BBIF Money Fund. BBIF Treasury Fund. BIF Money Fund. BIF Treasury Fund. BlackRock Advantage Global Fund, Inc.

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1 BBIF Money Fund BBIF Treasury Fund BIF Money Fund BIF Treasury Fund BlackRock Advantage Global Fund, Inc. BlackRock Advantage U.S. Total Market Fund, Inc. BlackRock Allocation Target Shares BATS: Series A Portfolio BATS: Series C Portfolio BATS: Series E Portfolio BATS: Series M Portfolio BATS: Series P Portfolio BATS: Series S Portfolio BlackRock Asian Dragon Fund, Inc. BlackRock Balanced Capital Fund, Inc. BlackRock Basic Value 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 EuroFund BlackRock Focus Growth Fund, Inc. 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 All-Cap Energy & Resources Portfolio BlackRock Alternative Capital Strategies Fund BlackRock Commodity Strategies Fund BlackRock Emerging Markets Dividend Fund BlackRock Emerging Markets Equity Strategies Fund BlackRock Energy & Resources Portfolio BlackRock Exchange Portfolio BlackRock Global Long/Short Credit Fund BlackRock Global Long/Short Equity Fund BlackRock Health Sciences Opportunities Portfolio BlackRock High Equity Income Fund BlackRock Impact Bond Fund BlackRock Impact U.S. Equity Fund BlackRock International Dividend Fund BlackRock Mid-Cap Growth Equity Portfolio BlackRock Money Market Portfolio BlackRock Multi-Manager Alternative Strategies Fund BlackRock Real Estate Securities Fund BlackRock Short Obligations Fund BlackRock Tactical Opportunities Fund BlackRock Technology Opportunities Fund BlackRock Total Emerging Markets Fund BlackRock Total Factor Fund ishares Developed Real Estate Index Fund ishares Edge MSCI Min Vol EAFE Index Fund ishares Edge MSCI Min Vol USA Index Fund ishares Edge MSCI Multifactor Intl Index Fund ishares Edge MSCI Multifactor USA Index Fund ishares Edge MSCI USA Momentum Factor Index Fund ishares Edge MSCI USA Quality Factor Index Fund ishares Edge MSCI USA Size Factor Index Fund ishares Edge MSCI USA Value Factor Index Fund ishares MSCI Asia ex Japan Index Fund ishares MSCI Developed World 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 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 Core Bond Portfolio BlackRock Credit Strategies Income Fund BlackRock Dynamic High Income Portfolio BlackRock Emerging Markets Bond Fund

2 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio BlackRock Emerging Markets Local Currency Bond Fund BlackRock Floating Rate Income Portfolio BlackRock Global Dividend Portfolio BlackRock GNMA Portfolio BlackRock High Yield Bond Portfolio BlackRock Inflation Protected Bond Portfolio BlackRock LifePath Smart Beta 2020 Fund BlackRock LifePath Smart Beta 2025 Fund BlackRock LifePath Smart Beta 2030 Fund BlackRock LifePath Smart Beta 2035 Fund BlackRock LifePath Smart Beta 2040 Fund BlackRock LifePath Smart Beta 2045 Fund BlackRock LifePath Smart Beta 2050 Fund BlackRock LifePath Smart Beta 2055 Fund BlackRock LifePath Smart Beta 2060 Fund BlackRock LifePath Smart Beta Retirement Fund BlackRock Low Duration Bond Portfolio BlackRock Managed Income Fund BlackRock Multi-Asset Income Portfolio BlackRock Strategic Income Opportunities Portfolio BlackRock U.S. Government Bond Portfolio BlackRock Funds III BlackRock Cash Funds: Institutional BlackRock Cash Funds: Treasury BlackRock CoreAlpha Bond Fund BlackRock LifePath Dynamic Retirement Fund BlackRock LifePath Dynamic 2020 Fund BlackRock LifePath Dynamic 2025 Fund BlackRock LifePath Dynamic 2030 Fund BlackRock LifePath Dynamic 2035 Fund BlackRock LifePath Dynamic 2040 Fund BlackRock LifePath Dynamic 2045 Fund BlackRock LifePath Dynamic 2050 Fund BlackRock LifePath Dynamic 2055 Fund BlackRock LifePath Dynamic 2060 Fund BlackRock LifePath Index Retirement Fund BlackRock LifePath Index 2020 Fund BlackRock LifePath Index 2025 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 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 Global Allocation Fund, Inc. BlackRock Index Funds, Inc. ishares MSCI EAFE International Index Fund ishares Russell 2000 Small-Cap Index Fund BlackRock Large Cap Series Funds, Inc. BlackRock Advantage Large Cap Core Fund BlackRock Advantage Large Cap Value Fund BlackRock Advantage Large Cap Value Retirement Fund BlackRock Event Driven Equity Fund BlackRock Large Cap Focus Growth Fund BlackRock Latin America Fund, Inc. BlackRock Liquidity Funds California Money Fund Federal Trust Fund FedFund MuniCash MuniFund New York Money Fund TempCash TempFund T-Fund Treasury Trust Fund BlackRock Long-Horizon Equity Fund BlackRock Mid Cap Dividend Series, Inc. BlackRock Mid Cap Dividend 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 High Yield Municipal Fund BlackRock National Municipal Fund BlackRock Short-Term Municipal Fund BlackRock Municipal Series Trust BlackRock Strategic Municipal Opportunities Fund BlackRock Natural Resources Trust -2-

3 BlackRock Series Fund, Inc. BlackRock Advantage Large Cap Core Portfolio BlackRock Balanced Capital Portfolio BlackRock Capital Appreciation Portfolio BlackRock Global Allocation Portfolio BlackRock Government Money Market Portfolio BlackRock High Yield Portfolio BlackRock U.S. Government Bond Portfolio BlackRock Series, Inc. BlackRock International Fund BlackRock Strategic Global Bond Fund, Inc. BlackRock Variable Series Funds, Inc. BlackRock Advantage Large Cap Core V.I. Fund BlackRock Advantage Large Cap Value V.I. Fund BlackRock Advantage U.S. Total Market V.I. Fund BlackRock Basic Value V.I. Fund BlackRock Capital Appreciation V.I. Fund BlackRock Equity Dividend V.I. Fund BlackRock Global Allocation V.I. Fund BlackRock Global Opportunities V.I. Fund BlackRock Government Money Market V.I. Fund BlackRock High Yield V.I. Fund BlackRock International V.I. Fund BlackRock ishares Alternative Strategies V.I. Fund BlackRock ishares Dynamic 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 BlackRock Total Return V.I. Fund BlackRock U.S. Government Bond V.I. Fund FDP Series, Inc. FDP BlackRock Capital Appreciation Fund FDP BlackRock CoreAlpha Bond Fund FDP BlackRock Equity Dividend Fund FDP BlackRock International Fund Funds For Institutions Series BlackRock Premier Government Institutional Fund BlackRock Select Treasury Strategies Institutional Fund BlackRock Treasury Strategies Institutional Fund FFI Government Fund FFI Treasury Fund Managed Account Series Advantage Global SmallCap Fund BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund BlackRock U.S. Mortgage Portfolio Mid Cap Dividend Fund Ready Assets Government Liquidity Fund Ready Assets U.S.A. Government Money Fund Ready Assets U.S. Treasury Money Fund Retirement Series Trust Retirement Reserves Money Fund (each, a Fund and collectively, the Funds ) Supplement dated April 5, 2018 to the Statement of Additional Information of each Fund Each Fund s Statement of Additional Information is amended as follows: The list in the section entitled Purchase of Shares Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments, Miscellaneous Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments, Investment Advisory Arrangements Additional Payments by BlackRock C. Service Organizations Receiving Additional Payments or Investment Adviser and Other Service Providers Additional Payments by BlackRock C. Service -3-

4 Organizations Receiving Additional Payments in Part II, as applicable, of each Fund s current Statement of Additional Information is deleted in its entirety and replaced with the following: ADP Broker-Dealer, Inc. Advisor Group, Inc. Allianz Life Financial Services, LLC Allianz Life Insurance Company of New York Allianz Life Insurance Company of North America American Enterprise Investment Services, Inc. American Fidelity Assurance Company American Fidelity Securities, Inc. American General Life Insurance Company American United Life Insurance Company Annuity Investors Life Insurance Company Aon Hewitt Ascensus Broker Dealer Services, Inc. Ascensus, Inc. AssetMark Trust Company AXA Advisors, LLC AXA Equitable Life Insurance Company Bank of America, N.A. Bank of New York Mellon, The Barclays Capital Inc. BB&T Retirement & Institutional Services Benefit Plans Administrative Services, Inc. Benefit Trust Company BlackRock Advisors, LLC BMO Capital Markets Corp. BNP Paribas BNP Paribas Investment Partners UK Limited BNY Mellon, N.A. BOKF, N.A. Broadridge Business Process Outsourcing, LLC Brown Brothers Harriman & Co. Capital One, N.A. Cetera Advisor Networks LLC Cetera Advisors LLC Cetera Financial Group Cetera Financial Specialists LLC Cetera Investment Services LLC Charles Schwab & Co., Inc. Chicago Mercantile Exchange Inc. Citco Securities, LLC CitiBank, National Association Citigroup Global Markets, Inc. Citizens Business Bank CME Shareholder Servicing LLC CMFG Life Insurance Company Comerica Bank Commonwealth Financial Network Companion Life Insurance Company Computershare Trust Company Conduent HR Services, LLC Credit Suisse Securities (USA) LLC CSC Trust Company of Delaware Delaware Life Insurance Company Delaware Life Insurance Company of New York Deutsche Bank AG Deutsche Bank Trust Company Americas Digital Retirement Solutions, Inc. Edward D. Jones & Co., L.P. Empire Fidelity Investments Life Insurance Company 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 Hawaiian Bank First Mercantile Trust Company First MetLife Investors Insurance Company First Republic Bank First Security Benefit Life Insurance and Annuity Company of New York First Symetra National Life Insurance Company of New York FIS Brokerage & Securities Services LLC Forethought Life Insurance Company FSC Securities Corporation Genworth Life and Annuity Insurance Company Genworth Life Insurance Company of New York Girard Securities, Inc. Global Atlantic Distributors, LLC Goldman Sachs & Co. Great-West Financial Retirement Plan Services, LLC Great-West Life & Annuity Insurance Company Great-West Life & Annuity Insurance Company of New York Guardian Insurance & Annuity Company, Inc., The GWFS Equities, Inc. Hartford Life and Annuity Insurance Company Hartford Life Insurance Company Hartford Securities Distribution Company, Inc. Hazeltree Fund Services, Inc. Hightower Securities, Inc. -4-

5 Hilltop Securities Inc. HSBC Bank USA, N.A. Huntington Investment Company, The Institutional Cash Distributors, LLC Integrity Life Insurance Company INVEST Financial Corporation Investment Centers of America, 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 John Hancock Life Insurance Company of New York JPMorgan Chase Bank, N.A. Kestra Investment Services, LLC Ladenburg Thalmann Advisor Network LLC Lincoln Financial Advisors Corporation Lincoln Financial Distributors, Inc. Lincoln Financial Securities Corporation Lincoln Life & Annuity Company of New York Lincoln National Life Insurance Company Lincoln Retirement Services LLC LPL Financial LLC M&T Securities Inc. Manufacturers and Traders Trust Company Massachusetts Mutual Life Insurance Company Members Life Insurance Company Mercer HR Services, LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Metavante Corporation MetLife Insurance Company USA Metropolitan Life Insurance Company Mid Atlantic Capital Corporation Midland Life Insurance Company Minnesota Life Insurance Company 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 National Financial Services LLC National Integrity Life Insurance Company National Life Insurance Company National Planning Corporation National Planning Holdings, Inc. 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. NEX Treasury Limited Northbrook Bank & Trust Company Northwestern Mutual Investment Services, LLC NYLife Distributors LLC Oppenheimer & Co., Inc. Pacific Life & Annuity Company Pacific Life Insurance Company Pacific Select Distributors, LLC Park Avenue Securities LLC Pershing LLC PFPC Inc. PFS Investments Inc. Piper Jaffray & Co. PNC Bank, National Association PNC Capital Markets LLC PNC Investments LLC Primerica Shareholder Services, Inc. Principal 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 Lire Life Insurance Company of New York RiverSource Distributors, Inc. RiverSource Life Insurance Co. of New York RiverSource Life Insurance Company Robert W Baird & Co Incorporated Royal Alliance Associates, Inc. SagePoint Financial, Inc. Sammons Retirement Solutions, Inc. Saturna 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 SII Investments, Inc. Silicon Valley Bank Standard Insurance Company -5-

6 State Street Global Markets, LLC Stifel, Nicolaus & Company, Incorporated Summit Brokerage Services, Inc. SunTrust Bank SVB Asset Management Symetra Life Insurance Company Syntal Capital Partners, LLC T. Rowe Price Retirement Plan Services, Inc. TD Ameritrade Clearing, Inc. TD Ameritrade Trust Company TD Ameritrade, Inc. Teachers Insurance and Annuity Association of America TIAA-CREF Tuition Financing, Inc. Transamerica Advisors Life Insurance Company Transamerica Financial Life Insurance Company Treasury Brokerage Trust Company of America U.S. Bancorp Investments, Inc. U.S. Bank, National Association UBATCO & Co. UBS Financial Services, Inc. UBS Securities LLC UMB Bank, National Association United of Omaha Life Insurance Company United States Life Insurance Company in the City of New York, The VALIC Retirement Services Company Vanguard Group, Inc., The 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 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 SAI-GLOBAL-0418SUP Shareholders should retain this Supplement for future reference. -6-

7 STATEMENT OF ADDITIONAL INFORMATION MANAGED ACCOUNT SERIES 100 Bellevue Parkway, Wilmington, Delaware Phone No. (800) This Statement of Additional Information of BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund (collectively, the Funds, and each, a Fund ), each a series of Managed Account Series (the Trust ), is not a prospectus and should be read in conjunction with the Prospectus of the Funds, dated February 28, 2018, as it may be amended or supplemented from time to time which has been filed with the Securities and Exchange Commission (the Commission or the SEC ) and can be obtained, without charge, by calling (800) or by writing to the Funds at the above address. The Funds Prospectus is incorporated by reference into this Statement of Additional Information, and Part I of this Statement of Additional Information and the portions of Part II of this Statement of Additional Information that relate to the Funds 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 Report to Shareholders for the fiscal period ended October 31, 2017 (the Annual Report ). You may request a copy of the Annual Report at no charge by calling (800) 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. Ticker Symbol BlackRock GA Disciplined Volatility Equity Fund BGDVX Ticker Symbol BlackRock GA Enhanced Equity Fund BGEEX BLACKROCK ADVISORS, LLC MANAGER BLACKROCK INVESTMENTS, LLC DISTRIBUTOR The date of this Statement of Additional Information is February 28, 2018.

8 TABLE OF CONTENTS Page PART I Investment Objectives and Policies... I-2 Investment Restrictions... I-7 Information on Trustees and Officers... I-10 Management and Advisory Arrangements... I-19 Information on Sales Charges and Distribution Related Expenses... I-25 Computation of Offering Price Per Share... I-25 Portfolio Transactions and Brokerage... I-25 Additional Information... I-26 Financial Statements... I-27 PART II Investment Risks and Considerations... II-1 Management and Other Service Arrangements... II-58 Selective Disclosure of Portfolio Holdings... II-61 Purchase of Shares... II-72 Redemption of Shares... II-85 Shareholder Services... II-88 Pricing of Shares... II-92 Portfolio Transactions and Brokerage... II-94 Dividends and Taxes... II-98 Performance Data... II-104 Proxy Voting Policies and Procedures... II-106 General Information... II-106 Appendix A Description of Bond Ratings... A-1 Appendix B Proxy Voting Policies... B-1

9 PART I: INFORMATION ABOUT THE FUNDS Part I of this Statement of Additional Information ( SAI ) sets forth information about the BlackRock GA Disciplined Volatility Equity Fund (the GA Disciplined Volatility Fund ) and the BlackRock GA Enhanced Equity Fund (the GA Enhanced Equity Fund ) (each, a Fund and collectively, the Funds ), each a series of Managed Account Series (the Trust ). It includes information about the Trust s Board of Trustees (the Board or the Board of Trustees ), 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 the Funds Prospectuses and those portions of Part II of this SAI that pertain to each Fund. I. Investment Objectives and Policies In implementing each Fund s investment strategy, from time to time, BlackRock Advisors, LLC ( BlackRock or the Manager ), each Fund s investment manager, may consider and employ techniques and strategies designed to minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their investment in such Fund. 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 investments 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 a Fund s investments and/or investment strategies applies only to those Funds specifically identified as making each type of investment or using each investment strategy (each, a Covered Fund ). Information that does not apply to a Covered Fund does not form a part of that Covered Fund s SAI and should not be relied on by investors in that Covered Fund. Only information that is clearly identified as applicable to the Covered Fund is considered to form a part of that Fund s SAI. BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund 144A Securities X X Asset-Backed Securities X X Asset-Based Securities Precious Metal-Related Securities X X Bank Loans X X Borrowing and Leverage X X Cash Flows; Expenses Cash Management X X Collateralized Debt Obligations Collateralized Bond Obligations Collateralized Loan Obligations Commercial Paper X X Commodity-Linked Derivative Instruments and Hybrid Instruments X X Qualifying Hybrid Instruments X X Hybrid Instruments Without Principal Protection X X Limitations on Leverage X X Counterparty Risk X X Convertible Securities X X Cyber Security Issues X X I-2

10 BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund Debt Securities X X Depositary Receipts (ADRs, EDRs and GDRs) X X Derivatives X X Hedging X X Indexed and Inverse Securities X X Swap Agreements X X Credit Default Swap Agreements and Similar Instruments X X Contracts for Difference X X Credit Linked Securities X Interest Rate Transactions and Swaptions X X Total Return Swap Agreements X X Types of Options X X Options on Securities and Securities Indices X X Call Options X X Put Options X X Options on Government National Mortgage Association ( GNMA ) Certificates Risks Associated with Options X X Futures X X Risks Associated with Futures X X Foreign Exchange Transactions X X Forward Foreign Exchange Transactions X X Currency Futures X X Currency Options X X Currency Swaps X X Limitations on Currency Transactions X X Risk Factors in Hedging Foreign Currency X X Risk Factors in Derivatives X X Credit Risk X X Currency Risk X X Leverage Risk X X Liquidity Risk X X Correlation Risk X X Index Risk X X Additional Risk Factors of OTC Transactions; Limitations on the Use of OTC Derivatives X X Distressed Securities X X Dollar Rolls X X Equity Securities X X Exchange Traded Notes ( ETNs ) X Foreign Investment Risks X X Foreign Market Risk X X Foreign Economy Risk X X I-3

11 BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund Currency Risk and Exchange Risk X X Governmental Supervision and Regulation/Accounting Standards X X Certain Risks of Holding Fund Assets Outside the United States X X Publicly Available Information X X Settlement Risk X X Funding Agreements Guarantees X X Illiquid or Restricted Securities X X Inflation-Indexed Bonds X X Inflation Risk X X Information Concerning the Indexes Standard & Poor s 500 Index Russell Indexes MSCI Indexes FTSE Indexes Initial Public Offering ( IPO ) Risk X X Interfund Lending Program X X Borrowing, to the extent permitted by the Fund s investment policies and restrictions X X Lending, to the extent permitted by the Fund s investment policies and restrictions X X Investment Grade Debt Obligations X X Investment in Emerging Markets X X Brady Bonds Investment in Other Investment Companies X X Exchange Traded Funds X X Junk Bonds X X Lease Obligations Liquidity Management X X Master Limited Partnerships X X Merger Transaction Risk Mezzanine Investments X Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks X X Mortgage-Related Securities X X Mortgage-Backed Securities X Collateralized Mortgage Obligations ( CMOs ) X Adjustable Rate Mortgage Securities CMO Residuals Stripped Mortgage-Backed Securities Tiered Index Bonds TBA Commitments X X Municipal Bonds X X Risk Factors and Special Considerations Relating to Municipal Bonds X X I-4

12 BlackRock GA Disciplined Volatility Equity Fund BlackRock GA Enhanced Equity Fund General Obligation Bonds Revenue Bonds Private Activity Bonds ( PABs ) Tender Option Bonds Participation Notes X X Pay-in-kind Bonds X X Portfolio Turnover Rates X X Preferred Stock X X Real Estate Related Securities X X Real Estate Investment Trusts ( REITs ) X X Repurchase Agreements and Purchase and Sale Contracts X X Reverse Repurchase Agreements X X Rights Offerings and Warrants to Purchase X X Risk of Investing in China X X Securities Lending Securities of Smaller or Emerging Growth Companies X X Short Sales X X Sovereign Debt X X Standby Commitment Agreements X X Stripped Securities X X Structured Notes X X Supranational Entities X X Trust Preferred Securities X X U.S. Government Obligations X X U.S. Treasury Obligations X X Utility Industries X X When Issued Securities, Delayed Delivery Securities and Forward Commitments X X Yields and Ratings X X Zero Coupon Securities X X 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 value in CFTCregulated 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 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 GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund. BlackRock is not, therefore, subject to registration or regulation as a commodity pool operator under the CEA in respect of the Funds. I-5

13 BlackRock GA Disciplined Volatility Equity Fund s primary vehicle for gaining exposure to the commodities markets is expected to be through investments in Cayman GA Disciplined Volatility Equity Fund, Ltd., a wholly owned subsidiary of BlackRock GA Disciplined Volatility Equity Fund formed in the Cayman Islands (the Disciplined Volatility Subsidiary ), which invests primarily in commodities, commodity-related instruments and other derivatives. BlackRock GA Enhanced Equity Fund s primary vehicle for gaining exposure to the commodities markets is expected to be through investments in Cayman GA Enhanced Equity Fund, Ltd., a wholly owned subsidiary of BlackRock GA Enhanced Equity Fund formed in the Cayman Islands (the Enhanced Equity Subsidiary and with the Disciplined Volatility Subsidiary each, a Subsidiary and collectively, the Subsidiaries ), which invests primarily in commodities, commodity-related instruments and other derivatives. Each Subsidiary may also hold cash and invest in other instruments, including fixedincome securities, either as investments or to serve as margin or collateral for the Subsidiary s derivative positions. Investments in the Subsidiaries BlackRock GA Disciplined Volatility Equity Fund may invest up to 25% of its total assets in the shares of its wholly-owned and controlled Disciplined Volatility Subsidiary. BlackRock GA Enhanced Equity Fund may invest up to 25% of its total assets in the shares of its wholly-owned and controlled Enhanced Equity Subsidiary. Investments in the Subsidiaries are expected to provide the applicable Funds with exposure to the commodity markets within the limitations of Subchapter M of the Internal Revenue Code of 1986, as amended, and recent Internal Revenue Service ( IRS ) revenue rulings, as discussed below. Each Subsidiary is advised by the Manager. Each Subsidiary (unlike the Funds) may invest without limitation in commodityrelated instruments. However, each of the Disciplined Volatility Subsidiary and the Enhanced Equity Subsidiary is otherwise subject to the same fundamental, non-fundamental and certain other investment restrictions as BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund, respectively, including the timing and method of the valuation of the Subsidiary s portfolio investments and shares of the Subsidiary. Each 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 Trust. Each 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 Neal J. Andrews, Chief Financial Officer of the Trust, and John M. Perlowski, a Director, President and Chief Executive Officer of the Trust. Each of BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund is the sole shareholder of the Disciplined Volatility Subsidiary and the Enhanced Equity Subsidiary, respectively, and shares of the Subsidiaries will not be sold or offered to other investors. Each Subsidiary invests primarily in commodity-related instruments. Although BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund may enter into these commodity-related instruments directly, BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund will likely gain exposure to these commodity-related instruments indirectly by investing in the Disciplined Volatility Subsidiary and the Enhanced Equity Subsidiary, respectively. To the extent that BlackRock believes that these commodity-related instruments provide suitable exposure to the commodities market, BlackRock GA Disciplined Volatility Equity Fund s and BlackRock GA Enhanced Equity Fund s investments in the Subsidiaries will likely increase. Each 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 each Subsidiary, but receives no additional compensation for doing so. The Manager also provides certain administrative services for the Subsidiaries, but receives no additional compensation for doing so. Each Subsidiary will also enter into separate contracts for the provision of advisory, sub-advisory, custody, transfer agency and accounting agent services with the same or with affiliates of the same service providers that provide those services to BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund. I-6

14 The financial statements of the Disciplined Volatility Subsidiary and the Enhanced Equity Subsidiary will be consolidated with the financial statements in the Annual and Semi-Annual Reports of BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund, respectively. The Annual and Semi-Annual Reports are distributed to shareholders. Copies of the Annual Report are provided without charge upon request as indicated on the front cover of this SAI. The Subsidiaries are not registered under the Investment Company Act, and, unless otherwise noted in each Fund s Prospectus or this SAI, are not subject to all the investor protections of the Investment Company Act. However, BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund wholly own and control the Disciplined Volatility Subsidiary and the Enhanced Equity Subsidiary, respectively, and each Fund and Subsidiary are managed by the Manager, making it unlikely that a 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 each Fund, including, with respect to BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund, each Fund s investment in the respective Subsidiary, and each Fund s role as sole shareholder of its respective Subsidiary. As noted above, the Subsidiaries will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as their respective Funds. The Subsidiaries are managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies and procedures adopted by the Trust. In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of each Fund and/or Subsidiary to operate as described in each Fund s Prospectus and this SAI, and could adversely affect the Funds. 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 Subsidiaries. If Cayman Islands law changes such that a Subsidiary must pay Cayman Islands taxes, Fund shareholders would likely suffer decreased investment returns. Each Fund, as a regulated investment company under the tax rules, is required to realize at least 90 percent of its annual gross income from investment-related sources, specifically from dividends, interest, proceeds from securities lending, gains from the sales of stocks, securities and foreign currencies, other income (including, but not limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities or currencies, or certain types of publicly traded partnerships (referred to as qualifying income). Direct investments by a regulated investment company in commodityrelated instruments generally do not, under published IRS rulings, produce qualifying income. The Subsidiaries will not be subject to U.S. federal income tax. They will, however, be considered controlled foreign corporations, and each applicable Fund will be required to include as income annually amounts earned by its Subsidiary during that year. Gains from the sales of investments by a Subsidiary will not be eligible for capital gains treatment but instead will be treated as ordinary income when included in income by the applicable Fund. Furthermore, each of BlackRock GA Disciplined Volatility Equity Fund and BlackRock GA Enhanced Equity Fund will distribute net investment income, if any, and net realized capital gain, if any, at least annually, on Subsidiary income, whether or not the Subsidiary makes a distribution to the respective Fund during the taxable year. II. Investment Restrictions The Trust, on behalf of each Fund, has adopted restrictions and policies relating to the investment of the Trust s assets and its activities. Certain of the restrictions are fundamental policies of a Fund and may not be changed without the approval of the holders of a majority of that Fund s outstanding voting securities (which for this purpose and under the Investment Company Act, means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares). The Trust, on behalf of each Fund, has also adopted certain non-fundamental investment restrictions, which may be changed by the Board of Trustees without shareholder approval. Set forth below are the fundamental and non-fundamental investment restrictions of each Fund. Unless otherwise provided, all references below to the assets of a Fund are in terms of the current market value. I-7

15 Under these fundamental investment restrictions, each Fund may not: 1. Concentrate its investments in a particular industry, as that term is used in the Investment Company Act. 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, mortgagerelated 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. Notations Regarding each Fund s Fundamental Investment Restrictions The following notations are not considered to be part of each 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 the 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 each 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 each Fund as to how to classify issuers within or among industries. With respect to the fundamental policy relating to borrowing money set forth in (2) above, the Investment Company Act permits a 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. (A Fund s total assets include the amounts being borrowed.) In addition, each Fund has received an exemptive order from the SEC permitting it to borrow through the Interfund Lending Program (discussed below), subject to the conditions of the exemptive order. To limit the risks attendant to borrowing, the Investment Company Act requires a 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 a Fund s total assets (including amounts borrowed), minus 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 I-8

16 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 Commission staff guidance and interpretations, when a Fund engages in such transactions, the Fund instead of maintaining asset coverage of at least 300%, may segregate or earmark liquid assets, or enter into an offsetting position, in an amount at least equal to the Fund s exposure, on a mark-to-market basis, to the transaction (as calculated pursuant to requirements of the Commission). The policy in (2) above will be interpreted to permit a Fund to engage in trading practices and investments that may be considered to be borrowing or to involve leverage to the extent permitted by the Investment Company Act and to permit a Fund to segregate or earmark liquid assets or enter into offsetting positions in accordance with the Investment Company Act. 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 a 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 each Fund to have underwriting commitments of up to 25% of its assets under certain circumstances. Those circumstances currently are that the amount of a 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 acquisition or disposition of portfolio securities may be considered to be an underwriter under the Securities Act of 1933, as amended (the Securities Act ). Although it is not believed that the application of the Securities Act provisions described above would cause a Fund to be engaged in the business of underwriting, the policy in (5) above will be interpreted not to prevent a 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 (including 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, 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. Each Fund is currently classified as a diversified fund under the Investment Company Act. This means that each 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, a Fund can invest more than 5% of its assets in one issuer. Under the Investment Company Act, a Fund cannot change its classification from diversified to non-diversified without shareholder approval. Under its non-fundamental investment restrictions, which may be changed by the board without shareholder approval, each 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, each 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). I-9

17 b. Make short sales of securities or maintain a short position, except to the extent permitted by each Fund s Prospectus and Statement of Additional Information, as amended from time to time, and applicable law. Unless otherwise indicated, all limitations under each Fund s fundamental or non-fundamental investment restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of a 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 Trustees and Officers The Board of Trustees of the Trust consists of eleven individuals (each, a Trustee ), nine of whom are not interested persons of the Trust as defined in the Investment Company Act (the Independent Trustees ). The registered investment companies advised by the Manager or its affiliates (the BlackRock-advised Funds ) are organized into one complex of closed-end funds (the Closed-End Complex ), two complexes of open-end funds (the Equity-Liquidity Complex and the Equity-Bond Complex ) and one complex of exchange-traded funds (each, a BlackRock Fund Complex ). The Funds are included in the BlackRock Fund Complex referred to as the Equity-Bond Complex. The Trustees also oversee as board members the operations of the other open-end registered investment companies included in the Equity-Bond Complex. The Board of Trustees has overall responsibility for the oversight of the Trust and the Funds. The Chair of the Board is an Independent Trustee, and the Chair of each Board committee (each, a Committee ) is an Independent Trustee. The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee. The Chair of the Board s role is to preside at all meetings of the Board, and to act as a liaison with service providers, officers, attorneys, and other Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the Committee. The Chair of the Board or a Committee may also perform such other functions as may be delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the presence of Fund management, in executive session or with other service providers to the Funds. 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 the Funds on a day-to-day basis. The Board is responsible for overseeing the Manager, other service providers, the operations of the Funds and associated risk in accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Trust s charter, and each Fund s investment objectives 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 the Funds. Day-to-day risk management with respect to the Funds 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. The Funds are 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 the Funds 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 the Funds, sub-advisers, and internal auditors for the investment adviser or its affiliates, as appropriate, regarding risks faced by the Funds and management s or the service provider s risk functions. The Committee system I-10