BlackRock Diversified Fixed Income Fund

C000244507 Fund Overview

BlackRock Diversified Fixed Income Fund is a US mutual fund managed by BlackRock Funds III, categorised as Long Total / Aggregate Bond. 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 III
• Category: Long Total / Aggregate Bond
• Assets under management: $1.26B
• 1-year return: 4.9%
• SEC CIK: 0000893818
• SEC series ID: S000079204
• Share class ID: C000244507

C000244507 Investment Objective and Strategy

BlackRock Diversified Fixed Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by BlackRock Funds III.

Investment objective

The investment objective of BlackRock Diversified Fixed Income Fund (the Fund), a series of BlackRock Funds III (the Trust), is to seek to provide a combination of income and capital growth.

Principal investment strategy

The Fund invests, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, in fixed income instruments. Investments in derivatives are counted toward the Funds 80% policy to the extent that they provide investment exposure to the securities included within that policy or to one or more market risk factors associated with such securities. The fixed income instruments in which the Fund may invest include, but are not limited to, the following: obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities (including Treasury Inflation-Protected Securities (TIPS)) ; mortgage-backed securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage pass-through securities; commercial mortgage-backed securities; mortgage to-be-announced (TBA) securities; debt obligations of U.S.

issuers; municipal securities; asset-backed securities; money market securities; repurchase agreements; and U.S.-registered dollar denominated debt obligations of foreign issuers . The Fund seeks to invest a substantial portion (generally, at least 60% at notional value) of its assets in U.S. registered, dollar-denominated bonds or derivatives with similar economic characteristics. The Fund may invest in bonds issued by companies located in countries other than the United States, including companies in emerging markets. The fixed income instruments in which the Fund invests may have all types of interest rate payment and reset terms, including fixed rate, adjustable rate, floating rate, zero coupon, contingent, deferred, payment in kind and auction rate features. The Fund may invest up to 20% of its assets in securities rated below investment grade or which are deemed to be of comparable quality by BFA (high yield or junk bonds) at the time of purchase.

Investment grade bonds are bonds rated in the four highest categories by at least one of the major rating agencies or determined by Fund management to be of similar quality. The Fund may invest in bonds of any maturity or duration. The Fund may invest a significant portion of its assets in U.S. agency mortgage pass-through securities, which are securities issued by entities such as the Government National Mortgage Association and the Federal National Mortgage Association that are backed by pools of mortgages. Most transactions in mortgage pass-through securities occur through standardized contracts for future delivery in which the exact mortgage-backed securities to be delivered are not specified until a few days prior to settlement. The Fund expects to enter into such contracts on a regular basis.

The Fund may invest up to 10% of its total assets in collateralized debt obligations (CDOs), including collateralized loan obligations (CLOs). CDOs are types of asset-backed securities. CLOs are ordinarily issued by a trust or other special purpose entity and are typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans, held by such issuer. The Fund may use derivatives, such as futures contracts, options (including, but not limited to, options on futures and swaps) and various other instruments (including, but not limited to, interest rate, total return, credit default and credit default index swaps (which can be used to transfer the credit risk of a security without actually transferring ownership of the security or to customize exposure to a particular credit risk) and indexed and inverse floating-rate securities).

The Fund may also invest in credit-linked notes, credit-linked trust certificates, structured notes, or other instruments evidencing interests in special purpose vehicles, trusts, or other entities that hold or represent interests in fixed-income securities. The Fund may also invest in derivatives based on foreign currencies. In addition, the Fund may use derivatives and short sales to enhance returns as part of an overall investment strategy or to offset a potential decline in the value of other holdings (commonly referred to as a hedge), although the Fund is not required to hedge and may choose not to do so. The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies. The Fund is classified as diversified under the Investment Company Act of 1940, as amended (the Investment Company Act).

C000244507 Holdings

Top 10 holdings of BlackRock Diversified Fixed Income Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all C000244507 holdings

C000244507 Portfolio Allocation

Asset-class allocation of BlackRock Diversified Fixed Income Fund by percentage of net assets, from the latest SEC N-PORT filing.

C000244507 Performance

Total returns for C000244507 (as of 2026-10-01), from SEC filings.

C000244507 Risk Information

Risk metrics for C000244507, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 3.4%

C000244507 Costs and Fees

C000244507 costs about $17 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.17%
• Gross expense ratio: 0.38%
• Portfolio turnover: 567%
• Brokerage commissions: 1.70 bps of average net assets (SEC N-CEN)

C000244507 Cashflows

Over the 12 months to 2026-04, BlackRock Diversified Fixed Income Fund had net inflows of $40.13M, from monthly SEC N-PORT filings.

C000244507 Debt Constituents

Largest debt holdings of BlackRock Diversified Fixed Income Fund by percentage of net assets, from the latest SEC N-PORT filing.

C000244507 Prospectus and SEC Filings

Official BlackRock Diversified Fixed Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2026-02-25
• Prospectus (485BPOS) — filed 2025-02-25
• Prospectus (485BPOS) — filed 2024-02-23
• Portfolio holdings (N-PORT) — filed 2026-09-25
• Portfolio holdings (N-PORT) — filed 2026-06-25
• Portfolio holdings (N-PORT) — filed 2026-03-26
• Annual census (N-CEN) — filed 2026-01-14
• Annual census (N-CEN) — filed 2025-01-13

Related Funds

Other Long Total / Aggregate Bond funds tracked on ABC INVEST:

• Dodge & Cox Income Fund (DODIX)
• Bond Fund Of America (ABNDX)
• Fidelity U.S. Bond Index Fund (FUBFX)
• Baird Aggregate Bond Fund (BAGIX)
• PGIM Total Return Bond Fund (PDBAX)

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.