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BLACKROCK VARIABLE SERIES FUNDS, INC. BlackRock International V.I. Fund (the “Fund”)
Supplement dated October 8, 2026 (the “Supplement”) to the Fund’s Statement of Additional Information (“SAI”), dated May 1, 2026, as amended or supplemented to date
The following changes are made to the Fund’s SAI:
The section entitled “Management, Advisory and Other Service Arrangements — Portfolio Manager Information” is revised as follows:
The first paragraph of the sub-section entitled “Other Funds and Accounts Managed” is deleted in its entirety and replaced with the following:
The following table sets forth information about the funds and accounts other than each applicable Fund for which each Fund’s (other than BlackRock Government Money Market V.I. Fund’s) portfolio manager or managers are primarily responsible for the day-to-day portfolio management as of the Company’s fiscal year ended December 31, 2025 (except as otherwise noted below).
The sub-section entitled “Other Funds and Accounts Managed — BlackRock International V.I. Fund” is deleted in its entirety and replaced with the following:
BlackRock International V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts
Zeshan Azam* 7 $3.71 Billion
6 $2.84 Billion
2 $1.65 Billion
0 $0
0 $0
1 $1.58 Billion
Wendy Agnew, CFA* 7 $3.71 Billion
6 $2.84 Billion
2 $1.65 Billion
0 $0
0 $0
1 $1.58 Billion
* Information provided as of August 31, 2026.
The sub-section entitled “Fund Ownership” is deleted in its entirety and replaced with the following:
Fund Ownership
As of August 31, 2026 for Mr. Azam and Ms. Agnew and for the fiscal year ended December 31, 2025 for all other portfolio managers, no portfolio manager beneficially owned any equity securities of any Fund because no portfolio manager had invested in the type of insurance contract through which the Funds must be purchased.
The first paragraph of the sub-section entitled “Portfolio Manager Compensation Overview — Discretionary Incentive Compensation” is deleted in its entirety and replaced with the following:
The discussion below describes the compensation of Mr. Azam and Ms. Agnew as of August 31, 2026 and the compensation of all other portfolio managers as of December 31, 2025.
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The sub-section entitled “Portfolio Manager Compensation Overview — Discretionary Incentive Compensation — Messrs. Menge, Zhao, Inal and Andrews and Mses. Du, Greenen and Treharne” is deleted in its entirety and replaced with the following:
Discretionary Incentive Compensation
Messrs. Menge, Zhao, Inal and Azam and Mses. Du and Agnew
Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Funds or other accounts managed by the portfolio managers are measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the performance of the Funds and other accounts managed by each portfolio management team is compared and the period of time over which performance is evaluated. With respect to these portfolio managers, such benchmarks for the Funds and other accounts are:
Portfolio Manager Funds Managed Benchmarks
Sally Du, CFA BlackRock Capital Appreciation V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund
S&P 500 Index; ICE BofA US 3-month Treasury Bill Index; Russell 1000 Index.
Reid Menge BlackRock Capital Appreciation V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund
MSCI ACWI 25% Call Overwrite Index; MSCI All Country World Index (Net Total Return); MSCI All Country World Information Technology Index — Net Return in USD.
Cem Inal David Zhao
BlackRock Equity Dividend V.I. Fund BlackRock Basic Value V.I. Fund
FTSE United States in GBP; MSCI All Country (AC) Americas Index; Russell 1000 Index (GBP); Russell 1000 Index (Gross Total Return); Russell 1000 Value Index (Total Return); Russell 1000 Value Index TR in GBP; Russell 1000 Value TR Customized Index Performance Benchmark JPY; Russell 1000, expressed in EUR; Russell MidCap Value Index; S&P United States MidSmallCap Index; S&P US MidSmallCap Index (GBP) Zeshan Azam Wendy Agnew, CFA
BlackRock International V.I. Fund
MSCI All Country World ex US Index (Net TR); MSCI All Country World Index (Net Total Return); MSCI ACWI HIGH DIVIDEND YIELD — NET USD; MSCI All Country World Net TR Index — in GBP.
A smaller element of portfolio manager discretionary compensation may include consideration of: financial results, expense control, profit margins, strategic planning and implementation, quality of client service, market share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation. These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.
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The sub-section entitled “Portfolio Manager Compensation Overview — Other Compensation Benefits” is deleted in its entirety and replaced with the following:
Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:
Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.
The sub-section entitled “Portfolio Manager Potential Material Conflicts of Interest” is deleted in its entirety and replaced with the following:
BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Funds, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which a portfolio manager has have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Funds. In addition, BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Funds. BlackRock, or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Funds by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that Messrs. Cooke, Koesterich, Mathieson, Menge, Rieder, Savi and Azam and Ms. Agnew may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Messrs. Cooke, Koesterich, Mathieson, Menge, Rieder, Savi and Azam and Ms. Agnew may therefore be entitled to receive a portion of any incentive fees earned on such accounts.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are
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intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.
Shareholders should retain this Supplement for future reference.
SAI-INTVI-1026SUP
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BlackRock Advantage Global Fund, Inc. BlackRock Advantage SMID Cap Fund, Inc. BlackRock Allocation Target Shares BlackRock Balanced Fund, Inc. BlackRock Bond Fund, Inc. BlackRock California Municipal Series Trust BlackRock Capital Appreciation Fund, Inc. BlackRock Emerging Markets Fund, Inc. BlackRock Equity Dividend Fund BlackRock Financial Institutions Series Trust BlackRock Funds SM BlackRock Funds II BlackRock Funds III BlackRock Funds IV BlackRock Funds V BlackRock Funds VI BlackRock Global Allocation Fund, Inc. BlackRock Index Funds, Inc.
BlackRock International Select Equity Fund BlackRock Large Cap Focus Growth Fund, Inc. BlackRock Large Cap Focus Value Fund, Inc. BlackRock Large Cap Series Funds, Inc. BlackRock Liquidity Funds BlackRock Mid-Cap Value Series, Inc. BlackRock Multi-State Municipal Series Trust BlackRock Municipal Bond Fund, Inc. BlackRock Municipal Series Trust BlackRock Natural Resources Trust BlackRock Series Fund, Inc. BlackRock Series Fund II, Inc. BlackRock Series, Inc. BlackRock Strategic Global Bond Fund, Inc. BlackRock Unconstrained Equity Fund BlackRock Variable Series Funds, Inc. BlackRock Variable Series Funds II, Inc.
Supplement dated September 11, 2026 to the Statement of Additional Information (“SAI”) of each of the funds listed in Appendix A (each, a “Fund”), as amended from time to time.
Each Fund’s SAI is amended as follows:
The list in the section entitled “Purchase of Shares - Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments” in Part II, or in the section entitled “Miscellaneous Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments,” “Investment Advisory Arrangements - Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments” or “Investment Adviser and Other Service Providers - Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments,” as applicable, of each Fund’s current SAI, is deleted in its entirety and replaced with the following:
&Partners AccuTech Systems Corporation ADP Broker-Dealer, Inc. Advisor Credit Exchange, LLC Advisor Group, Inc. AE Wealth Management, LLC Alight Solutions LLC Allianz Life Financial Services, LLC Allianz Life Insurance Company of New York Allianz Life Insurance Company of North America Altruist Financial LLC American Enterprise Investment Services, Inc. American General Life Insurance Company American United Life Insurance Company Annuity Investors Life Insurance Company Anthem Securities LLC Argent Institutional Trust Company Ascensus Broker Dealer Services, Inc. Ascensus, Inc. Atomic Brokerage LLC Avantax Investment Services, LLC
Bancroft Capital LLC Bank of America, N.A. Bank of New York Mellon Barclays Capital Inc. Benefit Plans Administrative Services, Inc. Benefit Trust Company Beta Capital Securities LLC bfinance US Ltd. BlackRock Advisors, LLC BMO Capital Markets Corp. BNP Paribas BNP Paribas Investment Partners UK Limited BNY Mellon, N.A. BofA Securities, Inc. BOKF, N.A. Brighthouse Life Insurance Company Brighthouse Life Insurance Company of NY Broadridge Business Process Outsourcing, LLC Brown Brothers Harriman & Co. Cabrera Capital Markets, LLC Capital One, N.A.
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Cetera Advisor Networks LLC Cetera Advisors LLC Cetera Financial Group Cetera Financial Specialists LLC Cetera Investment Services LLC CF Secured, LLC Charles Schwab & Co., Inc. Charles Schwab Trust Bank Chicago Mercantile Exchange Inc. CIM Investment Management, Inc. Citco Securities, LLC CitiBank, National Association Citigroup Global Markets, Inc. Citizens Bank Citizens Business Bank CME Shareholder Servicing LLC CMFG Life Insurance Company Comerica Bank Commonwealth Financial Network Computershare Trust Company Conduent HR Services, LLC Delaware Life Insurance Company Delaware Trust Company Deutsche Bank AG Deutsche Bank Trust Company Americas Digital Retirement Solutions, Inc. Dunham & Associates Investment Counsel, Inc. Dynasty Financial Partners LLC Edward D. Jones & Co., L.P. Empire Fidelity Investments Life Insurance Company Empower Annuity Insurance Company of America Empower Financial Services, Inc. Empower Life & Annuity Insurance Company of New York Empower Plan Services, LLC Envestnet Asset Management, Inc. Equitable Advisors, LLC Equitable Life Insurance Company E*trade Savings Bank Federal Deposit Insurance Corporation Fidelity Brokerage Services LLC Fidelity Investments Institutional Operations Company, Inc. Fidelity Investments Life Insurance Company Fifth Third Securities, Inc. First Allied Securities, Inc. First Command Financial Planning, Inc. First Hawaiian Bank First Republic Bank First Security Benefit Life Insurance and Annuity Company of New York
First Symetra National Life Insurance Company of New York First-Citizens Bank & Trust Company FIS Brokerage & Securities Services LLC FNEX Capital, LLC Forethought Life Insurance Company FSC Securities Corporation Genworth Life and Annuity Insurance Company Genworth Life Insurance Company of New York Global Atlantic Distributors, LLC Goldman Sachs & Co. Great Pacific Securities, LLC Guardian Insurance & Annuity Co., Inc. Hancock Whitney Bank Hartford Funds Management Company Hartford Securities Distribution Company, Inc. Hazeltree Fund Services, Inc. Hightower Securities, Inc. Hilltop Securities Inc. HSBC Bank USA, N.A. Huntington Securities, Inc. Institutional Cash Distributors, LLC Integrity Life Insurance Company Interactive Brokers, LLC Investment Trust of California J.P. Morgan Institutional Investments Inc. J.P. Morgan Securities LLC Jefferies LLC Jefferson National Life Insurance Company Jefferson National Life Insurance Company of New York John Hancock Life Insurance Company (U.S.A.) John Hancock Life Insurance Company of New York John Hancock Trust Company JPMorgan Chase Bank, N.A. Kestra Investment Services, LLC Lincoln Financial Advisors Corporation Lincoln Financial Securities Corporation Lincoln Life & Annuity Company of New York Lincoln National Life Insurance Company Lincoln Retirement Services LLC Lombard International Life Assurance Company LPL Financial LLC M&T Securities Inc. Manufacturers and Traders Trust Company Massachusetts Mutual Life Insurance Company Members Life Insurance Company Merrill Lynch, Pierce, Fenner & Smith Incorporated Metavante Corporation Metropolitan Life Insurance Company Mid Atlantic Clearing & Settlement Corporation Midland Life Insurance Company
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Minnesota Life Insurance Company Mischler Financial Group Mizuho Securities USA Inc. MML Distributors, LLC MML Investors Services, LLC Morgan Stanley & Co. LLC Morgan Stanley Distribution, Inc. Morgan Stanley Smith Barney LLC MUFG Union Bank, National Association Nassau Life Insurance Company National Financial Services LLC National Integrity Life Insurance Company National Life Insurance Company Nationwide Financial Services, Inc. Nationwide Fund Distributors LLC Nationwide Retirement Solutions NCB Federal Savings Bank New England Pension Plan Systems, LLC New York Life Insurance and Annuity Corporation Newport Retirement Services, Inc. Northbrook Bank & Trust Company Northern Trust Company Northwestern Mutual Investment Services, LLC Northwestern Mutual Life Insurance Company NYLife Distributors LLC Oppenheimer & Co., Inc. Orion Advisor Services, LLC Osaic Wealth, Inc. Pacific Life & Annuity Company Pacific Life Insurance Company Pacific Select Distributors, LLC Park Avenue Securities LLC Penserra Securities LLC Pershing LLC PFPC Inc. Piper Jaffray & Co. PNC Bank, National Association PNC Capital Markets LLC PNC Investments LLC Principal Bank Principal Life Insurance Company Protective Life and Annuity Insurance Company Protective Life Insurance Company Pruco Life Insurance Company Pruco Life Insurance Company of New Jersey Prudential Annuities Distributors, Inc. Prudential Insurance Company of America Raymond James & Associates, Inc. Raymond James Financial Services, Inc. RBC Capital Markets, LLC Regions Bank Reliance Trust Company
Reliastar Life Insurance Company Reliastar Life Insurance Company of New York RiverSource Distributors, Inc. RiverSource Life Insurance Co. of New York RiverSource Life Insurance Company SagePoint Financial, Inc. Sammons Retirement Solutions, Inc. Sanctuary Wealth Group, LLC Santander Bank, N.A. Saturna Trust Company Securities America, Inc. Securities Finance Trust Company Security Benefit Life Insurance Company Security Financial Resources, Inc. Security Life of Denver Insurance Company SEI Private Trust Company SG Americas Securities, LLC Silicon Valley Bank Standard Insurance Company State Farm Life and Accident Assurance Company State Farm Life Insurance Company State Farm VP Management Corp. State Street Bank and Trust Company State Street Global Markets, LLC Stern Brothers & Co. Stifel, Nicolaus & Company, Incorporated Summit Brokerage Services, Inc. SVB Asset Management Symetra Life Insurance Company Syntal Capital Partners, LLC T. Rowe Price Retirement Plan Services, Inc. Talcott Resolution Life and Annuity Insurance Company Talcott Resolution Life Insurance Company TD Ameritrade Clearing, Inc. TD Ameritrade, Inc. TD Prime Services (US) LLC Teachers Insurance and Annuity Association of America Tigress Financial Partners, LLC Transamerica Financial Life Insurance Company Transamerica Life Insurance Company Treasury Brokerage Triad Advisors, LLC Truist Bank U.S. Bancorp Investments, Inc. U.S. Bank, National Association UBATCO & Co. UBS Financial Services, Inc. UBS Securities LLC Ultimus Fund Solutions, LLC UMB Bank, National Association
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United States Life Insurance Company in the City of New York VALIC Retirement Services Company Vanguard Group, Inc. Vanguard Marketing Corporation Voya Financial Advisors, Inc. Voya Financial Partners, LLC Voya Institutional Plan Services, LLC Voya Insurance and Annuity Company Voya Investments Distributor, LLC Voya Retirement Insurance and Annuity Company
Waddell & Reed, Inc. Wells Fargo Advisors, LLC Wells Fargo Advisors Financial Network, LLC Wells Fargo Bank, N.A. Wells Fargo Clearing Services, LLC Wells Fargo Investments, LLC Wells Fargo Securities, LLC Wilmington Trust, National Association Woodbury Financial Services, Inc. ZB, National Association
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Appendix A
BlackRock Advantage Global Fund, Inc.
BlackRock Advantage SMID Cap Fund, Inc.
BlackRock Allocation Target Shares BATS: Securitized Total Return Series BATS: Corporate Credit Total Return Series BATS: High Income Municipal Series BATS: High Income Taxable Series BATS: Mortgage Total Return Series BATS: Interest Rate Hedge Series BATS: Short Duration Taxable Total Return Series BATS: Short Term Municipal Income Series
BlackRock Balanced Fund, Inc.
BlackRock Bond Fund, Inc. BlackRock Total Return Fund
BlackRock California Municipal Series Trust BlackRock California Municipal Opportunities Fund
BlackRock Capital Appreciation Fund, Inc.
BlackRock Emerging Markets Fund, Inc.
BlackRock Equity Dividend Fund
BlackRock Financial Institutions Series Trust BlackRock Summit Cash Reserves Fund
BlackRock Funds SM BlackRock Advantage Emerging Markets Fund BlackRock Advantage International Fund BlackRock Advantage Large Cap Growth Fund BlackRock Advantage Small Cap Core Fund BlackRock Advantage Small Cap Growth Fund BlackRock China A Opportunities Fund BlackRock Commodity Strategies Fund BlackRock Daily Reinvestment Stablecoin Reserve Vehicle BlackRock Defensive Advantage Emerging Markets Fund BlackRock Emerging Markets ex-China Fund BlackRock Energy Opportunities Fund BlackRock Exchange Portfolio BlackRock Global Equity Market Neutral Fund BlackRock Health Sciences Opportunities Portfolio
BlackRock High Equity Income Fund BlackRock Mid-Cap Growth Equity Portfolio BlackRock Real Estate Securities Fund BlackRock Short Obligations Fund BlackRock Sustainable Aware Advantage Emerging Markets Equity Fund BlackRock Sustainable Aware Advantage Large Cap Core Fund BlackRock Tactical Opportunities Fund BlackRock Technology Opportunities Fund BlackRock Wealth Liquid Environmentally Aware Fund Circle Reserve Fund iShares Developed Real Estate Index Fund iShares Enhanced Roll Yield Index Fund iShares FTSE NAREIT All Equity REIT Index Fund iShares Municipal Bond Index Fund iShares Russell Mid-Cap Index Fund iShares Russell Small/Mid-Cap Index Fund iShares Short-Term TIPS Bond Index Fund iShares Total U.S. Stock Market Index Fund iShares U.S. Intermediate Credit Bond Index Fund iShares U.S. Intermediate Government Bond Index Fund iShares U.S. Long Credit Bond Index Fund iShares U.S. Long Government Bond Index Fund iShares U.S. Securitized Bond Index Fund
BlackRock Funds II BlackRock 20/80 Target Allocation Fund BlackRock 40/60 Target Allocation Fund BlackRock 60/40 Target Allocation Fund BlackRock 80/20 Target Allocation Fund BlackRock Dynamic High Income Portfolio BlackRock Global Dividend Portfolio BlackRock Managed Income Fund BlackRock Multi-Asset Income Portfolio BlackRock Retirement Income 2030 Fund
BlackRock Funds III BlackRock Cash Funds: Institutional BlackRock Cash Funds: Treasury BlackRock Diversified Equity Alpha Fund BlackRock Diversified Fixed Income Fund BlackRock LifePath ® Dynamic Retirement Fund BlackRock LifePath ® Dynamic 2030 Fund BlackRock LifePath ® Dynamic 2035 Fund BlackRock LifePath ® Dynamic 2040 Fund BlackRock LifePath ® Dynamic 2045 Fund
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BlackRock LifePath ® Dynamic 2050 Fund BlackRock LifePath ® Dynamic 2055 Fund BlackRock LifePath ® Dynamic 2060 Fund BlackRock LifePath ® Dynamic 2065 Fund BlackRock LifePath ® Dynamic 2070 Fund BlackRock LifePath ® ESG Index Retirement Fund BlackRock LifePath ® ESG Index 2030 Fund BlackRock LifePath ® ESG Index 2035 Fund BlackRock LifePath ® ESG Index 2040 Fund BlackRock LifePath ® ESG Index 2045 Fund BlackRock LifePath ® ESG Index 2050 Fund BlackRock LifePath ® ESG Index 2055 Fund BlackRock LifePath ® ESG Index 2060 Fund BlackRock LifePath ® ESG Index 2065 Fund BlackRock LifePath ® ESG Index 2070 Fund BlackRock LifePath ® Index Retirement Fund BlackRock LifePath ® Index 2030 Fund BlackRock LifePath ® Index 2035 Fund BlackRock LifePath ® Index 2040 Fund BlackRock LifePath ® Index 2045 Fund BlackRock LifePath ® Index 2050 Fund BlackRock LifePath ® Index 2055 Fund BlackRock LifePath ® Index 2060 Fund BlackRock LifePath ® Index 2065 Fund BlackRock LifePath ® Index 2070 Fund iShares MSCI Total International Index Fund iShares Russell 1000 Large-Cap Index Fund iShares S&P 500 Index Fund iShares U.S. Aggregate Bond Index Fund
BlackRock Funds IV BlackRock Credit Relative Value Fund BlackRock Systematic Multi-Strategy Fund
BlackRock Funds V BlackRock Core Bond Portfolio BlackRock Floating Rate Income Portfolio BlackRock High Yield Portfolio BlackRock Income Fund BlackRock Inflation Protected Bond Portfolio BlackRock Low Duration Bond Portfolio BlackRock Strategic Income Opportunities Portfolio
BlackRock Funds VI BlackRock Advantage CoreAlpha Bond Fund
BlackRock Global Allocation Fund, Inc.
BlackRock Index Funds, Inc. iShares MSCI EAFE International Index Fund iShares Russell 2000 Small-Cap Index Fund
BlackRock International Select Equity Fund
BlackRock Large Cap Focus Growth Fund, Inc.
BlackRock Large Cap Focus Value Fund, Inc.
BlackRock Large Cap Series Funds, Inc. BlackRock Advantage Large Cap Core Fund BlackRock Advantage Large Cap Value Fund BlackRock Event Driven Equity Fund
BlackRock Liquidity Funds FedFund MuniCash TempCash BlackRock Select Treasury Based Liquidity Fund T-Fund Treasury Trust Fund
BlackRock Mid-Cap Value Series, Inc. BlackRock Mid-Cap Value Fund
BlackRock Multi-State Municipal Series Trust BlackRock New Jersey Municipal Bond Fund BlackRock New York Municipal Opportunities Fund BlackRock Pennsylvania Municipal Bond Fund
BlackRock Municipal Bond Fund, Inc. BlackRock National Municipal Fund BlackRock Short Duration Muni Fund
BlackRock Municipal Series Trust BlackRock Strategic Municipal Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Series Fund, Inc. BlackRock Advantage Large Cap Core Portfolio BlackRock Balanced Portfolio BlackRock Capital Appreciation Portfolio BlackRock Global Allocation Portfolio BlackRock Government Money Market Portfolio
BlackRock Series Fund II, Inc. BlackRock High Yield Portfolio
BlackRock Series, Inc. BlackRock International Fund
BlackRock Strategic Global Bond Fund, Inc.
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BlackRock Unconstrained Equity Fund
BlackRock Variable Series Funds, Inc. BlackRock 60/40 Target Allocation ETF V.I. Fund BlackRock Advantage Large Cap Core V.I. Fund BlackRock Advantage Large Cap Value V.I. Fund BlackRock Advantage SMID Cap V.I. Fund BlackRock Basic Value V.I. Fund BlackRock Capital Appreciation V.I. Fund BlackRock Equity Dividend V.I. Fund BlackRock Global Allocation V.I. Fund
BlackRock Government Money Market V.I. Fund BlackRock International Index V.I. Fund BlackRock International V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund BlackRock Managed Volatility V.I. Fund BlackRock S&P 500 Index V.I. Fund BlackRock Small Cap Index V.I. Fund
BlackRock Variable Series Funds II, Inc. BlackRock High Yield V.I. Fund BlackRock Total Return V.I. Fund
Shareholders should retain this Supplement for future reference.
SAI-GLOBAL-0926SUP
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BLACKROCK VARIABLE SERIES FUND, INC. BlackRock Managed Volatility V.I. Fund (the “Fund”)
Supplement dated May 26, 2026 to the Statement of Additional Information (“SAI”) of the Fund, dated May 1, 2026, as supplemented to date
Effective immediately, the following changes are made to the Fund’s SAI:
All references to “the Subsidiary” in the SAI are hereby removed and replaced with “the Global Allocation Subsidiary.”
The second table on page I-11 of the Fund’s SAI under the section entitled “I. Investment Objective and Policies” is removed and replaced with the following:
BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund
Asset-Backed Securities X Asset-Backed Securities X X Precious Metal-Related Securities X X X X
Borrowing and Leverage X X X X
Cash Management X X X X Collateralized Debt Obligations X
Collateralized Bond Obligations X
Collateralized Loan Obligations X Commercial Paper X X X X
Commodity-Linked Derivative Instruments and Hybrid Instruments
X X
Qualifying Hybrid Instruments X
Hybrid Instruments Without Principal Protection X
Limitations on Leverage X Counterparty Risk X
Convertible Securities X X Corporate Loans X Direct Lending
The section entitled “I. Investment Objective and Policies — Regulation Regarding Derivatives” is amended to add the following:
BlackRock Managed Volatility V.I. Fund’s primary vehicle for gaining exposure to the commodities markets is expected to be through investments in BlackRock Cayman Managed Volatility V.I. Fund, Ltd., a wholly owned subsidiary of BlackRock Managed Volatility V.I. Fund formed in the Cayman Islands (the “Managed Volatility Subsidiary”), which invests primarily in commodity-related instruments. The Managed Volatility Subsidiary may also hold cash and invest in other instruments, including fixed-income securities, either as investments or to serve as margin or collateral for the Managed Volatility Subsidiary’s derivative positions.
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The section entitled “I. Investment Objective and Policies — Investments in the Subsidiary” is amended to add the following:
Investments in the Subsidiary — BlackRock Cayman Managed Volatility V.I. Fund, Ltd.
BlackRock Managed Volatility V.I. Fund may invest up to 25% of its total assets in the shares of its wholly-owned and controlled Managed Volatility Subsidiary. Investments in th e Managed Volatility Subsidiary are expected to provide the BlackRock Managed Volatility V.I. Fund with exposur e to the commodity markets within the limitations of Subchapter M of the Internal Revenue Code of 1986. The Subsidiary is advised by the Manager. The Managed Volatility Subsidiary (unlike BlackRock Managed Volatility V V.I. Fund) may invest without limitation in commodity related instruments. However, the Managed Volatility Subsidiary is otherwise subject to the same fundamental, non-fundamental and certain other investment restrictions as the BlackRock Managed Volatility V.I. Fund, including the timing and method of the valuation of the Managed Volatility Subsidiary’s portfolio investments and shares of the Managed Volatility Subsidiary. The Managed Volatility Subsid iary is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by BlackRock Managed Volatility V.I Fund. The Managed Volatility Subsidiary is a company organized under the laws of the Cayman Islands, and is overseen by its own board of directors, which is comprised of John M. Perlowski, a Trustee, President and Chief Executive Officer of BlackRock Managed Volatility V.I Fund, and Trent Walker, Chief Financial Officer of BlackRock Managed Volatility V.I Fund. BlackRock Managed Volatility V.I Fund is the sole shareholder of the Managed Volatility Subsidiary, and shares of the Managed Vola tility Subsidiary will not be sold or offered to other investors.
The Managed Volatility Subsidiary invests primarily in commodity-related instruments. Although BlackRock Managed Volatility V.I Fund may invest in these commodity-related instruments directly, BlackRock Managed Volatility V.I Fund will likely gain exposure to these commodity-related instruments indirectly by investing in the Managed Volatility Subsidiary. To the extent that BlackRock believes that these commodity-related instruments provide suitable exposure to the commodities market, BlackRock Managed Volatility V.I Fund’s investment in the Managed Volatility Subsidiary will likely increase. The Managed Volatility Subsidiary may also hold cash and invest in other instruments, including fixed income securities, either as investments or to serve as margin or collateral for the Managed Volatility Subsidiary’s derivative positions.
The Manager manages the assets of the Managed Volatility Subsidiary pursuant to a separate investment management agreement (the “Subsidiary Management Agreement”), but receives no additional compensation for doing so. The Manager has entered into sub-advisory agreements with BlackRock International Limited (“BIL”), BlackRock Asset Management North Asia Limited (“BAMNAL”) and BlackRock (Singapore) Limited (“BSL” and together with BIL and BAMNAL, the “Sub-Advisers”) with respect to the Managed Volatility Subsidiary. BlackRock also provides certain administrative services for the Managed Volatility Subsidiary, but receives no additional compensation for doing so. The Managed Volatility Subsidiary will also enter into separate contracts for the provision of custody, accounting agent and audit services with the same or with affiliates of the same service providers that provide those services to BlackRock Managed Volatility V.I Fund.
The financial statements of the Managed Volatility Subsidiary will be consolidated with BlackRock Managed Volatility V.I Fund’s financial statements in BlackRock Managed Volatility V.I Fund’s annual and semi-annual reports. BlackRock Managed Volatility V.I Fund’s Annual and Semi-Annual Financial Statements and Additional Information are filed with the SEC on Form N-CSR and are provided without charge upon request as indicated on the front cover of this SAI.
The Managed Volatility Subsidiary is not registered under the Investment Company Act, and, unless otherwise noted in BlackRock Managed Volatility V.I Fund’s prospectus or this SAI, is not subject to all the investor protections of the Investment Company Act. However, BlackRock Managed Volatility V.I Fund wholly owns and controls the Managed Volatility Subsidiary, and BlackRock Managed Volatility V.I Fund and the Managed Volatility Subsidiary are both managed by BlackRock, making it unlikely that the Managed Volatility Subsidiary will take action contrary to the interests of BlackRock Managed Volatility V.I Fund and its shareholders. BlackRock Managed Volatility V.I Fund’s Board of Trustees has oversight responsibility for the investment
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activities of BlackRock Managed Volatility V.I Fund, including BlackRock Managed Volatility V.I Fund’s investment in the Managed Volatility Subsidiary, and BlackRock Managed Volatility V.I Fund’s role as sole shareholder of the Managed Volatility Subsidiary. As noted above, the Managed Volatility Subsidiary will be subject to the same investment restrictions and limitations as the BlackRock Managed Volatility V.I. Fund.
The Managed Volatility Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by the BlackRock Managed Volatility V.I. Fund. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the BlackRock Managed Volatility V.I. Fund and/or the Managed Volatility Subsidiary to operate as described in the BlackRock Managed Volatility V.I. Fund’s prospectus and this SAI and could adversely affect BlackRock Managed Volatility V.I Fund. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Managed Volatility Subsidiary. If Cayman Islands law changes such that the Managed Volatility Subsidiary must pay Cayman Islands taxes, shareholders of BlackRock Managed Volatility V.I. Fund would likely suffer decreased investment returns.
The Managed Volatility Subsidiary itself is not expected to be subject to U.S. federal income tax. The Managed Volatility Subsidiary will, however, be considered a controlled foreign corporation, and BlackRock Managed Volatility V.I. Fund will be required to include as income annually amounts earned by the Managed Volatility Subsidiary during that year, whether or not the Managed Volatility Subsidiary distributes such amounts to the BlackRock Managed Volatility V.I. Fund. Gains from the sales of investments by the Managed Volatility Subsidiary will not be eligible for capital gains treatment but instead will be treated as ordinary income when included in income by the BlackRock Managed Volatility V.I. Fund. Furthermore, the requirement for the BlackRock Managed Volatility V.I. Fund to distribute net investment income, if any, and net realized capital gain, if any, at least annually will apply to such Managed Volatility Subsidiary income, whether or not the Managed Volatility Subsidiary makes a distribution to the BlackRock Managed Volatility V.I. Fund during the taxable year. If the Managed Volatility Subsidiary incurs net losses in any year, such losses will not offset the BlackRock Managed Volatility V.I. Fund’s income or gains nor carryforward to future years.
The section entitled “II. Investment Restrictions - Restrictions Applicable to each of the Funds (Except BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Government Money Market V.I. Fund, BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund)” is amended to add the following:
The Managed Volatility Subsidiary will follow BlackRock Managed Volatility V.I. Fund’s fundamental and non-fundamental investment restrictions, described above, with respect to its investments.
The title of the subsection entitled “IV. Management, Advisory and Other Service Arrangements — Organization and Management of Wholly-Owned Subsidiary” is deleted in its entirety and replaced with the following: “IV. Management, Advisory and Other Service Arrangements — Organization and Management of Wholly-Owned Subsidiary — BlackRock Global Allocation V.I. Fund”
The section entitled “IV. Management, Advisory and Other Service Arrangements” is amended to add the following:
Organization and Management of Wholly-Owned Subsidiary — BlackRock Managed Volatility V.I. Fund
BlackRock Managed Volatility V.I. Fund intends to gain exposure to commodity markets by investing up to 25% of its total assets in the Managed Volatility Subsidiary. The Managed Volatility Subsidiary invests primarily in commodity-related instruments.
The Managed Volatility Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman KYI-1104, Cayman Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised of John M. Perlowski and Trent Walker.
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The Manager provides investment management and administrative services to the Managed Volatility Subsidiary. The Manager does not receive separate compensation from the Managed Volatility Subsidiary for providing it with investment advisory or administrative services. However, BlackRock Managed Volatility V.I. Fund pays the Manager based on BlackRock Managed Volatility V.I. Fund’s assets, including the assets invested in the Managed Volatility Subsidiary. BlackRock has entered into sub-advisory agreements with each of BlackRock International Limited, BlackRock Asset Management North Asia Limited and BlackRock (Singapore) Limited with respect to the Managed Volatility Subsidiary. The Managed Volatility Subsidiary entered into contracts for the provision of custody, accounting agent and audit services with the same service providers that provide those services to BlackRock Managed Volatility V.I. Fund.
The Managed Volatility Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by BlackRock Managed Volatility V.I. Fund. As a result, the Manager, in managing the Managed Volatility Subsidiary’s portfolio, is subject to the same investment policies and restrictions that apply to the management of BlackRock Managed Volatility V.I. Fund, and, in particular, to the requirements relating to portfolio leverage, liquidity, brokerage, and the timing and method of the valuation of the Managed Volatility Subsidiary’s portfolio investments and shares of the Managed Volatility Subsidiary. These policies and restrictions are described elsewhere in detail in this SAI. BlackRock Managed Volatility V.I Fund and the Managed Volatility Subsidiary test for compliance with certain investment restrictions on a consolidated basis.
The section entitled “VI. Computation of Offering Price Per Share” is deleted in its entirety and replaced with the following:
The offering price for each Fund’s shares is equal to the net asset value computed by dividing the value of the Fund’s net assets by the number of shares outstanding. For more information on the purchasing and valuation of shares, please see “Purchase of Shares” and “Pricing of Shares” in Part II of this SAI. Each of the Global Allocation Subsidiary and the Managed Volatility Subsidiary is subject to the same valuation policies as BlackRock Global Allocation V.I. Fund and BlackRock Managed Volatility V.I. Fund, as applicable, as described in “Pricing of Shares” in Part II of this SAI. BlackRock Global Allocation V.I. Fund’s investment in the Global Allocation Subsidiary and BlackRock Managed Volatility V.I. Fund’s investments in the Managed Volatility Subsidiary are valued based on the value of the applicable subsidiary’s portfolio investments. Each of the Global Allocation Subsidiary and the Managed Volatility Subsidiary prices its portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by BlackRock Global Allocation V.I. Fund and BlackRock Managed Volatility V.I. Fund, as applicable, which require, among other things, that the subsidiary’s portfolio investments be marked-to-market (that is, the value on the subsidiary’s books changes) each business day to reflect changes in the market value of the investment.
Shareholders should retain this Supplement for future reference.
SAI-MVVI-0526SUP
4
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STATEMENT OF ADDITIONAL INFORMATION
BlackRock Variable Series Funds, Inc.
100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 537-4942
BlackRock Variable Series Funds, Inc. (the “Company”) is an open-end management investment company which has a wide range of investment objectives among its fifteen separate funds (hereinafter referred to as the “Funds” or individually as a “Fund”): BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage SMID Cap V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Capital Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global Allocation V.I. Fund, BlackRock Government Money Market V.I. Fund, BlackRock International V.I. Fund, BlackRock International Index V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, BlackRock Managed Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. Fund. Three separate classes of shares (“Shares”), Class I Shares, Class II Shares and Class III Shares, may be issued, as applicable, for each Fund. This Statement of Additional Information of the Company is not a prospectus and should be read in conjunction with the Prospectuses of the Funds, each dated May 1, 2026 as they may be amended or supplemented from time to time (each, a “Prospectus”), which have been filed with the Securities and Exchange Commission (the “Commission” or the “SEC”) and can be obtained, without charge, by calling (800) 537-4942 or by writing to the Company at the above address. Part I of this Statement of Additional Information and the portions of Part II of this Statement of Additional Information that relate to each Fund have been incorporated by reference into each Fund’s Prospectus. The portions of Part II of this Statement of Additional Information that do not relate to the Funds do not form a part of the Funds’ Statement of Additional Information, have not been incorporated by reference into each Fund’s Prospectus and should not be relied upon by investors in the Funds. The audited financial statements of the Funds are incorporated into this Statement of Additional Information by reference to the Funds’ Annual Financial Statements and Additional Information for the fiscal year ended December 31, 2025, as filed with the SEC on Form N-CSR (the “2025 Annual Financial Statements”). You may request a copy of the 2025 Annual Financial Statements at no charge by calling (800) 537-4942 between 8:00 a.m. and 6:00 p.m. Eastern time on any business day.
References to the Investment Company Act of 1940, as amended (the “Investment Company Act” or the “1940 Act”), or other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the Commission, Commission staff or other authority.
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The date of this Statement of Additional Information is May 1, 2026.
BlackRock 60/40 Target Allocation ETF V.I. Fund (Class I, Class III) BlackRock Advantage Large Cap Core V.I. Fund (Class I, Class II, Class III) BlackRock Advantage Large Cap Value V.I. Fund (Class I, Class III) BlackRock Advantage SMID Cap V.I. Fund (Class I, Class III) BlackRock Basic Value V.I. Fund (Class I, Class III) BlackRock Capital Appreciation V.I. Fund (Class I, Class III) BlackRock Equity Dividend V.I. Fund (Class I, Class III) BlackRock Global Allocation V.I. Fund (Class I, Class II, Class III) BlackRock Government Money Market V.I. Fund (Class I) BlackRock International Index V.I. Fund (Class I, Class III) BlackRock International V.I. Fund (Class I) BlackRock Large Cap Focus Growth V.I. Fund (Class I, Class III) BlackRock Managed Volatility V.I. Fund (Class I, Class III) BlackRock S&P 500 Index V.I. Fund (Class I, Class II, Class III) BlackRock Small Cap Index V.I. Fund (Class I, Class III)
BlackRock Advisors, LLC — Manager
BlackRock Investments, LLC — Distributor
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TABLE OF CONTENTS
Page PART I Investment Objectives and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2 Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19 Information on Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24 Management, Advisory and Other Service Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-35 Information on Distribution Related Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-50 Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-52 Portfolio Transactions and Brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-52 Purchase of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-60 Special Tax Rules Applicable to Variable Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-60 Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-62 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-69
PART II (All Funds Except BlackRock Global Allocation V.I. Fund and BlackRock Government
kd) (p
Money Market V.I. Fund) Investment Risks and Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1 Management and Other Service Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-103 Selective Disclosure of Portfolio Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-106 Purchase of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-124 Redemption of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-144 Shareholder Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-148 Pricing of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-153 Portfolio Transactions and Brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-156 Dividends and Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-161 Performance Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-171 Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-173 General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-174 Appendix A — Description of Bond Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B — Proxy Voting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1
PART II (BlackRock Global Allocation V.I. Fund) Investment Risks and Considerations ................................................ II-1 Management and Other Service Arrangements ......................................... II-103 Selective Disclosure of Portfolio Holdings ............................................. II-106 Purchase of Shares ............................................................... II-124 Redemption of Shares ............................................................. II-144 Shareholder Services .............................................................. II-148 Pricing of Shares ................................................................. II-153 Portfolio Transactions and Brokerage ................................................ II-156 Dividends and Taxes .............................................................. II-161 Performance Data ................................................................ II-171 Proxy Voting Policies and Procedures ................................................ II-173 General Information .............................................................. II-174 Appendix A — Description of Bond Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B — Proxy Voting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1
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Page PART II (BlackRock Government Money Market V.I. Fund) Investment Risks and Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1 Management and Other Service Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-15 Purchase of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-29 Redemption of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-49 Determination of Net Asset Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-53 Yield Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-55 Portfolio Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-56 Dividends and Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-57 Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-61 General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-61 Appendix A — Description of Bond Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B — Proxy Voting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1
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P ART I: I NFORMATION A BOUT THE F UND
Part I of this Statement of Additional Information (“SAI”) sets forth information about each Fund. It includes information about the Company’s Board of Directors (the “Board” or the “Board of Directors”), the management services provided to and the management fees paid by each Fund and information about other fees applicable to and services provided to each Fund. This Part I of this SAI should be read in conjunction with each Fund’s Prospectus and those portions of Part II of this SAI that pertain to the Funds.
Shares of each Fund are sold to separate accounts (“Separate Accounts”) of insurance companies (“Insurance Companies”) to fund certain variable life insurance and/or variable annuity contracts (together, “Contracts”) issued by such companies. Certain Insurance Companies may be affiliates of BlackRock Advisors, LLC (“BlackRock” or the “Manager”). The rights of the Insurance Companies as shareholders should be distinguished from the rights of a Contract owner, which are set forth in the Contract. A Contract owner has no interest in the shares of each Fund, but only in the Contract. A Contract is described in the prospectus for that Contract. That prospectus describes the relationship between increases or decreases in the net asset value of shares of each Fund, and any distributions on such shares, and the benefits provided under a Contract. The prospectus for the Contracts also describes various fees payable to the Insurance Companies and charges to the Separate Accounts made by the Insurance Companies with respect to the Contracts. Since shares of the Funds will be sold only to the Insurance Companies for the Separate Accounts, the terms “shareholder” and “shareholders” in this SAI refer to the Insurance Companies.
I. Investment Objectives and Policies
Please see the section “Details About the Fund — How the Fund Invests” in each Fund’s Prospectus for information about the Fund’s investment objective and policies.
The Funds that are subject to Rule 35d-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), will not change their inv estment policies required by that rule without giving shareholders 60 days’ prior written notice.
Set forth below is a listing of some of the types of investments and investment strategies that a Fund may use, and the risks and considerations associated with those inv estments and investment strategies. Please see Part II of this SAI for further information on these investments and investment strategies. Information contained in Part II about the risks and considerations associated with investments and/or investment strategies applies only to the extent a Fund makes each type of investment or uses each investment strategy. Also set forth below is a listing of the proxy voting policy and related guidelines applicable to the Fund. Please see “Proxy Voting Policies and Procedures” in Part II of this SAI for further information about these policies. A copy of each policy is included in Appendix B. Information that does not apply to the Fund does not form a part of the Fund’s SAI and should not be relied on by investors in the Fund.
Only information that is clearly identified as applic able to a Fund is considered to form a part of that Fund’s SAI.
BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund
BlackRock Basic Value V.I. Fund Asset-Backed Securities X Asset-Based Securities X XXX Precious Metal-Related Securities X X X X Borrowing and Leverage X XXX X Cash Management X XXX X
I-2
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BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund
BlackRock Basic Value V.I. Fund Collateralized Debt Obligations X Collateralized Bond Obligations X Collateralized Loan Obligations X Commercial Paper X XXX X Commodity-Linked Derivative Instruments and Hybrid Instruments X XX Qualifying Hybrid Instruments X Hybrid Instruments Without Principal Protection X Limitations on Leverage X Counterparty Risk X X Convertible Securities X XXX X Corporate Loans X Direct Lending Credit Linked Securities X XXX Debt Securities X XXX X Floating and Variable Rate Securities X Inflation-Indexed Bonds X Investment Grade Debt Obligations X X X X X High Yield Investments (“Junk Bonds”) X X Mezzanine Investments X Pay-in-kind Bonds X X Supranational Entities X Depositary Receipts (ADRs, EDRs and GDRs) X XXX X Derivatives XXX X Hedging X X X X Speculation X X X X Risk Factors in Derivatives X X X X Correlation Risk X X X X Counterparty Risk X X X X Credit Risk X X X X Currency Risk X X X X Illiquidity Risk X X X X Index Risk X X X X Legal Risk X X X X Leverage Risk X X X X Market Risk X X X X Operational Risk X X X X Valuation Risk X X X X Volatility Risk X X X X Futures X X X X Swap Agreements X X X X Credit Default Swaps and Similar Instruments X X X X
I-3
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BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund
BlackRock Basic Value V.I. Fund Interest Rate Swaps, Floors and Caps X X X X Total Return Swaps X X X X Options X X X X Options on Securities and Securities Indices X X X X Call Options X X X X Put Options X X X X Options on Government National Mortgage Association (“GNMA”) Certificates X X X X Options on Swaps (“Swaptions”) X X X X FLEX Options X Foreign Exchange Transactions X X X X Spot Transactions and FX Forwards X X X X Currency Futures X X X X Currency Options X X X X Currency Swaps X X X X Distressed Securities X XX X Environmental, Social and Governance (“ESG”) Integration X XXX X Equity Securities X XXX X Real Estate-Related Securities X X X X X Securities of Smaller or Emerging Growth Companies X X X X X Tracking Stocks X Exchange-Traded Notes (“ETNs”) X Foreign Investments X XXX X Foreign Investment Risks X X X X X Foreign Market Risk X X X X X Foreign Economy Risk X X X X X Currency Risk and Exchange Risk X X X X X Governmental Supervision and Regulation/Accounting Standards X X X X X Certain Risks of Holding Fund Assets Outside the United States X X X X X Publicly Available Information X X X X X Settlement Risk X X X X X Sovereign Debt X X X X X Withholding Tax Reclaims Risk X X X X X U.S. Economic Trading Partners Risk X X X X X Funding Agreements XX Guarantees X Illiquid Investments X XXX X Index Funds X Cash Flows; Expenses X Tracking Error Risk X S&P 500 Index X
I-4
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BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund
BlackRock Basic Value V.I. Fund Russell Indexes X MSCI Indexes X FTSE Indexes X Bloomberg Indexes X ICE BofA Indexes X Indexed and Inverse Securities X XXX X Inflation Risk X XXX X Initial Public Offering (“IPO”) Risk X XXX X Investment in Emerging Markets X XXX X Brady Bonds X China Investments Risk X X Investment in Other Investment Companies X XXX X Exchange-Traded Funds X X X X X Issuer Insolvency Risk X XX X Lease Obligations X Life Settlement Investments X Liquidity Risk Management X XXX X Master Limited Partnerships X XXX X Merger Transaction Risk X XXX X Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks X XXX X Money Market Securities X XXX X Mortgage-Related Securities X Mortgage-Backed Securities X Collateralized Mortgage Obligations (“CMOs”) X Adjustable Rate Mortgage Securities X CMO Residuals X Stripped Mortgage-Backed Securities X Tiered Index Bonds X TBA Commitments X Mortgage Dollar Rolls X Net Interest Margin (NIM) Securities X Municipal Investments X Risk Factors and Special Considerations Relating to Municipal Bonds X Description of Municipal Bonds X General Obligation Bonds X Revenue Bonds X Private Activity Bonds (“PABs”) X Moral Obligation Bonds X Municipal Notes X Municipal Commercial Paper X Municipal Lease Obligations X
I-5
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BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund
BlackRock Basic Value V.I. Fund Tender Option Bonds X Yields X Variable Rate Demand Obligations (“VRDOs”) X Transactions in Financial Futures Contracts on Municipal Indexes X Call Rights X Municipal Interest Rate Swap Transactions X Insured Municipal Bonds X Build America Bonds X Tax-Exempt Municipal Investments X Operational and Technology Risk X XXX X Participation Notes X Portfolio Turnover Rates X XXX Preferred Stock X XXX X Tax-Exempt Preferred Shares X Trust Preferred Securities X X Proxy Voting Policies X XXX X Open-End Active and Fixed Income Index Fund Proxy Voting Policy X X X X X BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship Guidelines Index Equity Fund Proxy Voting Policy BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines Real Estate Investment Trusts (“REITs”) X XXX X Recent Market Events X XXX X Reference Rate Replacement Risk X XXX X Repurchase Agreements and Purchase and Sale Contracts X XXX X Restricted Securities X XXX X Reverse Repurchase Agreements X XXX X Rights Offerings and Warrants to Purchase X XXX X Rule 144A Securities X XXX X Securities Lending X XXX X Short Sales X See Note 1 below See Note 1 below See Note 1 below See Note 1 below Special Purpose Acquisition Companies X XXX X Standby Commitment Agreements X XXX X Stripped Securities X Structured Notes XX Taxability Risk X Temporary Defensive Measures X XXX X U.S. Government Obligations X XXX X U.S. Treasury Obligations X X X X X U.S. Treasury Rolls X
I-6
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BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund
BlackRock Basic Value V.I. Fund Utility Industries X XXX X When-Issued Securities, Delayed Delivery Securities and Forward Commitments X XXX X Yields and Ratings XX Zero Coupon Securities XX
1 The Fund may only make short sales “against the box.”
BlackRock Capital Appreciation V.I. Fund
BlackRock Equity Dividend V.I. Fund
BlackRock Global Allocation V.I. Fund
BlackRock International Index V.I. Fund
BlackRock International V.I. Fund Asset-Backed Securities XX Asset-Based Securities X XXX X Precious Metal-Related Securities X X X X X Borrowing and Leverage X XXX X Cash Management X XXX X Collateralized Debt Obligations X Collateralized Bond Obligations X Collateralized Loan Obligations X Commercial Paper X XXX X Commodity-Linked Derivative Instruments and Hybrid Instruments X Qualifying Hybrid Instruments X Hybrid Instruments Without Principal Protection X Limitations on Leverage X Counterparty Risk X Convertible Securities X XX X Corporate Loans X Direct Lending Credit Linked Securities X Debt Securities X XX X Floating and Variable Rate Securities X X Inflation-Indexed Bonds X Investment Grade Debt Obligations X X X X High Yield Investments (“Junk Bonds”) X X Mezzanine Investments X Pay-in-kind Bonds X Supranational Entities X X Depositary Receipts (ADRs, EDRs and GDRs) X XXX X Derivatives X XXX X Hedging X X X X X Speculation X X X X X Risk Factors in Derivatives X X X X X Correlation Risk X X X X X
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BlackRock Capital Appreciation V.I. Fund
BlackRock Equity Dividend V.I. Fund
BlackRock Global Allocation V.I. Fund
BlackRock International Index V.I. Fund
BlackRock International V.I. Fund Counterparty Risk X X X X X Credit Risk X X X X X Currency Risk X X X X X Illiquidity Risk X X X X X Index Risk X X X X X Legal Risk X X X X X Leverage Risk X X X X X Market Risk X X X X X Operational Risk X X X X X Valuation Risk X X X X X Volatility Risk X X X X X Futures X X X X X Swap Agreements X X X X X Credit Default Swaps and Similar Instruments X X X X X Interest Rate Swaps, Floors and Caps X X X X X Total Return Swaps X X X X X Options X X X X X Options on Securities and Securities Indices X X X X X Call Options X X X X X Put Options X X X X X Options on Government National Mortgage Association (“GNMA”) Certificates X X X X X Options on Swaps (“Swaptions”) X X X X X FLEX Options X X Foreign Exchange Transactions X X X X X Spot Transactions and FX Forwards X X X X X Currency Futures X X X X X Currency Options X X X X X Currency Swaps X X X X X Digital Asset Exposure X Distressed Securities X Environmental, Social and Governance (“ESG”) Integration X XX X Equity Securities X XXX X Real Estate-Related Securities X X X X X Securities of Smaller or Emerging Growth Companies X X X X X Tracking Stocks X X X Exchange-Traded Notes (“ETNs”) X Foreign Investments X XXX X Foreign Investment Risks X X X X X Foreign Market Risk X X X X X Foreign Economy Risk X X X X X Currency Risk and Exchange Risk X X X X X
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BlackRock Capital Appreciation V.I. Fund
BlackRock Equity Dividend V.I. Fund
BlackRock Global Allocation V.I. Fund
BlackRock International Index V.I. Fund
BlackRock International V.I. Fund Governmental Supervision and Regulation/Accounting Standards X XXX X Certain Risks of Holding Fund Assets Outside the United States X XXX X Publicly Available Information X X X X X Settlement Risk X X X X X Sovereign Debt X X X X X Withholding Tax Reclaims Risk X X X X X U.S. Economic Trading Partners Risk X X X X X Funding Agreements Guarantees X Illiquid Investments X XXX X Index Funds X Cash Flows; Expenses X Tracking Error Risk X S&P 500 Index Russell Indexes MSCI Indexes X FTSE Indexes Bloomberg Indexes ICE BofA Indexes Indexed and Inverse Securities X XXX X Inflation Risk X XXX X Initial Public Offering (“IPO”) Risk X XXX X Investment in Emerging Markets X XXX X Brady Bonds X China Investments Risk X X X X X Investment in Other Investment Companies X XXX X Exchange-Traded Funds X X X X X Issuer Insolvency Risk X Lease Obligations X Life Settlement Investments X Liquidity Risk Management X XXX X Master Limited Partnerships XXX Merger Transaction Risk XX Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks X XXX X Money Market Securities X XXX X Mortgage-Related Securities X XX X Mortgage-Backed Securities X X X Collateralized Mortgage Obligations (“CMOs”) X X Adjustable Rate Mortgage Securities X CMO Residuals X Stripped Mortgage-Backed Securities X
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BlackRock Capital Appreciation V.I. Fund
BlackRock Equity Dividend V.I. Fund
BlackRock Global Allocation V.I. Fund
BlackRock International Index V.I. Fund
BlackRock International V.I. Fund Tiered Index Bonds X TBA Commitments X X X Mortgage Dollar Rolls X Net Interest Margin (NIM) Securities Municipal Investments X Risk Factors and Special Considerations Relating to Municipal Bonds X Description of Municipal Bonds X General Obligation Bonds X Revenue Bonds X Private Activity Bonds (“PABs”) X Moral Obligation Bonds X Municipal Notes X Municipal Commercial Paper X Municipal Lease Obligations X Tender Option Bonds X Yields X Variable Rate Demand Obligations (“VRDOs”) X Transactions in Financial Futures Contracts on Municipal Indexes X Call Rights X Municipal Interest Rate Swap Transactions X Insured Municipal Bonds X Build America Bonds X Tax-Exempt Municipal Investments X Operational and Technology Risk X XXX X Participation Notes XX Portfolio Turnover Rates X XX X Preferred Stock X XXX X Tax-Exempt Preferred Shares X X Trust Preferred Securities X X X X Proxy Voting Policies X XXX X Open-End Active and Fixed Income Index Fund Proxy Voting Policy X X X X BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship Guidelines Index Equity Fund Proxy Voting Policy X BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines Real Estate Investment Trusts (“REITs”) X XXX X Recent Market Events X XXX X Reference Rate Replacement Risk X XXX X Repurchase Agreements and Purchase and Sale Contracts X XXX X
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BlackRock Capital Appreciation V.I. Fund
BlackRock Equity Dividend V.I. Fund
BlackRock Global Allocation V.I. Fund
BlackRock International Index V.I. Fund
BlackRock International V.I. Fund Restricted Securities X XXX X Reverse Repurchase Agreements X XXX X Rights Offerings and Warrants to Purchase X XXX X Rule 144A Securities X XXX X Securities Lending X XXX X Short Sales See Note 2 below See Note 2 below XX See Note 2 below Special Purpose Acquisition Companies X XX X Standby Commitment Agreements X XX X Stripped Securities X Structured Notes XX Taxability Risk X Temporary Defensive Measures X XX X U.S. Government Obligations X XXX X U.S. Treasury Obligations X X X X X U.S. Treasury Rolls Utility Industries X XXX X When-Issued Securities, Delayed Delivery Securities and Forward Commitments X XXX X Yields and Ratings XX Zero Coupon Securities X
2 The Fund may only make short sales “against the box.”
BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund Asset-Backed Securities X Asset-Based Securities XX Precious Metal-Related Securities X X X X Borrowing and Leverage X XXX Cash Management X XXX Collateralized Debt Obligations X Collateralized Bond Obligations X Collateralized Loan Obligations X Commercial Paper X XXX Commodity-Linked Derivative Instruments and Hybrid Instruments X Qualifying Hybrid Instruments Hybrid Instruments Without Principal Protection Limitations on Leverage Counterparty Risk Convertible Securities XX Corporate Loans X Direct Lending
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BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund Credit Linked Securities XX Debt Securities X XXX Floating and Variable Rate Securities X Inflation-Indexed Bonds X Investment Grade Debt Obligations X X High Yield Investments (“Junk Bonds”) X Mezzanine Investments X Pay-in-kind Bonds X Supranational Entities X Depositary Receipts (ADRs, EDRs and GDRs) X XXX Derivatives X XXX Hedging X XXX Speculation X X X X Risk Factors in Derivatives X X X X Correlation Risk X X X X Counterparty Risk X X X X Credit Risk X X X X Currency Risk X X X X Illiquidity Risk X X X X Index Risk X X X X Legal Risk X X X X Leverage Risk X X X X Market Risk X X X X Operational Risk X X X X Valuation Risk X X X X Volatility Risk X X X X Futures X XXX Swap Agreements X X X X Credit Default Swaps and Similar Instruments X X X X Interest Rate Swaps, Floors and Caps X X X X Total Return Swaps X X X X Options X XXX Options on Securities and Securities Indices X X X X Call Options X X X X Put Options X X X X Options on Government National Mortgage Association (“GNMA”) Certificates X X X X Options on Swaps (“Swaptions”) X X X X FLEX Options Foreign Exchange Transactions X X X X Spot Transactions and FX Forwards X X X X Currency Futures X X X X Currency Options X X X X Currency Swaps X X X X
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BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund Distressed Securities XX Environmental, Social and Governance (“ESG”) Integration XX Equity Securities X XXX Real Estate-Related Securities X X X X Securities of Smaller or Emerging Growth Companies X X X X Tracking Stocks Exchange-Traded Notes (“ETNs”) X Foreign Investments X XXX Foreign Investment Risks X X X X Foreign Market Risk X X X X Foreign Economy Risk X X X X Currency Risk and Exchange Risk X X X X Governmental Supervision and Regulation/Accounting Standards X X X X Certain Risks of Holding Fund Assets Outside the United States X X X X Publicly Available Information X X X X Settlement Risk X X X X Sovereign Debt X X X X Withholding Tax Reclaims Risk X X X X U.S. Economic Trading Partners Risk X X X X Funding Agreements X Guarantees X Illiquid Investments X XXX Index Funds XX Cash Flows; Expenses X X X Tracking Error Risk XX S&P 500 Index X Russell Indexes X MSCI Indexes FTSE Indexes Bloomberg Indexes ICE BofA Indexes Indexed and Inverse Securities X XXX Inflation Risk X XXX Initial Public Offering (“IPO”) Risk X XXX Investment in Emerging Markets X XXX Brady Bonds X China Investments Risk X X X Investment in Other Investment Companies X XXX Exchange-Traded Funds X X X X Issuer Insolvency Risk XX Lease Obligations X
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BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund Life Settlement Investments X Liquidity Risk Management X XXX Master Limited Partnerships X XXX Merger Transaction Risk X XX Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks X XXX Money Market Securities X XXX Mortgage-Related Securities X Mortgage-Backed Securities X Collateralized Mortgage Obligations (“CMOs”) X Adjustable Rate Mortgage Securities X CMO Residuals Stripped Mortgage-Backed Securities X Tiered Index Bonds X TBA Commitments X Mortgage Dollar Rolls Net Interest Margin (NIM) Securities X Municipal Investments X Risk Factors and Special Considerations Relating to Municipal Bonds X Description of Municipal Bonds X General Obligation Bonds X Revenue Bonds X Private Activity Bonds (“PABs”) X Moral Obligation Bonds Municipal Notes X Municipal Commercial Paper X Municipal Lease Obligations X Tender Option Bonds X Yields X Variable Rate Demand Obligations (“VRDOs”) X Transactions in Financial Futures Contracts on Municipal Indexes X Call Rights X Municipal Interest Rate Swap Transactions X Insured Municipal Bonds X Build America Bonds X Tax-Exempt Municipal Investments X Operational and Technology Risk X XXX Participation Notes X Portfolio Turnover Rates X XXX Preferred Stock X XXX Tax-Exempt Preferred Shares X Trust Preferred Securities XX
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BlackRock Large Cap Focus Growth V.I. Fund
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund Proxy Voting Policies X XXX Open-End Active and Fixed Income Index Fund Proxy Voting Policy X X BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship Guidelines Index Equity Fund Proxy Voting Policy X X BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines Real Estate Investment Trusts (“REITs”) X XXX Recent Market Events X XXX Reference Rate Replacement Risk X XXX Repurchase Agreements and Purchase and Sale Contracts X XXX Restricted Securities X XXX Reverse Repurchase Agreements X XXX Rights Offerings and Warrants to Purchase X XXX Rule 144A Securities X XXX Securities Lending X XXX Short Sales See Note 3 below X See Note 3 below X Special Purpose Acquisition Companies X Standby Commitment Agreements X Stripped Securities Structured Notes X Taxability Risk Temporary Defensive Measures XX U.S. Government Obligations X XXX U.S. Treasury Obligations X X X X U.S. Treasury Rolls X Utility Industries X XXX When-Issued Securities, Delayed Delivery Securities and Forward Commitments X XXX Yields and Ratings XXX Zero Coupon Securities X
3 The Fund may only make short sales “against the box.”
BlackRock Government Money Market V.I. Fund Bank Money Instruments Commercial Paper and Other Short Term Obligations Environmental, Social and Governance (“ESG”) Integration Foreign Bank Money Instruments Foreign Short Term Debt Instruments Forward Commitments X
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BlackRock Government Money Market V.I. Fund Illiquid Investments X Investment in Other Investment Companies X Municipal Investments Municipal Securities Municipal Securities — Derivative Products Municipal Notes Municipal Commercial Paper Municipal Lease Obligations Municipal Securities — Short-Term Maturity Standards Municipal Securities — Quality Standards Municipal Securities — Other Factors Variable Rate Demand Obligations (“VRDOs”) and Participating VRDOs Operational and Technology Risk X Proxy Voting Policies X Open-End Active and Fixed Income Index Fund Proxy Voting Policy X BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship Guidelines Index Equity Fund Proxy Voting Policy BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines Purchase of Securities with Fixed Price “Puts” Recent Market Events X Repurchase Agreements and Purchase and Sale Contracts X Reverse Repurchase Agreements X Rule 2a-7 Requirements X Securities Lending X Structured Notes Taxable Money Market Securities X U.S. Government Obligations X Variable and Floating Rate Instruments X When-Issued Securities, Delayed Delivery Securities and Forward Commitments X
Insurance Law Restrictions. In order for shares of each Fund to remain eligible investments for the Separate Accounts, it may be necessary, from time to time, for the Fund to limit its investments in certain types of securities in accordance with the insurance laws or regulations of the various states in which the Contracts are sold. New York insurance law requires that investments of each Fund be made with the degree of care of an “ordinarily prudent person.” The Manager believes that compliance with this standard will not have any negative impact on the performance of the Funds.
Other Considerations. The Manager will use its best efforts to assure that each Fund complies with certain investment limitations of the Internal Revenue Service (“IRS”) to assure favorable income tax treatment for the Contracts. It is not expected that such investment limitations will materially affect the ability of each Fund to achieve its investment objective.
Regulation Regarding Derivatives. The Commodity Futures Trading Commission (“CFTC”) subjects advisers to registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either (i) invests, directly or indirectly, more than a prescribed level of its liquidation
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value in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments. The CFTC also subjects advisers to registered investment companies to regulation by the CFTC if the registered investment company invests in one or more commodity pools. To the extent a Fund (other than BlackRock Managed Volatility V.I. Fund) uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments.
BlackRock has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA (“Rule 4.5”) with respect to BlackRock Basic Value V.I. Fund, BlackRock Capita l Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Government Money Market V.I. F und, BlackRock International V.I. Fund, BlackRock International Index V.I. Fund, BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock S&P 500 Index V.I. Fund, BlackRock Small Cap Index V.I. Fund and BlackRock Advantage SMID Cap V.I. Fund. BlackRock is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect of such Funds.
Due to BlackRock Managed Volatility V.I. Fund’s potential use of CFTC Derivatives above the prescribed levels, however, BlackRock Managed Volatility V.I. Fund will be considered a “commodity pool” under the CEA. Accordingly, BlackRock, the adviser of BlackRock Managed Volatility V.I. Fund has registered as a “commodity pool operator” and is subject to CFTC regulation in respect of the Fund.
BlackRock Global Allocation V.I. Fund and BlackRock 60/40 Target Allocation ETF V.I. Fund may also have investments in “underlying funds” (and such underlyi ng funds themselves may invest in underlying funds) not advised by BlackRock (which for purposes of the no-action letter referenced below may include certain securitized vehicles, mortgage real estate investment trusts and/or investment companies that may invest in CFTC Derivatives), and therefore may be viewed by the CFTC as a commodity pool. BlackRock has no transparency into the holdings of these underlying funds because they are not advised by BlackRock. To address this issue of lack of transparency, the CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that invests in such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5 to delay registration as a “commodity pool operator” until six months from the date on which the CFTC issues additional guidance on the treatment of CFTC Derivatives held by underlying funds. BlackRock, the adviser of BlackRock Global Allocation V.I. Fund and BlackRock 60/40 Target Allocation ETF V.I. Fund, has filed a claim with the CFTC for the Funds to rely on this no-action relief. Accordingly, BlackRock is not subject to registration or regulation as a “commodity pool operator” under the CEA in respect of BlackRock Global Allocation V.I. Fund and BlackRock 60/40 Target Allocation ETF V.I. Fund.
BlackRock Global Allocation V.I. Fund’s primary vehicle for gaining exposure to the commodities markets is expected to be through investments in BlackRock Cayman Global Allocation V.I. Fund I, Ltd., a wholly owned subsidiary of BlackRock Global Allocation V.I. Fund formed in the Cayman Islands (the “Global Allocation Subsidiary” or the “Subsidiary”), which inv ests primarily in commodity-related instruments. The Subsidiary may also hold cash and invest in other instruments, including fixed-income securities, either as investments or to serve as margin or collateral for the Subsidiary’s derivative positions.
Investments in the Subsidiary
BlackRock Global Allocation V.I. Fund may invest up to 25% of its total assets in the shares of its wholly owned and controlled Global Allocation Subsidiary. Investments in the Subsidiary are expected to provide BlackRock Global Allocation V.I. Fund with exposure t o the commodity markets within the limitations of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and IRS revenue rulings, as discussed below. The Subsidiary is advised by the Manager. The Subsidiary (unlike BlackRock Global Allocation V.I. Fund) may invest wit hout limitation in commodity-related instruments. However, the Global Allocation Subsidiary is otherwise subject to the same fundamental, non-fundamental and certain other investment restrictions as BlackRock Global Allocation V.I. Fund, including the timing and
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method of the valuation of the Subsidiary’s portfolio investments and shares of the Subsidiary. The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by the Company. The Subsidiary is a company organized under the laws of the Cayman Islands, and is overseen by its own board of directors, which is comprised of Trent Walker, Chief Financial Officer of the Company, and John M. Perlowski, a Director, President and Chief Executive Officer of the Company. BlackRock Global Allocation V.I. Fund is the sole shareholder of the Global Allocation Subsidiary, and shares of the Subsidiary will not be sold or offered to other investors.
The Global Allocation Subsidiary invests primarily in co mmodity-related instruments. Although BlackRock Global Allocation V.I. Fund may enter into these commodity -related instruments directly, BlackRock Global Allocation V.I. Fund will likely gain exposure to these comm odity-related instruments indirectly by investing in the Global Allocation Subsidiary. To the extent that BlackRock believes that these commodity-related instruments provide suitable exposure to the commodities market, BlackRock Global Allocation V.I. Fund’s investments in the Subsidiary will likely increase. The Subsidiary may also hold cash and invest in other instruments, including fixed-income securities, either as investments or to serve as margin or collateral for the Subsidiary’s derivative positions.
The Manager manages the assets of the Subsidiary, but receives no additional compensation for doing so. The Manager also provides certain administrative services for the Subsidiary, but receives no additional compensation for doing so. The Subsidiary will also enter into separate contracts for the provision of advisory, sub-advisory, custody and accounting agent services with the same or with affiliates of the same service providers that provide those services to BlackRock Global Allocation V.I. Fund.
The financial statements of the Global Allocation Subsid iary will be consolidated with the financial statements in the Annual and Semi-Annual Financial Statements and Additional Information of BlackRock Global Allocation V.I. Fund. Copies of BlackRock Global Allocation V.I. Fund’s annual and semi-annual reports and Annual and Semi-Annual Financial Statements and Additional Information are available at no charge upon request as indicated on the front cover of this SAI.
The Subsidiary is not registered under the Investment Company Act, and, unless otherwise noted in BlackRock Global Allocation V.I. Fund’s Prospectus or this SAI, is not subject to all the investor protections of the Investment Company Act. However, BlackRock Global Allocation V.I. Fund wholly owns and controls the Global Allocation Subsidiary and the Fund and Subsidiary are managed by the Manager, making it unlikely that the Subsidiary will take action contrary to the interests of the Fund and its shareholders. The Company’s Board of Directors has oversight responsibility for the investment activities of BlackRock Global Allocation V.I. Fund, including with respect to the Fund’s investment in the Subsidiary, and the Fund’s role as sole shareholder of the Subsidiary. As noted above, the Subsidiary will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as BlackRock Global Allocation V.I. Fund. The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by the Company. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of BlackRock Global Allocation V.I. Fund and/or the Subsidiary to operate as described in BlackRock Global Allocation V.I. Fund’s Prospectus and this SAI, and could adversely affect BlackRock Global Allocation V.I. Fund. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, shareholders of BlackRock Global Allocation V.I. Fund would likely suffer decreased investment returns.
The Subsidiary will not be subject to U.S. federal income tax. The Subsidiary will, however, be considered a controlled foreign corporation, and BlackRock Global Allocation V.I. Fund will be required to include as income annually amounts earned by the Subsidiary during that year, whether or not the Subsidiary distributes such amounts to the Fund. Gains from the sales of investments by the Subsidiary will not be eligible for capital gains treatment but instead will be treated as ordinary income when included in income by the Fund. Furthermore, the requirement for the Fund to distribute net investment income, if any, and net realized capital
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gain, if any, at least annually will apply to such Subsidiary income, whether or not the Subsidiary makes a distribution to the Fund during the taxable year. If the Subsidiary incurs net losses in any year, such losses will not offset the Fund’s income or gains nor carryforward to future years.
II. Investment Restrictions
The Company has adopted the following fundamental and non-fundamental restrictions and policies relating to the investment of the assets of the Funds and their activities. The fundamental policies set forth below may not be changed without the approval of the holders of a majority of the outstanding voting shares of each Fund affected (which for this purpose and under the Investment Company Act means the lesser of (i) 67% of the shares present at a meeting at which more than 50% of the outstanding shares of the affected Fund are represented or (ii) more than 50% of the outstanding shares of the affected Fund). The investment objective of each Fund is fundamental, and as such may not be changed without the approval of the holders of a majority of the outstanding shares of each such Fund, except that the investment objective of each of BlackRock Capital Appreciation V.I. Fund, BlackRock International V.I. Fund, BlackRock International Index V.I. Fund, BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Small Cap Index V.I. Fund and BlackRock Advantage Large Cap Value V.I. Fund is non-fundamental, and as such may be changed by the Company’s Board of Directors without shareholder approval.
Restrictions Applicable to BlackRock Government Money Market V.I. Fund
BlackRock Government Money Market V.I. Fund may not purchase any security other than money market and other securities described under “Investment Objectives and Policies” in BlackRock Government Money Market V.I. Fund’s Prospectus. In addition, BlackRock Government Money Market V.I. Fund may not purchase securities of foreign issuers (including Eurodollar and Yankeedollar obligations). In addition, BlackRock Government Money Market V.I. Fund may not:
(1) invest more than 10% of its total assets (taken at market value at the time of each investment) in the securities (other than U.S. Government or government agency securities) of any one issuer (including repurchase agreements with any one bank) except that up to 25% of the value of the Fund’s total assets may be invested without regard to such 10% limitation.
(2) alone, or together with any other Fund or Funds, make investments for the purpose of exercising control or management. (3) purchase securities of other investment compan ies, except in connection with a merger, consolidation, acquisition or reorganization.
(4) purchase or sell interests in oil, gas or other minera l exploration or development programs, commodities, commodity contracts or real estate, except that the Fund may invest in securities secured by real estate or interests therein or securities issued by companies which invest in real estate or interest therein.
(5) purchase any securities on margin except that the Company may obtain such short-term credit as may be necessary for the clearance of purchases and sales of portfolio securities.
(6) make short sales of securities or maintain a short position or write, purchase or sell puts, calls, straddles, spreads or combination thereof.
(7) make loans to other persons; provided that the Fund may purchase money market securities or enter into repurchase agreements; lend securities owned or held by it pursuant to (8) below; and provided further that for purposes of this restriction the acquisition of a portion of an issue of publicly distributed bonds, debentures or other corporate debt securities or of government obligations, short-term commercial paper, certificates of deposit and bankers’ acceptances shall not be deemed the making of a loan.
(8) lend its portfolio securities in excess of 33 1 / 3 % of its total assets, taken at market value at the time of the loan, provided that such loans are made according to the guidelines set forth below and the guidelines of the
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SEC and the Company’s Board of Directors, including maintaining collateral from the borrower equal at all times to the current market value of the securities loaned.
(9) borrow amounts in excess of 20% of its total assets, taken at market value, and then only from banks as a temporary measure for extraordinary or emergency purposes. The borrowing provisions shall not apply to reverse repurchase agreements. Usually only “leveraged” investment companies may borrow in excess of 5% of their assets; however, the Fund will not borrow to increase income but only to meet redemption requests which might otherwise require untimely dispositions of portfolio securities. The Fund will not purchase securities while borrowings are outstanding.
(10) mortgage, pledge, hypothecate or in any manner transfer (except as provided in (8) above), as security for indebtedness, any securities owned or held by the Fund except as may be necessary in connection with borrowings mentioned in (9) above, and then such mortgaging, pledging or hypothecating may not exceed 25% of the Fund’s total assets, taken at market value at the time thereof. Although the Fund has the authority to mortgage, pledge or hypothecate more than 10% of its total assets under this investment restriction (10), as a matter of operating policy, the Fund will not mortgage, pledge or hypothecate in excess of 10% of total net assets.
(11) act as an underwriter of securities, except insofar as the Fund may be deemed an underwriter under the Securities Act of 1933, as amended (the “Securities Act”), in selling portfolio securities.
(12) purchase, either alone or together with any other Fund or Funds, more than 10% of the outstanding securities of an issuer except that such restriction does not apply to U.S. Government or government agency securities, bank money instruments or repurchase agreements.
(13) invest in securities (except for repurchase agreements or variable amount master notes) with legal or contractual restrictions on resale or for which no readily available market exists or in securities of issuers (other than issuers of government agency securities) having a record, together with predecessors, of less than three years of continuous operation if, regarding all such securities, more than 10% of its total assets (taken at market value) would be invested in such securities.
(14) enter into repurchase agreements if, as a result thereof, more than 10% of the Fund’s total assets (taken at market value at the time of each investment) would be subject to repurchase agreements maturing in more than seven days.
(15) enter into reverse repurchase agreements if, as a result thereof, the Fund’s obligations with respect to reverse repurchase agreements would exceed one-third of the Fund’s net assets (defined to be total assets, taken at market value, less liabilities other than reverse repurchase agreements).
(16) invest more than 25% of its total assets (taken at market value at the time of each investment) in the securities of issuers in any particular industry (other than U.S. Government securities, government agency securities or bank money instruments).
Restrictions Applicable to each of the Funds (Except BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Government Money Market V.I. Fund, BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund)
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Under the Funds’ fundamental investment restrictions , none of the Funds (unless noted otherwise below) may:
1. Make any investment inconsistent with the Fund’s classification as a diversified company under the Investment Company Act. 1
2. Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular industry (excluding the U.S. Government and its agencies and instrumentalities). 2
3. Make investments for the purpose of exercising control or management. 3
4. Purchase or sell real estate, except that the Fund may invest in securities directly or indirectly secured by real estate or interests therein or issued by companies which invest in real estate or interests therein.
5. Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt securities and investment in government obligations, commercial paper, pass-through instruments, certificates of deposit, bankers acceptances, repurchase agreements or any similar instruments shall not be deemed to be the making of a loan, and except further that the Fund may lend its portfolio securities, provided that the lending of portfolio securities may be made only in accordance with applicable law and the guidelines set forth in the Prospectus and Statement of Additional Information, as they may be amended from time to time. 4
6. Issue senior securities to the extent such issuance would violate applicable law.
7. Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company Act) in amounts up to 33 1 / 3 % of its total assets (including the amount borrowed), (ii) the Fund may borrow up to an additional 5% of its total assets for temporary purposes, (iii) the Fund may obtain such short-term credit as may be necessary for the clearance of purchases and sales of portfolio securities and (iv) the Fund may purchase securities on margin to the extent permitted by applicable law. The Fund may not pledge its assets other than to secure such borrowings or, to the extent permitted by the Fund’s investment policies as set forth in the Prospectus and Statement of Additional Information, as they may be amended from time to time, in connection with hedging transactions, short sales, wh en-issued and forward commitment transactions and similar investment strategies. 5
8. Underwrite securities of other issuers except insofar as the Fund technically may be deemed an underwriter under the Securities Act in selling portfolio securities.
9. Purchase or sell commodities or contracts on commodities, except to the extent the Fund may do so in accordance with applicable law and the Prospectus and Statement of Additional Information, as they may be amended from time to time, and without registering as a commodity pool operator under the Commodity Exchange Act.
1 Though BlackRock S&P 500 Index V.I. Fund is classified as a diversified investment company under the Investment Company Act, this restriction is not applicable to that Fund because it was formerly classified as a non-diversified investment company under the Investment Company Act. 2 For purposes of this restriction, states, municipalities and their political subdivisions are not considered to be part of any industry. For purposes of this restriction, each Fund uses the classifications and sub-classifications of MSCI, Inc. (“MSCI”) as a guide to identify industries. To the extent that an industry classification or sub-classification is not provided by MSCI, BlackRock Global Allocation V.I. Fund and BlackRock Managed Volatility V.I. Fund may utilize any one or more of the industry classifications or sub-classifications used by one or more other widely recognized market indexes or rating group indexes, one or more third party providers of industry classifications, and/or as defined by Fund Management. Currently, for industry classifications or sub-classifications not provided by MSCI, BlackRock Global Allocation V.I. Fund and BlackRock Managed Volatility V.I. Fund use the classifications of Barclays PLC. 3 In the case of BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage SMID Cap V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global Allocation V.I. Fund, BlackRock International V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund and BlackRock Managed Volatility V.I. Fund investments in wholly-owned investment entities created under the laws of certain countries will not be deemed to be the making of investments for the purpose of exercising control or management. 4 With respect to restriction 5, BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund may also make loans as permitted by an exemptive order issued to the Fund by the Securities and Exchange Commission. 5 With respect to restriction 7(i), BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund may borrow from entities other than banks.
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Under the Funds’ non-fundamental investment restric tions, which may be changed by the Board of Directors without shareholder approval, none of the F unds (unless noted otherwise below) may:
a. Purchase securities of other investment companies, except to the extent permitted by the Investment Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).
b. Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.
Except with respect to restriction 7, (restriction 9 for BlackRock Government Money Market V.I. Fund), if a percentage restriction on the investment or use of assets set forth above is adhered to at the time a transaction is effected, later changes in percentages resulting from changing values will not be considered a violation.
Each Fund is classified as diversified under the Investment Company Act. This means that the Fund may not purchase securities of an issuer (other than (i) obligati ons issued or guaranteed by the U.S. government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to 75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or (b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. BlackRock S&P 500 Index V.I. Fund intends to be diversified in approximately the same proportion as its Underlying Index (as defined in the Fund’s Prospectus) is diversified. Under the Investment Company Act, a Fund cannot change its classification from diversified to non-diversified without shareholder approval. However, while BlackRock S&P 500 Index V.I. Fund is classified as “diversified,” under applicable no-action relief from the SEC staff, the Fund may become non-diversified, as defined in the Investment Company Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its Underlying Index, and such a change will not require shareholder approval.
The Global Allocation Subsidiary will follow BlackRock Global Allocation V.I. Fund’s fundamental and non-fundamental investment restrictions, described above, with respect to its investments.
Restrictions Applicable to each of BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund
Under the Funds’ fundamental investment restrictions, none of the Funds may:
1. Concentrate its investments in a particular industry, as that term is used in the Investment Company Act. Except that, with respect to BlackRock International I ndex V.I. Fund and BlackRock Small Cap Index V.I. Fund, each Fund will concentrate to approximately the sam e extent that its Underlying Index concentrates in the securities of a particular industry or group of industries.
2. Borrow money, except as permitted under the Investment Company Act.
3. Issue senior securities to the extent such issuance would violate the Investment Company Act.
4. Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mortgage related securities and securities of issuers engaged in the real estate business, and the Fund may purchase and hold real estate as a result of the ownership of securities or other instruments.
5. Underwrite securities issued by others, except to the extent that the sale of portfolio securities by the Fund may be deemed to be an underwriting or as otherwise permitted by applicable law.
6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.
7. Make loans to the extent prohibited by the Investment Company Act.
8. Make any investment inconsistent with the Fund’s classification as a diversified company under the Investment Company Act.
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Notations Regarding each of BlackRock 60/40 Target Allocation ETF V.I. Fund’s, BlackRock International Index V.I. Fund’s and BlackRock Small Cap Index V.I. Fund’s Fundamental Investment Restrictions
The following notations are not considered to be part of a Fund’s fundamental investment restrictions and are subject to change without shareholder approval.
With respect to the fundamental policy relating to concentration set forth in (1) above, the Investment Company Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be interpreted from time to time. The policy also will be interpreted to permit investment without limit in th e following: securities of the U.S. government and its agencies or instrumentalities; securities of state, territory, possession or municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities are primarily related to financing the activities of the parents. Each foreign government will be considered to be a member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the Fund as to how to classify issuers within or among industries. With respect to BlackRock 60/40 Target Allocation ETF V.I. Fund, the Fund may invest in underlying funds that may concentrate their assets in one or more industries. BlackRock 60/40 Target Allocation ETF V.I. Fund will consider the concentration of the underlying funds in determining compliance with the Fund’s concentration policy.
With respect to the fundamental policy relating to borrowing money set forth in (2) above, the Investment Company Act permits the Fund to borrow money in amounts of up to one third of the Fund’s total assets from banks for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing, the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including amounts borrowed), m inus liabilities other than borrowings, bears to the aggregate amount of all borrowings. Borrowing money to increase portfolio holdings is known as “leveraging.” Certain trading practices and investments, such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company Act, when the Fund engages in reverse repurchase agreements and similar financing tr ansactions, the Fund may either (i) maintain asset coverage of at least 300% with respect to such transactions and any other borrowings in the aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such transactions. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that may involve leverage but are not considered to be borrowings are not subject to the policy.
With respect to the fundamental policy relating to underwriting set forth in (5) above, the Investment Company Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have underwriting commitments of up to 25% of its assets under certain circumstances. Those circumstances currently are that the amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25% cap. A fund engaging in transactions involving the
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acquisition or disposition of portfolio securities may be considered to be an underwriter under the Securities Act. Although it is not believed that the application of the Securities Act provisions described above would cause the Fund to be engaged in the business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in transactions involving the acquisition or disposition of portfolio securities, regardless of whether the Fund may be considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the extent permitted by applicable law.
With respect to the fundamental policy relating to lending set forth in (7) above, the Investment Company Act does not prohibit the Fund from making loans (includi ng lending its securities); however, Commission staff interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition, collateral arrangements with respect to options, fo forward currency and futures transactions and other derivative instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered loans.
The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S. government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to 75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or (b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without shareholder approval (including, with respect to BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund, class approval by preferred shareholders, if any).
Under its non-fundamental investment restrictions, w hich may be changed by the Board without shareholder approval, each of BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund may not:
a. Purchase securities of other investment companies, except to the extent permitted by the Investment Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).
b. Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s Prospectus and SAI, as amended from time to time, and applicable law.
Unless otherwise indicated, all limitations under t he Fund’s fundamental or non-fundamental investment restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the investment without undue market or tax consequences.
III. Information on Directors and Officers
The Board consists of thirteen individuals (each, a “ Director”), eleven of whom are not “interested persons” of the Company as defined in the Investment Company Act (the “Independent Directors”). The registered investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund Complex”). The Company i s included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex. The Directors also oversee as board members the operations of the other open-end registered investment companies included in the BlackRock Multi-Asset Complex.
The Board has overall responsibility for the oversight of the Company and each Fund. The Chair of the Board is an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent
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Director. The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other Directors generally between meetings. The Chair of each Committee performs a similar role with respect to the Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the presence of Fund management, in executive session or with other service providers to each Fund. The Board has regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight function and structure. The Board has determined that the Board’s leadership structure is appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of responsibility among Committees and the full Board to enhance effective oversight.
The Board has engaged the Manager to manage each Fund on a day-to-day basis. The Board is responsible for overseeing the Manager, other service providers, the operations of each Fund and associated risks in accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Company’s charter, and each Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, each Fund’s performance, operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running the operations of each Fund.
Day-to-day risk management with respect to each Fund is the responsibility of the Manager or of sub-advisers or other service providers (depending on the nature of the risk), subject to the supervision of the Manager. Each Fund is subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While there are a number of risk management functions performed by the Manager and the sub-advisers or other service providers, as applicable, it is not possible to eliminate all of the risks applicable to the Funds. Risk oversight forms part of the Board’s general oversight of each Fund and is addressed as part of various Board and Committee activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the independent registered public accounting firm for each Fund, sub-advisers and internal auditors for the investment adviser or its affiliates, as appropriate, regarding risks faced by each Fund and management’s or the service provider’s risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors, and facilitates effective oversight of compliance with legal and regulatory requirements and of each Fund’s activities and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and testing of the Company’s compliance program and reports to the Board regarding compliance matters for the Funds and their service providers. The Independent Directors have engaged independent legal counsel to assist them in performing their oversight responsibilities.
Audit Committee. The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors. The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval, the selection, retention, termination and compensation of each Fund’s independent registered public accounting firm (the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting Firm’s w ork. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and fees for each Fund; (3) review the conduct and results of each independent audit of each Fund’s annual financial statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management regarding the accounting or financial reporting policies and practices of each Fund and the internal controls of each Fund and certain service providers; (5) oversee the performance of each Fund’s Independent Registered Public Accounting Firm; (6) review and discuss with management and each Fund’s Independent Registered Public Accounting Firm the performance and findings of each Fund’s internal auditors; (7) discuss with Fund management its policies
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regarding risk assessment and risk management as such matters relate to each Fund’s financial reporting and controls; (8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee. During the fiscal year ended December 31, 2025, the Audit Committee met four times.
Governance and Nominating Committee. The members of the Governance and Nominating Committee (the “Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton and Henry R. Keizer, all of whom are Independent Directors. The principal responsibilities of the Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Company and recommend Independent Director nominees fo r election by shareholders or appointment by the Board; (2) advise the Board with respect to Board compos ition, procedures and committees (other than the Audit Committee); (3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review and make recommendati ons regarding Independent Director compensation; (5) monitor corporate governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider nominations for Directors made by each Fund’s shareholders as it deems appropriate. Under the Company’s Amended and Restated Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance notice procedures, notice of the proposed nominee to the Secretary of the Company must be delivered to or mailed and received at the principal executive offices of the Company not later than the close of business on the fifth day following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever first occurs. The Company’s Bylaws provide that notice of a proposed nomination must include certain information about the shareholder and the nominee, as well as certain other information, including a written consent of the proposed nominee to serve if elected. Reference is made to the Company’s Bylaws for more details. The Board has adopted a written charter for the Governance Committee. During the fiscal year ended December 31, 2025, the Governance Committee met eleven times.
Compliance Committee. The members of the Compliance Committee (the “Compliance Committee”) are Claire A. Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its responsibility to oversee regulatory and fiduciary compliance matters involving the Company, the fund-related activities of BlackRock and any sub-adviser and the Company’s third-party service providers. The Compliance Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Company and its service providers and recommend changes or additions to such policies and procedures; (2) review information on and, where appropriate, recommend policies concerning the Company’s compliance with applicab le law; (3) review reports from, oversee the annual performance review of, and make certain recommendations and determinations regarding the Company’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification; and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal year ended December 31, 2025, the Compliance Committee met four times.
Performance Oversight Committee. The members of the Performance Oversight Committee (the “Performance Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton and Neil A. Cotty, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is to assist the Board in fulfilling its responsibility to oversee each Fund’s investment performance relative to its agreed-upon performance objectives and to assist the Independent Directors in
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their consideration of investment advisory agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review information on, and make recommendations to the full Board in respect of, each Fund’s investment objective, policies and practices; (2) review information on each Fund’s investment performance; (3) review information on appropriate benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and other resources devoted to management of each Fund and evaluate the nature and quality of information furnished to the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and non-fundamental investment policies and restrictions , fund mergers or liquidations; (6) request and review information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year ended December 31, 2025, the Performance Oversight Committee met five times.
Ad Hoc Topics Committee. The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on routine matters between meetings of the Board; (2) act on such matters as may require urgent action between meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During the fiscal year ended December 31, 2025, the Ad Hoc Topics Committee did not meet.
The Governance Committee has adopted a statement of policy that describes the experience, qualifications, skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore, in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications, which allow the Board to operate effectively in governing the Company and protecting the interests of shareholders. Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and discuss information pro vided to them, to interact effectively with each Fund’s investment adviser, sub-advisers, other service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective business judgment in the performance of their duties as Directors.
Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background or professional training; business, consulting, public service or academic positions; experience from service as a board member of the Company and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and participation in Board an d Committee meetings, as well as his or her leadership of standing and ad hoc committees throughout the years; or other relevant life experiences.
Directors Elect . Jeffrey Jarczyk and Marc D. Stern have been appointed as Directors of the Company effective July 1, 2026 (each, a “Director-Elect”). Each Director Elect is expected to qualify as an Independent Director at the time of his service. Each Director Elect has been retained as a consultant to the Independent Directors to assist the Independent Directors in the performance of their duties to the Company and is expected to serve in that capacity until July 1, 2026.
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The table below discusses some of the experiences, qualifications and skills of each of the Directors that support the conclusion that each Director should serve on the Board.
Directors Experience, Qualifications and Skills
Independent Directors Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services industry, including most recently serving as Chief Investment Officer of the California State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he has held various roles in the industry, including as member and chair of the asset owner committee of the Kroner Center for Financial Research, chairman of the North American Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets Advisory Council. These positions have provided Mr. Ailman with considerable investment expertise across asset classes and strategies, and insight and perspective on the markets and the economy. In addition, Mr. Ailman serves as a member of the Governance Committee and the Performance Oversight Committee. Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015. Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018, trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to 2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member of the President’s Counsel for Commonfund. These positions have provided her with insight and perspective on the markets and the economy. Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the position of Chief Investment Officer of Williams College from October 2006 to June 2023. Prior to that she was President and Chief Investment Officer of Lucent Asset Management Corporation, where she oversaw
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approximately $40 billion in pension and retirement savings assets for the company. These positions have provided her with insight and perspective on the markets and the economy. Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry, including 19 years at Bank of America Corporation and its affiliates, where he served, at different times, as the Chief Financial Officer of various businesses including Investment Banking, Global Markets, Wealth Management and Consumer and also served ten years as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been determined by the Audit Committee to be an audit committee financial expert, as such term is defined in the applicable Commission rules. Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and global expertise gained through his 35 year career at KPMG, a global professional services organization and by his service as a director to both publicly and privately held organizations. He has extensive experience with issues facing complex, global companies and expertise in financial reporting, accounting, auditing, risk management, and regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an audit committee chair to both publicly and privately held organizations across numerous industries including professional services, property and casualty reinsurance, insurance, diversified financial services, banking, direct to consumer, business to business and technology. Mr. Keizer is a certified public accountant and also served on the board of the American Institute of Certified Public Accountants. Mr. Keizer has been determined by the Audit Committee to be an audit committee financial expert, as such term is defined in the applicable Commission rules. Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered investment companies, most recently as a member of the boards of certain BlackRock-advised Funds and predecessor funds, including the legacy Merrill Lynch Investment Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20 years of academic experience as a professor at Harvard Business School where she taught courses on corporate strategy and corporate governance. Ms. Montgomery also has business management and corporate governance experience through her service on the corporate boards of a variety of public companies. She has also authored numerous articles and books on these topics. Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive experience, including through his service as president, director and investment committee chair for academic and not-for-profit organizations, and his experience as a partner, managing director and advisory director at Goldman Sachs for 32 years. He also has investment management experience as a board member of Athena Capital Advisors LLC.
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Directors Experience, Qualifications and Skills Lori Richards Lori Richards has more than 30 years of experience in the financial services industry, most notably as
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the first Director of the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities
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and Exchange Commission (“SEC”) from 1995 to 2009. During 14 years as the Director of OCIE, she
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led the SEC’s nationwide examination oversight program for advisers, mutual funds, hedge funds,
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broker-dealers, stock exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held
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various roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific Regional
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Office and executive assistant and senior advisor to then SEC Chairman Arthur Levitt. More recently,
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Ms. Richards served as Chief Compliance Officer of the Asset and Wealth Management global lines of
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business at JPMorgan Chase & Co. from 2013 to 2018 where she led its global compliance program,
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advised business leaders on compliance issues, oversaw risk assessment, monitoring, testing and training,
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and maintained relationships with regulators. In addition, Ms. Richards served as a member of the
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National Adjudicatory Council of the Financial Industry Regulatory Authority (FINRA) from 2019 to
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2022 and held the chair and vice chair posts during her tenure. Prior thereto, from 2010 to 2013, she
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was a Principal at PricewaterhouseCoopers LLP (“PwC”) and co-leader of its Asset Management
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Regulatory group. At PwC, she assisted a broad range of financial services clients in designing and
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implementing risk management and compliance programs, and preparing for new regulatory
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expectations. These positions have provided her with insight and perspective on the markets and the
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economy, as well as asset management regulation and compliance. In addition, Ms. Richards serves as a
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member of the Audit Committee and the Compliance Committee. Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management from his over
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13 years of service as the Chief Investment Officer of the University of Delaware as well as from his
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various positions with First Union Corporation, including Senior Vice President and State Investment
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Director of First Investment Advisors. The Board benefits from his experience and perspective as the
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Chief Investment Officer of a university endowment and from the oversight experience he gained from
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service on various private and non-profit boards. Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment companies, most
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recently as a member of the boards of certain BlackRock-advised Funds and predecessor funds,
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including the legacy BlackRock funds. He has over 30 years of experience in public accounting.
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Mr. Urish has served as a managing member of an accounting and consulting firm. Mr. Urish has been
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determined by the Audit Committee to be an audit committee financial expert, as such term is defined in
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the applicable Commission rules. Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has served as the Chief
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Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to
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2015, an investment manager that specialized in long/short non-U.S. equity investments, and was an
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owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023, a firm
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focusing on long/short equities in global emerging and frontier markets. These positions have provided
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her with insight and perspective on the markets and the economy. Ms. Walton has been determined by
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the Audit Committee to be an audit committee financial expert, as such term is defined in the applicable
l Commission rules. Directors Elect Jeffrey Jarczyk Mr. Jarczyk is a CPA and has more than 30 years of experience in the financial services industry,
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and the Chief Accounting Officer of Fidelity Investments’ parent company, FMR LLC. Prior to working
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at Fidelity, Mr. Jarczyk was a partner at Deloitte and Arthur Andersen for approximately 17 years.
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These positions have allowed him to work extensively with audit and risk committees and company
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executives helping to identify, manage and mitigate risks for financial services companies. Marc D. Stern Mr. Stern has more than 30 years of experience in inve
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Chief Executive Officer at Bessemer Trust, a wealth ma
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nagement business, for 13 years. During his tenure
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at Bessemer Trust, Mr. Stern served on the firm’s board of directors, chaired the board’s trust and
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investment committee, and led the firm’s executi
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ve committee. He also served as Bessemer’s Chief ,
Investment Officer for 8 years, where he was Chair o
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responsibility for overall asset allocation and investm
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ent strategy. Mr. Stern also served as Chair of the
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Private Clients Investment group at AllianceBernstein
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. These positions provide Mr. Stern with insight and
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perspective into investment management, the economy, and fiduciary governance. Interested Directors Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30 years of
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experience in finance and asset management. In particular, Mr. Fairbairn’s positions as Vice Chairman
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of BlackRock, Inc., Member of BlackRock’s Global Operating Committee and Co-Chair of BlackRock’s
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Human Capital Committee provide the Board with a wealth of practical business knowledge and
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leadership. In addition, Mr. Fairbairn has global investment management and oversight experience
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through his former positions as Member of BlackRock’s Global Executive Committee, Global Head of
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® b
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BlackRock’s Retail and iShares ® ,
businesses, Head of BlackRock’s Global Client Group, Chairman of
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BlackRock’s international businesses and his previous oversight over BlackRock’s Strategic Partner
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Program and Strategic Product Management Group. Mr. Fairbairn also serves as a board member for
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the funds in the BlackRock Fixed-Income Complex. John M. Perlowski John M. Perlowski’s experience as Managing Direct
lkk lbl Ad d or of BlackRock, Inc. since 2009, as the Head of
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BlackRock Global Accounting and Product Services
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since 2009, and as President and Chief Executive
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Officer of the BlackRock-advised Funds provides
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him with a strong understanding of the BlackRock-
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advised Funds, their operations, and the business and regu
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latory issues facing the BlackRock-advised Funds.
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Mr. Perlowski’s prior position as Managing Director
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and Chief Operating Officer of the Global Product
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Group at Goldman Sachs Asset Management, and his forme
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r service as Treasurer and Senior Vice President p g,
of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore Funds provides the
d h hbff hh hf hfl Board with the benefit of his experience with the ma
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nagement practices of other financial companies.
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Mr. Perlowski also serves as a board member for the funds in the BlackRock Fixed-Income Complex.
lkbf lkklbl Mr. Perlowski is a member of BlackRock’s Global Executive Committee.
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Biographical Information
Certain biographical and other information relating to the Directors of the Company is set forth below, including their address and year of birth, principal occupations for at least the last five years, length of time served, total number of registered investment companies and investment portfolios overseen in the BlackRock advised Funds and any currently held public company and other investment company directorships.
Name and Year of Birth 1,2
Position(s) Held (Length of Service) 4
Principal Occupation(s) During Past Five Years
Number of BlackRock Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company and Other Investment Company Directorships Held During Past Five Years
Independent Directors Mark Stalnecker 1951
Chair of the Board and Director (Since 2019)
Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System from 2002 to 2024; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014.
26 RICs consisting of 169 Portfolios
None
Christopher J. Ailman 1958 Director (Since 2024)
Principal, Ailman Advisers, since 2024; Chief Investment Officer, California State Teachers Retirement System (CalSTRS) from 2000 to 2024.
26 RICs consisting of 169 Portfolios
None
Susan J. Carter 1956 Director (Since 2019)
Trustee, Financial Accounting Foundation from 2017 to 2021; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to 2021; Director, Pacific Pension Institute from 2014 to 2018; Senior Advisor, CCI (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof from 2018 to 2022; Advisory Board Member, Bridges Fund Management from 2016 to 2018; Practitioner Advisory Board Member, PCRI from 2017 to 2024; Lecturer in the Practice of Management, Yale School of Management since 2019; Advisor to Finance Committee, Altman Foundation from 2020 to 2024; Investment Committee Member, Tostan since 2021; Member of the President’s Counsel, Commonfund since 2023.
26 RICs consisting of 169 Portfolios
None
Collette Chilton 1958 Director (Since 2019)
Trustee, UC Berkeley Foundation Board since 2024; Committee member, Oxford University Endowment Management since 2024; Chief Investment Officer, Williams College from 2006 to 2023; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006; Director, Boys and Girls Club of Boston since 2017; Director, B1 Capital since 2018; Director, David and Lucile Packard Foundation since 2020.
26 RICs consisting of 169 Portfolios
None
Neil A. Cotty 1954 Director (Since 2019)
Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.
26 RICs consisting of 169 Portfolios
None
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Name and Year of Birth 1,2
Position(s) Held (Length of Service) 4
Principal Occupation(s) During Past Five Years
Number of BlackRock Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company and Other Investment Company Directorships Held During Past Five Years Henry R. Keizer 1956 Director (Since 2016)
Director, Park Indemnity Ltd. (captive insurer) from 2010 to 2022. 26 RICs consisting of
fl g
169 Portfolios
GrafTech International Ltd. (materials manufacturing); WABCO (commercial vehicle safety
f y
systems) from 2015 to 2020; Sealed Air Corp.
k (packaging);
lb pgg
Hertz Global Holdings (car
lf g
rental) from 2015 to 2021. Cynthia A. Montgomery 1952 Director (Since 2019) Professor, Harvard Business School since 1989. 26 RICs consisting of
fl g
169 Portfolios
None
Donald C. Opatrny 1952 Director (Since 2015)
Chair of the Board of Phoenix Art Museum since 2022 and Trustee thereof since 2018; Chair of the Investment Committee of The Arizona Community Foundation
d hf y
since 2022 and Trustee thereof since 2020; Director, Athena Capital Advisors LLC (investment management
ffhb pg
firm) from 2013 to 2020; Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University from 2004 to 2019;
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Member of Affordable Housing Supply Board of
kfb g ppy
Jackson, Wyoming from 2017 to 2022; Member,
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Investment Funds Committee, State of Wyoming from
bf h yg
2017 to 2023; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to
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2014; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014.
26 RICs consisting of
fl g
169 Portfolios
None
Lori Richards 1960 Director (Since 2024) Trustee, SEC Historical Society since 2018; Trustee,
lld y
Garrett College Foundation since 2019; Director,
hf g
PharmaCann, Inc. from 2021 to 2024; Director, Wahed Invest from 2022 to 2024.
26 RICs consisting of
fl g
169 Portfolios
None
Kenneth L. Urish 1951 Director (Since 2019)
Managing Partner, Urish Popeck & Co., LLC (certified
bld l gg p
public accountants and consultants) since 1976; Past
hf hfl hf h p
Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants
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and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001, Emeritus
llh y g p
since 2022; Principal, UP Strategic Wealth Investment
dhll pg
Advisors, LLC since 2013; Trustee, The Holy Family
fdd y
Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to
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2008; Director, Inter-Tel from 2006 to 2007; Member, Advisory Board, ESG Competent Boards since 2020.
26 RICs consisting of
fl g
169 Portfolios
None
Claire A. Walton 1957 Director (Since 2019)
Director/Treasurer, Reading Community Trust since
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2024; Advisory Board Member, Grossman School of
hf y
Business at the University of Vermont since 2023;
dd bfl y
Advisory Board Member, Scientific Financial Systems
l f bl y y
since 2022; General Partner of Neon Liberty Capital
fhf y p
Management, LLC from 2003 to 2023; Chief Operating
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Officer and Chief Financial Officer of Liberty Square
f y q
Asset Management, LP from 1998 to 2015; Director,
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Boston Hedge Fund Group from 2009 to 2018;
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Director, Massachusetts Council on Economic Education from 2013 to 2015; Director, Woodstock Ski Runners from 2013 to 2022.
26 RICs consisting of
fl g
169 Portfolios
None
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Name and Year of Birth 1,2
Position(s) Held (Length of Service) 4
Principal Occupation(s) During Past Five Years
Number of BlackRock Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen
Public Company and Other Investment Company Directorships Held During Past Five Years
Directors Elect3 t3 Jeffrey Jarczyk 1964
Director Elect Director, The Friends of the Public Garden since 2021; Executive Vice President, Chief Auditor, Fidelity Investments from 2016 to 2021; Executive Vice President, Chief Accounting Officer, Fidelity Investments from 2007 to 2016.
26 RICs consisting of 169 Portfolios
None
Marc D. Stern 1962
Director Elect Chief Executive Officer and Director, Bessemer Trust from 2013 to 2026. 26 RICs consisting of 169 Portfolios
None
Interested Directors 5 Robert Fairbairn 1965
Director (Since 2015)
Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Operating Committee; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares ® businesses from 2012 to 2016.
76 RICs consisting of 252 Portfolios
None
John M. Perlowski 6 1964 Director (Since 2015) President and Chief Executive Officer (Since 2010)
Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009. Member of BlackRock’s Global Executive Committee since 2025.
78 RICs consisting of 254 Portfolios
None
1 The address of each Director is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. 2 Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Company’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Directors who are “interested persons,” as defined in the Investment Company Act, serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Company’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate. 3 Jeffrey Jarczyk and Marc D. Stern have been appointed as Directors of the Company effective July 1, 2026. Each Director Elect is expected to qualify as an Independent Director at the time of his service. Each Director Elect has been retained as a consultant to the Independent Directors to assist the Independent Directors in the performance of their duties to the Company and is expected to serve in that capacity until July 1, 2026. 4 Following the combination of MLIM and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. In addition, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Director joined the Board, certain Independent Directors first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or legacy BlackRock funds as follows: Susan J. Carter, 2016; Collette Chilton, 2015; Neil A. Cotty, 2016; Cynthia A. Montgomery, 1994; Mark Stalnecker, 2015; Kenneth L. Urish, 1999; Claire A. Walton, 2016. 5 Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the Investment Company Act, of the Company based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex. 6 Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund.
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Certain biographical and other information relating to the officers of the Company who are not Directors is set forth below, including their address and year of birth, principal occupations for at least the last five years and length of time served.
Name and Year of Birth 1,2
Position(s) Held (Length of Service) Principal Occupation(s) During Past Five Years
Officers Who Are Not Directors Roland Villacorta 1971
Vice President (Since 2022) Managing Director of BlackRock, Inc. since 2002; Head of Global Cash Management and Head of Securities Lending within BlackRock’s Global Markets Group since 2022; Member of BlackRock’s Global Operating Committee since 2016 and Human Capital Committee since 2023. Jennifer McGovern 1977
Vice President (Since 2014)
Managing Director of BlackRock, Inc. since 2016.
Trent Walker 1974
Chief Financial Officer (Since 2021)
Managing Director of BlackRock, Inc. since 2019; Executive Vice President of PIMCO from 2016 to 2019.
Jay M. Fife 1970 Treasurer (Since 2007)
Managing Director of BlackRock, Inc. since 2007.
Aaron Wasserman 1974
Chief Compliance Officer (Since 2023)
Managing Director of BlackRock, Inc. since 2018; Chief Compliance Officer of the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed Income Complex and the iShares Complex since 2023; Deputy Chief Compliance Officer for the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex from 2014 to 2023. Lisa Belle 1968 Anti-Money Laundering Compliance Officer (Since 2019)
Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019.
Janey Ahn 1975 Secretary (Since 2019)
Managing Director of BlackRock, Inc. since 2018.
1 The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. 2 Officers of the Company serve at the pleasure of the Board.
Share Ownership
Information relating to each Director’s share ownersh ip in the Funds and in all BlackRock-advised Funds that are currently overseen by the respective Director (“Supervised Funds”) as of December 31, 2025 is set forth in the chart below. Amounts shown may include shares as to which a Director has indirect beneficial ownership, such as through participation in certain family accounts, 529 college savings plan interests, or similar arrangements where the Director has beneficial economic interest but not a direct ownership interest.
Name
Dollar Range of Equity Securities in each Fund
Aggregate Dollar Range of Equity Securities in Supervised Funds
Independent Directors Christopher J. Ailman None Over $100,000 Susan J. Carter None Over $100,000 Collette Chilton None Over $100,000 Neil A. Cotty None Over $100,000 Henry R. Keizer None Over $100,000 Cynthia A. Montgomery None Over $100,000 Donald C. Opatrny None Over $100,000 Lori Richards None None Mark Stalnecker None Over $100,000 Kenneth L. Urish None Over $100,000 Claire A. Walton None Over $100,000
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Name
Dollar Range of Equity Securities in each Fund
Aggregate Dollar Range of Equity Securities in Supervised Funds
Interested Directors: Robert Fairbairn None Over $100,000 John M. Perlowski None Over $100,000 As of April 2, 2026, the Directors and officers of the Company as a group directly or indirectly beneficially owned an aggregate of less than 1% of any class of the outstanding shares of each Fund. As of December 31, 2025, none of the Independent Directors of the Company or their immediate family members owned beneficially or of record any securities of each Fund’s investment adviser, sub-advisers, principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such entities.
Compensation of Directors
Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex, including the Company, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a calendar year (comp ensation for meetings in excess of this number to be determined on a case-by-case basis), together with ou t-of-pocket expenses in accordance with a board policy on travel and other business expenses relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of $45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.
Each Director Elect currently serves as a consultant to the Independent Directors in the performance of the Independent Directors’ duties to the Company and is paid compensation at the same rate as the compensation paid to any Independent Directors who are not the Chair of the Board or a Chair of a Committee. This compensation arrangement will continue until July 1, 2026, when each Director Elect is expected to begin serving as an Independent Director and will be compensated in a manner similar to other Independent Directors.
The following table sets forth the compensation the Company paid to the Directors, on behalf of the Funds, for the fiscal year ended December 31, 2025 and the aggregate compensation paid to them by all BlackRock advised Funds for the calendar year ended December 31, 2025.
Name
Compensation from BlackRock 60/40 Target Allocation ETF V.I. Fund
Compensation from BlackRock Advantage Large Cap Core V.I. Fund
Compensation from BlackRock Advantage Large Cap Value V.I. Fund
Compensation from BlackRock Advantage SMID Cap V.I. Fund
Compensation from BlackRock Basic Value V.I. Fund
Compensation from BlackRock Capital Appreciation V.I. Fund
Independent Directors Christopher J. Ailman $993 $742 $689 $718 $799 $678 Susan J. Carter $993 $742 $689 $718 $799 $678 Collette Chilton $993 $742 $689 $718 $799 $678 Neil A. Cotty $1,008 $746 $691 $721 $806 $679 Henry R. Keizer 2 $1,040 $756 $696 $729 $821 $683 Cynthia A. Montgomery 3 $1,040 $756 $696 $729 $821 $683 Donald C. Opatrny 4 $1,040 $756 $696 $729 $821 $683 Lori Richards $993 $742 $689 $718 $799 $678 Mark Stalnecker 5 $1,149 $789 $713 $755 $871 $697 Kenneth L. Urish $993 $742 $689 $718 $799 $678 Claire A. Walton 6 $1,040 $756 $696 $729 $821 $683 Interested Directors Robert Fairbairn None None None None None None John M. Perlowski None None None None None None
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Name
Compensation from BlackRock Equity Dividend V.I. Fund
Compensation from BlackRock Global Allocation V.I. Fund
Compensation from BlackRock Government Money Market Fund
Compensation from BlackRock International Index V.I. Fund
Compensation from BlackRock International V.I. Fund
Compensation from BlackRock Large Cap Focus Growth V.I. Fund
Independent Directors: Christopher J. Ailman $798 $2,887 $745 $761 $675 $781 Susan J. Carter $798 $2,887 $745 $761 $675 $781 Collette Chilton $798 $2,887 $745 $761 $675 $781 Neil A. Cotty $804 $2,966 $749 $766 $676 $787 Henry R. Keizer 2 $820 $3,181 $759 $777 $680 $800 Cynthia A. Montgomery 3 $820 $3,181 $759 $777 $680 $800 Donald C. Opatrny 4 $820 $3,181 $759 $777 $680 $800 Lori Richards $798 $2,887 $745 $761 $675 $781 Mark Stalnecker 5 $870 $3,866 $793 $816 $692 $845 Kenneth L. Urish $798 $2,887 $745 $761 $675 $781 Claire A. Walton 6 $820 $3,181 $759 $777 $680 $800 Interested Directors: Robert Fairbairn None None None None None None John M. Perlowski None None None None None None
Name
Compensation from BlackRock Managed Volatility V.I. Fund
Compensation from BlackRock S&P 500 Index V.I. Fund
Compensation from BlackRock Small Cap Index V.I. Fund
Estimated Annual Benefits upon Retirement
Aggregate Compensation from the Funds and Other BlackRock Advised Funds 1
Independent Directors: Christopher J. Ailman $719 $2,232 $816 None $445,000 Susan J. Carter $719 $2,232 $816 None $445,000 Collette Chilton $719 $2,232 $816 None $445,000 Neil A. Cotty $722 $2,295 $823 None $467,500 Henry R. Keizer 2 $730 $2,441 $839 None $490,000 Cynthia A. Montgomery 3 $730 $2,441 $839 None $490,000 Donald C. Opatrny 4 $730 $2,441 $839 None $490,000 Lori Richards $719 $2,232 $816 None $445,000 Mark Stalnecker 5 $756 $2,927 $895 None $595,000 Kenneth L. Urish $719 $2,232 $816 None $445,000 Claire A. Walton 6 $730 $2,441 $839 None $490,000 Interested Directors: Robert Fairbairn None None None None None John M. Perlowski None None None None None
1 For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on page I-30. 2 Chair of the Audit Committee. 3 Chair of the Governance Committee. 4 Chair of the Performance Oversight Committee. 5 Chair of the Board and Chair of the Ad Hoc Topics Committee. 6 Chair of the Compliance Committee.
IV. Management, Advisory and Other Service Arrangements
The Company has entered into investment management agreements relating to the Funds with BlackRock Advisors, LLC (the “Investment Management Agreements”), an indirect, majority owned subsidiary of BlackRock, Inc. The principal business address of the Manager is 100 Bellevue Parkway, Wilmington, Delaware 19809.
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BlackRock has contractually agreed to waive the management fee with respect to any portion of each Fund’s (except BlackRock 60/40 Target Allocation ETF V.I. Fund and BlackRock Government Money Market V.I. Fund) 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, 2027. BlackRock has contractually agreed to waive the management fee with respect to any portion of BlackRock 60/40 Target Allocation ETF V.I. Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2027. BlackRock has also contractually agreed to waive the management fee with respect to any portion of BlackRock Global Allocation V.I. Fund’s assets estimated to be attributable to investments in other exchange-traded products sponsored by BlackRock or its affiliates, through June 30, 2027. In addition, with respect to each Fund (except BlackRock Government Money Market V.I. Fund), 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 (the “affiliated money market fund waiver”), through June 30, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the Fund.
For BlackRock Government Money Market V.I. Fund, the Manager has voluntarily agreed to waive a portion of its fees and/or reimburse operating expenses to enable the Fund to maintain a minimum daily net investment income dividend. The Manager may discontinue this waiver and/or reimbursement at any time without notice. Taking into account this voluntary waiver and/or reimbursement of fees, the Total Annual Fund Operating Expenses may be lower than shown in the Annual Fund Operating Expenses table.
BlackRock has contractually agreed to waive and/or reimburse fees and/or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined in each Fund’s Prospectus) as a percentage of average daily net assets as set forth in the table below. With respect to certain Funds, BlackRock has contractually agreed to reimburse fees in order to limit operational and recordkeeping fees to the amounts noted in the table below.
Contractual Caps 1 on Total Annual Fund Operating Expenses 2 (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses)
Contractual Caps 1 on fees paid by Fund for Networking and Operational/ Recordkeeping Services 60/40 Target Allocation ETF V.I. Fund: Class I Shares 0.19% —
60/40 Target Allocation ETF V.I. Fund: Class III Shares 0.44% — Advantage Large Cap Core V.I. Fund: Class I Shares 1.25% 0.05% Advantage Large Cap Core V.I. Fund: Class II Shares 1.40% 0.07%
Advantage Large Cap Core V.I. Fund: Class III Shares 1.50% 0.08% Advantage Large Cap Value V.I. Fund: Class I Shares 0.60% 0.00%
Advantage Large Cap Value V.I. Fund: Class III Shares 0.85% 0.11% Advantage SMID Cap V.I. Fund: Class I Shares 0.55% 0.07%
Advantage SMID Cap V.I. Fund: Class III Shares 0.80% 0.01% Basic Value V.I. Fund: Class I Shares 1.25% 0.06%
Basic Value V.I. Fund: Class III Shares 1.50% 0.09% Capital Appreciation V.I. Fund: Class I Shares 0.79% 0.07%
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Contractual Caps 1 on Total Annual Fund Operating Expenses 2 (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses)
Contractual Caps 1 on fees paid by Fund for Networking and Operational/ Recordkeeping Services Capital Appreciation V.I. Fund: Class III Shares 1.04% 0.08%
Equity Dividend V.I. Fund: Class I Shares 1.25% 0.00% Equity Dividend V.I. Fund: Class III Shares 1.50% 0.00% Global Allocation V.I. Fund: Class I Shares 1.25% 0.07%
Global Allocation V.I. Fund: Class II Shares 1.40% 0.07% Global Allocation V.I. Fund: Class III Shares 1.50% 0.07% Government Money Market V.I. Fund: Class I Shares 0.30% —
International Index V.I. Fund: Class I Shares 0.27% 0.05% International Index V.I. Fund: Class III Shares 0.52% 0.05%
International V.I. Fund: Class I Shares 0.86% 0.08% Large Cap Focus Growth V.I. Fund: Class I Shares 0.79% 0.07% Large Cap Focus Growth V.I. Fund: Class III Shares 1.04% 0.07%
Managed Volatility V.I. Fund: Class I Shares 0.59% 0.00% Managed Volatility V.I. Fund: Class III Shares 0.84% 0.00%
S&P 500 Index V.I. Fund: Class I Shares 0.15% 0.05% S&P 500 Index V.I. Fund: Class II Shares 0.30% 0.05% S&P 500 Index V.I. Fund: Class III Shares 0.40% 0.05%
Small Cap Index V.I. Fund: Class I Shares 0.22% 0.05% Small Cap Index V.I. Fund: Class III Shares 0.47% 0.05% 1 The contractual caps for each Fund are in effect through June 30, 2027. The contractual agreement may be terminated, with respect to each Fund, 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 As a percentage of average daily net assets and based on current fees. The Management Agreement relating to the Funds, unless earlier terminated as described below, will continue in effect for an initial two year period and from year to year thereafter if approved annually (a) by the Board of Directors of the Company or by a majority of the outstanding shares of the respective Funds, and (b) by a majority of the directors who are not parties to such contracts or interested persons (as defined in the Investment Company Act) of any such party. The Management Agreement is not assignable and may be terminated without penalty on 60 days’ written notice at the option of either party or by the vote of the shareholders of the respective Funds.
With respect to BlackRock Managed Volatility V.I. Fund, the Manager has entered into separate sub-advisory agreements (each a “Sub-Advisory Agreement”) with Bl ackRock International Limited (“BIL”), BlackRock Asset Management North America Limited (“BNA”) and BlackRock (Singapore) Limited (“BSL”) (collectively, the “Sub-Advisers”). With respect to BlackRock International V.I. Fund, the Manager has entered into a sub-advisory agreement with BIL. With respect to BlackRock Global Allocation V.I. Fund, the Manager has entered into separate sub-advisory agreements with BIL and BSL. Pursuant to each Sub-Advisory Agreement, each Sub-Adviser receives for the services it provides for that portion of the applicable Fund for which it acts a sub-advisor a monthly fee calculated at an annual rate equal to a percentage of the investment advisory fee received by the Manager from the applicable Fund.
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The following tables show the investment advisory fees paid to the Manager (which includes amounts paid by the Manager to the Sub-Advisers) and the amounts waived and/or reimbursed by the Manager with respect to each Fund for the periods indicated:
Fees Paid to the Manager For the Year Ended December 31,
Fees Waived by the Manager For the Year Ended December 31,
Fees Reimbursed by the Manager For the Year Ended December 31, 2025 2024 2023 2025 2024 2023 2025 2024 2023 BlackRock 60/40 Target Allocation ETF V.I. Fund $1,022,332 $801,682 $621,199 $12,426 $35,973 $8,626 $1,376,248 $1,092,242 $817,094 BlackRock Advantage Large Cap Core V.I. Fund $981,542 $960,763 $843,355 $1,324 $1,471 $1,311 $288,470 $287,008 $226,495 BlackRock Advantage Large Cap Value V.I. Fund $751,613 $781,028 $702,230 $362,323 $317,339 $330,127 $186,635 $186,762 $157,868 BlackRock Advantage SMID Cap V.I. Fund $1,130,467 $1,197,175 $1,068,857 $494,123 $514,806 $521,059 $303,254 $325,692 $277,319 BlackRock Basic Value V.I. Fund $1,820,236 $1,887,174 $1,853,333 $2,712 $1,573 $2,113 $385,935 $412,170 $383,319 BlackRock Capital Appreciation V.I. Fund $514,142 $782,393 $1,152,659 $100,470 $170,028 $251 $157,611 $263,264 $217,391 BlackRock Equity Dividend V.I. Fund $1,790,735 $1,879,529 $1,900,013 $7,958 $9,411 $10,297 $592,550 $640,870 $619,260 BlackRock Global Allocation V.I. Fund $26,544,272 $28,770,065 $29,008,733 $245,899 $331,427 $409,008 $4,607,892 $5,432,045 $4,101,853 BlackRock Government Money Market V.I. Fund $992,290 $1,305,973 $2,161,432 $571,152 $698,377 $1,028,393 $104,835 $112,513 $78,096 BlackRock International Index V.I. Fund $196,960 $170,479 $156,567 $408 $109 $913 $15,326 $56,626 $26,393 BlackRock International V.I. Fund $553,154 $587,626 $591,440 $90,861 $103,673 $88,600 $137,650 $147,177 $159,127 BlackRock Large Cap Focus Growth V.I. Fund $1,705,779 $1,689,212 $1,372,572 $538 $264 $794 $341,183 $477,412 $247,674
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Fees Paid to the Manager For the Year Ended December 31,
Fees Waived by the Manager For the Year Ended December 31,
Fees Reimbursed by the Manager For the Year Ended December 31, 2025 2024 2023 2025 2024 2023 2025 2024 2023 BlackRock Managed Volatility V.I. Fund $838,928 $908,252 $927,781 $392,684 $376,611 $511,394 $300,858 $336,863 $325,368 BlackRock S&P 500 Index V.I. Fund $2,046,134 $1,882,435 $1,471,596 $7,061 $5,806 $5,398 $24,140 $11,329 $3,825 BlackRock Small Cap Index V.I. Fund $266,360 $258,286 $230,286 $1,225 $1,466 $2,811 $9,900 $38,616 $14,786 The Manager has entered into administrative services agreements with certain Insurance Companies, including Allianz Life Insurance Company of New York, Allianz Life Insurance Company of North America, American General Life Insurance Company, American U nited Life Insurance Company, Annuity Investors Life Insurance Company, Brighthouse Life Insurance Company, Brighthouse Life Insurance Company of NY, CMFG Life Insurance Company, Delaware Life Insurance Company, Empire Fidelity Investments Life Insurance Company, Equitable Financial Life Insura nce Company, Equitable Financial Life Insurance Company of America, Fidelity Investments Life Insuranc e Company, First Security Benefit Life Insurance and Annuity Company of New York, First Symetra National Life Insurance Company of New York, Forethought Life Insurance Company, Genworth Life and Annuity Insurance Company, Genworth Life Insurance Company of New York, Great-West Life & Annuity Insurance Company, Great-West Life & Annuity Insurance Company of New York, Guardian Insurance and Annuity Co., Integrity Life Insurance Company, John Hancock Life Insurance Company (U.S.A.), Lincoln Life & Annuity Company of New York, Lombard International Life Assurance Company, Massachu setts Mutual Life Insurance Company, Members Life Insurance Company, Metropolitan Life Insurance Company, Midland Life Insurance Company, Minnesota Life Insurance Company, Nassau Life Insurance Company, National Integrity Life Insurance Company, National Life Insurance Company, Nationwide Financi al Services, Inc., New York Life Insurance and Annuity Corporation, Pacific Life & Annuity Company, Pacific L ife Insurance Company, Protective Life Insurance Company, Protective Life & Annuity Insurance Company, Principal Life Insurance Company, Pruco Life Insurance Company, Pruco Life Insurance Company of New Jersey, Reliastar Life Insurance Company, Reliastar Life Insurance Company of New York, RiverSource Life Insurance Co. of New York, RiverSource Life Insurance Company, Security Benefit Life Insu rance Company, Security Life of Denver Insurance Company, State Farm Life and Accident Assurance Company, State Farm Life Insurance Company, Symetra Life Insurance Company, Talcott Resolution Life In surance Company, Talcott Resolution Life and Annuity Insurance Company, Transamerica Financial Life Insurance Company, Transamerica Life Insurance Company, The Lincoln National Life Insurance Company, The Northwestern Mutual Life Insurance Company, The Prudential Insurance Company of America, The United States Life Insurance Company in the City of New York, and Venerable Insurance and Annuity Company, pursuant to which the Manager compensates such companies for administrative respons ibilities relating to the Company, which are performed by such Insurance Companies.
Payment of Expenses. The Management Agreement obligates the Manager to provide investment advisory services and to pay all compensation of and furnish office space for officers and employees of the Company connected with investment and economic research, trading and investment management of the Fund, as well as the fees of all Directors of the Company who are affiliated persons of BlackRock, Inc. or any of its affiliates. The Fund pays all other expenses incurred in its operation, including a portion of the Company’s general administrative expenses allocated on the basis of the Fund’s asset size. Expenses that will be borne directly by the Fund include redemption expenses, expenses of portfolio transactions, shareholder servicing costs, expenses of registering the shares under federal, state or foreign laws, pricing costs (including the daily calculation of net asset value), interest, certain taxes, charges of the custodian and transfer agent and other expenses attributable to the Fund. Expenses which will be allocated on the basis of size of the Fund include
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directors’ fees, legal expenses, state franchise taxes, a uditing services, costs of preparing, printing and mailing proxies, Commission fees, accounting costs and other expenses properly payable by the Company and allocable on the basis of size of the Fund. Certain accounting services are provided for the Company by the Manager and the Company reimburses the Manager in connection with such services. Depending upon the nature of the lawsuit, litigation costs may be directly applicable to the Fund or allocated on the basis of the size of the Fund. The Board of Directors has determined that this is an appropriate method of allocation of expenses. Credit Agreement. The Company, on behalf of the Funds (other than BlackRock Government Money Market V.I. Fund), along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated for certain Participating Funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the Credit Agreement. The Funds may borrow under the Credit Agreement to meet shareholder redemptions and for other lawful purposes. However, each Fund may not borrow under the Credit Agreement for leverage. Each Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and expenses for a Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce a Fund’s return. Each Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment amount based on its net assets. If a Fund borrows pursuant to the Credit Agreement, the Fund will be charged interest at a variable rate.
Portfolio Manager Information
The Funds are managed by the portfolio managers or management teams set forth in the Prospectus.
Other Funds and Accounts Managed
The following table sets forth information about funds and accounts other than each applicable Fund for which each Fund’s (other than BlackRock Government Money Market V.I. Fund’s) portfolio manager or managers are primarily responsible for the day-to-day portfolio management as of the Company’s fiscal year ended December 31, 2025.
BlackRock 60/40 Target Allocation ETF V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Michael Gates, CFA 6 5 0 0 0 0 $5.76 Billion $1.26 Billion $0 $0 $0 $0 Lisa O’Connor, CFA 6 1 0 0 0 0 $5.76 Billion $196.9 Million $0 $0 $0 $0 Suzanne Ly, CFA, FRM 22 12 0 0 0 0
$$$$$$ $11.61 Billion $7.80 Billion $0 $0 $0 $0
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BlackRock Advantage Large Cap Core V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Raffaele Savi 36 63 19 0 11 3 $44.72 Billion $49.39 Billion $36.98 Billion $0 $21.68 Billion $4.36 Billion Travis Cooke, CFA 32 126 18 0 4 6 $28.74 Billion $27.33 Billion $15.79 Billion $0 $7.53 Billion $5.87 Billion Richard Mathieson 33 305 46 0 5 9 $34.10 Billion $38.68 Billion $65.26 Billion $0 $2.60 Billion $10.85 Billion
BlackRock Advantage Large Cap Value V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Raffaele Savi 36 63 19 0 11 3 $44.82 Billion $49.39 Billion $36.98 Billion $0 $21.68 Billion $4.36 Billion Travis Cooke, CFA 32 126 18 0 4 6 $28.84 Billion $27.33 Billion $15.79 Billion $0 $7.53 Billion $5.87 Billion Richard Mathieson 33 305 46 0 5 9 $34.20 Billion $38.68 Billion $65.26 Billion $0 $2.60 Billion $10.85 Billion
BlackRock Advantage SMID Cap V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts Raffaele Savi 36 63 19 0 11 3 $44.71 Billion $49.39 Billion $36.98 Billion $0 $21.68 Billion $4.36 Billion Travis Cooke, CFA 32 126 18 0 4 6 $28.79 Billion $27.33 Billion $15.79 Billion $0 $7.53 Billion $5.87 Billion Richard Mathieson 33 305 46 0 5 9 $34.15 Billion $38.68 Billion $65.26 Billion $0 $2.60 Billion $10.85 Billion
BlackRock Basic Value V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts David Zhao 14 11 7 0 0 1 $31.28 Billion $6.47 Billion $394.8 Million $0 $0 $61.73 Million
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BlackRock Capital Appreciation V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Sally Du, CFA 12 7 0 0 0 0
$$$$$$ $21.29 Billion $7.07 Billion $0 $0 $0 $0 Reid Menge 16 7 2 0 0 0
$$$$$$ $40.25 Billion $21.27 Billion $195.0 Million $0 $0 $0
BlackRock Equity Dividend V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Cem Inal 10 5 5 0 0 0 $27.54 Billion $5.34 Billion $331.7 Million $0 $0 $0 David Zhao 14 11 7 0 0 1 $31.30 Billion $6.47 Billion $394.8 Million $0 $0 $61.73 Million
BlackRock Global Allocation V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Rick Rieder 22 27 41 0 4 1 $118.2 Billion $50.35 Billion $5.28 Billion $0 $27.92 Million $104.9 Million Russ Koesterich, CFA, JD 9 9 33 0 0 0 $28.58 Billion $23.03 Billion $140.8 Million $0 $0 $0
BlackRock International Index V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts Jennifer Hsui, CFA 371 93 0 0 0 0 $3.24 Trillion $104.6 Billion $0 $0 $0 $0 Matt Waldron, CFA 364 3 9 0 0 0 $3.23 Trillion $4.80 Billion $8.63 Billion $0 $0 $0 Peter Sietsema, CFA 370 214 136 0 0 0 $3.24 Trillion $1.29 Trillion $891.1 Billion $0 $0 $0 Steven White 366 110 0 0 0 0 $3.23 Trillion $106.8 Billion $0 $0 $0 $0
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BlackRock International V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Olivia Treharne, CFA 8 14 3 0 0 1 $4.16 Billion $2.97 Billion $1.62 Billion $0 $0 $1.52 BIllion Stephen Andrews 6 22 0 0 0 0
$$$$$$ $3.81 Billion $3.30 Billion $0 $0 $0 $0 Molly Greenen, CFA 8 12 3 0 0 1
$$$$$$ $4.16 Billion $2.86 Billion $1.62 Billion $0 $0 $1.52 Billion
BlackRock Large Cap Focus Growth V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Sally Du, CFA 12 7 0 0 0 0
$$$$$$ $21.11 Billion $7.07 Billion $0 $0 $0 $0 Reid Menge 16 7 2 0 0 0
$$$$$$ $40.07 Billion $21.27 Billion $195.0 Million $0 $0 $0
BlackRock Managed Volatility V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles
Other Accounts Philip Green 27 53 16 0 6 6 $
ll$ll$ll$$ll$ $20.99 Billion $26.89 Billion $13.00 Billion $0 $2.60 Billion $6.07 Billion Michael Pensky, CFA 37 54 6 0 8 0 $
ll$ll$ll$$ll$ $110.6 Billion $19.78 Billion $1.04 Billion $0 $3.10 Billion $0
BlackRock S&P 500 Index V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Jennifer Hsui, CFA 371 93 0 0 0 0 $3
24 Tilli$1046 Billi$0 $0 $0 $0 $3.24 Trillion $104.6 Billion $0 $0 $0 $0 Matt Waldron, CFA 364 3 9 0 0 0 $
Tll$ll$ll$$$ $3.23 Trillion $4.80 Billion $8.63 Billion $0 $0 $0 Peter Sietsema, CFA 370 214 136 0 0 0 $
Tll$Tll$ll$$$ $3.24 Trillion $1.29 Trillion $891.1 Billion $0 $0 $0 Steven White 366 110 0 0 0 0 $3.23 Trillion $106.8 Billion $0 $0 $0 $0
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BlackRock Small Cap Index V.I. Fund
Number of Other Accounts Managed and Assets by Account Type
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
Name of Portfolio Manager
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts
Other Registered Investment Companies
Other Pooled Investment Vehicles Other Accounts Jennifer Hsui, CFA 371 93 0 0 0 0 $3
24 Tilli$1046 Billi$0 $0 $0 $0 $3.24 Trillion $104.6 Billion $0 $0 $0 $0 Matt Waldron, CFA 364 3 9 0 0 0 $
Tll$ll$ll$$$ $3.23 Trillion $4.80 Billion $8.63 Billion $0 $0 $0 Peter Sietsema, CFA 370 214 136 0 0 0 $
Tll$Tll$ll$$$ $3.24 Trillion $1.29 Trillion $891.1 Billion $0 $0 $0 Steven White 366 110 0 0 0 0 $3.23 Trillion $106.8 Billion $0 $0 $0 $0
Fund Ownership
As of the fiscal year ended December 31, 2025, no portfolio manager beneficially owned any equity securities of any Fund because no portfolio manager had invested in the type of insurance contract through which the Funds must be purchased.
Portfolio Manager Compensation Overview
The discussion below describes the portfolio managers’ compensation as of December 31, 2025.
BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.
Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.
Discretionary Incentive Compensation
Messrs. Menge, Zhao, Inal and Andrews and Mses. Du, Greenen and Treharne
Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a formulaic compensation program. BlackRock’s form ulaic portfolio manager compensation program is based on team revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the perfor mance of the Funds or other accounts managed by the portfolio managers are measured. BlackRock’s global c ompensation team determines the benchmarks or rankings against which the performance of funds and other accounts managed by each portfolio management team is compared and the period of time over which performance is evaluated. With respect to these portfolio managers, such benchmarks for the Funds and other accounts are:
Portfolio Manager Funds Managed Applicable Benchmarks Sally Du, CFA BlackRock Capital Appreciation V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund
S&P 500 Index; ICE BofA US 3-month Treasury Bill Index; Russell 1000 Index.
Reid Menge BlackRock Capital Appreciation V.I. Fund BlackRock Large Cap Focus Growth V.I. Fund
MSCI ACWI 25% Call Overwrite Index; MSCI All Country World Index (Net Total Return); MSCI All Country World Information Technology Index — Net Return in USD.
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Portfolio Manager Funds Managed Applicable Benchmarks Cem Inal David Zhao BlackRock Equity Dividend V.I. Fund BlackRock Basic Value V.I. Fund FTSE United States in GBP; MSCI All Country (AC) Americas Index; Russell 1000 Index (GBP); Russell 1000 Index (Gross Total Return); Russell 1000 Value Index (Total Return); Russell 1000 Value Index TR in GBP; Russell 1000 Value TR Customized Index Performance Benchmark JPY; Russell 1000, expressed in EUR; Russell MidCap Value Index; S&P United States MidSmallCap Index; S&P US MidSmallCap Index (GBP) Olivia Treharne, CFA Molly Greenen, CFA BlackRock International V.I. Fund 70% MS_ACWNXUS / 30% LIBOR_3MO; 70% MSACWLDNET / 30% LIBOR_3MO Index; MSCI ACWI HIGH DIVIDEND YIELD — NET USD; MSCI All Country World Index (Net Total Return); MSCI All Country World Net TR Index; MSCI All Country World Net TR Index — in GBP; MSCI World Ex Japan Gross TR Index — in JPY Stephen Andrews BlackRock International V.I. Fund CSI 300 Net TR in USD; FTSE World Asia Pacific Ex Japan, in GBP; ICE BofA 3 Month Treasury Bill Index (G0O1); SOFR 3 Month Index; MSCI AC ASEAN (Net Total Return USD); MSCI AC Asia ex Japan (Net) in USD Performance Index; MSCI AC ASIA ex JAPAN ex TAIWAN — Gross USD; MSCI AC Asia Ex Japan IMI Index; MSCI AC Asia ex Japan Index NET (SPL MXN); MSCI AC Asia Pacific Index (Net Total Return); MSCI All Country Asia Ex Japan in AUD Net Return; MSCI All Country Asia ex Japan in GBP Net TR; MSCI All Country Asia ex Japan in SEK — NET; MSCI All Country Asia ex Japan in USD — NET; MSCI All Country Asia Pacific Ex Japan Index, Net Dividends; MSCI All Country Asia Pacific Ex Japan Index, Net Dividends in GBP; MSCI Asia Pacific ex Japan ex Taiwan Gross TR Index; MSCI China All Shares 10-40 NET Index; MSCI EM Asia Index Net; MSCI EM China 10/40 Net TR Index; MSCI India 10-40 Index in USD; MSCI India Gross Returns in JPY; MSCI CHINA A ONSHORE Index in CNY
A smaller element of portfolio manager discretionary compensation may include consideration of: financial results, expense control, profit margins, strategic planning and implementation, quality of client service, market share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation. These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.
Discretionary Incentive Compensation
Messrs. Rieder and Koesterich
Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the perfor mance of the Funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio ma nager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-and 5-year periods, as applicable, is generally assessed over trailing 1-, 3-and 5-year periods relative to benchmarks plus an alpha target as well as against peer groups. With respect to these portfolio managers in relation to these portfolios, the benchmarks for the Fund and other accounts are:
Portfolio Manager Funds Managed Applicable Benchmarks Russ Koesterich, CFA, JD Rick Rieder
BlackRock Global Allocation V.I. Fund
S&P 500 Index, FTSE World ex-US Index, ICE BofA Current 5-Year Treasury Index, FTSE Non-US Dollar World Government Bond Index, MSCI World Net TR Index and MSCI ACWI Minimum Volatility (USD) Index (USD)
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Discretionary Incentive Compensation
Messrs. Waldron, Sietsema and White and Ms. Hsui
Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to pre-determined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the perfor mance of the Funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio ma nager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income and multi-asset class funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. Performance of index funds is based on the performance of such funds relative to pre-determined tolerance bands around a benchmark, as applicable. With respect to these portfolio managers, su ch benchmarks for the Fund and other accounts are:
Portfolio Manager Funds Managed Applicable Benchmarks Jennifer Hsui, CFA Matt Waldron, CFA Peter Sietsema, CFA Steven White
BlackRock International Index V.I. Fund BlackRock S&P 500 Index V.I. Fund BlackRock Small Cap Index V.I. Fund
No Benchmarks.
Discretionary Incentive Compensation
Mses. O’Connor and Ly and Messrs. Gates, Cooke, Mathieson and Savi
Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of t he firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally assessed over trailing 1-,3-, and 5-year periods relative to applicable benchmarks. The relative benchmarks for these portfolio managers are:
Portfolio Manager Funds Managed Applicable Benchmarks Lisa O’Connor, CFA Michael Gates, CFA
BlackRock 60/40 Target Allocation ETF V.I. Fund
A combination of market-based indices (MSCI USA, MSCI All-Country World, Bloomberg U.S. Universal Index) and certain customized indices. Suzanne Ly, CFA, FRM BlackRock 60/40 Target Allocation ETF V.I. Fund
A combination of market-based indices (MSCI Developed, MSCI World, Russell 1000, Bloomberg U.S. Universal Index), certain customized indices and certain fund industry peer groups. Raffaele Savi Travis Cooke, CFA Richard Mathieson
BlackRock Advantage Large Cap Core V.I. Fund BlackRock Advantage Large Cap Value V.I. Fund BlackRock Advantage SMID Cap V.I. Fund
No benchmarks.
Discretionary Incentive Compensation
Messrs. Green and Pensky
Discretionary incentive compensation is a function of several components: the commercial performance of BlackRock, Inc., the commercial performance of the portfo lio manager’s group, client investment performance relative to predetermined benchmarks for which the portfolio manager’s group is responsible, and the
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individual’s contribution to the overall performance of these portfolios and BlackRock. Commercial and investment performance is generally assessed over trailing 1-,3-, and 5-year periods. The relative benchmarks for these portfolio managers are:
Philip Green BlackRock Managed Volatility V.I. Fund
A combination of market based indices (Russell 1000, MSCI All Country World Index, ICE BofA 3-Month US T Bill), certain custom indices and certain fund industry peer groups.
Michael Pensky, CFA BlackRock Managed Volatility V.I. Fund
A combination of market-based indices (MSCI EAFE, Russell 3000, Bloomberg U.S. Aggregate Bond Index, ICE BofA 3-Month US T Bill), certain customized indices and certain fund industry peer groups.
Distribution of Discretionary Incentive Compensation. Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.
Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. With the exception of Mr. Inal, the portfolio managers of these Funds have deferred BlackRock, Inc. stock awards.
For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.
Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:
Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equa l to 3-5% of eligible compensation up to the Internal Revenue Service limit ($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by participants for their own c ontributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. With the exception of Mr. Andrews and Mses. Greenen and Treharne, the portfolio managers of these funds are eligible to participate in these plans.
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Hong Kong-based portfolio managers are also eligible to participate in broad-based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee benefit plans. For example, BlackRock Inc. has created a variety of incentive savings plans in which employees are eligible to participate, including the Hong Kong Employee Retirement Plan (ERP) that includes the Mandatory Provident Fund (MPF) plan and BlackRock ORSO Retirement Plan (ORSO), and the BlackRock Employee Stock Purchase Plan (ESPP). BlackRock contributes 5% to the ERP and will match 2~5% employee’s monthly voluntary contribution. The ORSO offers a range of investment options and the funds are managed by the firm. BlackRock contributions follow the investment direc tion set by participants for their own contributions. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a US dollar value of $25,000 based on its fair market value on the purchase date. Mr. Andrews is eligible to participate in these plans.
United Kingdom-based portfolio managers are also elig ible to participate in broad-based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee benefit plans. For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution to the RSP is between 10% and 15% of eligible pay capped at £160,000 per annum. The RSP offers a range of investment options, including several collective investment funds managed by the firm. BlackRock c ontributions follow the investment direction set by participants for their own contributions or, in the absence of an investment election being made, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a US dollar value of $25,000 based on its fair market value on the purchase date. Mses. Greenen and Treharne is eligible to participate in these plans.
Portfolio Manager Potential Material Conflicts of Interest
BlackRock has built a professional working environm ent, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Funds, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which a portfolio manager has have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Funds. In addition, BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Funds. BlackRock, or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Funds by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that Messrs. Cooke, Koesterich, Mathieson, Menge, Rieder, Savi and Andrews and Mses. Treharne and Greenen may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Messrs. Cooke, Koesterich, Mathieson, Menge, Rieder, Savi and Andrews and Mses. Treharne and Greenen may therefore be entitled to receive a portion of any incentive fees earned on such accounts.
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As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.
Transfer Agency and Shareholders’ Administrative Services
BNY Mellon, which has its principal place of business at 118 Flanders Road, Westborough, MA 01581, serves as the transfer and dividend disbursement agent for the Fund.
Accounting Services
The Company has entered into an agreement with JPMorgan Chase Bank, N.A. (“JPM”) pursuant to which JPM provides certain accounting services to the Funds. The Manager provides certain accounting services to each Fund and each Fund reimburses the Manager for such services.
The table below shows the amount paid by the Company to JPM and the Manager for accounting services for the periods indicated:
Fees Paid to JPM For the Year Ended December 31, Fees Paid to the Manager For the Year Ended December 31, 2025 2024 2023 2025 2024 2023 BlackRock 60/40 Target Allocation ETF V.I. Fund $64,269 $58,903 $65,827 $0 $0 $0 BlackRock Advantage Large Cap Core V.I. Fund $36,888 $43,382 $55,763 $0 $0 $0 BlackRock Advantage Large Cap Value V.I. Fund $32,562 $38,488 $52,173 $0 $0 $0 BlackRock Advantage SMID Cap V.I. Fund $35,164 $41,119 $54,535 $0 $0 $0 BlackRock Basic Value V.I. Fund $42,487 $48,987 $62,265 $0 $0 $0 BlackRock Capital Appreciation V.I. Fund $35,244 $40,499 $54,261 $0 $0 $0 BlackRock Equity Dividend V.I. Fund $42,411 $48,613 $61,275 $0 $0 $0 BlackRock Global Allocation V.I. Fund $436,448 $428,658 $377,142 $0 $0 $0 BlackRock Government Money Market V.I. Fund $20,729 $24,939 $41,898 $0 $0 $0 BlackRock International Index V.I. Fund $39,609 $43,630 $55,632 $0 $0 $0 BlackRock International V.I. Fund $31,970 $36,165 $50,135 $0 $0 $0 BlackRock Large Cap Focus Growth V.I. Fund $38,356 $49,857 $55,946 $0 $0 $0 BlackRock Managed Volatility V.I. Fund $135,692 $103,996 $213,152 $0 $0 $0 BlackRock S&P 500 Index V.I. Fund $171,326 $169,188 $142,572 $0 $0 $0 BlackRock Small Cap Index V.I. Fund $44,377 $48,731 $59,860 $0 $0 $0
Organization and Management of Wholly-Owned Subsidiary
BlackRock Global Allocation V.I. Fund intends to gain exposure to commodity markets by investing up to 25% of its total assets in the Global Allocation Subsidiary. The Global Allocation Subsidiary invests primarily in commodity-related instruments.
The Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman KYI-1104, Cayman Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised of John M. Perlowski and Trent Walker, each a member of the Company’s Board of Directors.
The Manager provides investment management and administrative services to the Subsidiary. The Manager does not receive separate compensation from the Subsidiary for providing it with investment advisory or administrative services. However, BlackRock Global Allocation V.I. Fund pays the Manager based on the Fund’s assets, including the assets invested in the Subsidiary. The Subsidiary entered into contracts for the provision of advisory, custody, and audit services with the same service providers that provide those services to BlackRock Global Allocation V.I. Fund.
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The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by the Company. As a result, the Manager, in managing the Subsidiary’s portfolio, is subject to the same investment policies and restrictions that apply to the management of BlackRock Global Allocation V.I. Fund, and, in particular, to the requirements relating to portfolio leverage, liquidity, brokerage, and the timing and method of the valuation of a Subsidiary’s portfolio investments and shares of the Subsidiary. These policies and restrictions are described elsewhere in detail in this SAI. BlackRock Global Allocation V.I. Fund an d the Subsidiary test for compliance with certain investment restrictions on a consolidated basis.
V. Information on Distribution Related Expenses
12b-1 Distribution Plans. The Funds have adopted Distribution Plans (collectively, the “Plan”) with regard to the Class II and Class III shares of the Fund, pursuant to Rule 12b-1 under the Investment Company Act. The Plan permits the Company, on behalf of each Fund, to pay to each Insurance Company or a broker-dealer affiliate thereof (“Insurance Company Affiliate”) that en ters into an agreement with the Company to provide distribution-related and/or shareholder services to Contract owners, a fee, at the end of each month, of up to 0.15% of the average daily net asset value of the Class II Shares of the Fund held by such Insurance Company, and up to 0.25% of the average daily net asset value of the Class III Shares of the Fund held by such Insurance Company. Such services include, but are not limited to, (a) the printing and mailing of Fund prospectuses, statements of additional information, any supplements thereto and shareholder reports for existing and prospective Contract owners, (b) services relating to the development, preparation, printing and mailing of Company advertisements, sales literature and other promotional materials describing and/or relating to the Fund and including materials intended for use within th e Insurance Company, or for broker-dealer only use or retail use, (c) holding seminars and sales meetings desi gned to promote the distribution of the Class II and/or Class III Shares of the Fund, (d) obtaining information and providing explanations to Contract owners regarding the investment objectives and policies and other information about the Company and the Fund, including the performance of the Fund, (e) training sales personnel regarding the Company and the Fund, (f) compensating sales personnel in connection with th e allocation of cash values and premiums of the Contract owners to the Company, (g) providing personal services and/or maintenance of the accounts of the Contract owners with respect to Class II and Class III Shares of the Fund attributable to such accounts, and (h) financing any other activity that the Company’s Board of Directors determines is primarily intended to result in the sale of Class II and Class III Shares. BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s sole distributor. For the fiscal year ended December 31, 2025, the Funds paid fees pursuant to the Class II Plan and Class III Plan to various Insurance Companies and Insurance Company Affiliates providing services under the Plan as described below.
Distribution Fees:
Class II Shares Paid to BRIL BlackRock Advantage Large Cap Core V.I. Fund $7,512 BlackRock Global Allocation V.I. Fund $318,985 BlackRock S&P 500 Index V.I. Fund $25,775
Class III Shares Paid to BRIL BlackRock 60/40 Target Allocation ETF V.I. Fund $409,498 BlackRock Advantage Large Cap Core V.I. Fund $53,714 BlackRock Advantage Large Cap Value V.I. Fund $36,812 BlackRock Advantage SMID Cap V.I. Fund $38,113 BlackRock Basic Value V.I. Fund $139,352 BlackRock Capital Appreciation V.I. Fund $196,077 BlackRock Equity Dividend V.I. Fund $608,150
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Class III Shares Paid to BRIL BlackRock Global Allocation V.I. Fund $7,857,881 BlackRock International Index V.I. Fund $6,014 BlackRock Large Cap Focus Growth V.I. Fund $357,117 BlackRock Managed Volatility V.I. Fund $365,425 BlackRock S&P 500 Index V.I. Fund $631,663 BlackRock Small Cap Index V.I. Fund $14,554
Distribution Arrangements. The Company has entered into a distribution agreement (the “Distribution Agreement”) with BRIL with respect to the sale of the Fund’s s hares to the Distributor for resale to Insurance Companies’ accounts. Such shares will be sold at their respective net asset values and therefore will involve no sales charge. BRIL is an affiliate of the Manager.
The Distribution Agreement is subject to the same renew al requirements and termination provisions as the Management Agreement described above.
The Manager, the Distributor and their affiliates may make payments relating to distribution and sales support activities out of their past profits or other sources available to them (and not as an additional charge to the Fund). From time to time, the Manager, the Distr ibutor or their affiliates may compensate affiliated and unaffiliated insurance companies or their broker-dealer affiliates for the sale and distribution of shares of the Fund or for services to the Fund and its contract holders. These payments would be in addition to the Fund payments described in this SAI for distribution. These payments may be made to insurance companies or their broker-dealer affiliates to pay for marketing support activities, training sales personnel regarding the Fund, compensating financial intermediaries and broker- dealers to pay or reimburse them for their services or expenses in connection with the distribution of variabl e annuity and variable life insurance contracts investing in Fund shares, and compensating sales personnel in connection with the allocation of cash values and premium of variable annuity and variable life insurance contracts to investments in Fund shares. The payments made by the Manager, the Distributor and their affiliates are based on a percentage of the value of shares sold to, or held by, customers of the insurance company involved, and may be different for different insurance companies. The payments described above are made from the Manager’s, the Distributor’s or their affiliates’ own assets pursuant to agreements with insuranc e companies or their broker-dealer affiliates and do not change the price paid by investors for the purchase of the Fund’s shares or the amount the Fund will receive as proceeds from such sales.
The payments described above may be made, at the discretion of BRIL or BlackRock, to insurance companies or their broker-dealer affiliates in connection with the sale and distribution of Fund shares. Pursuant to applicable Financial Industry Regulatory Authority (“FINRA”) regulations, the details of certain of these payments, including the insurance companies or the ir broker-dealer affiliates receiving such payments in connection with the sale and distribution of Fund shares, are required to be disclosed.
As of the date of this SAI, as amended or supplemented fro m time to time, the following insurance companies (or broker-dealer affiliates thereof) are receiving such p ayments: Allianz Life Financial Services LLC, Equitable Financial Life Insurance Company, Massachusetts Mu tual Life Insurance Company, Nationwide Financial Services, Inc., Nationwide Fund Distributors, LLC, New York Life Insurance and Annuity Corporation, Pacific Select Distributors, Inc., Prudential Annuities Distributors, Inc., RiverSource Distributors, Inc., Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company. In lieu of payments pursuant to the foregoing, the Manager, the Distributor or their affiliates may make payments to insurance companies or their broker-dealer affiliates of an agreed-upon amount that will not exceed the amount that would have been payable pursuant to the above, and may also make similar payments to other insurance companies or their broker-dealer affiliates.
If investment advisers, distributors or affiliates of mutual funds pay bonuses and incentives in differing amounts, financial firms and their financial consultants may have financial incentives for recommending a particular mutual fund over other mutual funds. In addition, depending on the arrangements in place at any
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particular time, a financial firm and its financial c onsultants may also have a financial incentive for recommending a particular share class over other share classes. Furthermore, the Manager, the Distributor and their affiliates may contribute to various non-cash and cash incentive arrangements to promote the sale of shares, and may sponsor various contests and promoti ons subject to applicable FINRA regulations in which participants may receive prizes such as travel awards, merchandise and cash. Subject to applicable FINRA regulations, the Manager, the Distributor and their affiliates may also (i) pay for the travel expenses, meals, lodging and entertainment of broker/dealers, financi al institutions and their salespersons in connection with educational and sales promotional programs, (ii) sponsor speakers, educational seminars and charitable events and (iii) provide other sales and marketing conferences and other resources to broker/dealers, financial institutions and their salespersons.
Insurance companies may charge their clients additional fees for account-related services. Insurance companies may charge their customers a service fee in connectio n with the purchase or redemption of Fund shares. The amount and applicability of such a fee is determined an d disclosed to its customers by each individual insurance company. Service fees typically are fixed, nominal dollar amounts and are in addition to the sales and other charges described in the Fund’s Prospectus and this Statement of Additional Information.
Pursuant to the Plan, the Fund may enter into service a rrangements with insurance companies pursuant to which insurance companies or their broker-dealer affiliates will render certain support services to the insurance companies’ customers (“Customers”). Such services will be provided to Customers and are intended to supplement the services provided by the Fund’s Manager, administrator and/or Transfer Agent to the insurance company. In consideration for payment of a service fee on shares, insurance companies or their broker-dealer affiliates may provide general shareholder liaison services, including, but not limited to (i) answering customer inquiries regarding account status and history, the manner in which purchases, exchanges and redemptions of shares may be effected an d certain other matters pertaining to the Customers’ sub-accounts; and (ii) assisting Customers in design ating and changing account designations and addresses.
In addition to, rather than in lieu of, distribution fees that the Fund may pay to an insurance company or its broker-dealer affiliate pursuant to the Plan and fees the Fund pays to its Transfer Agent, if approved by the Board, the Fund may enter into non-Plan agreements with insurance companies or their broker-dealer affiliates pursuant to which the Fund will pay an insurance company or its broker-dealer affiliates for administrative, networking, recordkeeping, sub-transfer agency and shareholder services. These non-Plan payments are based on a percentage of the average daily net assets of Fund shares held indirectly by Customers of such insurance companies.
The aggregate amount of these payments may be substantial. From time to time, the Manager, the Distributor or their affiliates also may pay a portion of the fees fo r administrative, networking, recordkeeping, sub-transfer agency and shareholder services described above at its or their own expense and out of its or their legitimate profits.
VI. Computation of Offering Price Per Share
The offering price for each Fund’s shares is equal to the net asset value computed by dividing the value of the Fund’s net assets by the number of shares outstanding. For more information on the purchasing and valuation of shares, please see “Purchase of Shares” and “Pricing of Shares” in Part II of this SAI. The Subsidiary is subject to the same valuation policies as BlackRock Global Allocation V.I. Fund as described in “Pricing of Shares” in Part II of this SAI. BlackRock Global Allocation V.I. Fund’s investment in the Subsidiary is valued based on the value of the Subsidiary’s portfolio investments. The Subsidiary prices its portfolio investments pursuant to the same pricing and valuation methodologies and procedures used by BlackRock Global Allocation V.I. Fund, which require, among other things, that the Subsidiary’s portfolio investments be marked-to-market (that is, the value on the Subsidiary’s books changes) each business day to reflect changes in the market value of the investment.
VII. Portfolio Transactions and Brokerage
See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.
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Brokerage Commissions. Information about the brokerage commissions paid by each Fund, including commissions paid to affiliates of the Manager, for the last three fiscal years is set forth in the following table:
Aggregate Brokerage Commissions Paid For the Year Ended December 31, Commissions Paid to Affiliates For the Year Ended December 31, 2025 2024 2023 2025 2024 2023 BlackRock 60/40 Target Allocation ETF
VIFd V.I. Fund $55,737 $54,732 $75,447 $0 $0 $0 BlackRock Advantage Large Cap Core
VIFd V.I. Fund $32,434 $45,162 $53,692 $0 $0 $0 BlackRock Advantage Large Cap Value
VIFd V.I. Fund $19,697 $30,102 $36,432 $0 $0 $0 BlackRock Advantage SMID Cap V.I.
Fd Fund $86,525 $92,928 $111,562 $0 $0 $0 BlackRock Basic Value V.I. Fund 1 $181,274 $115,374 $152,051 $0 $0 $0 BlackRock Capital Appreciation V.I.
Fd2 Fund 2 $16,284 $52,384 $19,673 $0 $0 $0 BlackRock Equity Dividend V.I. Fund $102,903 $109,637 $112,306 $0 $0 $0 BlackRock Global Allocation V.I. Fund $3,410,260 $4,404,792 $4,040,521 $0 $0 $0 BlackRock Government Money Market
VIFd V.I. Fund $0 $0 $0 $0 $0 $0 BlackRock International Index V.I. Fund $10,167 $3,858 $2,881 $0 $0 $0 BlackRock International V.I. Fund $67,127 $34,075 $49,451 $0 $0 $0 BlackRock Large Cap Focus Growth V.I.
Fd3 Fund 3 $54,197 $17,613 $20,116 $0 $0 $0 BlackRock Managed Volatility V.I. Fund $225,080 $220,324 $223,630 $0 $0 $0 BlackRock S&P 500 Index V.I. Fund $15,484 $17,027 $29,084 $0 $0 $0 BlackRock Small Cap Index V.I. Fund $39,359 $39,507 $41,152 $0 $0 $0 1 The increase in the brokerage commissions paid by BlackRock Basic Value V.I. Fund for the fiscal year ended December 31, 2025 as compared to the prior fiscal year was primarily driven by turnover. 2 The increase in the brokerage commissions paid by BlackRock Capital Appreciation V.I. Fund for the fiscal year ended December 31, 2024 as compared to the fiscal year ended December 31, 2023 was primarily driven by a decrease in the size of the Fund over the period. The decrease in brokerage commissions paid by BlackRock Capital Appreciation V.I. Fund for the fiscal year ended December 31, 2025 as compared to the prior fiscal year was primarily driven by a decrease in the size of the Fund over the period. 3 The increase in the brokerage commissions paid by BlackRock Large Cap Focus Growth V.I. Fund for the fiscal year ended December 31, 2025 as compared to the prior fiscal year was primarily driven by increased market volatility and turnover. The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section 28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and the approximate dollar amount of the transactions involved for the fiscal year ended December 31, 2025. The provision of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business with such brokers.
Amount of Commissions Paid to Brokers For Providing 28(e) Eligible Services Amount of Brokerage Transactions Involved BlackRock 60/40 Target Allocation ETF V.I. Fund $0 $0 BlackRock Advantage Large Cap Core V.I. Fund $18,016 $136,107,492 BlackRock Advantage Large Cap Value V.I. Fund $9,813 $68,564,701 BlackRock Advantage SMID Cap V.I. Fund $41,693 $117,270,870 BlackRock Basic Value V.I. Fund $128,752 $252,813,613 BlackRock Capital Appreciation V.I. Fund $10,913 $72,238,457 BlackRock Equity Dividend V.I. Fund $41,206 $103,661,799 BlackRock Global Allocation V.I. Fund $659,203 $2,243,502,116 BlackRock Government Money Market V.I. Fund $0 $0 BlackRock International Index V.I. Fund $0 $0 BlackRock International V.I. Fund $0 $0 BlackRock Large Cap Focus Growth V.I. Fund $35,757 $236,782,569 BlackRock Managed Volatility V.I. Fund $1,185 $2,473,701 BlackRock S&P 500 Index V.I. Fund $0 $0 BlackRock Small Cap Index V.I. Fund $0 $0
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As of December 31, 2025, the value of each Fund’s holdings of the securities of its regular brokers or dealers (as defined in Rule 10b-1 under the Investment Company Act), if any portion of such holdings were purchased during the fiscal year ended December 31, 2025, is as follows:
BlackRock 60/40 Target Allocation ETF V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) None
BlackRock Advantage Large Cap Core V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) BofA Securities, Inc. E $2,768 J.P. Morgan Securities LLC E $2,358 Morgan Stanley & Co. LLC E $1,678 Citigroup Global Markets Inc. E $1,277
BlackRock Advantage Large Cap Value V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) J.P. Morgan Securities LLC E $2,969 BofA Securities, Inc. E $2,072 Citigroup Global Markets Inc. E $1,338 Morgan Stanley & Co. LLC E $1,200 Jefferies LLC E $58
BlackRock Advantage SMID Cap V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) Jefferies LLC E $303
BlackRock Basic Value V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) Citigroup Global Markets Inc. E $9,409 J.P. Morgan Securities LLC E $1,748
BlackRock Capital Appreciation V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) Citigroup Global Markets Inc. E $1,157 J.P. Morgan Securities LLC E $799
BlackRock Equity Dividend V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) Citigroup Global Markets Inc. E $9,613 J.P. Morgan Securities LLC E $3,579
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BlackRock Global Allocation V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) J.P. Morgan Securities LLC D $12,337 Goldman Sachs & Co. LLC D $3,365 Deutsche Bank Securities Inc. D $2,562 Citigroup Global Markets Inc. D $2,156 UBS Securities LLC D $785 Morgan Stanley & Co. LLC D $513 BNP Paribas Securities Corp. D $214 BofA Securities, Inc. E $32,899 J.P. Morgan Securities LLC E $30,432 Citigroup Global Markets Inc. E $27,032 Goldman Sachs & Co. LLC E $4,468 Morgan Stanley & Co. LLC E $2,975 Deutsche Bank Securities Inc. E $2,404 UBS Securities LLC E $880 Barclays Capital, Inc. E $422
BlackRock Government Money Market V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) None
BlackRock International Index V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) UBS Securities LLC E $2,093 BNP Paribas Securities Corp. E $1,363 Barclays Capital, Inc. E $1,280
BlackRock International V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) UBS Securities LLC E $2,115 BNP Paribas Securities Corp. E $1,510
BlackRock Large Cap Focus Growth V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) Citigroup Global Markets Inc. E $3,797 J.P. Morgan Securities LLC E $2,605
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BlackRock Managed Volatility V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) J.P. Morgan Securities LLC E $1,402 BofA Securities, Inc. E $688 Citigroup Global Markets Inc. E $508 Nomura Securities International, Inc. E $421 UBS Securities LLC E $285 Goldman Sachs & Co. LLC E $283 BNP Paribas Securities Corp. E $227 Morgan Stanley & Co. LLC E $217 Deutsche Bank Securities Inc. E $210 Barclays Capital, Inc. E $203 Mizuho Securities USA LLC E $91 Daiwa Capital Markets America Inc. E $83
BlackRock S&P 500 Index V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) J.P. Morgan Securities LLC E $46,218 BofA Securities, Inc. E $19,469 Wells Fargo Securities, LLC E $15,415 Goldman Sachs & Co. LLC E $13,891 Morgan Stanley & Co. LLC E $11,299 Citigroup Global Markets Inc. E $11,001
BlackRock Small Cap Index V.I. Fund
Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s) Jefferies LLC E $28
Securities Lending. To the extent that a Fund engages in securities lending, the Fund conducts its securities lending pursuant to an exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund and to retain an affiliate of the Fund as securities lending agent. To the extent that a Fund engages in securities lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”). BIM administers the lending program in accordance with guidelines approved by the Board.
Those Funds that engage in securities lending retain a portion of the securities lending income and remit the remaining portion to BIM as compensation for its services as securities lending agent. Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below), and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the “collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees a Fund bears to an annual rate of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.
To the extent that a Fund invests cash collateral in a non-government money market fund, the Fund may be subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the
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money market fund. Additionally, a Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the Fund’s returns on securities lending.
Under the securities lending program, each Fund is categorized into one of several specific asset classes. The determination of a Fund’s asset class category (fixed-in come, domestic equity, international equity, or fund of funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the Company and BIM.
Pursuant to the current securities lending agreement: (i) if BlackRock Government Money Market V.I. Fund were to engage in securities lending, it would retain 82% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.
Pursuant to the current securities lending agreement: (i) BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage SMID Cap V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Capital Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global Allocation V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, BlackRock Managed Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. Fund retain 81% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.
Pursuant to the current securities lending agreement: (i) BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock International Index V.I. Fund and BlackRock International V.I. Fund retain 82% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specific thresholds, each Fund, pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities lending income as follows:
BlackRock Government Money Market V.I. Fund
(i) if the Fund were to engage in securities lending, 85% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.
BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage SMID Cap V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Capital Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global Allocation V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, Blac kRock Managed Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. Fund
(i) 84% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.
BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock International Index V.I. Fund and BlackRock International V.I. Fund
(i) 85% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.
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The services provided to BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage SMID Cap V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Capital Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global Allocation V.I. Fund, BlackRock International Index V.I. Fund, BlackRock International V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, BlackRock Managed Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. Fund by BIM, in the most recent fiscal year ended December 31, 2025, primarily included the following:
(1) selecting borrowers from an approved list of bo rrowers and executing a securities lending agreement as agent on behalf of each of the Funds listed above with each such borrower;
(2) negotiating the terms of securities loans, including the amount of fees;
(3) directing the delivery of loaned securities;
(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return of excess collateral, as necessary;
(5) investing cash collateral received in connection with any loaned securities;
(6) monitoring distributions on loaned securitie s (for example, interest and dividend activity);
(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of the liquidation of collateral to purchase rep lacement securities of the same issue, type, class and series as that of the loaned securities; and
(8) terminating securities loans and arranging for the return of loaned securities to each of the Funds listed above at loan termination.
The following tables show the dollar amounts of incom e and fees/compensation related to the securities lending activities of each applicable Fund during its most recent fiscal year ended December 31, 2025.
BlackRock 60/40 Target Allocation ETF V.I. Fund
BlackRock Advantage Large Cap Core V.I. Fund
BlackRock Advantage Large Cap Value V.I. Fund
BlackRock Advantage SMID Cap V.I. Fund Gross income from securities lending activities $8,775,305 $96,461 $101,821 $630,396
Fees and/or compensation for securities lending activities and related services Securities lending income paid to BIM for services as securities lending agent $133,426 $1,099 $1,197 $14,009 Cash collateral management expenses not included in securities lending income paid to BIM $78,730 $854 $901 $5,301 Administrative fees not included in securities lending income paid to BIM $0 $0 $0 $0 Indemnification fees not included in securities lending income paid to BIM $0 $0 $0 $0 Rebates (paid to borrowers) $7,926,539 $89,583 $94,433 $550,514 Other fees not included in securities lending income paid to BIM $0 $0 $0 $0 Aggregate fees/compensation for securities lending activities $8,138,695 $91,536 $96,531 $569,824
Net income from securities lending activities $636,610 $4,925 $5,290 $60,572
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BlackRock Basic Value V.I. Fund
BlackRock Capital Appreciation V.I. Fund
BlackRock Equity Dividend V.I. Fund
BlackRock Global Allocation V.I. Fund Gross income from securities lending activities $1,672,281 $62,349 $868,597 $3,688,170
Fees and/or compensation for securities lending activities
d ld p
and related services Securities lending income paid to BIM for services as
ld g
securities lending agent $54,543 $634 $8,505 $85,422 Cash collateral management expenses not included in
ldd gp
securities lending income paid to BIM $13,451 $554 $7,742 $32,034 Administrative fees not included in securities lending
d income paid to BIM $0 $0 $0 $0 Indemnification fees not included in securities lending
d income paid to BIM $0 $0 $0 $0 Rebates (paid to borrowers) $1,371,063 $58,233 $813,201 $3,204,136 Other fees not included in securities lending income paid to BIM $0 $0 $0 $0 Aggregate fees/compensation for securities lending activities $1,439,057 $59,421 $829,448 $3,321,592 Net income from securities lending activities $233,224 $2,928 $39,149 $366,578
BlackRock International Index V.I. Fund
BlackRock International V.I. Fund
BlackRock Large Cap Focus Growth V.I. Fund Gross income from securities lending activities $67,315 $46,819 $212,970 Fees and/or compensation for securities lending activities and related services Securities lending income paid to BIM for services as securities lending agent $1,195 $658 $2,450 Cash collateral management expenses not included in securities lending
d income paid to BIM $597 $431 $1,927 Administrative fees not included in securities lending income paid to BIM $0 $0 $0 Indemnification fees not included in securities lending income paid to BIM $0 $0 $0 Rebates (paid to borrowers) $59,619 $42,441 $197,592 Other fees not included in securities lending income paid to BIM $0 $0 $0 Aggregate fees/compensation for securities lending activities $61,411 $43,530 $201,969
Net income from securities lending activities $5,904 $3,289 $11,001
BlackRock Managed Volatility V.I. Fund
BlackRock S&P 500 Index V.I. Fund
BlackRock Small Cap Index V.I. Fund Gross income from securities lending activities $82,559 $2,400,135 $2,256,381 Fees and/or compensation for securities lending activities and related services Securities lending income paid to BIM for services as securities lending agent $867 $34,919 $68,737 Cash collateral management expenses not included in securities lending
d income paid to BIM $735 $20,780 $18,905 Administrative fees not included in securities lending income paid to BIM $0 $0 $0 Indemnification fees not included in securities lending income paid to BIM $0 $0 $0 Rebates (paid to borrowers) $76,998 $2,187,770 $1,874,450 Other fees not included in securities lending income paid to BIM $0 $0 $0 Aggregate fees/compensation for securities lending activities $78,600 $2,243,469 $1,962,092
Net income from securities lending activities $3,959 $156,666 $294,289
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BlackRock Government Money Market V.I. Fund had no income and fees/compensation related to its securities lending activities during its most recent fiscal year ended December 31, 2025.
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