BlackRock High Equity Income Fund

BlackRock Funds · 3 share classes

Moderate allocation fund
One fund, 3 share classes:BMCIXBMEAXBMECX
$2.09B NAV
171 positions · as of 2026-05-29 · filed 2026-07-27

Fund classification

Classified from what the fund holds · as of 2026 Q2

BlackRock High Equity Income Fund is a moderate allocation fund. 5% of BMCIX’s stock holdings are in companies whose revenue grew in the top quartile of U.S. companies over the last five fiscal years (covering 83% of the fund’s equity).

Asset class
Allocation (multi-asset)
Region
Global
Management
Actively managed
Fund type
Open-end fund
Equity exposure
Moderate

Fund profile

As filed in the prospectus · 2025 Q3

The investment objective of BlackRock High Equity Income Fund (the Fund), a series of BlackRock Funds SM (the Trust), is to seek high current income while maintaining prospects for capital appreciation.

Strategy · summarised

The fund invests primarily in dividend-paying equities across market capitalizations, with a focus on large-cap stocks, and writes covered call and put options on stocks and indices to generate income from option premiums alongside dividends. The fund may also hold equity-linked notes, convertible securities, MLPs, and REITs to enhance current income. As the fund writes more covered call options, its ability to benefit from capital appreciation becomes more limited and total return may deviate more from an all-equity benchmark.

Expenses
0.80% 1.85%across 4 share classes
Share classGrossNet
BMCIX0.98%0.85%
BMEAX1.22%1.10%
BMECX1.97%1.85%
C0002192590.89%0.80%

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 130.00% · as of 2025 Q3

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

106.12%
of net assets
Stocks62.81%
Bonds39.60%
Cash & short-term3.70%

These positions come to 106.12% of the fund's net assets. This counts only what the fund reported holding — the holdings disclosure covers assets, not liabilities such as borrowings — so it is not expected to reconcile to 100%.

Sector allocation

The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2

100%
of net assets
International34.5%
Financials14.4%
Information Technology8.8%
Other8.4%
10 smaller33.9%

Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).

Portfolio growth profile

How much of the fund’s stock holdings are in fast-growing companies · as of 2026 Q2

Revenue growth
5%of stock holdings in top-quartile growers
covering 83% of the fund’s equity

Share of the fund’s equity (by value) in companies whose trailing five-year revenue — or net-income — growth ranks in the top 25% of U.S. public companies. Foreign and newly-listed holdings are excluded, so the figure covers only part of the book. From SEC filings — not investment advice. How we measure this.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 100 new124 exited

Largest new: CITIGROUP GLOBAL MARKETS INC., SG AMERICAS SECURITIES, LLC, BNP PARIBAS SECURITIES CORP., JPM, BARCLAYS CAPITAL INC., MIZUHO SECURITIES USA LLC, J.P. MORGAN SECURITIES LLC, NOMURA SECURITIES INTERNATIONAL, INC.

Largest exited: GOLDMAN SACHS & CO. LLC ×2, SSNC, Teck Resources Limited, FIS, SG AMERICAS SECURITIES, LLC, D, BARCLAYS CAPITAL INC.

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+23.18%+39.54%+52.11%11.31%-8.37%
+22.88%+38.42%+50.11%11.30%-8.42%
+21.99%+35.46%+44.68%11.33%-8.59%
+23.25%+39.67%+52.28%11.30%-8.32%

These classes hold the same portfolio, so the 7.60pp spread over 5 years is the cost difference between them — roughly 1.52pp a year — not a difference in what they own.

Cumulative return· Jun 2023 – Apr 2026

May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-29

Avg coupon
20.77%
Avg maturity
0.08 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

0%
floating
Fixed rate100.0%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y
<1y100.0%
Flagged holdings
Defaulted: none reported
In arrears: none reported
Paid in kind: none reported

Based on what filers reported; a filer that never reported a flag also reads as none.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.

Interest-rate duration
0.01 yr
approx. move per 100bp
Credit-spread duration
0.01 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ 0%
of value
Interest rates58%
Credit spreads42%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+0.01
yrs total
High yield+0.01 yr
Investment grade+0.00 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate0.01 yr total
3 mo10 yr
3 mo0.01 yr85%
1 yr0.00 yr15%
10 yr0.00 yr0%

5 yr and 30 yr are NEGATIVE (-0.00 yr, -0.00 yr) — a deliberate hedge at that point on the curve, so they are not part of the band above.

Credit spread0.01 yr total
3 mo
3 mo0.01 yr100%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.01+0.00+0.01$112$1.6k
1 yr+0.00+0.00+0.00$0$0
5 yr-0.00+0.00+0.00$0$0
10 yr+0.00+0.00+0.00$0$0
30 yr-0.00+0.00+0.00$0$0

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Rate exposure by currency

Duration contribution in years, summing to the fund's 0.01 yr.

USD+0.01 yr
GBP+0.00 yr

This is where the fund's rate exposure sits, not its currency risk — most international bond funds hedge the currency back to dollars, and the size of those hedges is not in the filing. Tenors are also summed across curves, so a 5-year JPY point and a 5-year USD point are added together.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
BLACKROCK LIQUIDITY FUNDSTSTXX3.69%$77.34M
SAMSUNG ELECTRONICS CO LTD3.38%$70.89M
CITIGROUP INCC2.69%$56.41M
AMAZON.COM INCAMZN1.94%$40.67M
WESTERN DIGITAL CORPWDC1.89%$39.54M
WELLS FARGO & COMPANYWFC1.86%$38.86M
CVS HEALTH CORPCVS1.77%$37.18M
FEDEX CORPFDX1.68%$35.17M
BRITISH AMERICAN TOBACCO PLC1.67%$34.87M
MICROSOFT CORPMSFT1.60%$33.54M
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Reported price is the fund's own reported value divided by its own reported shares at 2026-05-29 — not a live quote, and not what the fund paid.

Top 10 positions are 22.18% of net assets, top 25 41.28%, across 100 issuers.

See more of this fund's book

More positions with filed share counts, and the quarter-over-quarter change list rather than the largest few — free with an account, no card required.

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