BlackRock Retirement Income 2040 Fund
Data updated: 2025-08-28
C000220897 — BlackRock Retirement Income 2040 Fund. United States Blend / Core Equity · $4.74M AUM. Holdings, fees, performance and SEC filings.
C000220897 Fund Overview
BlackRock Retirement Income 2040 Fund is a US mutual fund managed by BlackRock Funds II, categorised as United States Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: BlackRock Funds II
- Category: United States Blend / Core Equity
- Assets under management: $4.74M
- 1-year return: 10.3%
- SEC CIK: 0001398078
- SEC series ID: S000069111
- Share class ID: C000220897
C000220897 Investment Objective and Strategy
BlackRock Retirement Income 2040 Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by BlackRock Funds II.
Investment objective
The investment objective of BlackRock Retirement Income 2040 Fund (the Fund), a series of BlackRock Funds II (the Trust), is to seek to maximize current income while decumulating the Funds assets to a predefined target Fund net asset value per share, as a percentage of the Funds net asset value per share at inception, over the term of the Fund.
Principal investment strategy
The Fund invests substantially all of its assets in BlackRock Multi-Asset Income Portfolio (MAI or the Underlying Fund), a series of BlackRock Funds II, which seeks to maximize current income with consideration for capital appreciation. The Fund, indirectly through its investment in MAI, may invest in both equity securities (including common stock and preferred stock) and fixed income securities (including corporate bonds and notes, mortgage-backed securities, asset-backed securities, convertible securities, preferred securities and government obligations). The Fund may also purchase securities convertible into common and preferred stock. Under normal circumstances, the Fund, indirectly through its investment in MAI, may invest up to 60% of its assets in equity securities and up to 100% of its assets in fixed-income securities.
Additionally, the Fund, indirectly through its investment in MAI, may invest in structured notes that provide exposure to covered call options or other types of financial instruments. With respect to the Funds equity investments made indirectly through its investment in MAI, the Fund may invest in securities of both U.S. or non-U.S. issuers without limit, which can be U.S. dollar based or non-U.S. dollar based and may be currency hedged or unhedged. The Fund may invest in securities of companies of any market capitalization. With respect to the Funds fixed-income investments made indirectly through its investment in MAI, the Fund may invest significantly in non-investment grade bonds (high yield, junk bonds or distressed securities), non-investment grade bank loans, non-dollar denominated bonds and bonds of emerging market issuers.
The Funds investment in non-dollar denominated bonds may be on a currency hedged or unhedged basis. Non-investment grade bonds acquired by the Fund will generally be in the lower categories of the major rating agencies at the time of purchase (BB or lower by S&P Global Ratings, a division of S&P Global Inc., or Ba or lower by Moodys Investors Service, Inc.) or will be determined by the management team to be of similar quality. Split rated bonds will be considered to have the higher credit rating. The average portfolio duration of the Fund will vary based on the management teams forecast of interest rates and there are no limits regarding portfolio duration or average maturity. The Fund may invest, indirectly through its investment in MAI, in U.S. and non-U.S. real estate investment trusts (REITs), structured products, including structured notes that provide exposure to covered call options or other types of financial instruments, and floating rate securities (such as bank loans).
The Fund may have indirect exposure to derivatives through its investment in MAI. Such derivatives may include the use of options, futures, swaps and forward contracts, both to seek to increase the return of the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the securities markets. The Fund may withdraw from MAI at any time and may invest substantially all of its assets in one or more other pooled investment vehicles. The Fund will provide shareholders with 60 days notice of any such change. The Fund is not a target date fund that follows a glidepath in which the mix of investments among asset classes becomes more conservative over time according to a predetermined path. Rather, the Funds allocations among asset classes, through its investments in MAI, will vary from year to year and may become more conservative or more aggressive in any given year.
The Fund seeks to deliver its investment objective over a term of 20 years, at the end of which the Fund seeks to deliver a target Fund net asset value per share of at least 25% of the Funds net asset value per share at inception. At the conclusion of the Funds 20 year term within the year 2040, the Fund intends to return its remaining assets to shareholders through a liquidating distribution. Subsequent to the payment of its liquidating distribution, the Fund will be terminated. The Fund does not contemplate any extensions of the 20 year term. The Fund expects to make monthly distributions as it seeks to achieve its investment objective of decumulating (or reducing over time) the Funds assets to a predefined target Fund net asset value per share, as a percentage of the Funds net asset value per share at inception (the Target Percentage), over the term of the Fund.
The Target Percentage is at least 25% for the Fund (or at least $25 per share for Institutional Shares of the Fund). The Fund intends to provide monthly distributions that, in aggregate for each year, equal at least $4.50 per share for Institutional Shares and a comparable amount per share, adjusted for share class expenses, for Investor A Shares (the Annual Minimum Distribution Amount). There is no guarantee that the Fund will distribute the Annual Minimum Distribution Amount in any given year. The amount of the Funds monthly distributions for any given period may exceed the amount of the Funds income and gains for that period. Accordingly, the Funds distributions may consist of a return of capital (or principal invested) in addition to any gains, which would result in a reduction in the net asset value per share of the Fund.
The Fund does not have an automatic dividend reinvestment plan, and dividends and distributions cannot be automatically reinvested in shares of the Fund. The amount of the Funds monthly distribution is determined by portfolio management based on a distribution algorithm (the Algorithm), and is subject to the Trusts Board of Trustees (the Board) ability to approve changes to such amount prior to any dividend being declared. The Algorithm takes into account certain factors, including the performance of the Fund, risk and return forecasts of the Funds underlying assets, and the current net asset value per share of the Fund, and constraints, such as the Annual Minimum Distribution Amount, to determine a monthly distribution amount, which is subject to Board approval. The amount of the Funds monthly distribution may be dynamic, meaning that it may vary from month to month based on the Algorithm, subject to the Annual Minimum Distribution Amount.
The monthly distribution will be an amount expressed as cents-per-share of Institutional Shares of the Fund (with adjustments for the Investor A Shares of the Fund based on such share class expenses), as of a specified date. From time to time, BlackRock may increase or decrease the monthly distribution amount and may implement changes to the Algorithm, including a change to the Annual Minimum Distribution Amount, which may result in changes to the monthly distribution. Such monthly distributions remain subject to Board approval. The Board may increase or decrease any monthly distribution amount prior to the declaration date of the applicable distribution after taking into consideration any recommendation of portfolio management.
C000220897 Holdings
Top 2 holdings of BlackRock Retirement Income 2040 Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| BlackRock Funds II | 98.83% |
| BlackRock Liquidity Funds | 1.59% |
C000220897 Portfolio Allocation
Asset-class allocation of BlackRock Retirement Income 2040 Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Other | 98.8% |
| Cash & Equivalents | 1.6% |
C000220897 Performance
Total returns for C000220897 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 10.3% |
| 3 years (annualised) | 8.7% |
| 5 years (annualised) | 5.0% |
C000220897 Risk Information
Risk metrics for C000220897, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 5.6%
C000220897 Costs and Fees
C000220897 costs about $76 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.76%
- Gross expense ratio: 4.98%
- Portfolio turnover: 0%
- Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)
C000220897 Cashflows
Over the 12 months to 2025-06, BlackRock Retirement Income 2040 Fund had net outflows of $25.89K, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2025-06 | −$335 |
| 2025-05 | −$729 |
| 2025-04 | $51 |
| 2025-03 | −$6.80K |
| 2025-02 | −$18.47K |
| 2025-01 | $51 |
C000220897 Debt Constituents
No individual debt constituents are reported in BlackRock Retirement Income 2040 Fund's latest SEC N-PORT filing.
C000220897 Prospectus and SEC Filings
Official BlackRock Retirement Income 2040 Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2025-04-30
- Prospectus (485BPOS) — filed 2024-04-25
- Prospectus (485BPOS) — filed 2023-04-26
- Portfolio holdings (N-PORT) — filed 2025-08-28
- Portfolio holdings (N-PORT) — filed 2025-05-27
- Portfolio holdings (N-PORT) — filed 2025-02-27
- Annual census (N-CEN) — filed 2025-03-14
- Annual census (N-CEN) — filed 2024-03-14
Related Funds
Other United States Blend / Core Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.