201cACWI\u201d). The ACWI is a capitalization-weighted index from a broad range of industries chosen"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 849,
          "x": 60,
          "y": 199
        },
        "id": "a7ea11e3-e816-472a-beea-005d963620fe",
        "page_number": 4,
        "text": "for market size, liquidity and industry group representation. In selecting equity investments, the Fund primarily uses"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 860,
          "x": 62,
          "y": 214
        },
        "id": "f8e92bb6-71dd-47ef-b373-16f92beda5d1",
        "page_number": 4,
        "text": "proprietary return forecast models that incorporate quantitative analysis. Equity securities include common stock and"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 855,
          "x": 62,
          "y": 229
        },
        "id": "e8671d7d-bd1e-4562-ad3d-c5963eb34e06",
        "page_number": 4,
        "text": "preferred stock. The Fund primarily seeks to buy common stock and may also invest in preferred stock. From time to"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 854,
          "x": 60,
          "y": 244
        },
        "id": "2656781d-40b0-408e-8df5-e63f20ff401a",
        "page_number": 4,
        "text": "time, the Fund may invest in shares of companies through \u201cnew issues\u201d or initial public offerings (\u201cIPOs\u201d). The Fund"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 853,
          "x": 61,
          "y": 258
        },
        "id": "4213a0b6-4f65-4066-bca8-07a71b3a0ccd",
        "page_number": 4,
        "text": "may also purchase convertible securities. The Fund may invest in securities of both U.S. or non-U.S. issuers without"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 874,
          "x": 62,
          "y": 273
        },
        "id": "475dc09c-32d5-43df-906c-66ac9709d927",
        "page_number": 4,
        "text": "limit, which can be U.S. dollar based or non-U.S. dollar based and may be currency hedged or unhedged. The Fund may"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 451,
          "x": 62,
          "y": 288
        },
        "id": "69cee568-215c-4ff6-a7e7-e5273ed561c4",
        "page_number": 4,
        "text": "invest in securities of companies of any market capitalization."
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 867,
          "x": 60,
          "y": 311
        },
        "id": "35390b36-b19c-4d45-9d98-4ae97e17c999",
        "page_number": 4,
        "text": "With respect to the Fund\u2019s fixed-income investments, the Fund will invest primarily using model-based asset allocation"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 850,
          "x": 61,
          "y": 326
        },
        "id": "8b2e5722-1463-43d7-990c-f7fa1f8586f2",
        "page_number": 4,
        "text": "and security selection models. The Fund may invest in obligations issued or guaranteed by the U.S. Government, its"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 809,
          "x": 61,
          "y": 340
        },
        "id": "8beedb84-f018-48f6-a5ca-a3131275eb8a",
        "page_number": 4,
        "text": "agencies or instrumentalities; mortgage-backed securities issued or guaranteed by the U.S. Government or its"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 857,
          "x": 61,
          "y": 355
        },
        "id": "ab2214c3-db03-4577-8691-b514bd31889b",
        "page_number": 4,
        "text": "agencies or instrumentalities, including U.S. agency mortgage pass-through securities; commercial mortgage-backed"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 857,
          "x": 61,
          "y": 370
        },
        "id": "edede3cd-79c3-4703-b8e3-5f720e7cbbc7",
        "page_number": 4,
        "text": "securities; mortgage to-be-announced (\u201cTBA\u201d) securities; debt obligations of U.S. issuers, including corporate bonds;"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 823,
          "x": 61,
          "y": 385
        },
        "id": "15f9594b-a047-413b-aab4-0a442271b261",
        "page_number": 4,
        "text": "municipal securities; asset-backed securities; and U.S.-registered dollar-denominated debt obligations of foreign"
      },
      {
        "block_type": "box",
        "box": {
          "height": 11,
          "width": 809,
          "x": 62,
          "y": 400
        },
        "id": "668f1f09-204b-49ae-97d9-d16d909fb60f",
        "page_number": 4,
        "text": "issuers. The Fund may invest in bonds issued by companies located in countries other than the United States,"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 833,
          "x": 62,
          "y": 414
        },
        "id": "e3102395-d8fb-45e1-9b8c-77388220068c",
        "page_number": 4,
        "text": "including companies in emerging markets. These securities may have all types of interest rate payment and reset"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 825,
          "x": 60,
          "y": 429
        },
        "id": "2c49b50e-8531-46cc-bca6-07f715dadcd5",
        "page_number": 4,
        "text": "terms, including fixed rate, adjustable rate, floating rate, zero coupon, contingent, deferred, payment in kind and"
      },
      {
        "block_type": "box",
        "box": {
          "height": 12,
          "width": 789,
          "x": 61,
          "y": 444
       ...