Interim report and unaudited financial statements BlackRock Investment Funds • BlackRock Systematic Global Long/Short Equity Fund (Formerly BlackRock Global Long/Short Equity Fund) • BlackRock Sterling Short Duration Credit Fund • BlackRock Sterling Strategic Bond Fund • BlackRock Strategic Growth Fund • BlackRock Systematic Multi Allocation Credit Fund • MyMap 3 Fund • MyMap 4 Fund • MyMap 5 Fund • MyMap 5 Select ESG Fund • MyMap 6 Fund For the financial period ended 31 August 2020 Contents General Information 2 About the Trust 3 Fund Managers 3 Significant Events 3 Subsequent Events 3 Investment Report 4 Notes to Financial Statements 15 BlackRock Systematic Global Long/Short Equity Fund (Formerly BlackRock Global Long/Short Equity Fund) 17 BlackRock Sterling Short Duration Credit Fund 59 BlackRock Sterling Strategic Bond Fund 68 BlackRock Strategic Growth Fund 76 BlackRock Systematic Multi Allocation Credit Fund 84 MyMap 3 Fund 121 MyMap 4 Fund 126 MyMap 5 Fund 131 MyMap 5 Select ESG Fund 136 MyMap 6 Fund 141 Supplementary Information 146 1 BlackRock Investment Funds General Information Manager & Registrar BlackRock Fund Managers Limited 12 Throgmorton Avenue, London EC2N 2DL Member of The Investment Association and authorised and regulated by the Financial Conduct Authority (“FCA”). Directors of the Manager G D Bamping* M B Cook W I Cullen* R A R Hayes A M Lawrence L E Watkins M T Zemek* H N Mepham Trustee & Custodian The Bank of New York Mellon (International) Limited One Canada Square, London E14 5AL Authorised by the Prudential Regulation Authority and regulated by the FCA and the Prudential Regulation Authority. Investment Manager BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue, London EC2N 2DL Authorised and regulated by the FCA. Investment Adviser BlackRock Financial Management, Inc 55 East 52nd Street, New York, NY 10055, United States Regulated by the Securities and Exchange Commission. Stock Lending Agent BlackRock Advisors (UK) Limited 12 Throgmorton Avenue, London EC2N 2DL Authorised and regulated by the FCA Auditor Ernst & Young LLP 25 Churchill Place, Canary Wharf, London E14 5EY BlackRock’s proxy voting agent is ISS (Institutional Shareholder Services). This Report relates to the packaged products of and is issued by: BlackRock Fund Managers Limited 12 Throgmorton Avenue, London EC2N 2DL Telephone: 020 7743 3000 Dealing and Investor Services: 0800 44 55 22 blackrock.co.uk For your protection, telephone calls are usually recorded. * Non-executive Director. BlackRock Investment Funds 2 About the Trust BlackRock Investment Funds (the “Trust”) is an authorised unit trust scheme which is organised as an umbrella comprising separate funds with segregated liability (each referred to as a “Fund” and collectively the “Funds”). The Trust is an authorised unit trust scheme and each Fund qualifies as a UCITS scheme under the FCA’s Collective Investment Schemes Sourcebook (the “COLL Sourcebook”). Cross sub-fund holdings within the Trust As at 31 August 2020 and 29 February 2020 there were no cross sub-fund holdings within the Trust. Assessment of value The FCA has introduced new requirements for UK authorised fund managers to consider whether the charges taken from a fund they manage are justified in the context of the overall service and value offered by that fund, and to report on those findings. BlackRock is preparing for the reporting requirement, including assessing relevant charges, and will be publishing the assessment of value statements no later than 31 October 2020 in a composite report for all funds managed by BlackRock Fund Managers Limited subject to these requirements. Fund Managers As at 31 August 2020, the Fund Managers of the Funds are Adam Ryan, Kevin Franklin, Gearoid Neligan, Simon Blundell, Ben Edwards, Rafael Iborra and John Wang. Significant Events Changes to the Trust The Systematic Multi Allocation Credit Fund launched on 4 May 2020 and the MyMap 5 Select ESG Fund launched on 10 June 2020. As a result this is the first final report and accounts produced for these Funds as at 31 August 2020. During the period the BlackRock Global Long/Short Equity Fund was renamed the BlackRock Systematic Global Long/Short Equity Fund. A new Prospectus was issued on 26 June 2020, which includes the details of these Funds. Outbreak of COVID-19 An outbreak of an infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and has now developed into a global pandemic. The impact of this significant event on the Funds’ financial risk exposure is disclosed in Note 2. The Manager has assessed the impact of market conditions arising from the COVID-19 outbreak on the Funds’ ability to meet their investment objectives. Based on the latest available information, the Funds continue to be managed in line with their investment objectives, with no disruption to the operations of the Funds and the publication of net asset values. 3 BlackRock Investment Funds Investment Report for the six months ended 31 August 2020 Investment Objective BlackRock Systematic Global Long/Short Equity Fund (Formerly BlackRock Global Long/Short Equity Fund) The aim of the Fund is to provide a positive absolute return on your investment (i.e. an increase in the overall value of the Fund) over a 12-month period beginning at the point of investment, regardless of market conditions. BlackRock Sterling Short Duration Credit Fund The aim of the Fund is to provide a return on your investment over a period of between 1 to 3 consecutive years beginning at the point of investment (generated through an increase in the value of the assets held by the Fund and/or income received from those assets) of 1.5% per annum (gross of fees) over the return of LIBOR. BlackRock Sterling Strategic Bond Fund The aim of the Fund is to provide a return on your investment generated through an increase in the value of the assets held by the Fund and/or income received from those assets. BlackRock Strategic Growth Fund The aim of the Fund is to provide, over any period of seven consecutive years, a return on your investment (generated through an increase in the value of the assets held by the Fund and/or income received from those assets) of 4.5% per year (gross of fees) over the Bank of England’s Base Interest Rate. In addition, the Fund aims to manage its portfolio of investments with a view to having a volatility of return (i.e. the degree of fluctuation of the Fund’s returns) that is lower than the volatility of the monthly returns (converted into an annual rate) of the MSCI All Country World Index (GBP) over any period of seven consecutive years. BlackRock Systematic Multi Allocation Credit Fund The aim of the Fund is to deliver over the long-term (seven to ten consecutive years beginning at the point of investment) a return on your investment (generated through an increase in the value of the assets held by the Fund and/or income received from those assets) of 0.3% per annum (gross of fees) over the composite benchmark (i.e. a number of indices averaged together to represent overall performance and risk). The composite benchmark is made up of the following indices, each weighted equally (i.e. each of the indices make up a third of the composite index); Bloomberg Barclays Global Aggregate Corporate GBP Hedged Index, BBG Barclays Global High Yield Index Excl CMBS & EMG 2% Capped GBP Hedged Index and J.P.Morgan EMBI ESG Global Diversified GBP Hedged Index (“Benchmark Indices”). BlackRock Investment Funds 4 Investment Report continued MyMap 3 Fund MyMap 4 Fund MyMap 5 Fund MyMap 5 Select ESG Fund MyMap 6 Fund The aim of the Funds is to provide, over periods of five consecutive years beginning at the point of investment, a return on your investment (generated through an increase in the value of the assets held by the Funds and/or income received from those assets) through an actively managed portfolio, whilst also maintaining a risk profile (i.e. an evaluation of the risks (e.g. risk of losses) associated with the portfolio) for the Funds of 3%-6%, 6%-9%, 8%-11% and 10%-15% respectively. The risk profile of the Funds’ portfolios, for this purpose, is measured as the volatility (i.e. the degree of fluctuation) of the Funds’ returns converted into an annual rate, over a five year period. Target/comparator Investment management Fund name benchmark approach BlackRock Systematic Global Long/Short The ICE BofAML Sterling LIBOR 3-month Active Equity Fund (Formerly BlackRock Global Constant Maturity Index# Long/Short Equity Fund) BlackRock Sterling Short Duration Credit LIBOR + 1.5%^ Active Fund BlackRock Sterling Strategic Bond Fund The Investment Association Sterling Strategic Active Bond Sector Average# BlackRock Strategic Growth Fund The Bank of England Base Interest Rate plus Active 4.5%^ BlackRock Systematic Multi Allocation Bloomberg Barclays Global Aggregate Active Credit Fund Corporate GBP Hedged Index, BBG Barclays Global High Yield Index Excl CMBS & EMG 2% Capped GBP Hedged Index and J.P. Morgan EMBI ESG Global Diversified GBP Hedged Index^ MyMap 3 Fund N/A Active MyMap 4 Fund N/A Active MyMap 5 Fund N/A Active MyMap 5 Select ESG Fund N/A Active MyMap 6 Fund N/A Active # Comparator benchmark ^ Target benchmark Performance Summary The following table compares the Funds’ realised performance during the financial period ended 31 August 2020. The returns disclosed are the performance returns for the primary unit class of the Funds, net of fees, which has been selected as a representative unit class. The primary unit class represents the class of unit which is the highest charging unit class, free of any commissions or rebates, and is freely available.