Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (n-q)
21 Novembre 2012 - 8:53PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05742
Name of Fund: BlackRock Funds
Exchange Portfolio
Fund
Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer,
BlackRock Funds, 55
East 52
nd
Street, New York, NY 10055
Registrants telephone number, including area code: (800) 441-7762
Date of fiscal year end: 12/31/2012
Date of reporting period: 09/30/2012
Item 1 Schedule of Investments
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Schedule of Investments
September 30, 2012 (Unaudited)
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(Percentages shown are based on Net Assets)
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Common Stocks
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Shares
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Value
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Aerospace & Defense 6.5%
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The Boeing Co.
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93,493
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$
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6,508,983
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General Dynamics Corp.
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93,000
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6,149,160
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12,658,143
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Beverages 3.4%
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The Coca-Cola Co.
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175,470
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6,655,577
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Capital Markets 1.0%
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Ameriprise Financial, Inc.
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33,066
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1,874,511
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Consumer Finance 6.7%
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American Express Co.
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229,709
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13,061,254
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Diversified Financial Services 2.6%
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JPMorgan Chase & Co.
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124,728
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5,048,989
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Diversified Telecommunication Services 1.5%
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Verizon Communications, Inc.
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64,800
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2,952,936
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Energy Equipment & Services 6.3%
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Schlumberger Ltd.
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168,194
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12,165,472
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Food & Staples Retailing 1.0%
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Wal-Mart Stores, Inc.
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27,424
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2,023,891
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Food Products 1.1%
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Mondelez International, Inc.
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53,285
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2,203,335
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Health Care Equipment & Supplies 0.5%
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Medtronic, Inc.
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22,800
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983,136
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Household Products 3.9%
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The Procter & Gamble Co.
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109,960
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7,626,826
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Industrial Conglomerates 3.7%
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General Electric Co.
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317,848
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7,218,328
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Insurance 6.9%
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Berkshire Hathaway, Inc., Class B (a)
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152,557
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13,455,527
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IT Services 11.2%
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International Business Machines Corp.
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81,355
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16,877,095
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The Western Union Co.
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266,480
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4,855,266
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21,732,361
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Life Sciences Tools & Services 0.6%
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Agilent Technologies, Inc.
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29,749
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1,143,849
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Machinery 3.5%
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Caterpillar, Inc.
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78,108
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6,720,412
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Metals & Mining 1.1%
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Freeport-McMoRan Copper & Gold, Inc.
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53,600
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2,121,488
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Multiline Retail 7.1%
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Target Corp.
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216,661
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13,751,474
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Common Stocks
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Shares
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Value
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Oil, Gas & Consumable Fuels 7.5%
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BP Plc - ADR
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31,546
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$
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1,336,288
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Exxon Mobil Corp.
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144,677
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13,230,712
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14,567,000
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Pharmaceuticals 12.7%
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AstraZeneca Plc - ADR
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64,000
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3,063,040
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Johnson & Johnson
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80,592
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5,553,595
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Merck & Co., Inc.
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83,999
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3,788,355
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Novartis AG - ADR
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116,044
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7,108,855
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Pfizer, Inc.
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204,166
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5,073,525
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24,587,370
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Semiconductors & Semiconductor Equipment 0.5%
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Intel Corp.
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40,915
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927,952
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Software 5.6%
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Microsoft Corp.
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367,277
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10,937,509
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Tobacco 3.6%
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Altria Group, Inc.
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77,000
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2,571,030
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Philip Morris International, Inc.
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50,136
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4,509,232
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7,080,262
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Wireless Telecommunication Services 0.9%
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Vodafone Group Plc - ADR
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64,452
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1,836,560
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Total Long-Term Investments
(Cost $38,494,608) 99.4%
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193,334,162
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Short-Term Securities
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BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (b)(c)
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892,277
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892,277
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Total Short-Term Securities
(Cost $892,277) 0.5%
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892,277
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Total Investments (Cost $39,386,885*) 99.9%
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194,226,439
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Other Assets Less Liabilities 0.1%
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170,652
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Net Assets 100.0%
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$
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194,397,091
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*
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As of September 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
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Tax cost
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$
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36,422,583
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Gross unrealized appreciation.
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$
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158,044,650
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Gross unrealized depreciation.
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(240,794
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Net unrealized appreciation
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$
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157,803,856
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(a)
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Non-income producing security.
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(b)
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Investments in issuers considered to be an affiliate of the Fund during the period ended September 30, 2012, for purposes of Section 2(a)(3) of the Investment Company
Act of 1940, as amended, were as follows:
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Affiliate
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Shares
Held at
December 31,
2011
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Net Activity
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Shares
Held at
September 30,
2012
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Income
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BlackRock Liquidity Funds, TempFund, Institutional Class
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685,887
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206,390
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892,277
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$779
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Portfolio
Abbreviation
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ADR
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American Depositary Receipts
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BLACKROCK EXCHANGE PORTFOLIO
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SEPTEMBER 30, 2012
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1
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Schedule of Investments (concluded)
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(c)
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Represents the current yield as of report date.
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For Fund compliance purposes, the Funds industry classifications refer to any one or more of the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
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Fair Value Measurements Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a
disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:
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Level 1 unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access
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Level 2 other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices
for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities,
credit risks and default rates) or other marketcorroborated inputs)
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Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the
Funds own assumptions used in determining the fair value of investments)
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The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value
measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Funds
policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency
of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Funds policy regarding valuation of investments and other significant accounting policies, please
refer to the Funds most recent financial statements as contained in its semi-annual report.
The following table summarizes the Funds investments categorized in the disclosure hierarchy as of
September 30, 2012:
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Level 1
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Level 2
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Level 3
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Total
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Assets:
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Investments:
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Long-Term Investments
1
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$
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193,334,162
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$
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193,334,162
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Short-Term Securities
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892,277
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892,277
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Total
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$
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194,226,439
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$
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194,226,439
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1
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See above Schedule of Investments for values in each industry.
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There were no transfers between levels during the period ended September 30, 2012.
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2
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BLACKROCK EXCHANGE PORTFOLIO
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SEPTEMBER 30, 2012
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Item 2 Controls and Procedures
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2(a)
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The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
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2(b)
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There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the
registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
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Item 3 Exhibits
Certifications Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Funds
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By:
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/s/ John M. Perlowski
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John M. Perlowski
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Chief Executive Officer (principal executive officer) of
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BlackRock Funds
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Date:
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November 21, 2012
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report
has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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By:
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/s/ John M. Perlowski
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John M. Perlowski
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Chief Executive Officer (principal executive officer) of
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BlackRock Funds
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Date:
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November 21, 2012
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By:
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/s/ Neal J. Andrews
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Neal J. Andrews
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Chief Financial Officer (principal financial officer) of
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BlackRock Funds
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Date:
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November 21, 2012
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