The information in the above Financial Highlights represents the operating performance for a share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s shares.
See Notes to Financial Statements.
|
NOTES TO FINANCIAL STATEMENTS |
|
Note 1. Organization & Accounting Policies
BlackRock Dividend AchieversTM Trust (“Dividend Achievers”), BlackRock Enhanced Dividend AchieversTM Trust (“Enhanced Dividend Achievers”), BlackRock Strategic Dividend AchieversTM Trust (“Strategic Dividend Achievers”), BlackRock Global Energy and Resources Trust (“Global Energy and Resources”), BlackRock Global Opportunities Equity Trust (“Global Opportunities”), BlackRock Health Sciences Trust (“Health Sciences”), BlackRock Real Asset Equity Trust (“Real Asset”), BlackRock S&P Quality Rankings Global Equity Managed Trust (“S&P Quality Rankings”) and BlackRock World Investment Trust (“World Investment”) (collectively, the “Trusts”) are organized as Delaware statutory trusts. All Trusts, except Global Energy and Resources, Global Equity Income, Health Sciences and Real Asset, are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”). Global Energy and Resources, Global Equity Income, Health Sciences and Real Asset are registered as non-diversified, closed-end management investment companies under the 1940 Act.
Real Asset was organized on July 19, 2006, and had no transactions until August 23, 2006, when the Trust sold 8,028 common shares for $115,001 to BlackRock Funding, Inc. Investment operations for Real Asset commenced on September 29, 2006. The Trust incurred organization costs which were deferred from the organization date until the commencement of operations.
Global Equity Income was organized on January 10, 2007, and had no transactions until February 22, 2007 when the Trust sold 6,021 common shares for $115,001 to BlackRock Funding, Inc. Investment operations for Global Equity Income commenced on March 30, 2007. The Trust incurred organization costs which were deferred from the organization date until the commencement of operations.
Under the Trusts’ organizational documents, their officers and Trustees (as defined below) are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts’ maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.
The following is a summary of significant accounting policies followed by the Trusts.
Investment Valuation: The Trusts value most of their investments on the basis of current market quotations provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures based on valuation technology commonly employed in the market for such investments. Exchange-traded options are valued at their last sales price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. Over-the-counter (“OTC”) options quotations are provided by dealers selected under the supervision of the Board. Considerations utilized by dealers in valuing OTC options include, but are not limited to, volatility factors of the underlying security, price movement of the underlying security in relation to the strike price and the time left until expiration of the option. Investments in open-end investment companies are valued at net asset value. Short-term debt investments having a remaining maturity of 60 days or less when purchased and debt investments originally purchased with maturities in excess of 60 days but which currently have maturities of 60 days or less may be valued at amortized cost. Any investments or other assets for which current market quotations are not readily available are valued at their fair value (“Fair Value Assets”) as determined in good faith under procedures established by and under the general supervision and responsibility of the Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.
When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that BlackRock Advisors deems relevant.
In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications for FAS 157 and its impact on the Trust’s financial statements, if any, has not been determined.
In addition, in February 2007, Statement of Financial Accounting Standard No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured as fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similiar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Trusts’ financial statements, if any, has not been determined.
Investment Transactions and Investment Income: Investment transactions are recorded on the trade date. The cost of investments sold and the related gain or loss is determined by the use of the specific identified method, generally high cost, for both financial reporting and federal income tax purposes. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except certain
76
dividends from foreign securities where the ex-dividend date may have passed. These dividends are recorded as soon as the Trusts are informed of the ex-dividend date. Dividend income on foreign securities is recorded net of any applicable withholding tax.
Forward Currency Contracts: Certain Trusts may enter into forward currency contracts primarily to facilitate settlement of purchases and sales of foreign securities and to help manage the overall exposure to foreign currency. A forward contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. In the event that a security fails to settle within the normal settlement period, the forward currency contract is renegotiated at a new rate. The gain or loss arising from the difference between the settlement value of the original and renegotiated forward contracts is isolated and is included in net realized gains (losses) from foreign currency transactions. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contract.
Forward currency contracts, when used by the Trusts, help to manage the overall exposure to the foreign currency backing some of the investments held by the Trusts. Forward currency contracts are not meant to be used to eliminate all of the exposure to the foreign currency, rather they allow the Trusts to limit their exposure to foreign currency within a narrow band consistent with the objectives of the Trusts.
Foreign Currency Translation: Foreign currency amounts are translated into United States dollars on the following basis:
| |
(i) | market value of investment securities, other assets and liabilities at the current rate of exchange; and |
|
(ii) | purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The Trusts do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. The Trusts report forward foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.
Net realized and unrealized foreign exchange gains and losses includes realized foreign exchange gains and losses from sales and maturities of foreign portfolio securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of interest and discount recorded on the Trusts’ books and the U.S. dollar equivalent amounts actually received or paid, and changes in unrealized foreign exchange gains and losses in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.
Option Writing/Purchasing: When a Trust writes or purchases an option, an amount equal to the premium received or paid by the Trust is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Trust on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether a Trust has realized a gain or a loss on investment transactions. A Trust, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.
A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise price at any time or a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time during the option period.
The main risk that is associated with purchasing options is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered the loss. The risk associated with writing call options is that a Trust may forgo the opportunity for a profit if the market value of the underlying position increases and the option is exercised. The risk in writing put options is that a Trust may incur a loss if the market value of the underlying position decreases and the option is exercised. In addition, the Trust risks not being able to enter into a closing transaction for the written option as a result of an illiquid market.
Certain Trusts may invest in over-the-counter (“OTC”) options. OTC options differ from exchange-listed options in that they are two-party contracts, with exercise price, premium and other terms negotiated between buyer and seller, and generally do not have as much market liquidity as exchange-listed options. The counterparties to these transactions typically will be major international banks, broker-dealers and financial institutions. The Trusts may be required to restrict the sale of securities being used to cover certain written OTC options. The OTC options written by the Trust will not be issued, guaranteed or cleared by the Options Clearing Corporation. In addition, the Trusts’ ability to terminate the OTC options may be more limited than with exchange-traded options. Banks, broker-dealers or other financial institutions participating in such transaction may fail to settle a transaction in accordance with the terms of the option as written. In the event of default or insolvency of the counterparty, the Trusts may be unable to liquidate an OTC option position.
Financial Futures Contracts: A financial futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received,
77
depending upon whether unrealized gains or losses are incurred. When the contract is closed, a Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and a Trust’s basis in the contract.
Financial futures contracts, when used by a Trust, help in maintaining a targeted duration. Financial futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, a Trust may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.
Segregation: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (the “Commission”) require a Trust to segregate assets in connection with certain investments (e.g., call options written), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.
Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income and net realized gains, if any, to shareholders. Therefore, no federal income tax provisions have been recorded.
In July 2006, the Financial Accounting Standards Board released FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the Trusts’ financial statements has not yet been determined.
Dividends and Distributions: All Trusts except Enhanced Dividend AchieversTM, Real Asset and World Investment declare and pay dividends and distributions to shareholders quarterly from net investment income, net realized short-term capital gains and, if necessary, other sources. Enhanced Dividend AchieversTM, Real Asset and World Investment declare and pay dividends and distributions to shareholders monthly from net investment income, net realized short-term capital gains and, if necessary, other sources. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. If the total dividends and distributions made in any tax year exceeds net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a tax-free return of capital. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America.
Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities including investment valuations at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and such differences may be material.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by the Trusts’ Board, non-interested Trustees (“Independent Trustees”) are required to defer a portion of their annual complex-wide compensation pursuant to the plan. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts selected by the Independent Trustees. These amounts are shown on the Statement of Assets and Liabilities as “Investments in affiliates.” This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts in such Trusts.
The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Independent Trustees in order to match its deferred compensation obligations.
Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally prorated to the Trusts on the basis of relative net assets of all of the BlackRock Closed-End Funds.
Note 2. Agreements and Other Transactions with Affiliates Related Parties
Each Trust has an Investment Management Agreement with BlackRock Advisors, LLC (the “Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (“BFM”), a wholly owned sub- and sidiary of BlackRock, Inc., serves as sub-advisor to Dividend AchieversTM, Enhanced Dividend AchieversTM, Strategic Dividend AchieversTM, S&P Quality Rankings and World Investment. State Street Research & Management Company (“SSRM”), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to Global Energy and Resources. BlackRock Investment Management, LLC (“BIM”) and BlackRock Investment Managment International Limited (“BII”), each a wholly owned subsidiary of BlackRock, Inc. serves as sub-advisor to Real Asset. BlackRock Capital Management, Inc. (“BCM”) a wholly owned subsidiary of BlackRock, Inc. and BIM serves as sub-advisor to Global Equity Income. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”) are principal owners of BlackRock, Inc. The Investment Management Agreement covers both investment advisory and administration services.
The Trusts’ investment advisory fees paid to the Advisor are computed weekly, accrued daily and payable monthly, based on an annual rate, 0.65% for Dividend AchieversTM, 1.00% for Enhanced Dividend AchieversTM, 0.75% for Strategic Dividend AchieversTM, 1.20% for Global
78
Energy and Resources, 1.00% for Global Equity Income, 1.00% for Global Opportunities, 1.00% for Health Sciences, 1.20% for Real Asset, 0.75% for S&P Quality Rankings and 1.00% for World Investment, of the Trust’s average weekly net assets. “Net assets” means the total assets of the Trust minus the sum of accrued liabilities. The Advisor has voluntarily agreed to waive a portion of the investment advisory fees or some other expenses on Global Energy and Resources and Real Asset as a percentage of its average weekly net assets as follows: 0.20% for the first five years of the Trusts’ operations (2004 through 2009 for Global Energy and Resources and 2006 through 2011 for Real Asset), 0.15% in 2010 for Global Energy and Resources and in 2012 for Real Asset, 0.10% in 2011 for Global Energy and Resources and in 2013 for Real Asset and 0.05% in 2012 for Global Energy and Resources and in 2014 for Real Asset.
The Advisor pays BFM, SSRM, BCM, BIM and BII fees for its sub-advisory services.
Pursuant to the Investment Management Agreement, the Advisor provides continuous supervision of the investment portfolios and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. The Trust bears all other costs and expenses, which include reimbursements to the Advisor for cost of employees that provide pricing, secondary market support and compliance support to the Trust. For the six months ended April 30, 2007, the Trusts reimbursed the Advisor the following amounts which are included in miscellaneous expenses in the Statement of Operations:
| | | | | | | | | |
Trust | | Amount | | Trust | | Amount | |
| |
| |
| |
| |
Dividend AchieversTM | | $ | 14,761 | | Global Opportunities | | $ | 6,889 | |
Enhanced Dividend AchieversTM | | | 14,854 | | Health Sciences | | | 5,034 | |
Strategic Dividend AchieversTM | | | 12,220 | | Real Asset | | | 6,853 | |
Global Energy and Resources | | | 17,252 | | S&P Quality Rankings | | | 2,692 | |
Global Equity Income | | | 3,323 | | World Investment | | | 13,051 | |
Dividend Achievers Universe: Dividend AchieversTM, Enhanced Dividend AchieversTM and Strategic Dividend AchieversTM have been granted a revocable license by Mergent®, Inc. (“Mergent®”) to use the Dividend AchieverTM universe of common stocks. If Mergent® revokes each Trust’s license to use the Dividend AchieversTM universe, the Board of that Trust may need to adopt a new investment strategy and/or new investment policies. There is no assurance that a Trust would pursue or achieve its investment objective during the period in which it implements these replacement investment policies or strategies. ‘‘Mergent®’’ and ‘‘Dividend AchieversTM’’ are trademarks of Mergent® and have been licensed for use by Dividend AchieversTM, Enhanced Dividend AchieversTM and Strategic Dividend AchieversTM. The products are not sponsored, endorsed, sold or promoted by Mergent® and Mergent® makes no representation regarding the advisability of investing in any of these three Trusts. The Trusts are required to pay a quarterly licensing fee, which is shown on the Statement of Operations.
S&P Quality Rankings: S&P Quality Rankings has been granted a license by Standard & Poor’s®, (“S&P®”) to use the S&P Quality Rankings and the S&P International Quality Rankings. If S&P® terminates the license to use either the S&P Quality Rankings or the S&P International Quality Rankings, the Board may need to adopt a new investment strategy and/or new investment polices. There is no assurance that the Trust would pursue or achieve its investment objective during the period in which it implements these replacement investment policies or strategies. “Standard & Poor’s®”, “S&P®”, “Standard & Poor’s Earnings and Dividend Rankings”, “S&P Earnings and Dividend Rankings”, “Standard & Poor’s Quality Rankings”, “Standard & Poor’s International Quality Rankings”, “S&P International Quality Rankings” and “S&P Quality Rankings” are trademarks of Standard & Poor’s® and have been licensed for use by the Trust. The Trust is not sponsored, managed, advised, sold or promoted by Standard & Poor’s®. The Trust is required to pay a quarterly licensing fee, which is shown on the Statement of Operations.
During the six months ended April 30, 2007, Merrill Lynch & Co., Inc. through their affiliated broker-dealer Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), earned commissions on transactions of securities as follows:
| | | | |
Trust | | Commission
Amount | |
| |
| |
Enhanced Dividend AchieversTM | | $ | 85,948 | |
Global Energy and Resources | | | 21,234 | |
Global Equity Income | | | 13,048 | |
Global Opportunities | | | 32,774 | |
Health Sciences | | | 16,998 | |
Real Asset | | | 59,968 | |
World Investment | | | 88,554 | |
79
Note 3. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the six months ended April 30, 2007, were as follows:
| | | | | | | | |
Trust | | Purchases | | Sales | | |
| |
| |
| | |
Dividend AchieversTM | | $ | 108,063,029 | | $ | 122,799,836 | | |
Enhanced Dividend AchieversTM | | | 784,622,746 | | | 725,506,394 | | |
Strategic Dividend AchieversTM | | | — | | | 15,253,234 | | |
Global Energy and Resources | | | 183,662,218 | | | 216,013,399 | | |
Global Equity Income | | | 700,390,806 | | | 3,077,640 | | |
Global Opportunities | | | 296,624,276 | | | 300,525,049 | | |
Health Sciences | | | 106,361,539 | | | 128,274,274 | | |
Real Asset | | | 374,599,970 | | | 281,786,843 | | |
S&P Quality Rankings | | | 3,033,448 | | | 4,730,944 | | |
World Investment | | | 733,823,092 | | | 739,417,833 | | |
Transactions in options written during the six months ended April 30, 2007, were as follows:
| | | | | | | | | | | | | |
| | Calls | | Puts | |
| |
| |
| |
Trust | | Contracts | | Premiums | | Contracts | | Premiums | |
| |
| |
| |
| |
| |
Enhanced Dividend AchieversTM | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | 6,951,027 | | $ | 8,225,806 | | | 90,000 | | $ | 27,000 | |
Options written | | | 23,145,315 | | | 30,939,214 | | | 308,040 | | | 648,791 | |
Options expired | | | (6,177,047 | ) | | (7,035,555 | ) | | (153,625 | ) | | (222,218 | ) |
Options exercised | | | (6,618,870 | ) | | (10,061,648 | ) | | (91,065 | ) | | (79,351 | ) |
Options closed | | | (9,877,088 | ) | | (12,194,737 | ) | | (50,000 | ) | | (12,520 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 7,423,337 | | $ | 9,873,080 | | | 103,350 | | $ | 361,702 | |
| |
|
| |
|
| |
|
| |
|
| |
Global Energy and Resources | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | 1,136,290 | | $ | 5,347,629 | | | 511,460 | | $ | 1,008,817 | |
Options written | | | 2,840,265 | | | 10,046,411 | | | 41,277 | | | 1,266,234 | |
Options expired | | | (1,224,420 | ) | | (5,396,323 | ) | | (452,611 | ) | | (982,261 | ) |
Options exercised | | | (612,150 | ) | | (2,183,122 | ) | | (29,113 | ) | | (248,984 | ) |
Options closed | | | (878,925 | ) | | (3,708,054 | ) | | (66,344 | ) | | (748,946 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 1,261,060 | | $ | 4,106,541 | | | 4,669 | | $ | 294,860 | |
| |
|
| |
|
| |
|
| |
|
| |
Global Equity Income | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | — | | $ | — | | | — | | $ | — | |
Options written | | | 4,295 | | | 5,416,127 | | | — | | | — | |
Options closed | | | (1,220 | ) | | (1,170,879 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 3,075 | | $ | 4,245,248 | | | — | | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
Global Opportunities | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | 8,934,189 | | $ | 4,111,793 | | | — | | $ | — | |
Options written | | | 26,763,544 | | | 13,780,151 | | | 140,439 | | | 116,273 | |
Options expired | | | (4,639,630 | ) | | (2,653,344 | ) | | (70,206 | ) | | (47,618 | ) |
Options exercised | | | (13,936,600 | ) | | (5,127,155 | ) | | (170 | ) | | (25,839 | ) |
Options closed | | | (7,528,212 | ) | | (5,211,692 | ) | | (63 | ) | | (4,316 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 9,593,291 | | $ | 4,899,753 | | | 70,000 | | $ | 38,500 | |
| |
|
| |
|
| |
|
| |
|
| |
80
| | | | | | | | | | | | | |
| | Calls | | Puts | |
| |
| |
| |
Trust | | Contracts | | Premiums | | Contracts | | Premiums | |
| |
| |
| |
| |
| |
Health Sciences | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | 235,261 | | $ | 1,704,633 | | | — | | $ | — | |
Options written | | | 527,565 | | | 3,184,328 | | | 50,868 | �� | | 435,219 | |
Options expired | | | (206,355 | ) | | (1,031,088 | ) | | (22,510 | ) | | (174,960 | ) |
Options exercised | | | (96,582 | ) | | (1,181,619 | ) | | (550 | ) | | (35,299 | ) |
Options closed | | | (351,158 | ) | | (1,796,428 | ) | | (1,548 | ) | | (106,344 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 108,731 | | $ | 879,826 | | | 26,260 | | $ | 118,616 | |
| |
|
| |
|
| |
|
| |
|
| |
Real Asset | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | 6,843,497 | | $ | 4,653,527 | | | 5,234,825 | | $ | 3,404,041 | |
Options written | | | 30,998,129 | | | 21,425,330 | | | 1,539,272 | | | 7,123,671 | |
Options expired | | | (8,351,822 | ) | | (5,726,796 | ) | | (5,864,843 | ) | | (6,032,460 | ) |
Options exercised | | | (11,580,280 | ) | | (6,767,496 | ) | | (503,235 | ) | | (2,101,241 | ) |
Options closed | | | (5,997,297 | ) | | (5,256,348 | ) | | (275,625 | ) | | (1,744,151 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 11,912,227 | | $ | 8,328,217 | | | 130,394 | | $ | 649,860 | |
| |
|
| |
|
| |
|
| |
|
| |
World Investment | | | | | | | | | | | | | |
Options outstanding at beginning of period | | | 24,148,361 | | $ | 9,547,129 | | | — | | $ | — | |
Options written | | | 59,876,412 | | | 32,520,016 | | | 357,116 | | | 295,198 | |
Options expired | | | (12,073,460 | ) | | (6,507,831 | ) | | (178,524 | ) | | (120,844 | ) |
Options exercised | | | (32,587,153 | ) | | (12,896,596 | ) | | (430 | ) | | (65,358 | ) |
Options closed | | | (17,285,384 | ) | | (10,412,368 | ) | | (162 | ) | | (11,096 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Options outstanding at end of period | | | 22,078,776 | | $ | 12,250,350 | | | 178,000 | | $ | 97,900 | |
| |
|
| |
|
| |
|
| |
|
| |
As of April 30, 2007, the value of portfolio securities subject to covered call options written were as follows:
| | | | |
Trust | | Value | |
| |
| |
Enhanced Dividend AchieversTM | | $ | 507,934,183 | |
Global Energy and Resources | | | 182,785,219 | |
Global Equity Income | | | 8,903,010 | |
Global Opportunities | | | 193,161,193 | |
Health Sciences | | | 47,920,447 | |
Real Asset | | | 315,423,637 | |
World Investment | | | 496,739,517 | |
Details of open forward foreign currency exchange contracts at April 30, 2007, were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
Trust | | Foreign
Currency
Bought | | Settlement
Date | | Contract to
Purchase/
Receive | | Value at
Settlement
Date (US$) | | Value at
April 30,
2007 (US$) | | Unrealized
Depreciation | |
| |
| |
| |
| |
| |
| |
| |
Health | | | | | | | | | | | | | | | | | | | | | | | |
Sciences | | Swiss Franc | | 05/03/07 | | | | 944,000 | | | | | 781,618 | | | | | 782,558 | | | $ | (940 | ) |
| | Euro | | 05/02/07 | | | | 98,000 | | | | | 133,736 | | | | | 133,927 | | | | (191 | ) |
| | | | | | | | | | | | | | | | | | | | |
|
| |
| | | | | | | | | | | | | | | | | | | | | $ | (1,131 | ) |
| | | | | | | | | | | | | | | | | | | | |
|
| |
81
Note 4. Income Tax Information
The tax character of distributions paid during the year ended October 31, 2006, were as follows:
Distributions Paid From:
| | | | | | | | | | | | | |
| | Period ended October 31, 2006 | |
| |
| |
| | Ordinary
Income | | Non-taxable
Return of
Capital | | Long-term
Capital
Gains | | Total
Distributions | |
| |
| |
| |
| |
| |
Dividend AchieversTM | | $ | 23,135,339 | | $ | 8,978,900 | | $ | 16,952,248 | | $ | 49,066,487 | |
Enhanced Dividend AchieversTM | | | 51,946,761 | | | — | | | 32,569,547 | | | 84,516,308 | |
Strategic Dividend AchieversTM | | | 10,051,697 | | | — | | | 14,165,531 | | | 24,217,228 | |
Global Energy and Resources | | | 42,657,932 | | | — | | | 41,980,821 | | | 84,638,753 | |
Global Opportunities | | | 27,654,546 | | | — | | | 502,975 | | | 28,157,521 | |
Health Sciences | | | 12,399,889 | | | — | | | 2,032,812 | | | 14,432,701 | |
S&P Quality Rankings | | | 3,563,848 | | | 29,330 | | | 2,668,835 | | | 6,262,013 | |
World Investment | | | 64,975,119 | | | — | | | — | | | 64,975,119 | |
For Federal income tax purposes, the Trusts had no capital loss carryforwards at April 30, 2007.
Note 5. Capital
There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for the Trusts. At April 30, 2007, the shares owned by an affiliate of the Advisor of the Trusts were as follows:
| | | | |
Trust | | | Common Shares
Owned |
| | |
|
Dividend AchieversTM | | | 8,028 | |
Enhanced Dividend AchieversTM | | | 8,028 | |
Strategic Dividend AchieversTM | | | 8,028 | |
Global Energy and Resources | | | 4,817 | |
Global Equity Income | | | 6,021 | |
Global Opportunities | | | 4,817 | |
Health Sciences | | | 4,817 | |
Real Asset | | | 8,028 | |
S&P Quality Rankings | | | 8,028 | |
World Investment | | | 8,028 | |
Transaction in common shares of beneficial interest for the periods ended April 30, 2007 and October 31, 2006, were as follows:
| | | | | | | | | | | | | | |
Trust | | | Commencement
of Investment
Operations | | Initial Public
Offering | | Underwriters’
Exercising the
Over-allotment
Option | |
| | |
| |
| |
| |
Global Equity Income | | | March 30, 2007 | | | | 40,006,021 | | | | | — | | |
Real Asset | | | September 29, 2006 | | | | 53,508,028 | | | | | 3,200,000 | | |
| | | | | | | | | | | |
Trust | | Reinvestment
of Dividends and
Distributions for
the period ended
October 31, 2006 | | Reinvestment
of Dividends and
Distributions for the
six months ended
April 30, 2007 | |
| |
| |
| |
Enhanced Dividend AchieversTM | | | | 334,800 | | | | | 354,756 | | |
Global Opportunities | | | | 36,764 | | | | | 120,452 | | |
Health Sciences | | | | — | | | | | 69,573 | | |
World Investment | | | | — | | | | | 98,239 | | |
| | | | | | | | | | | |
Offering costs incurred in connection with the Trusts’ offering of common shares have been charged against the proceeds from the initial common share offering of the common shares for Global Equity Income and Real Asset in the amount of $1,287,151 and $1,254,847, respectively.
82
Note 6. Concentration Risks
As of April 30, 2007, the Trusts listed below had the following industry classifications:
| | | | | | | | | | | | | | | | | | | | | |
Sector | | Global
Equity Income | | Global
Opportunities | | S&P Quality
Rankings | | World
Investment | |
| |
| |
| |
| |
| |
Financial Institutions | | | | 24 | % | | | | 21 | % | | | | 26 | % | | | | 22 | % | |
Energy | | | | 15 | | | | | 18 | | | | | 15 | | | | | 18 | | |
Consumer Products | | | | 11 | | | | | 19 | | | | | 11 | | | | | 17 | | |
Health Care | | | | 11 | | | | | 4 | | | | | 6 | | | | | 5 | | |
Industrials | | | | 8 | | | | | 5 | | | | | 7 | | | | | 6 | | |
Telecommunications | | | | 8 | | | | | 8 | | | | | 7 | | | | | 8 | | |
Technology | | | | 7 | | | | | 7 | | | | | 9 | | | | | 6 | | |
Basic Materials | | | | 6 | | | | | 6 | | | | | 3 | | | | | 6 | | |
Media | | | | 3 | | | | | 1 | | | | | 1 | | | | | 1 | | |
Entertainment & Leisure | | | | 2 | | | | | 1 | | | | | 1 | | | | | 1 | | |
Real Estate | | | | 2 | | | | | 6 | | | | | 8 | | | | | 5 | | |
Aerospace & Defense | | | | 1 | | | | | 1 | | | | | 1 | | | | | 1 | | |
Automotive | | | | 1 | | | | | — | | | | | 3 | | | | | — | | |
Transportation | | | | 1 | | | | | 1 | | | | | — | | | | | 2 | | |
Building & Development | | | | — | | | | | 2 | | | | | 1 | | | | | 2 | | |
Business Equipment & Services | | | | — | | | | | — | | | | | 1 | | | | | — | | |
As of April 30, 2007, the Trusts listed below had the following geographic concentrations:
| | | | | | | | | | | | | | | | | |
Country | | Global Energy
and Resources | | Health
Sciences | | Real Assets | | |
| |
| |
| |
| | |
United States | | | | 63 | % | | | | 91 | % | | | | 47 | % | | |
Canada | | | | 17 | | | | | — | | | | | 12 | | | |
Switzerland | | | | — | | | | | 8 | | | | | — | | | |
Bermuda | | | | 3 | | | | | — | | | | | 1 | | | |
Greece | | | | 3 | | | | | — | | | | | — | | | |
Australia | | | | 2 | | | | | — | | | | | 9 | | | |
Norway | | | | 2 | | | | | — | | | | | 2 | | | |
United Kingdom | | | | 2 | | | | | — | | | | | 14 | | | |
Brazil | | | | 1 | | | | | — | | | | | 3 | | | |
Cayman Islands | | | | 1 | | | | | — | | | | | — | | | |
Denmark | | | | 1 | | | | | — | | | | | — | | | |
France | | | | 1 | | | | | 1 | | | | | 1 | | | |
Hong Kong | | | | 1 | | | | | — | | | | | — | | | |
Italy | | | | 1 | | | | | — | | | | | — | | | |
Japan | | | | 1 | | | | | — | | | | | — | | | |
Netherlands | | | | 1 | | | | | — | | | | | 2 | | | |
South Africa | | | | — | | | | | — | | | | | 4 | | | |
China | | | | — | | | | | — | | | | | 1 | | | |
Mexico | | | | — | | | | | — | | | | | 1 | | | |
New Guinea | | | | — | | | | | — | | | | | 1 | | | |
Peru | | | | — | | | | | — | | | | | 1 | | | |
Russia | | | | — | | | | | — | | | | | 1 | | | |
83
Note 7. Subsequent Event
On May 8, 2007, Global Equity Income issued an additional 4,919,954 shares from the underwriters’ exercising their over-allotment option in the amount of $93,938,305.
Subsequent to April 30, 2007, the Board declared distributions per common share for Enhanced Dividend AchieversTM, Global Opportunities, Real Asset, S&P Quality Rankings and World Investment payable May 30, 2007, to shareholders of record on May 15, 2007, and for Dividend AchieversTM, Enhanced Dividend AchieversTM, Strategic Dividend AchieversTM, Global Energy and Resources, Health Sciences, Real Asset and World Investment payable June 29, 2007, to shareholders of record on June 15, 2007. The per share distributions declared were as follows:
| | | | |
Trust | | | Distribution per
Common Share |
| | |
|
Dividend AchieversTM | | | 0.225000 | |
Enhanced Dividend AchieversTM | | | 0.101875 | |
Strategic Dividend AchieversTM | | | 0.225000 | |
Global Energy and Resources | | | 0.375000 | |
Global Equity Income | | | 0.475000 | |
Global Opportunities | | | 0.568750 | |
Health Sciences | | | 0.384375 | |
Real Asset | | | 0.090600 | |
S&P Quality Rankings | | | 0.225000 | |
World Investment | | | 0.113750 | |
84
|
DIVIDEND REINVESTMENT PLANS |
|
Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions reinvested by The Bank of New York (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent.
The Plan Agent serves as agent for the shareholders in administering the Plan. After a Trust declares a distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open-market purchases”). If, on the distribution payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as “market premium”), the Plan Agent will invest the distribution amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the distribution by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the distribution will be divided by 95% of the market price on the payment date. If, on the distribution payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the distribution amount in shares acquired on behalf of the participants in open-market purchases.
Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the distribution record date; otherwise such termination or resumption will be effective with respect to any subsequently declared distribution.
The Plan Agent’s fees for the handling of the reinvestment of distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of distributions. The automatic reinvestment of distributions will not relieve participants of any federal income tax that may be payable on such distributions.
Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at The Bank of New York, Dividend Reinvestment Department, P.O. Box 1958, Newark, New Jersey 07101-9774; or by calling 1-866-216-0242.
85
The Trusts listed for trading on the New York Stock Exchange (“NYSE”) have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards and the Trusts listed for trading on the American Stock Exchange (“AMEX”) have filed with the AMEX their corporate governance certification regarding compliance with the AMEX’s listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.
During the period, there were no material changes in any Trusts’ investment objective or policies or to the Trusts’ charters or by-laws that were not approved by the shareholders or in the principle risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.
The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trust’s offering and the information contained in each Trust’s Statement of Additional Information may have become outdated.
Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock’s website into this report.
Certain officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or the Sub-Advisor. They serve in the following capacities for the Advisor or the Sub-Advisor; Robert S. Kapito—Director and Vice Chairman of the Advisor and the Sub-Advisors, Donald Burke, Anne Ackerley, Bartholomew Battista, Vincent Tritto and Brian Kindelan—Managing Directors of the Advisor and the Sub-Advisors, Neal Andrews—Manging Director of the Advisor, James Kong—Managing Director of the BFM, Jay Fife—Managing Director of the Sub-Advisors, Spencer Fleming—Director of the Advisor and the Sub-Advisor and Robert Mahar—Director of the Sub-Advisor.
Important Information Regarding the BlackRock Closed-End Funds Semi-Annual Investor Update
The Semi-Annual Investor Update (“Update”) is available on the Internet and may be accessed through BlackRock’s website at http://www.blackrock.com. The Update provides information on the fixed income markets and summaries of BlackRock Closed-End Funds’ investment objectives and strategies. It also contains recent news regarding the BlackRock Closed-End Funds.
If you would like to receive a hard copy of the BlackRock Closed-End Funds Semi-Annual Investor Update, please call (800) 699-1BFM.
86
The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Trusts’ investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. The Trusts will send you a Form 1099-DIV for the calendar year that will tell you how to report these dividends and distributions for federal income tax purposes.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Fiscal Year to Date
Cumulative Distributions | | | | | | | Percentage of Fiscal Year to Date
Cumulative Distributions by Character | | | |
| |
| | | | | | |
| | | |
Trust | | Net
Investment
Income | | Net
Realized
Capital
Gains | | Return of
Capital | | Total Per
Common
Share | | Net
Investment
Income | | Net
Realized
Capital
Gains | | Return of
Capital | | Total Per
Common
Share | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Dividend Achievers* | | | $ | 0.33 | | | | $ | — | | | | $ | 0.12 | | | | $ | 0.45 | | | 74 | % | | — | % | | 26 | % | | 100% | |
Enhanced Dividend Achievers | | | $ | 0.40 | | | | $ | 0.21 | | | | $ | — | | | | $ | 0.61 | | | 66 | % | | 34 | % | | — | % | | 100% | |
Strategic Dividend Achievers* | | | $ | 0.31 | | | | $ | — | | | | $ | 0.14 | | | | $ | 0.45 | | | 69 | % | | — | % | | 31 | % | | 100% | |
Global Energy and Resources | | | $ | 0.17 | | | | $ | 0.92 | | | | $ | — | | | | $ | 1.09 | | | 16 | % | | 84 | % | | — | % | | 100% | |
Global Opportunities | | | $ | 0.63 | | | | $ | 0.75 | | | | $ | — | | | | $ | 1.38 | | | 46 | % | | 54 | % | | — | % | | 100% | |
Health Sciences | | | $ | — | | | | $ | 1.46 | | | | $ | — | | | | $ | 1.46 | | | — | % | | 100 | % | | — | % | | 100% | |
Real Asset | | | $ | 0.40 | | | | $ | 0.14 | | | | $ | — | | | | $ | 0.54 | | | 74 | % | | 26 | % | | — | % | | 100% | |
S&P Quality Rankings* | | | $ | 0.28 | | | | $ | — | | | | $ | 0.17 | | | | $ | 0.45 | | | 63 | % | | — | % | | 37 | % | | 100% | |
World Investment | | | $ | 0.12 | | | | $ | 0.95 | | | | $ | — | | | | $ | 1.07 | | | 11 | % | | 89 | % | | — | % | | 100% | |
| |
* | The Trust estimates that is has distributed more than its income and net realized gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Trust is paid back to you. A return of capital does not necessarily reflect the Trusts’ investment performance and should not be confused with ‘yield’ or ‘income.’ |
87
BlackRock Closed-End Funds
| |
Trustees
Ralph L. Schlosstein, Chairman
Andrew F. Brimmer, Lead Trustee1
Richard E. Cavanagh, Lead Trustee2
Kent Dixon
Frank J. Fabozzi
Kathleen F. Feldstein
R. Glenn Hubbard
Robert S. Kapito3 Officers
Robert S. Kapito, President
Donald C. Burke, Treasurer
Bartholomew Battista, Chief Compliance Officer
Anne Ackerley, Vice President
Neal Andrews, Assistant Treasurer
Jay Fife, Assistant Treasurer
Spencer Fleming, Assistant Treasurer
James Kong, Assistant Treasurer
Robert Mahar, Assistant Treasurer
Vincent B. Tritto, Secretary
Brian P. Kindelan, Assistant Secretary Investment Advisor
BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM Sub-Advisors
BlackRock Financial Management, Inc.4
40 East 52nd Street
New York, NY 10022
BlackRock Capital Management, Inc.5
One Financial Center
Boston, MA 02111
BlackRock Investment Management, LLC6
800 Scudders Mill Road
Princeton, NJ 08356
BlackRock Investment Management International, Ltd.5
33 King William Street
London, EC4R 9AS UK | State Street Research & Management Co.7
One Financial Center
Boston, MA 02111 Accounting Agent
The Bank of New York
2 Hanson Place
Brooklyn, NY 11217 Custodian
The Bank of New York
100 Colonial Center Parkway
Suite 200
Lake Mary, FL 32746 Transfer Agent
The Bank of New York
P.O. Box 11258
Church Street Station
New York, NY 10286
(866) 216-0242 Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116 Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
4 Times Square
New York, NY 10036 Legal Counsel – Independent Trustees
Debevoise & Plimpton LLP
919 Third Avenue
New York, NY 10022 This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. BlackRock Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM |
| |
|
1 | Retired, effective December 31, 2006. |
2 | Effective as of January 1, 2007. |
3 | Resigned, effective December 31, 2006. |
4 | For all Trusts except Global Energy and Resources, Global Equity Income, Global Opportunities, Health Sciences and Real Asset. |
5 | For Real Asset. |
6 | For Global Equity Income and Real Asset. |
7 | For Global Energy and Resources. |
The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (866) 216-0242.
The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (866)216-0242. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.
Information on how proxies relating to the Trusts’voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (866) 216-0242 or on the website of the Commission at http://www.sec.gov.
The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Each Trust’s Form N-Q may also be obtained, upon request, by calling (866) 216-0242.
| |
This report is for shareholder information. This is not a prospectus intended for
use in the purchase or sale of Trust shares. Statements and other information
contained in this report are as dated and are subject to change.
CEF-SEMI-7-0407 | 
|
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
The Registrant’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
(a) Not applicable for semi-annual reports.
(b) Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.
Not applicable because no such purchases were made during the period covered by this report.
Item 10. Submission of Matters to a Vote of Security Holders.
No matters were voted on by shareholders during the period covered by this report.
Item 11. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Exhibits.
(a) (1) Not applicable.
(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.
(a) (3) Not applicable.
(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.
SIGNATURES
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.
(Registrant) BlackRock Global Energy and Resources Trust
| By: | | /s/ Donald C. Burke | |
Name: | | Donald C. Burke |
Title: | | Treasurer |
Date: | | July 3, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | | /s/ Robert S. Kapito | |
Name: | | Robert S. Kapito |
Title: | | Principal Executive Officer |
Date: | | July 3, 2007 |
| By: | | /s/ Donald C. Burke | |
Name: | | Donald C. Burke |
Title: | | Principal Financial Officer |
Date: | | July 3, 2007 |
