The Trusts report 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.
Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. The Trusts may pay reasonable finder’s, lending agent, administrative and custodial fees in connection
Notes to Financial Statements (continued)
with its loans. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Trusts could experience delays and costs in gaining access to the collateral. The Trusts also could suffer a loss where the value of the collateral falls below the market value of the borrowed securities, in the event of borrower default or in the event of losses on investments made with cash collateral.
Federal Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provisions is required. Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various.
The Trusts have implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. Management has evaluated the application of FIN 48 to EcoSolutions, Global Equity Income and International Growth and has determined that the adoption of FIN 48 does not have a material impact on the financial statements. The EcoSolutions, Global Equity Income and International Growth will file their first Federal and state tax returns in 2008 for the period ended October 31, 2007.
Recent Accounting Pronouncements: 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. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.
In addition, in February 2007, Statement of Financial Accounting Standards 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 at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.
In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“FAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for and how derivative instruments affect an entity’s results of operations and financial position. The investment advisor is currently evaluating the implications of FAS 161 and the impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts’ Board, non-interested Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in the other certain BlackRock Closed-End Funds.
The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trusts. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability are included in other assets on the Statement of Assets and Liabilities.
Other: Expenses directly related to one of the Trusts are charged to that Trust. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
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 subsidiary 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 Management International Limited (“BII”), each a wholly owned subsidiary of BlackRock, Inc., serve as sub-advisors to Real Asset. BlackRock Capital Management, Inc. (“BCM”), a wholly owned subsidiary of BlackRock, Inc., and BIM serve 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.
Each Trust’s investment advisory fees paid to the Advisor are computed weekly, accrued daily and payable monthly, based on an annual rate of 0.65% for Dividend AchieversTM, 1.00% for Enhanced Dividend AchieversTM, 0.75% for Strategic Dividend AchieversTM, 1.20% for EcoSolutions,
| | | |
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82 | SEMI-ANNUAL REPORT | APRIL 30, 2008 | |
Notes to Financial Statements (continued)
1.20% for Global Energy and Resources, 1.00% for Global Equity Income, 1.00% for Global Opportunities, 1.00% for Health Sciences, 1.00% for International Growth, 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 for 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 Trust’s 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 their sub-advisory services.
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 AchieversTM universe of common stocks. If Mergent® revokes a 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. These three Trusts pay a quarterly licensing fee, which is shown on the Statements 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 pays a quarterly licensing fee, which is shown on its Statement of Operations.
During the period ended April 30, 2008, Merrill Lynch, through its affiliated broker-dealer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), earned commissions on transactions of securities as follows:
| | | | |
| | | | | |
| | Commission
Amount | |
| | | | | |
Dividend AchieversTM | | $ | 16,002 | |
Enhanced Dividend AchieversTM | | | 46,052 | |
Strategic Dividend AchieversTM | | | 8,464 | |
EcoSolutions | | | 6,755 | |
Global Energy and Resources | | | 16,749 | |
Global Equity Income | | | 1,176,473 | |
Global Opportunities | | | 16,347 | |
Health Sciences | | | 8,748 | |
International Growth | | | 38,533 | |
Real Asset | | | 33,206 | |
World Investment | | | 54,104 | |
| | | | | |
The Trusts have received an exemptive order from the SEC permitting them to lend portfolio securities to Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, or its affiliates. As of April 30, 2008, Enhanced Dividend AchieversTM, EcoSolutions, Global Energy and Resources, Real Asset and World Investment lent securities with a value of $280,000, $895,000, $4,266,000, $13,470,300 and $966,000, respectively to MLPF&S or its affiliates. Pursuant to that order, the Trusts have retained BIM as the securities lending agent for a fee based on a share of the returns on investment of cash collateral. BIM may, on behalf of the Trusts, invest cash collateral received by the Trusts for such loans, among other things, in a private investment company managed by the Advisor or in registered money market funds advised by the Advisor or its affiliates. For the six months ended April 30, 2008, BIM received $116,060 in securities lending agent fees.
Certain officers and/or trustees of the Trusts are officers and/or trustees of BlackRock, Inc. or its affiliates.
| | | |
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| SEMI-ANNUAL REPORT | APRIL 30, 2008 | 83 |
|
|
|
Notes to Financial Statements (continued) |
3. Investments:
Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the period ended April 30, 2008, were as follows:
| | | | | | | |
| | | | | | |
| | Purchases | | Sales | |
| | | | | | |
Dividend AchieversTM | | $ | 153,266,910 | | $ | 164,106,383 | |
Enhanced Dividend AchieversTM | | | 357,643,779 | | | 358,776,783 | |
Strategic Dividend AchieversTM | | | 55,954,666 | | | 62,041,905 | |
EcoSolutions | | | 64,374,961 | | | 40,620,471 | |
Global Energy and Resources | | | 356,237,569 | | | 381,300,511 | |
Global Equity Income | | | 312,194,008 | | | 317,478,481 | |
Global Opportunities | | | 239,010,384 | | | 276,258,647 | |
Health Sciences | | | 118,220,167 | | | 120,360,253 | |
International Growth | | | 1,304,042,350 | | | 1,298,664,100 | |
Real Asset | | | 184,328,800 | | | 195,707,534 | |
S&P Quality Rankings | | | 124,692 | | | 1,162,971 | |
World Investment | | | 596,804,122 | | | 687,088,166 | |
| | | | | | |
Transactions in options written during the period ended April 30, 2008 were as follows:
| | | | | | | | | | | | | |
| | Calls | | Puts | |
| | | | | |
| | Contracts | | Premiums | | Contracts | | Premiums | |
| | | | | | | | | | |
Enhanced Dividend
AchieversTM | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 4,778,513 | | $ | 13,869,236 | | | — | | $ | — | |
Options written | | | 10,107,430 | | | 30,867,148 | | | 1,160 | | | 165,703 | |
Options expired | | | (7,025,487 | ) | | (19,813,701 | ) | | (530 | ) | | (48,079 | ) |
Options exercised | | | (1,372,664 | ) | | (5,635,049 | ) | | (160 | ) | | (33,920 | ) |
Options closed | | | (2,557,807 | ) | | (8,196,824 | ) | | (400 | ) | | (74,049 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 3,929,985 | | $ | 11,090,810 | | | 70 | | $ | 9,655 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
EcoSolutions | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 4,384,092 | | $ | 2,617,220 | | | 2,389,478 | | $ | 639,605 | |
Options written | | | 13,188,348 | | | 7,203,032 | | | 1,516,473 | | | 1,146,810 | |
Options expired | | | (9,497,133 | ) | | (3,892,379 | ) | | (2,219,061 | ) | | (1,357,710 | ) |
Options exercised | | | (1,223,027 | ) | | (1,612,238 | ) | | (1,589,780 | ) | | (372,205 | ) |
Options closed | | | (1,393,956 | ) | | (1,294,693 | ) | | (12,020 | ) | | (11,531 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 5,458,324 | | $ | 3,020,942 | | | 85,090 | | $ | 44,969 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Global Energy and
Resources | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 3,019,825 | | $ | 14,163,603 | | | 26,414 | | $ | 172,615 | |
Options written | | | 5,885,275 | | | 37,741,985 | | | 834,521 | | | 2,870,034 | |
Options expired | | | (2,255,035 | ) | | (11,438,623 | ) | | (31,944 | ) | | (1,008,112 | ) |
Options exercised | | | (200,889 | ) | | (2,686,100 | ) | | (21,111 | ) | | (414,384 | ) |
Options closed | | | (2,988,973 | ) | | (16,145,166 | ) | | (7,880 | ) | | (1,180,153 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 3,460,203 | | $ | 21,635,699 | | | 800,000 | | $ | 440,000 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Global Equity Income | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 3,613 | | $ | 5,435,857 | | | — | | $ | — | |
Options written | | | 39,518 | | | 53,992,924 | | | — | | | — | |
Options expired | | | (10,420 | ) | | (19,430,402 | ) | | — | | | — | |
Options closed | | | (22,836 | ) | | (33,820,649 | ) | | — | | | — | |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 9,875 | | $ | 6,177,730 | | | — | | $ | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Calls | | Puts | |
| | | | | |
| | Contracts | | Premiums | | Contracts | | Premiums | |
| | | | | | | | | | |
Global Opportunities | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 13,613,104 | | $ | 11,649,548 | | | 700 | | $ | 18,550 | |
Options written | | | 20,066,307 | | | 21,053,239 | | | 469,193 | | | 1,028,987 | |
Options expired | | | (13,189,388 | ) | | (12,456,297 | ) | | (286,112 | ) | | (459,275 | ) |
Options exercised | | | (5,710,805 | ) | | (4,485,286 | ) | | (121,847 | ) | | (206,563 | ) |
Options closed | | | (8,759,649 | ) | | (7,796,951 | ) | | (61,189 | ) | | (303,806 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 6,019,569 | | $ | 7,964,253 | | | 745 | | $ | 77,893 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Health Sciences | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 441,958 | | $ | 3,075,960 | | | 26,361 | | $ | 388,544 | |
Options written | | | 452,686 | | | 4,011,928 | | | 8,889 | | | 1,065,146 | |
Options expired | | | (371,379 | ) | | (2,148,340 | ) | | (4,732 | ) | | (504,907 | ) |
Options exercised | | | (57,088 | ) | | (593,172 | ) | | (26,486 | ) | | (314,056 | ) |
Options closed | | | (288,152 | ) | | (3,096,344 | ) | | (3,644 | ) | | (577,167 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 178,025 | | $ | 1,250,032 | | | 388 | | $ | 57,560 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
International Growth | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 103,958,110 | | $ | 35,874,512 | | | 5,580 | | $ | 450,528 | |
Options written | | | 153,446,966 | | | 86,907,976 | | | 7,797,110 | | | 8,117,088 | |
Options expired | | | (110,062,694 | ) | | (50,762,647 | ) | | (3,679,483 | ) | | (4,150,274 | ) |
Options exercised | | | (13,166,942 | ) | | (9,595,394 | ) | | (1,630,981 | ) | | (1,555,431 | ) |
Options closed | | | (70,847,970 | ) | | (22,935,711 | ) | | (2,492,061 | ) | | (2,744,409 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 63,327,470 | | $ | 39,488,736 | | | 165 | | $ | 117,502 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Real Asset | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 8,699,629 | | $ | 16,981,947 | | | 555,954 | | $ | 1,370,219 | |
Options written | | | 18,909,132 | | | 39,671,784 | | | 400,189 | | | 5,016,592 | |
Options expired | | | (8,535,995 | ) | | (14,878,915 | ) | | (655,537 | ) | | (3,303,832 | ) |
Options exercised | | | (5,782,449 | ) | | (4,145,577 | ) | | (185,410 | ) | | (1,330,418 | ) |
Options closed | | | (3,810,333 | ) | | (18,234,478 | ) | | (5,902 | ) | | (946,660 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 9,479,984 | | $ | 19,394,761 | | | 109,294 | | $ | 805,901 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
World Investment | | | | | | | | | | | | | |
Options outstanding
at beginning of period | | | 30,945,501 | | $ | 25,789,594 | | | 1,800 | | $ | 47,699 | |
Options written | | | 42,966,024 | | | 52,477,956 | | | 1,172,881 | | | 2,273,546 | |
Options expired | | | (31,872,082 | ) | | (30,135,426 | ) | | (715,220 | ) | | (1,024,352 | ) |
Options exercised | | | (12,640,727 | ) | | (10,727,523 | ) | | (304,973 | ) | | (511,804 | ) |
Options closed | | | (17,363,875 | ) | | (17,127,657 | ) | | (152,678 | ) | | (600,093 | ) |
| | | | | | | | | | | | | |
Options outstanding
at end of period | | | 12,034,841 | | $ | 20,276,944 | | | 1,810 | | $ | 184,996 | |
| | | | | | | | | | | | | |
As of April 30, 2008, the value of portfolio securities subject to covered call options written were as follows:
| | | | |
| | | | | |
| | Value | |
| | | | |
Enhanced Dividend AchieversTM | | $ | 330,806,418 | |
EcoSolutions | | | 60,746,530 | |
Global Energy and Resources | | | 312,403,041 | |
Global Equity Income | | | 423,573,780 | |
Global Opportunities | | | 166,507,467 | |
Health Sciences | | | 27,876,656 | |
International Growth | | | 996,768,733 | |
Real Asset | | | 323,660,087 | |
World Investment | | | 419,800,678 | |
| | | | | |
| | | |
| | | |
84 | SEMI-ANNUAL REPORT | APRIL 30, 2008 | |
|
|
|
Notes to Financial Statements (continued) |
4. Capital Share Transactions:
There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for the Trusts. At April 30, 2008, the shares owned by an affiliate of the Advisor of the Trusts were as follows:
| | | | |
| | | | |
| | Common
Shares Owned | |
| | | | |
Dividend AchieversTM | | | 8,028 | |
Enhanced Dividend AchieversTM | | | 8,028 | |
Strategic Dividend AchieversTM | | | 8,028 | |
EcoSolutions | | | 6,964 | |
Global Energy and Resources | | | 4,817 | |
Global Equity Income | | | 6,021 | |
Global Opportunities | | | 4,817 | |
Health Sciences | | | 4,817 | |
International Growth | | | 6,178 | |
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, 2008, and October 31, 2007, were as follows:
| | | | | | | |
| | | | | | | | |
| | Reinvestment of
Dividends and
Distributions for
the Six Months Ended
April 30, 2008 | | Reinvestment of
Dividends and
Distributions for
the Year Ended
October 31, 2007 | |
| | | | | | |
Enhanced Dividend AchieversTM | | — | | | 354,756 | | |
Global Equity Income | | — | | | 69,217 | | |
Global Opportunities | | 99,860 | | | 120,470 | | |
Health Sciences | | — | | | 86,683 | | |
World Investment | | 77,282 | | | 98,239 | | |
| | | | | | | | |
| | | | | | | | | | |
| | | | | | | | |
| | Commencement
of Investment
Operations | | Initial
Public
Offering | | Underwriters’
Exercising the
Over-allotment
Option | |
| | | | | | | | |
EcoSolutions | | September 28, 2007 | | 11,756,964 | | | — | | |
Global Equity Income | | | March 30, 2007 | | 40,006,021 | | | 4,989,171 | | |
International Growth | | | May 30, 2007 | | 98,506,178 | | | 7,800,000 | | |
| | | | | | | | |
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 EcoSolutions, Global Equity Income and International Growth in the amounts of $1,415,735, $1,287,151 and $1,449,386, respectively.
5. Concentration Risks:
As of April 30, 2008, the Trusts listed below had the following industry classifications:
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Sector | | Global
Equity
Income | | Global
Oppor-
tunities | | S&P
Quality
Rankings | | World
Investment | |
| | | | | | | | | | |
Energy | | 17 | % | | 22 | % | | 19 | % | | 22 | % | |
Financial Institutions | | 21 | | | 13 | | | 20 | | | 12 | | |
Consumer Products | | 11 | | | 15 | | | 12 | | | 15 | | |
Industrials | | 10 | | | 6 | | | 12 | | | 6 | | |
Technology | | 9 | | | 8 | | | 10 | | | 7 | | |
Basic Materials | | 8 | | | 10 | | | 3 | | | 11 | | |
Telecommunications | | 6 | | | 8 | | | 7 | | | 8 | | |
Health Care | | 8 | | | 6 | | | 6 | | | 6 | | |
Real Estate | | 1 | | | 2 | | | 6 | | | 4 | | |
Exchange-Traded Funds | | — | | | 7 | | | — | | | 6 | | |
Transportation | | 1 | | | 2 | | | — | | | 2 | | |
Automotive | | 3 | | | — | | | 1 | | | — | | |
Entertainment & Leisure | | 2 | | | — | | | 1 | | | — | | |
Aerospace & Defense | | — | | | 1 | | | 1 | | | 1 | | |
Media | | 2 | | | — | | | — | | | — | | |
Business Equipment & Services | | — | | | — | | | 2 | | | — | | |
Building & Development | | 1 | | | — | | | — | | | — | | |
| | | | | | | | | | | | | | |
| | | |
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| SEMI-ANNUAL REPORT | APRIL 30, 2008 | 85 |
|
|
|
Notes to Financial Statements (concluded) |
As of April 30, 2008, the Trusts listed below had the following geographic concentrations:
| | | | | | | | | | |
| | | | | | | | | | | |
Country | | EcoSolutions | Global
Energy and
Resources | Health
Sciences | Real
Asset | |
| | | | | | | | | | | |
United States | | 34 | % | 70 | % | 83 | % | 49 | % | |
Canada | | 4 | | 14 | | — | | 12 | | |
United Kingdom | | 8 | | 1 | | — | | 15 | | |
Brazil | | 6 | | 2 | | — | | 6 | | |
Switzerland | | 2 | | — | | 11 | | — | | |
Australia | | 3 | | 2 | | — | | 5 | | |
Germany | | 6 | | — | | 1 | | — | | |
France | | 3 | | 1 | | — | | 2 | | |
Belgium | | 6 | | — | | — | | — | | |
Bermuda | | 2 | | 2 | | 1 | | — | | |
South Africa | | 1 | | — | | — | | 4 | | |
Spain | | 5 | | — | | — | | — | | |
Greece | | 1 | | 3 | | — | | — | | |
Denmark | | 4 | | — | | — | | — | | |
Hong Kong | | 2 | | 1 | | — | | — | | |
Norway | | 1 | | 1 | | — | | 1 | | |
Israel | | 2 | | — | | 3 | | — | | |
Japan | | 2 | | — | | — | | — | | |
China | | 1 | | — | | 1 | | 1 | | |
Italy | | 1 | | 1 | | — | | — | | |
Netherlands | | — | | 1 | | — | | 1 | | |
Mexico | | — | | — | | — | | 2 | | |
Argentina | | 1 | | — | | — | | — | | |
Austria | | 1 | | — | | — | | — | | |
Chile | | 1 | | — | | — | | — | | |
Malaysia | | 1 | | — | | — | | — | | |
Philippines | | 1 | | — | | — | | — | | |
Singapore | | 1 | | — | | — | | — | | |
Luxembourg | | — | | 1 | | — | | — | | |
Peru | | — | | — | | — | | 1 | | |
Russia | | — | | — | | — | | 1 | | |
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6. Subsequent Event:
Subsequent to April 30, 2008, the Board declared distributions per common share for Enhanced Dividend AchieversTM, Global Equity, Global Opportunities, International Growth, Real Asset, S&P Quality Rankings and World Investment payable May 30, 2008, to shareholders of record on May 15, 2008 with an ex-date of May 13, 2008, and for Dividend AchieversTM, Enhanced Dividend AchieversTM, Strategic Dividend AchieversTM, EcoSolutions, Global Energy and Resources, Health Sciences, International Growth, Real Asset and World Investment payable June 30, 2008, to shareholders of record on June 16, 2008 with an ex-date of June 12, 2008. 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 | |
EcoSolutions | | | 0.400000 | |
Global Energy and Resources | | | 0.375000 | |
Global Equity Income | | | 0.475000 | |
Global Opportunities | | | 0.568750 | |
Health Sciences | | | 0.384375 | |
International Growth | | | 0.151700 | |
Real Asset | | | 0.090600 | |
S&P Quality Rankings | | | 0.225000 | |
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86 | SEMI-ANNUAL REPORT | APRIL 30, 2008 | |
G. Nicholas Beckwith, III, Trustee
Richard E. Cavanagh, Trustee
Richard S. Davis, Trustee
Kent Dixon, Trustee
Frank J. Fabozzi, Trustee
Kathleen F. Feldstein, Trustee
James T. Flynn, Trustee
Henry Gabbay, Trustee
Jerrold B. Harris, Trustee
R. Glenn Hubbard, Trustee
W. Carl Kester, Trustee
Karen P. Robards, Trustee
Robert S. Salomon, Jr., Trustee
Donald C. Burke, President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Trusts
Howard Surloff, Secretary
Accounting Agent
The Bank of New York Mellon
Brooklyn, NY 11217
Custodian
The Bank of New York Mellon
Lake Mary, FL 32746
Transfer Agent
The Bank of New York Mellon
New York, NY 10286
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
New York, NY 10281
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036
BlackRock Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
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Section 19 Notices (unaudited) |
The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the the Trusts’ investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. The Trust 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.
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April 30, 2008 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Total Cumulative Distributions
for the Fiscal Year to Date | | % Breakdown of the Total Cumulative
Distributions for the Fiscal Year to Date | |
| | | | | | | |
Trust Name | | | | 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™* | | BDV | | $ | | 0.20 | | | | $ | — | | | | $ | 0.25 | | | | $ | 0.45 | | | | | 44 | % | | | 0 | % | | | 56 | % | | | 100 | % | |
Enhanced Dividend Achievers™* | | BDJ | | $ | | 0.19 | | | | $ | — | | | | $ | 0.42 | | | | $ | 0.61 | | | | | 31 | % | | | 0 | % | | | 69 | % | | | 100 | % | |
Strategic Dividend Achievers™* | | BDT | | $ | | 0.09 | | | | $ | — | | | | $ | 0.36 | | | | $ | 0.45 | | | | | 20 | % | | | 0 | % | | | 80 | % | | | 100 | % | |
EcoSolutions* | | BQR | | $ | | — | | | | $ | 0.12 | | | | $ | 0.68 | | | | $ | 0.80 | | | | | 0 | % | | | 15 | % | | | 85 | % | | | 100 | % | |
Global Energy and Resources | | BGR | | $ | | 0.22 | | | | $ | 2.44 | | | | $ | — | | | | $ | 2.66 | | | | | 8 | % | | | 92 | % | | | 0 | % | | | 100 | % | |
Global Equity Income* | | BFD | | $ | | 0.48 | | | | $ | — | | | | $ | 0.47 | | | | $ | 0.95 | | | | | 51 | % | | | 0 | % | | | 49 | % | | | 100 | % | |
Global Opportunities | | BOE | | $ | | 0.63 | | | | $ | 1.31 | | | | $ | — | | | | $ | 1.94 | | | | | 32 | % | | | 68 | % | | | 0 | % | | | 100 | % | |
Health Sciences | | BME | | $ | | 0.01 | | | | $ | 1.29 | | | | $ | — | | | | $ | 1.30 | | | | | 1 | % | | | 99 | % | | | 0 | % | | | 100 | % | |
International Growth* | | BGY | | $ | | 0.12 | | | | $ | — | | | | $ | 0.79 | | | | $ | 0.91 | | | | | 13 | % | | | 0 | % | | | 87 | % | | | 100 | % | |
Real Asset | | BCF | | $ | | 0.19 | | | | $ | 0.74 | | | | $ | — | | | | $ | 0.93 | | | | | 20 | % | | | 80 | % | | | 0 | % | | | 100 | % | |
S&P Quality Rankings* | | BQY | | $ | | 0.23 | | | | $ | — | | | | $ | 0.22 | | | | $ | 0.45 | | | | | 51 | % | | | 0 | % | | | 49 | % | | | 100 | % | |
World Investment | | BWC | | $ | | 0.09 | | | | $ | 1.29 | | | | $ | — | | | | $ | 1.38 | | | | | 7 | % | | | 93 | % | | | 0 | % | | | 100 | % | |
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* | The Trust estimates that it has distributed more than its income and net realized gains; therefore, a portion of the 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 the shareholder. A return of capital does not necessarily reflect the Trust’s investment performance and should not be confused with ‘yield’ or ‘income’. |
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| SEMI-ANNUAL REPORT | APRIL 30, 2008 | 87 |
|
Availability of Quarterly Schedule of Investments |
Each Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. Each Trust’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.
Electronic copies of most financial reports are available on the Trusts’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Trusts’ electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.
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 it 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 (800) 441-7762
Quarterly performance, semi-annual and annual reports and other information regarding each Trust 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 each Trust and does not, and is not intended to, incorporate BlackRock’s website into this report.
|
BlackRock Privacy Principles |
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic information about its Clients, except as permitted by law or as necessary to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
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88 | SEMI-ANNUAL REPORT | APRIL 30, 2008 | |
[This Page Intentionally Left Blank]
[This Page Intentionally Left Blank]
This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change.
A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 411-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how each Trust voted proxies relating to securities held in each Trust’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.
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Item 2 – Code of Ethics – Not Applicable to this semi-annual report
Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the Board recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
Item 11 – Controls and Procedures
11(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s 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 13a-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the 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 attached hereto
12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
12(a)(2) – Certifications – Attached hereto
12(a)(3) – Not Applicable
12(b) – 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 Global Energy and Resources Trust |
| | |
| By: | /s/ Donald C. Burke |
| | Donald C. Burke |
| | Chief Executive Officer of |
| | BlackRock Global Energy and Resources Trust |
| | |
| Date: June 23, 2008 |
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.
| |
| By: | /s/ Donald C. Burke |
| | Donald C. Burke |
| | Chief Executive Officer (principal executive officer) of |
| | BlackRock Global Energy and Resources Trust |
| | |
| Date: June 23, 2008 |
| | |
| By: | /s/ Neal J. Andrews |
| | Neal J. Andrews |
| | Chief Financial Officer (principal financial officer) of |
| | BlackRock Global Energy and Resources Trust |
| | |
| Date: June 23, 2008 |
