UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04182
Name of Fund: BlackRock International Value Fund of BlackRock International Value Trust
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
International Value Fund of BlackRock International Value Trust, 55 East 52nd Street, New
York, NY 10055
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 06/30/2010
Date of reporting period: 06/30/2010
Item 1 – Report to Stockholders
Annual Report
JUNE 30, 2010
BlackRock EuroFund
BlackRock Focus Value Fund, Inc.
BlackRock Global SmallCap Fund, Inc.
BlackRock International Value Fund
OF BLACKROCK INTERNATIONAL VALUE TRUST
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
| Table of Contents | |
| Page | |
| Dear Shareholder | 3 |
| Annual Report: | |
| Fund Summaries | 4 |
| About Fund Performance | 12 |
| Disclosure of Expenses | 12 |
| Derivative Instruments | 13 |
| Financial Statements: | |
| Schedules of Investments | 14 |
| Statements of Assets and Liabilities | 24 |
| Statements of Operations | 26 |
| Statements of Changes in Net Assets | 27 |
| Financial Highlights | 29 |
| Notes to Financial Statements | 45 |
| Report of Independent Registered Public Accounting Firm | 54 |
| Important Tax Information | 54 |
| Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements | 55 |
| Officers and Directors | 59 |
| Additional Information | 62 |
| Mutual Fund Family | 63 |
2 ANNUAL REPORT
JUNE 30, 2010
Dear Shareholder
Although overall global economic and financial conditions have generally improved over the past year, the past several months have seen high levels of mar-
ket volatility and diminishing investor confidence sparked by the sovereign debt crisis in Europe and mixed economic data that have raised concerns over
the possibility that some economies could slide back into recession. Despite the uneven nature of recent market conditions, we continue to believe that the
“Great Recession” likely ended at some point last summer, thanks primarily to massive fiscal and monetary stimulus, and that the global economy remains
in recovery mode for most regions of the world. Regarding the US economy, we believe it is unlikely that the United States will experience a “double dip”
recession, although we acknowledge that subpar growth is likely to persist for some time.
Global equity markets bottomed in early 2009 and since that time have moved unevenly higher as investors were lured back into the markets by depressed
valuations, desire for higher yields and improvements in corporate earnings prospects. Volatility levels, however, have remained elevated — primarily as a
result of uneven economic data and lingering deflation issues (especially in Europe). As the period drew to a close, equity markets had endured a signifi-
cant correction that drove stock prices into negative territory on a year-to-date basis in almost every market. Over a 12-month basis, however, global equi-
ties posted positive returns thanks to improving corporate revenues and profits and a reasonably strong macro backdrop. From a geographic perspective,
US equities have significantly outpaced their international counterparts over the past six and twelve months, as the domestic economic recovery has been
more pronounced and as credit-related issues have held European markets down. Within the United States, smaller cap stocks have noticeably outper-
formed large caps.
In fixed income markets, yields have been moving unevenly over the past six and twelve months as improving economic conditions have been acting to
push Treasury yields higher (and prices correspondingly lower), while concerns over ongoing deflation threats have acted as a counterweight. As the period
drew to a close, however, Treasury yields fell sharply as investors flocked to the “safe haven” asset class in the face of escalating uncertainty. As a result, US
Treasuries became one of the world’s best-performing asset classes on a six-month basis. High yield bonds have also continued to perform well, thanks in
large part to ongoing high levels of investor demand. Meanwhile, municipal bonds performed in line with their taxable counterparts on a 12-month basis,
but slightly underperformed over the last six months as investors rotated to the relative safety of Treasuries.
Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with
the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an
“extended period.”
| Against this backdrop, the major market averages posted the following returns: | ||
| Total Returns as of June 30, 2010 | 6-month | 12-month |
| US equities (S&P 500 Index) | (6.65)% | 14.43% |
| Small cap US equities (Russell 2000 Index) | (1.95) | 21.48 |
| International equities (MSCI Europe, Australasia, Far East Index) | (13.23) | 5.92 |
| 3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index) | 0.05 | 0.16 |
| US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index) | 9.36 | 8.20 |
| Taxable fixed income (Barclays Capital US Aggregate Bond Index) | 5.33 | 9.50 |
| Tax-exempt fixed income (Barclays Capital Municipal Bond Index) | 3.31 | 9.61 |
| High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index) | 4.45 | 26.66 |
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.
Although conditions are certainly better than they were a couple of years ago, global financial markets continue to face high volatility and questions about
the strength and sustainability of the recovery abound. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management
of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most
recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank
you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
THIS PAGE NOT PART OF YOUR FUND REPORT
3
Fund Summary as of June 30, 2010 BlackRock EuroFund
Portfolio Management Commentary
How did the Fund perform?
•For the 12-month period ended June 30, 2010, the Fund underperformed
its benchmark, the MSCI Europe Index.
What factors influenced performance?
•During the period, both sector selection and stock allocation had a neg-
ative effect on performance. At the sector level, the Fund’s underweight
allocation in the consumer staples sector detracted from performance
as the sector performed strongly due to its defensive characteristics. An
underweight in the materials sector also hampered performance, along
with an overweight in the energy sector. Stock selection in consumer dis-
cretionary (Thomas Cook Group Plc, Fiat SpA) and industrials (Vinci SA)
also negatively affected Fund performance.
•At the sector level, the Fund benefited from an overweight exposure to
financials, as well as an overweight in industrials. Stock selection within
financials was also rewarding, particularly within banks (Banco Santander
SA, KBC Bancassurance Holding, Lloyds TSB Group Plc, Swedbank AB and
Unicredit SpA). In addition, stock selection in utilities was beneficial, as
integrated energy firm Centrica Plc benefited from increased demand for
gas in the residential market. Other top Fund holdings included pharma-
ceuticals company Novartis AG, brewer Carlsberg A/S and confectionery
conglomerate Nestle SA.
Describe recent portfolio activity.
•During the course of the period, the Fund’s exposure to financials was
reduced by trimming positions in banks HSBC Holdings Plc and BNP
Paribas SA, as well as selling insurance companies Allianz AG and Zurich.
We also marginally decreased the Fund’s weighting in energy by reducing
holdings of oil companies BP Plc and Total SA. The proceeds from these
sales were used to partially fund an increase in industrials, where we pur-
chased construction services company Bilfinger Berger AG, steel cable
maker Prysmian SpA and electronics manufacturer Koninklijke Philips
Electronics NV. Elsewhere, the Fund’s allocation in the consumer staples
sector was increased from underweight to neutral after the purchases of
Carlsberg A/S and food retailer Koninklijke Ahold NV.
Describe Fund positioning at period end.
•At period end, the Fund is overweight in the industrials, telecommunication
services and consumer discretionary sectors, and it is underweight in the
materials, financials and information technology sectors. In terms of coun-
try exposure, the Fund is overweight in Spain, the UK and Germany, and
underweight in Switzerland, Sweden and France.
•As always, a market dominated by fear presents attractive investment
opportunities. We continue to follow our disciplined investment process
that has guided us well through the volatility, and we are identifying good
companies trading at distressed prices, despite strong earnings streams
and generous dividends.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
| Portfolio Information | |||
| Percent of | Percent of | ||
| Long-Term | Long-Term | ||
| Ten Largest Holdings | Investments | Geographic Allocation | Investments |
| Novartis AG, Registered Shares | 5% | United Kingdom | 35% |
| Nestle SA, Registered Shares | 5 | Germany | 14 |
| Telefonica SA | 4 | France | 13 |
| Banco Santander SA | 4 | Spain | 11 |
| British American Tobacco Plc | 3 | Switzerland | 10 |
| Centrica Plc | 3 | Netherlands | 5 |
| Koninklijke Philips Electronics NV | 3 | Italy | 4 |
| BHP Billiton Plc | 3 | Sweden | 2 |
| Vinci SA | 3 | Finland | 2 |
| DaimlerChrysler AG | 2 | Denmark | 2 |
| Other1 | 2 | ||
| 1 Other includes a 1% holding in each of the following countries: Belgium and Russia. | |||
4 ANNUAL REPORT
JUNE 30, 2010
BlackRock EuroFund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do not
have a sales charge.
2 Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities, including common stock and convertible securities, of
companies located in Europe. The Fund currently expects that a majority of the Fund’s assets will be invested in equity securities of companies in Western
European countries, but may also invest in emerging markets in Eastern European countries.
3 This unmanaged broad-based capitalization-weighted index is comprised of a representative sampling of large-, medium- and small-capitalization compa-
nies in developed European countries.
Performance Summary for the Period Ended June 30, 2010
| Average Annual Total Returns4 | |||||||
| 1 Year | 5 Years | 10 Years | |||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |
| Total Returns | charge | charge | charge | charge | charge | charge | |
| Institutional | (19.61)% | 0.78% | N/A | (0.37)% | N/A | 2.36% | N/A |
| Investor A | (19.72) | 0.53 | (4.75)% | (0.58) | (1.65)% | 2.13 | 1.58% |
| Investor B | (20.21) | (0.85) | (5.27) | (1.59) | (1.84) | 1.47 | 1.47 |
| Investor C | (20.04) | (0.36) | (1.33) | (1.40) | (1.40) | 1.31 | 1.31 |
| Class R | (20.04) | (0.05) | N/A | (1.09) | N/A | 1.87 | N/A |
| MSCI Europe Index | (16.72) | 5.70 | N/A | 0.27 | N/A | 0.44 | N/A |
4 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical6 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2010 | June 30, 2010 | During the Period5 | January 1, 2010 | June 30, 2010 | During the Period5 | Expense Ratio | |
| Institutional | $1,000 | $803.90 | $ 4.88 | $1,000 | $1,019.39 | $ 5.46 | 1.09% |
| Investor A | $1,000 | $802.80 | $ 5.72 | $1,000 | $1,018.45 | $ 6.41 | 1.28% |
| Investor B | $1,000 | $797.90 | $11.77 | $1,000 | $1,011.71 | $13.17 | 2.64% |
| Investor C | $1,000 | $799.60 | $ 9.50 | $1,000 | $1,014.24 | $10.64 | 2.13% |
| Class R | $1,000 | $799.60 | $ 8.34 | $1,000 | $1,015.53 | $ 9.35 | 1.87% |
5 Expenses are equal to the expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
6 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half-year divided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 5
| Fund Summary as of June 30, 2010 | BlackRock Focus Value Fund, Inc. |
| Portfolio Management Commentary |
How did the Fund perform?
•For the 12-month period ended June 30, 2010, the Fund underperformed
its benchmark, the Russell 1000 Value Index, and the broad-market S&P
500 Index. The following discussion pertains to the Fund’s performance
relative to the Russell 1000 Value Index.
What factors influenced performance?
•Stock selection within the financials sector, particularly positions in Morgan
Stanley, Bank of New York Mellon Corp. and INVESCO Ltd., and a lack of
holdings in regional banks that posted gains detracted from performance
for the period. In the industrials sector, a lack of holdings of transportation
industry group stocks hindered returns, as did an underweight position in
General Electric Co. Stock. Selection in the materials sector detracted from
performance, as holdings in steel companies Nucor Corp. and U.S. Steel
Corp. performed poorly. These areas of weakness outweighed the relative
strength of the utilities sector, in which the Fund was underweight during
the period.
•Conversely, stock selection and an underweight in the energy sector bene-
fited the Fund. The sale of Anadarko Petroleum Corp. prior to the oil spill in
the Gulf of Mexico had a positive impact on returns. Holdings of Peabody
Energy Corp. and an underweight in Exxon Mobil Corp. also proved benefi-
cial. Stock selection in telecommunication services, particularly holdings of
Qwest Communications International, Inc. and the decision not to hold
AT&T, Inc., also benefited the Fund.
Describe recent portfolio activity.
•During the 12-month period, the Fund’s holdings were adjusted as stock
market volatility presented opportunities. Exposure to financials was
increased through new purchases of Bank of America Corp. Citigroup, Inc.
and an increase of holdings in Wells Fargo & Co. The Fund exited its
position in The Bank of New York Mellon Corp. and reduced its positions in
The Travelers Cos., Inc. and Invesco Ltd. The Fund increased its exposure in
consumer discretionary through new purchases of CBS Corp., Comcast
Corp. and Limited Brands, Inc., exited its position in Viacom, Inc. and
reduced its position in Time Warner, Inc. Holdings in information technology
(IT) were repositioned and reduced overall. The Fund swapped positions in
Applied Materials, Inc., Hewlett-Packard Co. and Analog Devices, Inc. for
Novellus Systems, Inc., International Business Machines Corp. and Intel
Corp. respectively, exited its positions in Microsoft Corp. and Nokia Corp.
and reduced its position in Micron Technology, Inc. Exposure to the health
care sector was reduced by the sale of Baxter International, Inc. and Pfizer,
Inc. following its purchase of Wyeth. The Fund’s shares of Schering-Plough
Co. were converted into shares of Merck & Co., Inc. following the merger of
the two companies.
Describe Fund positioning at period end.
•As of June 30, 2010, relative to its benchmark index, the Fund was over-
weight in IT, consumer discretionary, materials, energy, industrials and
telecommunication services and underweight in utilities, health care,
consumer staples and financials.
•While challenges remain, we believe the economy can sustain a modest
growth rate as inflation and interest rate pressures remain benign.
With good corporate profit growth and reasonable equity-market valuations,
we believe these conditions will help reinvigorate the stock market in the
months ahead and produce attractive returns through year-end. We believe
the Fund’s pro-cyclical bias will enhance results in this environment.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
| Portfolio Information | |||
| Percent of | Percent of | ||
| Long-Term | Long-Term | ||
| Ten Largest Holdings | Investments | Investment Criteria | Investments |
| ACE Ltd. | 3% | Above-Average Yield | 24% |
| Qwest Communications International, Inc. | 3 | Below-Average Price/Earnings Ratio | 22 |
| MetLife, Inc. | 3 | Low Price-to-Book Value | 18 |
| Citigroup, Inc. | 3 | Price-to-Cash Flow | 13 |
| Honeywell International, Inc. | 3 | Special Situations | 10 |
| Occidental Petroleum Corp. | 3 | Price-to-Earnings Per Share | 6 |
| Bank of America Corp. | 3 | Price-to-Book-Value | 3 |
| Lam Research Corp. | 3 | Discount to Assets | 2 |
| Tyco International Ltd. | 3 | Operational Restructuring | 1 |
| JPMorgan Chase & Co. | 3 | Earnings Turnaround | 1 |
6 ANNUAL REPORT
JUNE 30, 2010
BlackRock Focus Value Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do not
have a sales charge.
2 The Fund invests in a diversified portfolio of equity securities that Fund management believes are undervalued relative to its assessment of the current
or prospective condition of the issuer or relative to prevailing market ratios, including issuers that are experiencing poor operating conditions.
3 This unmanaged broad-based index is a subset of the Russell 1000 Index consisting of those Russell 1000 securities with lower price/book ratios and
lower forecasted growth values.
4 This unmanaged index covers 500 industrial, utility, transportation and financial companies of the US markets (mostly New York Stock Exchange (“NYSE”)
issues), representing about 75% of NYSE market capitalization and 30% of NYSE issues.
Performance Summary for the Period Ended June 30, 2010
| Average Annual Total Returns5 | |||||||
| 1 Year | 5 Years | 10 Years | |||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |
| Total Returns | charge | charge | charge | charge | charge | charge | |
| Institutional | (8.11)% | 13.16% | N/A | (0.75)% | N/A | 2.03% | N/A |
| Investor A | (8.29) | 12.79 | 6.86% | (1.05) | (2.11)% | 1.75 | 1.20% |
| Investor B | (8.76) | 11.76 | 7.26 | (1.87) | (2.16) | 1.11 | 1.11 |
| Investor C | (8.66) | 11.91 | 10.91 | (1.84) | (1.84) | 0.95 | 0.95 |
| Class R | (8.55) | 12.04 | N/A | (1.60) | N/A | 1.40 | N/A |
| Russell 1000 Value Index | (5.12) | 16.92 | N/A | (1.64) | N/A | 2.38 | N/A |
| S&P 500 Index | (6.65) | 14.43 | N/A | (0.79) | N/A | (1.59) | N/A |
5 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical7 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2010 | June 30, 2010 | During the Period6 | January 1, 2010 | June 30, 2010 | During the Period6 | Expense Ratio | |
| Institutional | $1,000 | $918.90 | $ 4.81 | $1,000 | $1,019.79 | $ 5.06 | 1.01% |
| Investor A | $1,000 | $917.10 | $ 6.18 | $1,000 | $1,018.35 | $ 6.51 | 1.30% |
| Investor B | $1,000 | $912.40 | $10.38 | $1,000 | $1,013.94 | $10.94 | 2.19% |
| Investor C | $1,000 | $913.40 | $10.06 | $1,000 | $1,014.29 | $10.59 | 2.12% |
| Class R | $1,000 | $914.50 | $ 9.45 | $1,000 | $1,014.93 | $ 9.94 | 1.99% |
6 Expenses are equal to the expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
7 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half-year divided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 7
Fund Summary as of June 30, 2010 BlackRock Global SmallCap Fund, Inc.
Portfolio Management Commentary
How did the Fund perform?
•For the 12-month period ended June 30, 2010, the Fund underperformed
the benchmark MSCI World Small Cap Index but outperformed the broader
MSCI World Index. The following discussion pertains to the Fund’s perform-
ance relative to the MSCI World Small Cap Index.
What factors influenced performance?
•Detracting from relative performance during the 12-month period was
security selection across the Fund, particularly in the financials and health
care sectors and, to a lesser extent, in the industrials, information technol-
ogy (IT) and energy sectors. Within the financials sector, holdings in banks,
real estate investment trusts and insurance companies underperformed
relative to their benchmark counterparts; Alpha Bank AE and Fukuoka
Financial Group, Inc. were among the largest individual detractors. Within
the health care sector, the most challenged areas for the Fund were health
care providers & services and pharmaceuticals, where Laboratorios
Farmaceuticos Rovi SA was a notable detractor. Other areas in which
underperformance was concentrated included semiconductors, independ-
ent oil and gas producers and various cyclical industrials. Cash balances
modestly detracted from performance as most of the period was charac-
terized by rising equity markets.
•Positive contributions to performance during the period came from security
selection in the consumer staples sector, where household products com-
pany Ming Fai International Holdings Ltd. and beverage company Britvic Plc
were notable performers. In the IT sector, communications equipment com-
panies JDS Uniphase Corp., Polycom, Inc., and Tandberg ASA boosted per-
formance. An underweight exposure to the utilities sector added to relative
performance, as did stock selection within the sector, where ITC Holdings
Corp. and Northeast Utilities, Inc. outpaced their respective industry
performance averages.
Describe recent portfolio activity.
•During the period, we added to positions in IT, health care and utilities,
funding these purchases by reducing financials, consumer discretionary
and cash positions. Significant buys included Pharmaceutical Product
Development, Inc., Delhaize Group, Adtran, Inc., Northeast Utilities, Inc.
and Nuance Communications, Inc. Noteworthy sales included Citrix
Systems, Inc., Perusahaan Gas Negara Tbk PT, UBISOFT Entertainment,
TrygVesta A/S and Owens-Illinois, Inc.
Describe Fund positioning at period end.
•As of the period end, we believe the Fund’s position is neither aggressive
nor defensive, based on the belief that while economic conditions appear
to have bottomed out, the recovery is expected to be muted relative to
recoveries from previous recessions. Accordingly, the Fund is overweight in
higher-quality cyclical areas such as IT, and underweight in more leveraged
cyclical areas such as industrials and consumer discretionary. We believe
stock selection will play a critical role in generating outperformance versus
the benchmark in 2010. Our investment stance is geared toward high-qual-
ity companies with solid business models that can take advantage of the
current economic environment. While this positioning has hampered per-
formance in the very short term, we believe it will benefit the Fund as the
year progresses.
•At period end, the Fund’s notable overweights relative to the MSCI World
Small Cap Index were in the IT and health care sectors. The Fund was
underweight in the industrials, financials and consumer discretionary
sectors. Approximately 5% of the Fund was in cash and cash equivalents
at the end of the period. Geographically, the Fund was underweight in the
U.S. and Japan, and overweight in emerging markets.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
Portfolio Information
| Percent of | Percent of | ||
| Long-Term | Long-Term | ||
| Ten Largest Holdings | Investments | Geographic Allocation | Investments |
| Urban Outfitters, Inc. | 1% | United States | 50% |
| Rheinmetall AG | 1 | United Kingdom | 8 |
| Eldorado Gold Corp. | 1 | Japan | 6 |
| Ryanair Holdings Plc | 1 | Canada | 6 |
| Pharmaceutical Product Development, Inc. | 1 | Germany | 5 |
| Hikma Pharmaceuticals Plc | 1 | Switzerland | 3 |
| Adtran, Inc. | 1 | Hong Kong | 2 |
| Delhaize Group | 1 | Australia | 2 |
| Northeast Utilities, Inc. | 1 | Singapore | 2 |
| Tanger Factory Outlet Centers, Inc. | 1 | India | 2 |
| Other1 | 14 |
1 Other includes a 1% holding in each of the following countries: Ireland, France, Italy,
Cayman Islands, China, South Korea, Austria, Belgium, Israel, Taiwan, Finland,
Bermuda, Spain and Brazil.
8 ANNUAL REPORT
JUNE 30, 2010
BlackRock Global SmallCap Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do
not have a sales charge.
2 The Fund invests primarily in a diversified portfolio of equity securities of small cap issuers located in various foreign countries and the United States.
3 This unmanaged market-capitalization weighted index is comprised of a representative sampling of stocks of large-, medium- and small-
capitalization companies in 23 countries, including the United States.
4 This unmanaged broad-based index is comprised of small cap companies from 23 developed markets.
Performance Summary for the Period Ended June 30, 2010
| Average Annual Total Returns5 | |||||||
| 1 Year | 5 Years | 10 Years | |||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |
| Total Returns | charge | charge | charge | charge | charge | charge | |
| Institutional | (7.71)% | 13.30% | N/A | 3.92% | N/A | 4.59% | N/A |
| Investor A | (7.85) | 12.96 | 7.03% | 3.62 | 2.51% | 4.32 | 3.75% |
| Investor B | (8.24) | 11.97 | 7.47 | 2.77 | 2.50 | 3.66 | 3.66 |
| Investor C | (8.20) | 12.06 | 11.06 | 2.79 | 2.79 | 3.49 | 3.49 |
| Class R | (8.02) | 12.58 | N/A | 3.24 | N/A | 4.06 | N/A |
| MSCI World Index | (9.84) | 10.20 | N/A | 0.06 | N/A | (1.02) | N/A |
| MSCI World Small Cap Index | (3.73) | 20.99 | N/A | 1.67 | N/A | 5.48 | N/A |
5 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical7 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2010 | June 30, 2010 | During the Period6 | January 1, 2010 | June 30, 2010 | During the Period6 | Expense Ratio | |
| Institutional | $1,000 | $922.90 | $ 5.24 | $1,000 | $1,019.35 | $ 5.51 | 1.10% |
| Investor A | $1,000 | $921.50 | $ 6.72 | $1,000 | $1,017.81 | $ 7.05 | 1.41% |
| Investor B | $1,000 | $917.60 | $10.84 | $1,000 | $1,013.49 | $11.38 | 2.28% |
| Investor C | $1,000 | $918.00 | $10.65 | $1,000 | $1,013.69 | $11.18 | 2.24% |
| Class R | $1,000 | $919.80 | $ 8.62 | $1,000 | $1,015.82 | $ 9.05 | 1.81% |
6 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period shown).
7 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 9
Fund Summary as of June 30, 2010 BlackRock International Value Fund
Portfolio Management Commentary
How did the Fund perform?
•For the 12-month period ended June 30, 2010, the Fund underperformed
its benchmark, the MSCI Europe, Australia, Far East (EAFE) Index.
What factors influenced performance?
•During the period, both stock selection and sector allocation had a
negative effect on performance.
•The Fund experienced negative stock selection effects in the industrials
(BAE Systems, Inc. and Mitsui OSK Lines, Ltd.), information technology
(HTC) and energy (ENI SpA and Petroplus Holdings AG) sectors during the
course of the period. Other individual holdings that detracted from perform-
ance included diversified financials firms Nomura Holdings, Inc. and ING
Group NV, integrated energy company EDF SA and cigarette producer
Japan Tobacco, Inc. Fund performance was also hindered by holding a
residual cash balance during periods of rising markets.
•Conversely, performance was aided by an overweight exposure to the con-
sumer discretionary sector. Stock selection in that area was also rewarding,
with automobile manufacturer DaimlerChrysler AG performing particularly
well. An overweight in the information technology (IT) sector made a posi-
tive contribution, as did underweight positions in financials and utilities. At
the stock level, the Fund’s positions within financials were helpful, with
banks Erste Group Bank AG, Banco Santander SA, Swedbank AB and
Unicredit Bank AG among the Fund’s top holdings during the period.
•The Fund uses currency forward contracts to hedge exposure in situations
where the view on a currency and the underlying securities denominated in
that currency differs. The Fund may identify significant investment opportu-
nities in a particular country but have a negative view on the currency and
therefore not be comfortable being overweight that currency. During the
period, the impact of the Fund's currency hedging strategy had a neutral
effect on performance.
Describe recent portfolio activity.
•There were no dramatic sector changes during the period. However, we
increased the Fund’s exposure to energy by purchasing oil major Royal
Dutch Shell Plc, drilling services company Transocean Ltd. and gas supplier
OAO Gazprom. We also increased the Fund’s allocation in IT by purchasing
computer manufacturer Quanta Computer, Inc., consumer electronics
maker Samsung Electronics Co., Ltd. and Taiwan Semiconductor Manu-
facturing Co., Ltd. These additions were partially funded by a reduction in
the materials sector, including the sales of industrial chemicals maker
BASF SE and miner Xstrata Plc, as well as the reduction of BHP Billiton Plc.
There was also a decrease in exposure to the telecommunication services
sector, as we reduced positions in Vodafone Group Plc and Telefonica SA
and sold KDDI Corp.
•During the period, the Fund’s weightings in Japan and Asia/Pacific ex-
Japan were reduced and the proceeds were used to increase our alloca-
tions to the UK and select emerging markets.
Describe Fund positioning at period end.
•As always, a market dominated by fear presents attractive investment
opportunities. We continue to follow our disciplined investment process
that has guided us well through the volatility, and we are indentifying good
companies trading at distressed prices with attractive upside potential. At
period end, the Fund was overweight in the energy, IT and telecommunica-
tion services sectors, and it was underweight in the materials, financials
and utilities sectors. Regionally, the Fund was overweight in the select
emerging markets and underweight in Japan and Asia/Pacific ex-Japan.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
| Portfolio Information | |||
| Percent of | Percent of | ||
| Long-Term | Long-Term | ||
| Ten Largest Holdings | Investments | Geographic Allocation | Investments |
| Novartis AG, Registered Shares | 4% | United Kingdom | 19% |
| Nestle SA, Registered Shares | 3 | Japan | 18 |
| Telefonica SA | 3 | Germany | 11 |
| Centrica Plc | 3 | Switzerland | 10 |
| Royal Dutch Shell Plc, Class B | 3 | France | 9 |
| British American Tobacco Plc | 3 | Spain | 8 |
| Total SA | 3 | Australia | 5 |
| Banco Santander SA | 3 | South Korea | 3 |
| Zurich Financial Services AG | 3 | Brazil | 3 |
| BHP Billiton Plc | 2 | Taiwan | 3 |
| Israel | 2 | ||
| Netherlands | 2 | ||
| Mexico | 2 | ||
| India | 2 | ||
| Other1 | 3 |
1 Other includes a 1% holding in each of the following countries: Denmark, Finland
and Russia.
10 ANNUAL REPORT
JUNE 30, 2010
BlackRock International Value Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do
not have a sales charge.
2 The Fund invests primarily in stocks of companies in developed countries located outside of the United States.
3 This index is an arithmetical average weighted by market value of the performance of over 1,000 non-U.S. companies representing 21 stock markets in
Europe, Australia, New Zealand and the Far East.
Performance Summary for the Period Ended June 30, 2010
| Average Annual Total Returns4 | |||||||
| 1 Year | 5 Years | 10 Years | |||||
| 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |
| Total Returns | charge | charge | charge | charge | charge | charge | |
| Institutional | (15.52)% | 2.08% | N/A | (0.42)% | N/A | 1.85% | N/A |
| Investor A | (15.71) | 1.62 | (3.71)% | (0.74) | (1.81)% | 1.56 | 1.01% |
| Investor B | (16.12) | 0.59 | (3.89) | (1.71) | (1.99) | 0.92 | 0.92 |
| Investor C | (16.09) | 0.63 | (0.37) | (1.69) | (1.69) | 0.73 | 0.73 |
| Class R | (15.80) | 1.35 | N/A | (1.05) | N/A | 1.33 | N/A |
| MSCI EAFE Index | (13.23) | 5.92 | N/A | 0.88 | N/A | 0.16 | N/A |
4 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical6 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2010 | June 30, 2010 | During the Period5 | January 1, 2010 | June 30, 2010 | During the Period5 | Expense Ratio | |
| Institutional | $1,000 | $844.80 | $ 4.53 | $1,000 | $1,019.89 | $ 4.96 | 0.99% |
| Investor A | $1,000 | $842.90 | $ 6.40 | $1,000 | $1,017.86 | $ 7.00 | 1.40% |
| Investor B | $1,000 | $838.80 | $11.03 | $1,000 | $1,012.80 | $12.08 | 2.42% |
| Investor C | $1,000 | $839.10 | $ 5.88 | $1,000 | $1,018.40 | $ 6.46 | 1.29% |
| Class R | $1,000 | $842.00 | $ 7.72 | $1,000 | $1,016.42 | $ 8.45 | 1.69% |
5 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period shown).
6 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 11
About Fund Performance
•Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only to
eligible investors.
•Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
•Investor B Shares are subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service fee
of 0.25% per year. These shares automatically convert to Investor A Shares
after approximately eight years. (There is no initial sales charge for auto-
matic share conversions.) All returns for periods greater than eight years
reflect this conversion. Investor B Shares of the Funds are only available
through exchanges, dividend reinvestment by existing shareholders or for
purchase by certain qualified employee benefit plans.
•Investor C Shares are subject to a 1% contingent deferred sales charge if
redeemed within one year of purchase. In addition, Investor C Shares are
subject to a distribution fee of 0.75% per year and a service fee of 0.25%
per year.
•Class R Shares do not incur a maxium initial sales charge (front-end load)
or deferred sales charge. These shares are subject to a distribution fee of
0.25% per year and a service fee of 0.25% per year. Class R Shares are
available only to certain retirement plans. Prior to January 3, 2003 for
BlackRock EuroFund, BlackRock Focus Value Fund, Inc. and BlackRock
International Value Fund, and February 4, 2003 for BlackRock Global
SmallCap Fund, Inc., Class R Share performance results are those of the
Institutional Shares (which have no distribution or service fees) restated to
reflect Class R Share fees.
The returns for BlackRock International Value Fund’s Investor B and Investor
C Shares prior to October 6, 2000, are based upon performance of the
Fund’s Institutional Shares. The returns for Investor B and Investor C Shares,
however, are adjusted to reflect the distribution and service (12b-1) fees
applicable to each class of shares.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the perform-
ance data quoted. Refer to www.blackrock.com/funds to obtain performance
data current to the most recent month-end. Performance results do not
reflect the deduction of taxes that a shareholder would pay on fund distri-
butions or the redemption of fund shares. The Funds may charge a 2%
redemption fee for sales or exchanges of shares within 30 days of purchase
or exchange. Performance data does not reflect this potential fee. Figures
shown in the performance tables on the previous pages assume reinvest-
ment of all dividends and capital gain distributions, if any, at net asset value
on the ex-dividend date. Investment return and principal value of shares will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Dividends paid to each class of shares will vary because
of the different levels of service, distribution and transfer agency fees appli-
cable to each class, which are deducted from the income available to be
paid to shareholders.
Disclosure of Expenses
Shareholders of these Funds may incur the following charges: (a) expenses
related to transactions, including sales charges, redemption fees and
exchange fees; and (b) operating expenses including advisory fees, distri-
bution fees including 12b-1 fees, and other Fund expenses. The expense
examples on the previous pages (which are based on hypothetical invest-
ments of $1,000 invested on January 1, 2010 and held through June 30,
2010) are intended to assist shareholders both in calculating expenses
based on investments in the Funds and in comparing these expenses with
similar costs of investing in other mutual funds.
The tables provide information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account
value by $1,000 and then multiply the result by the number correspond-
ing to their share class under the heading entitled “Expenses Paid During
the Period.”
The tables also provide information about hypothetical account values and
hypothetical expenses based on each Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these
Funds and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds’ shareholder reports.
The expenses shown in the table are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such as
sales charges, redemption fees or exchange fees. Therefore, the hypotheti-
cal examples are useful in comparing ongoing expenses only, and will not
help shareholders determine the relative total expenses of owning different
funds. If these transactional expenses were included, shareholder expenses
would have been higher.
12 ANNUAL REPORT JUNE 30, 2010
Derivative Financial Instruments
The Funds may invest in various derivative instruments, including foreign
currency exchange contracts, as specified in Note 2 of the Notes to Fin-
ancials Statements, which may constitute forms of economic leverage.
Such instruments are used to obtain exposure to a market without owning
or taking physical custody of securities or to hedge market and/or foreign
currency exchange rate risk. Such derivative instruments involve risks,
including the imperfect correlation between the value of a derivative instru-
ment and the underlying asset, possible default of the counterparty to the
transaction or illiquidity of the derivative instrument. The Funds’ ability to
successfully use a derivative instrument depends on the investment
advisor’s ability to accurately predict pertinent market movements, which
cannot be assured. The use of derivative instruments may result in losses
greater than if they had not been used, may require the Funds to sell or
purchase portfolio securities at inopportune times or for distressed values,
may limit the amount of appreciation the Funds can realize on an invest-
ment, may result in lower dividends paid to shareholders or may cause the
Funds to hold a security that it might otherwise sell. The Funds’ invest-
ments in these instruments are discussed in detail in the Notes to
Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
13
Schedule of Investments June 30, 2010 BlackRock EuroFund
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Belgium — 1.2% | ||
| KBC Bancassurance Holding | 100,591 | $ 3,855,686 |
| Denmark — 1.8% | ||
| Carlsberg A/S | 74,743 | 5,696,091 |
| Finland — 2.0% | ||
| KCI Konecranes Oyj | 239,381 | 6,242,682 |
| France — 13.0% | ||
| AXA SA | 398,093 | 6,081,718 |
| BNP Paribas SA | 113,858 | 6,125,664 |
| European Aeronautic Defense and Space Co. | 235,731 | 4,810,765 |
| Sanofi-Aventis | 112,940 | 6,802,087 |
| Societe Generale SA | 160,539 | 6,606,022 |
| Total SA | 71,829 | 3,206,368 |
| Vinci SA | 187,054 | 7,766,809 |
| 41,399,433 | ||
| Germany — 13.6% | ||
| Bayer AG | 130,146 | 7,272,759 |
| Bilfinger Berger AG | 121,168 | 6,714,936 |
| Continental AG | 124,242 | 6,449,337 |
| DaimlerChrysler AG | 147,892 | 7,481,208 |
| Deutsche Post AG | 379,496 | 5,533,115 |
| E.ON AG | 151,281 | 4,067,684 |
| HeidelbergCement AG | 122,172 | 5,773,943 |
| 43,292,982 | ||
| Italy — 3.6% | ||
| Prysmian SpA | 390,748 | 5,608,066 |
| Unicredit SpA | 2,671,768 | 5,910,062 |
| 11,518,128 | ||
| Netherlands — 4.6% | ||
| Koninklijke Ahold NV | 445,018 | 5,504,834 |
| Koninklijke Philips Electronics NV | 305,567 | 9,124,882 |
| 14,629,716 | ||
| Russia — 1.2% | ||
| OAO Gazprom — ADR | 203,155 | 3,821,346 |
| Spain — 10.3% | ||
| Amadeus IT Holding SA, Class A (a) | 134,802 | 2,142,959 |
| Banco Santander SA | 1,103,364 | 11,570,107 |
| Repsol YPF SA | 316,467 | 6,386,342 |
| Telefonica SA | 681,810 | 12,630,347 |
| 32,729,755 | ||
| Sweden — 2.1% | ||
| TeliaSonera AB | 1,016,232 | 6,529,953 |
| Switzerland — 9.7% | ||
| Nestle SA, Registered Shares | 292,768 | 14,116,931 |
| Novartis AG, Registered Shares | 343,968 | 16,669,765 |
| 30,786,696 |
| Common Stocks | Shares | Value | |
| United Kingdom — 33.9% | |||
| Aviva Plc | 1,365,057 | $ 6,343,673 | |
| Barclays Plc | 1,678,869 | 6,701,206 | |
| BHP Billiton Plc | 308,763 | 8,005,766 | |
| BP Plc (a) | 728,654 | 3,488,184 | |
| British American Tobacco Plc | 293,069 | 9,300,772 | |
| Centrica Plc | 2,107,387 | 9,299,932 | |
| HSBC Holdings Plc | 507,530 | 4,636,638 | |
| Ladbrokes Plc | 2,024,864 | 3,826,392 | |
| Lloyds TSB Group Plc (a) | 7,337,322 | 5,792,570 | |
| Redrow Plc (a) | 1,349,801 | 2,263,684 | |
| Reed Elsevier Plc | 802,987 | 5,953,978 | |
| Royal Dutch Shell Plc | 254,260 | 6,416,514 | |
| Royal Dutch Shell Plc, Class B | 264,248 | 6,387,054 | |
| Taylor Wimpey Plc (a) | 8,004,653 | 3,127,194 | |
| Tesco Plc | 1,237,552 | 6,981,535 | |
| Thomas Cook Group Plc | 1,654,956 | 4,380,458 | |
| Vodafone Group Plc | 2,649,865 | 5,460,019 | |
| Wolseley Plc (a) | 164,591 | 3,267,109 | |
| Xstrata Plc | 441,365 | 5,779,517 | |
| 107,412,195 | |||
| Total Long-Term Investments | |||
| (Cost — $333,470,415) — 97.0% | 307,914,663 | ||
| Short-Term Securities | |||
| Money Market Funds — 0.3% | |||
| BlackRock Liquidity Funds, TempFund, | |||
| Institutional Class, 0.16% (b)(c) | 893,336 | 893,336 | |
| Par | |||
| Time Deposits | (000) | ||
| Euro — 0.0% | |||
| Brown Brothers Harriman & Co., 0.01%, 7/01/10 | EUR | 1 | 1,765 |
| Netherlands — 0.0% | |||
| Brown Brothers Harriman & Co., 0.01%, 7/01/10 | DKK | 43 | 7,095 |
| Norway — 0.0% | |||
| Brown Brothers Harriman & Co., 0.01%, 7/01/10 | NOK | —(d) | 49 |
| Total Time Deposits | 8,909 | ||
| Total Short-Term Securities | |||
| (Cost — $902,245) — 0.3% | 902,245 | ||
| Total Investments (Cost — $334,372,660*) — 97.3% | 308,816,908 | ||
| Other Assets Less Liabilities — 2.7% | 8,536,955 | ||
| Net Assets — 100.0% | $ 317,353,863 | ||
| Portfolio Abbreviations | ||||
| To simplify the listings of portfolio holdings in | ADR | American Depositary Receipts | GBP | British Pound |
| the Schedules of Investments, the names and | AUD | Australian Dollar | HKD | Hong Kong Dollar |
| descriptions of many of the securities have been | CAD | Canadian Dollar | JPY | Japanese Yen |
| abbreviated according to the following list: | CHF | Swiss Franc | NOK | Norwegian Krone |
| DKK | Danish Krone | USD | US Dollar | |
| EUR | Euro |
See Notes to Financial Statements.
14 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (concluded) BlackRock EuroFund
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 337,836,864 |
| Gross unrealized appreciation | $ 14,670,239 |
| Gross unrealized depreciation | (43,690,195) |
| Net unrealized depreciation | $ (29,019,956) |
(a) Non-income producing security.
(b) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were
as follows:
| Shares Held | Shares Held | |||
| at June 30, | Net | at June 30, | ||
| Affiliate | 2009 | Activity | 2010 | Income |
| BlackRock Liquidity | ||||
| Funds, TempFund, | ||||
| Institutional Class | 8,551,926 | (7,658,590) | 893,336 | $ 14,966 |
(c) Represents the current yield as of report date.
(d) Amount is less than $1,000.
•Foreign currency exchange contracts as of June 30, 2010 were as follows:
| Unrealized | ||||||
| Currency | Currency | Settlement Appreciation | ||||
| Purchased | Sold | Counterparty | Date | (Depreciation) | ||
| USD | 1,600,485 | EUR | 1,303,328 | The Goldman | 7/01/10 | $ 6,702 |
| Sachs Group, Inc. | ||||||
| USD | 2,078,472 | NOK 13,381,414 | Brown Brothers | 7/01/10 | 22,351 | |
| Harriman & Co. | ||||||
| USD | 7,101 | DKK | 43,146 | JPMorgan | 7/02/10 | 18 |
| Chase Bank NA | ||||||
| USD | 1,570,646 | EUR | 1,288,048 | Citibank N.A. | 7/02/10 | (4,458) |
| USD | 1,311,599 | NOK | 8,525,394 | Citibank N.A. | 7/02/10 | 1,697 |
| USD | 1,171,463 | EUR | 955,117 | Citibank N.A. | 7/06/10 | 3,471 |
| Total | $ 29,781 | |||||
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Fund’s own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to financial statements.
The following tables summarize the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund’s investments and derivatives:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Investments in Securities: | ||||
| Long-Term | ||||
| Investments1 | — | $ 307,914,663 | — | $ 307,914,663 |
| Short-Term | ||||
| Securities | ||||
| Money Market | ||||
| Fund | $ 893,336 | — | — | 893,336 |
| Time Deposits | — | 8,909 | — | 8,909 |
| Total | $ 893,336 | $ 307,923,572 | — | $ 308,816,908 |
1 See above Schedule of Investments for values in each country.
| Derivative Financial Instruments2 | ||||
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Foreign currency | ||||
| exchange | ||||
| contracts | — | $34,239 | — | $ 34,239 |
| Liabilities: | ||||
| Foreign currency | ||||
| exchange | ||||
| contracts | — | (4,458) | — | (4,458) |
| Total | — | $29,781 | — | $ 29,781 |
2 Derivative financial instruments are foreign currency exchange contracts, which
are shown at the unrealized appreciation/depreciation on the instrument.
ANNUAL REPORT JUNE 30, 2010 15
Schedule of Investments June 30, 2010 BlackRock Focus Value Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Above-Average Yield* — 23.7% | ||
| Aerospace & Defense — 2.9% | ||
| Honeywell International, Inc. | 103,400 | $ 4,035,702 |
| Chemicals — 2.1% | ||
| E.I. du Pont de Nemours & Co. | 81,800 | 2,829,462 |
| Diversified Financial Services — 2.8% | ||
| JPMorgan Chase & Co. | 106,500 | 3,898,965 |
| Diversified Telecommunication Services — 2.1% | ||
| Verizon Communications, Inc. | 104,700 | 2,933,694 |
| Industrial Conglomerates — 4.8% | ||
| General Electric Co. | 177,900 | 2,565,318 |
| Tyco International Ltd. | 112,150 | 3,951,044 |
| 6,516,362 | ||
| Metals & Mining — 1.7% | ||
| Alcoa, Inc. | 229,400 | 2,307,764 |
| Pharmaceuticals — 4.8% | ||
| Bristol-Myers Squibb Co. | 120,300 | 3,000,282 |
| Merck & Co, Inc. | 100,600 | 3,517,982 |
| 6,518,264 | ||
| Specialty Retail — 2.5% | ||
| Limited Brands, Inc. | 152,800 | 3,372,296 |
| Total Above-Average Yield | 32,412,509 | |
| Below-Average Price/Earnings Ratio* — 21.5% | ||
| Capital Markets — 2.4% | ||
| Morgan Stanley | 140,000 | 3,249,400 |
| Diversified Financial Services — 6.0% | ||
| Bank of America Corp. | 276,500 | 3,973,305 |
| Citigroup, Inc. (a) | 1,114,600 | 4,190,896 |
| 8,164,201 | ||
| Food Products — 2.2% | ||
| Unilever NV — ADR | 110,500 | 3,018,860 |
| Insurance — 9.2% | ||
| ACE Ltd. | 88,700 | 4,566,276 |
| MetLife, Inc. | 113,000 | 4,266,880 |
| The Travelers Cos., Inc. | 77,600 | 3,821,800 |
| 12,654,956 | ||
| Oil, Gas & Consumable Fuels — 1.7% | ||
| Devon Energy Corp. | 38,100 | 2,321,052 |
| Total Below-Average Price/Earnings Ratio | 29,408,469 | |
| Discount to Assets* — 1.9% | ||
| Hotels, Restaurants & Leisure — 1.9% | ||
| Carnival Corp. | 86,400 | 2,612,736 |
| Total Discount to Assets | 86,400 | 2,612,736 |
| Earnings Turnaround* — 1.0% | ||
| Semiconductors & Semiconductor | ||
| Equipment — 1.0% | ||
| Micron Technology, Inc. (a) | 160,100 | 1,359,249 |
| Total Earnings Turnaround | 160,100 | 1,359,249 |
| Financial Restructuring* — 0.0% | ||
| Semiconductors & Semiconductor | ||
| Equipment — 0.0% | ||
| Legacy Holdings, Inc. (a) | 1,500 | 5 |
| Total Financial Restructuring | 1,500 | 5 |
| Common Stocks | Shares | Value |
| Low Price-to-Book Value* — 18.1% | ||
| Aerospace & Defense — 2.3% | ||
| Raytheon Co. | 65,900 | $ 3,188,901 |
| Commercial Banks — 2.7% | ||
| Wells Fargo & Co. | 142,300 | 3,642,880 |
| Energy Equipment & Services — 2.4% | ||
| Halliburton Co. | 131,700 | 3,233,235 |
| Household Products — 2.2% | ||
| Kimberly-Clark Corp. | 50,800 | 3,080,004 |
| Insurance — 0.9% | ||
| Hartford Financial Services Group, Inc. | 57,200 | 1,265,836 |
| Metals & Mining — 2.2% | ||
| United States Steel Corp. (b) | 76,400 | 2,945,220 |
| Semiconductors & Semiconductor | ||
| Equipment — 5.4% | ||
| LSI Corp. (a) | 754,300 | 3,469,780 |
| Lam Research Corp. (a) | 104,300 | 3,969,658 |
| 7,439,438 | ||
| Total Low Price-to-Book Value | 24,795,514 | |
| Operational Restructuring* — 1.3% | ||
| Food & Staples Retailing — 1.3% | ||
| Walgreen Co. | 63,900 | 1,706,130 |
| Total Operational Restructuring | 1,706,130 | |
| Price-to-Book Value* — 2.6% | ||
| Semiconductors & Semiconductor Equipment — 2.6% | ||
| Novellus Systems, Inc. (a) | 138,100 | 3,502,216 |
| Total Price-to-Book Value | 3,502,216 | |
| Price-to-Cash Flow* — 13.1% | ||
| Diversified Telecommunication Services — 3.1% | ||
| Qwest Communications International, Inc. | 820,600 | 4,308,150 |
| Media — 4.7% | ||
| Time Warner, Inc. | 97,100 | 2,807,161 |
| Comcast Corp., Special Class A | 216,400 | 3,555,452 |
| 6,362,613 | ||
| Oil, Gas & Consumable Fuels — 5.3% | ||
| Occidental Petroleum Corp. | 53,200 | 4,104,380 |
| Peabody Energy Corp. | 80,000 | 3,130,400 |
| 7,234,780 | ||
| Total Price-to-Cash Flow | 17,905,543 | |
| Price-to-Earnings Per Share* — 6.4% | ||
| Energy Equipment & Services — 3.8% | ||
| Ensco International Plc - ADR | 82,000 | 3,220,960 |
| Weatherford International Ltd. (a) | 152,500 | 2,003,850 |
| 5,224,810 | ||
| Media — 2.6% | ||
| CBS Corp., Class B | 278,000 | 3,594,540 |
| Total Price-to-Earnings Per Share | 8,819,350 | |
| Special Situations* — 9.7% | ||
| Capital Markets — 2.6% | ||
| Invesco Ltd. | 215,900 | 3,633,597 |
| Health Care Equipment & Supplies — 1.8% | ||
| Covidien Plc | 61,700 | 2,479,106 |
| IT Services — 2.8% | ||
| International Business Machines Corp. | 30,800 | 3,803,184 |
See Notes to Financial Statements.
16 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (concluded) BlackRock Focus Value Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Special Situations (concluded) | ||
| Semiconductors & Semiconductor | ||
| Equipment — 2.5% | ||
| Intel Corp. | 173,500 | $ 3,374,575 |
| Total Special Situations | 13,290,462 | |
| Total Long-Term Investments | ||
| (Cost — $124,957,361) — 99.3% | 135,812,183 | |
| Short-Term Securities | ||
| BlackRock Liquidity Funds, TempCash, | ||
| Institutional Class, 0.16% (c)(d) | 1,199,007 | 1,199,007 |
| Beneficial | ||
| Interest | ||
| (000) | ||
| BlackRock Liquidity Series, LLC | ||
| Money Market Series, 0.27% (c)(d)(e) | $ 1,960 | 1,960,000 |
| Total Short-Term Securities | ||
| (Cost — $3,159,007) — 2.3% | 3,159,007 | |
| Total Investments (Cost — $128,116,368**) — 101.6% | 138,971,190 | |
| Liabilities in Excess of Other Assets — (1.6)% | (2,164,982) | |
| Net Assets — 100.0% | $ 136,806,208 | |
* Classification is unaudited.
** The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 130,115,761 |
| Gross unrealized appreciation | $ 16,297,607 |
| Gross unrealized depreciation | (7,442,178) |
| Net unrealized appreciation | $ 8,855,429 |
(a) Non-income producing security.
(b) Security, or a portion of security, is on loan.
(c) Represents the current yield as of report date.
(d) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were
as follows:
| Shares Held/ | Shares Held/ | |||||
| Beneficial Interest | Beneficial Interest | |||||
| at June 30, | Net | at June 30, | ||||
| Affiliate | 2009 | Activity | 2010 | Income | ||
| BlackRock Liquidity | ||||||
| Funds, TempCash, | ||||||
| Institutional Class | 2,361,791 | (1,162,784) | 1,199,007 | $ 5,674 | ||
| BlackRock Liquidity | ||||||
| Series, LLC | ||||||
| Money Market | ||||||
| Series | $5,175,000 | $(3,215,000) | $1,960,000 | $ 6,677 | ||
(e) Security was purchased with the cash collateral from loaned securities.
•For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine such
industry sub-classifications for reporting ease.
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund’s investments:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Investments in Securities: | ||||
| Long-Term | ||||
| Investments1 | $ 135,812,183 | — | — | $ 135,812,183 |
| Short-Term | ||||
| Securities | 1,199,007 | $ 1,960,000 | — | 3,159,007 |
| Total | $ 137,011,190 | $ 1,960,000 | — | $ 138,971,190 |
1 See above Schedule of Investments for values in each industry.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 17
Schedule of Investments June 30, 2010 BlackRock Global SmallCap Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Australia — 1.8% | ||
| CFS Retail Property Trust | 3,825,538 | $ 6,046,806 |
| Iba Technologies Limited | 2,298,700 | 324,484 |
| Linc Energy Ltd. (a) | 222,993 | 188,009 |
| Metcash Ltd. | 567,400 | 1,994,256 |
| Mount Gibson Iron Ltd. (a) | 1,577,400 | 1,998,564 |
| Myer Holdings Ltd. | 1,537,800 | 4,057,839 |
| Sigma Pharmaceuticals Ltd. | 5,885,400 | 2,063,055 |
| 16,673,013 | ||
| Austria — 0.9% | ||
| CAT Oil AG | 269,800 | 2,275,127 |
| Schoeller-Bleckmann Oilfield Equipment AG | 143,700 | 6,515,421 |
| 8,790,548 | ||
| Belgium — 0.8% | ||
| Delhaize Group | 106,100 | 7,699,221 |
| Bermuda — 0.5% | ||
| Lazard Ltd., Class A | 195,900 | 5,232,489 |
| Brazil — 0.5% | ||
| Santos Brasil Participacoes SA | 527,400 | 4,382,826 |
| Canada — 5.2% | ||
| Biovail Corp. (b) | 292,600 | 5,629,624 |
| Denison Mines Corp. (a) | 1,924,000 | 2,295,317 |
| DiagnoCure, Inc. (a)(c) | 4,278,880 | 4,300,786 |
| Dollarama, Inc. (a) | 70,600 | 1,641,398 |
| Dollarama, Inc. (a)(d) | 203,600 | 4,733,549 |
| Eastern Platinum Ltd. (a) | 2,759,900 | 2,514,774 |
| Eldorado Gold Corp. | 530,900 | 9,515,356 |
| Jaguar Mining, Inc. (a)(b) | 660,400 | 5,831,332 |
| Lundin Mining Corp. (a) | 1,193,900 | 3,375,735 |
| Quadra FNX Mining Ltd. (a) | 465,300 | 4,279,073 |
| Thompson Creek Metals Co., Inc. (a) | 413,400 | 3,588,198 |
| Ultra Petroleum Corp. (a) | 50,500 | 2,234,625 |
| 49,939,767 | ||
| Cayman Islands — 1.0% | ||
| Ming Fai International Holdings Ltd. | 8,355,400 | 3,279,936 |
| Parkson Retail Group Ltd. | 2,415,800 | 4,072,037 |
| Polarcus Ltd. (a) | 2,586,500 | 1,780,573 |
| 9,132,546 | ||
| China — 0.9% | ||
| Shenzhen Expressway Co., Ltd. | 8,423,100 | 3,711,970 |
| WuXi PharmaTech Cayman, Inc. — ADR (a) | 332,100 | 5,300,316 |
| 9,012,286 | ||
| Denmark — 0.3% | ||
| D/S Norden | 72,400 | 2,495,513 |
| Finland — 0.6% | ||
| Ramirent Oyj | 664,550 | 5,579,112 |
| France — 1.2% | ||
| Bonduelle SA | 52,800 | 4,778,638 |
| Eurofins Scientific SA | 76,275 | 2,713,732 |
| Scor SE | 181,920 | 3,474,563 |
| 10,966,933 | ||
| Germany — 5.0% | ||
| Asian Bamboo AG | 24,900 | 978,467 |
| Celesio AG | 157,600 | 3,436,567 |
| Deutsche Euroshop AG | 162,833 | 4,426,455 |
| GEA Group AG | 335,050 | 6,668,492 |
| Gerresheimer AG | 195,500 | 6,258,115 |
| Paion AG (a) | 475,886 | 1,065,236 |
| Rheinmetall AG | 170,200 | 9,721,354 |
| Rhoen-Klinikum AG | 242,600 | 5,398,757 |
| Salzgitter AG | 61,600 | 3,670,974 |
| Common Stocks | Shares | Value |
| Germany (concluded) | ||
| Symrise AG | 277,400 | $ 5,727,661 |
| TUI AG (a) | 58,400 | 513,190 |
| 47,865,268 | ||
| Greece — 0.2% | ||
| Alpha Bank AE | 327,300 | 1,599,660 |
| Hong Kong — 1.8% | ||
| City Telecom (HK) Ltd. — ADR | 96,900 | 1,098,846 |
| Clear Media Ltd. (a) | 4,052,000 | 2,219,869 |
| Lu Ning Co. Ltd. | 1,854,400 | 6,076,338 |
| NVC Lighting Holdings Ltd. (a) | 7,805,500 | 2,305,494 |
| Ports Design Ltd. | 2,010,700 | 5,114,174 |
| 16,814,721 | ||
| India — 1.7% | ||
| Container Corp. of India | 156,300 | 4,521,727 |
| Federal Bank Ltd. | 275,600 | 1,868,068 |
| PTC India Ltd. | 872,800 | 1,873,342 |
| United Phosphorus Ltd. | 1,311,200 | 5,162,792 |
| Vijaya Bank | 1,940,700 | 2,667,545 |
| 16,093,474 | ||
| Ireland — 1.2% | ||
| Allied Irish Banks Plc (a) | 419,800 | 445,489 |
| Bank of Ireland (a) | 2,591,750 | 2,106,834 |
| Ryanair Holdings Plc — ADR (a) | 314,396 | 8,516,988 |
| 11,069,311 | ||
| Israel — 0.7% | ||
| NICE Systems Ltd. — ADR (a) | 255,600 | 6,515,244 |
| Italy — 1.0% | ||
| DiaSorin SpA | 168,800 | 6,183,170 |
| Iren SPA | 2,177,900 | 3,252,990 |
| 9,436,160 | ||
| Japan — 5.7% | ||
| Asics Corp. | 432,950 | 3,964,041 |
| CMIC Co. Ltd. | 6,300 | 1,676,637 |
| Citizens Holding Co., Ltd. | 653,100 | 3,989,728 |
| Don Quijote Co., Ltd. | 189,000 | 5,067,348 |
| Fukuoka Financial Group, Inc. | 1,467,800 | 6,109,915 |
| Hisaka Works Ltd. | 298,500 | 3,017,728 |
| Koito Manufacturing Co., Ltd. | 246,100 | 3,624,028 |
| Kose Corp. | 222,800 | 5,238,173 |
| Kureha Chemical Industry Co., Ltd. | 1,423,200 | 6,857,732 |
| Makita Corp. | 89,150 | 2,385,656 |
| NGK Insulators Ltd. | 208,400 | 3,245,838 |
| Osaka Securities Exchange Co., Ltd. | 647 | 2,747,653 |
| Sekisui Chemical Co., Ltd. | 1,034,000 | 6,449,915 |
| 54,374,392 | ||
| Malaysia — 0.4% | ||
| AirAsia Bhd (a) | 8,864,400 | 3,404,549 |
| Netherlands — 0.2% | ||
| TomTom NV (a) | 371,000 | 2,010,356 |
| Norway — 0.4% | ||
| Marine Harvest | 5,550,400 | 3,665,197 |
| Singapore — 1.7% | ||
| Avago Technologies Ltd. (a) | 322,500 | 6,791,850 |
| Cityspring Infrastructure Trust | 15,536,600 | 6,541,360 |
| Wing Tai Holdings Ltd. | 2,797,600 | 3,128,832 |
| 16,462,042 | ||
| South Africa — 0.3% | ||
| African Bank Investments Ltd. | 762,200 | 2,991,387 |
See Notes to Financial Statements.
18 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock Global SmallCap Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| South Korea — 0.9% | ||
| Celltrion, Inc. | 410,200 | $ 6,887,095 |
| Dongbu Insurance Co., Ltd. | 70,200 | 2,014,538 |
| 8,901,633 | ||
| Spain — 0.5% | ||
| Laboratorios Farmaceuticos Rovi SA | 923,794 | 5,203,481 |
| Switzerland — 2.7% | ||
| Actelion Ltd. (a) | 54,200 | 2,029,349 |
| Addex Pharmaceuticals Ltd. (a) | 79,700 | 746,829 |
| Aryzta AG | 166,300 | 6,398,334 |
| Barry Callebaut AG | 2,400 | 1,491,379 |
| Clariant AG | 106,600 | 1,349,813 |
| Foster Wheeler AG (a) | 200,800 | 4,228,848 |
| Lindt & Spruengli AG ‘R’ | 233 | 5,709,828 |
| Rieter Holding AG | 15,931 | 4,046,418 |
| 26,000,798 | ||
| Taiwan — 0.7% | ||
| Lite-On Technology Corp. | 5,773,000 | 6,326,305 |
| Thailand — 0.3% | ||
| Mermaid Maritime PCL (a) | 7,639,205 | 2,582,743 |
| United Kingdom — 7.6% | ||
| Amlin Plc | 966,815 | 5,564,456 |
| Antofagasta Plc | 154,600 | 1,798,714 |
| Britvic Plc | 882,600 | 6,254,764 |
| Cairn Energy Plc (a) | 661,300 | 4,062,634 |
| Charter International Plc | 653,200 | 6,110,538 |
| EasyJet PLC (a) | 771,000 | 4,550,899 |
| GKN Plc (a) | 1,033,100 | 1,777,506 |
| Group 4 Securicor Plc | 1,640,097 | 6,502,565 |
| Halfords Group Plc | 847,700 | 6,170,298 |
| Hikma Pharmaceuticals Plc | 766,400 | 8,137,622 |
| Inchcape Plc (a) | 480,700 | 1,756,479 |
| Intertek Group Plc | 242,900 | 5,207,144 |
| Premier Oil Plc (a) | 255,800 | 4,722,802 |
| Rexam Plc | 1,420,672 | 6,390,970 |
| Schroders Plc | 185,000 | 3,329,608 |
| 72,336,999 | ||
| United States — 47.3% | ||
| AMB Property Corp. | 88,600 | 2,100,706 |
| Abercrombie & Fitch Co., Class A | 25,800 | 791,802 |
| Acadia Realty Trust | 159,600 | 2,684,472 |
| Adtran, Inc. | 284,900 | 7,769,223 |
| Advanced Energy Industries, Inc. (a) | 380,002 | 4,670,225 |
| Alpha Natural Resources, Inc. (a) | 115,500 | 3,911,985 |
| Arch Capital Group Ltd. (a) | 53,500 | 3,985,750 |
| Ariba, Inc. (a) | 252,400 | 4,020,732 |
| Autoliv, Inc. (a)(b) | 82,500 | 3,947,625 |
| BJ’s Restaurants, Inc. (a)(b) | 170,500 | 4,023,800 |
| BMC Software, Inc. (a) | 181,600 | 6,288,808 |
| Bank of Hawaii Corp. | 116,400 | 5,627,940 |
| Bill Barrett Corp. (a) | 69,700 | 2,144,669 |
| Blackboard, Inc. (a)(b) | 187,800 | 7,010,574 |
| BorgWarner, Inc. (a) | 80,150 | 2,992,801 |
| Brocade Communications Systems, Inc. (a) | 1,259,100 | 6,496,956 |
| Brooks Automation, Inc. (a) | 555,550 | 4,294,402 |
| Brown & Brown, Inc. | 126,000 | 2,411,640 |
| Cadence Design Systems, Inc. (a) | 826,150 | 4,783,408 |
| CardioNet, Inc. (a)(b) | 212,400 | 1,163,952 |
| Celanese Corp., Series A | 247,400 | 6,162,734 |
| Cliffs Natural Resources, Inc. | 72,098 | 3,400,142 |
| Commercial Vehicle Group, Inc. (a) | 395,132 | 4,034,298 |
| ComScore, Inc. (a) | 200,700 | 3,305,529 |
| Core Laboratories NV | 37,100 | 5,476,331 |
| Corporate Office Properties Trust | 100,200 | 3,783,552 |
| Covanta Holding Corp. (a) | 292,550 | 4,853,404 |
| Common Stocks | Shares | Value |
| United States (continued) | ||
| Cullen/Frost Bankers, Inc. | 145,000 | $ 7,453,000 |
| DSP Group, Inc. (a) | 793,800 | 5,072,382 |
| Delta Air Lines, Inc. (a) | 354,000 | 4,159,500 |
| Digital Realty Trust, Inc. (b) | 110,400 | 6,367,872 |
| Drew Industries, Inc. (a) | 211,800 | 4,278,360 |
| Duoyuan Printing, Inc. (a) | 124,400 | 960,368 |
| Electronic Arts, Inc. (a) | 450,200 | 6,482,880 |
| Electronics for Imaging, Inc. (a) | 404,800 | 3,946,800 |
| Essex Property Trust, Inc. | 30,500 | 2,974,970 |
| FTI Consulting, Inc. (a) | 88,300 | 3,848,997 |
| Fidelity National Title Group, Inc., Class A | 200,600 | 2,605,794 |
| Foot Locker, Inc. | 397,600 | 5,017,715 |
| Guess?, Inc. | 213,650 | 6,674,426 |
| Home Properties, Inc. | 92,900 | 4,187,003 |
| IDEX Corp. | 249,350 | 7,123,929 |
| IPC The Hospitalist Co., Inc. (a) | 189,100 | 4,746,410 |
| ITC Holdings Corp. | 133,100 | 7,042,321 |
| InterMune, Inc. (a) | 196,600 | 1,838,210 |
| Intersil Corp., Class A | 590,800 | 7,154,588 |
| j2 Global Communications, Inc. (a) | 303,500 | 6,628,440 |
| JDS Uniphase Corp. (a) | 462,300 | 4,549,032 |
| Kindred Healthcare, Inc. (a) | 199,000 | 2,555,160 |
| Kinetic Concepts, Inc. (a) | 128,350 | 4,686,059 |
| King Pharmaceuticals, Inc. (a) | 326,700 | 2,479,653 |
| Landstar System, Inc. | 164,250 | 6,404,107 |
| Linear Technology Corp. | 72,950 | 2,028,740 |
| LKQ Corp. (a) | 337,663 | 6,510,143 |
| The Macerich Co. (b) | 146,875 | 5,481,375 |
| Manpower, Inc. | 81,300 | 3,510,534 |
| Maxim Integrated Products, Inc. | 335,300 | 5,609,569 |
| Meadowbrook Insurance Group, Inc. | 287,100 | 2,477,673 |
| Mentor Graphics Corp. (a) | 632,050 | 5,593,642 |
| Merit Medical Systems, Inc. (a) | 430,561 | 6,919,115 |
| Molex, Inc. (b) | 309,100 | 5,637,984 |
| Myriad Genetics, Inc. (a) | 53,800 | 804,310 |
| Nektar Therapeutics (a) | 249,700 | 3,021,370 |
| Nordson Corp. (b) | 81,450 | 4,567,716 |
| Northeast Utilities, Inc. | 299,900 | 7,641,452 |
| Nuance Communications, Inc. (a)(b) | 475,200 | 7,104,240 |
| OM Group, Inc. (a) | 81,800 | 1,951,748 |
| ON Semiconductor Corp. (a) | 443,000 | 2,826,340 |
| Oasis Petroleum, Inc. (a) | 244,300 | 3,542,350 |
| PMC-Sierra, Inc. (a) | 776,100 | 5,836,272 |
| Packaging Corp. of America | 289,900 | 6,383,598 |
| PartnerRe Ltd. | 55,300 | 3,878,742 |
| People’s United Financial, Inc. | 177,474 | 2,395,899 |
| PetroHawk Energy Corp. (a) | 196,500 | 3,334,605 |
| Pharmaceutical Product Development, Inc. | 333,100 | 8,464,071 |
| Phillips-Van Heusen Corp. | 156,300 | 7,232,001 |
| Polycom, Inc. (a) | 223,400 | 6,655,086 |
| Popular, Inc. (a) | 822,300 | 2,203,764 |
| Progenics Pharmaceuticals, Inc. (a) | 160,600 | 880,088 |
| QLogic Corp. (a) | 398,200 | 6,618,084 |
| QuinStreet, Inc. (a) | 140,400 | 1,616,004 |
| Regis Corp. | 245,200 | 3,817,764 |
| SM Energy Co. | 113,900 | 4,574,224 |
| Silgan Holdings, Inc. | 169,400 | 4,807,572 |
| Stancorp Financial Group, Inc. | 90,000 | 3,648,600 |
| Steel Dynamics, Inc. | 256,700 | 3,385,873 |
| Stratasys, Inc. (a)(b) | 132,600 | 3,256,656 |
| Support.com, Inc. (a) | 1,714,679 | 7,133,065 |
| Sybase, Inc. (a) | 105,125 | 6,797,382 |
| Tanger Factory Outlet Centers, Inc. | 180,800 | 7,481,504 |
| Terex Corp. (a)(b) | 238,450 | 4,468,553 |
| Timken Co. | 257,800 | 6,700,222 |
| Urban Outfitters, Inc. (a) | 309,100 | 10,629,949 |
| W&T Offshore, Inc. | 97,500 | 922,350 |
| The Warnaco Group, Inc. (a) | 126,250 | 4,562,675 |
| Watsco, Inc. | 43,000 | 2,490,560 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 19
Schedule of Investments (continued) BlackRock Global SmallCap Fund, Inc.
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value | |
| United States (concluded) | |||
| Western Alliance Bancorp (a) | 194,800 | $ 1,396,716 | |
| Whiting Petroleum Corp. (a) | 19,200 | 1,505,664 | |
| Winnebago Industries, Inc. (a) | 264,150 | 2,625,651 | |
| XL Capital Ltd., Class A | 107,800 | 1,725,878 | |
| Zoran Corp. (a) | 661,750 | 6,313,095 | |
| 450,345,904 | |||
| Total Long-Term Investments | |||
| (Cost — $848,582,247) — 94.0% | 893,903,878 | ||
| Short-Term Securities | |||
| Money Market Funds — 9.6% | |||
| BlackRock Liquidity Funds, TempFund, | |||
| Institutional Class, 0.16% (e)(f) | 43,736,833 | 43,736,833 | |
| Beneficial | |||
| Interest | |||
| (000) | |||
| BlackRock Liquidity Series, LLC | |||
| Money Market Series, 0.27% (e)(f)(g) | USD | 47,537 | 47,536,750 |
| Total Money Market Funds — 9.6% | 91,273,583 | ||
| Par | |||
| Time Deposits | (000) | ||
| Australia — 0.0% | |||
| Brown Brothers Harriman & Co., 3.36%, 7/01/10 | - (h) | 197 | |
| Canada — 0.00% | |||
| Brown Brothers Harriman & Co., 0.11%, 7/01/10 | - (h) | 10 | |
| Denmark — 0.00% | |||
| Brown Brothers Harriman & Co., 0.05%, 7/01/10 | - (h) | 1 | |
| Europe — 0.0% | |||
| Brown Brothers Harriman & Co., 0.08%, 7/01/10 | - (h) | 6 | |
| Hong Kong — 0.0% | |||
| Citibank NA, 0.01%, 7/01/10 | HKD | 276 | 35,398 |
| Japan — 0.0% | |||
| Citibank NA, 0.01%, 7/01/10 | JPY | 15,622 | 176,537 |
| Norway — 0.0% | |||
| Brown Brothers Harriman & Co., 0.85%, 7/01/10 | - (h) | 39 | |
| United Kingdom — 0.0% | |||
| Brown Brothers Harriman & Co., 0.09%, 7/01/10 | - (h) | 19 | |
| Total Time Deposits — 0.0% | 212,207 | ||
| Total Short-Term Securities | |||
| (Cost — $91,485,790) — 9.6% | 91,485,790 | ||
| Total Investments (Cost — $940,068,037*) — 103.6% | 985,389,668 | ||
| Liabilities in Excess of Other Assets — (3.6)% | (34,165,339) | ||
| Net Assets — 100.0% | $ 951,224,329 | ||
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 952,635,416 |
| Gross unrealized appreciation | $ 127,332,542 |
| Gross unrealized depreciation | (94,578,290) |
| Net unrealized appreciation | $ 32,754,252 |
(a) Non-income producing security.
(b) Security, or a portion of security, is on loan.
(c) Investments in companies (whereby the Fund held 5% or more of the companies’
outstanding securities) that are considered to be an affiliate, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were
as follows:
| Realized | ||||
| Purchase | Sales | Gains | ||
| Affiliate | Cost | Cost | (Losses) | Income |
| DiagnoCure, Inc. | — | — | — | — |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(e) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were
as follows:
| Shares/Beneficial | Shares/Beneficial | ||||
| Interest Held | Interest Held | ||||
| at June 30, | Net | at June 30, | |||
| Affiliate | 2009 | Activity | 2010 | Income | |
| BlackRock Liquidity | |||||
| Funds, TempFund, | |||||
| Institutional Class | 54,166,551 | (10,429,718) | 43,736,833 | $48,174 | |
| BlackRock Liquidity | |||||
| Series, LLC, | |||||
| Money Market | |||||
| Series | $20,080,000 | $27,456,750 | $47,536,750 | $96,427 | |
(f) Represents the current yield as of report date.
(g) Security was purchased with the cash collateral from loaned securities.
(h) Amount is less than $1,000.
See Notes to Financial Statements.
20 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (concluded) BlackRock Global SmallCap Fund, Inc.
•Foreign currency exchange contracts as of June 30, 2010 were as follows:
| Unrealized | ||||||
| Currency | Currency | Settlement Appreciation | ||||
| Purchased | Sold | Counterparty | Date | (Depreciation) | ||
| USD | 774,692 | EUR | 631,263 | State Street | 7/01/10 | $ 2,748 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 351,139 | GBP | 232,527 | State Street | 7/01/10 | 3,721 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 809,204 | NOK | 5,216,027 | State Street | 7/01/10 | 7,736 |
| Bank & | ||||||
| Trust Co. | ||||||
| CHF | 925,375 | USD | 857,387 | State Street | 7/02/10 | 1,162 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 320,309 | AUD | 375,614 | State Street | 7/02/10 | 4,208 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 299,412 | EUR | 245,599 | State Street | 7/02/10 | (921) |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 176,216 | JPY | 15,621,582 | Brown | 7/02/10 | (468) |
| Brothers | ||||||
| Harriman & Co. | ||||||
| USD | 708,255 | JPY | 62,677,260 | State Street | 7/02/10 | (665) |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 386,916 | AUD | 458,610 | State Street | 7/06/10 | 1,147 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 1,066,924 | CAD | 1,132,241 | State Street | 7/06/10 | 3,389 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 1,958,129 | EUR | 1,598,884 | State Street | 7/06/10 | 2,889 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 920,527 | GBP | 615,498 | State Street | 7/06/10 | 924 |
| Bank & | ||||||
| Trust Co. | ||||||
| USD | 35,405 | HKD | 275,643 | Brown | 7/06/10 | 5 |
| Brothers | ||||||
| Harriman & Co. | ||||||
| USD | 172,547 | JPY | 15,277,347 | State Street | 7/06/10 | (260) |
| Bank & | ||||||
| Trust Co. | ||||||
| Total | $ 25,615 | |||||
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to the Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund’s investments and derivatives:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | |||||
| Investments in securities: | |||||
| Common Stocks: | |||||
| Long-Term | |||||
| Investments: | |||||
| Australia | — | $ 16,673,013 | — | $ 16,673,013 | |
| Austria | — | 8,790,548 | — | 8,790,548 | |
| Belgium | — | 7,699,221 | — | 7,699,221 | |
| Bermuda | $ 5,232,489 | — | — | 5,232,489 | |
| Brazil | 4,382,826 | — | — | 4,382,826 | |
| Canada | 49,939,767 | — | — | 49,939,767 | |
| Cayman Islands | — | 9,132,546 | — | 9,132,546 | |
| China | 5,300,316 | 3,711,970 | — | 9,012,286 | |
| Denmark | — | 2,495,513 | — | 2,495,513 | |
| Finland | — | 5,579,112 | — | 5,579,112 | |
| France | — | 10,966,933 | — | 10,966,933 | |
| Germany | 4,426,455 | 43,438,813 | — | 47,865,268 | |
| Greece | — | 1,599,660 | — | 1,599,660 | |
| Hong Kong | 8,518,514 | 8,296,207 | — | 16,814,721 | |
| India | — | 16,093,474 | — | 16,093,474 | |
| Ireland | 8,516,988 | 2,552,323 | — | 11,069,311 | |
| Israel | 6,515,244 | — | — | 6,515,244 | |
| Italy | — | 9,436,160 | — | 9,436,160 | |
| Japan | — | 54,374,392 | — | 54,374,392 | |
| Malaysia | — | 3,404,549 | — | 3,404,549 | |
| Netherlands . | — | 2,010,356 | — | 2,010,356 | |
| Norway | — | 3,665,197 | — | 3,665,197 | |
| Singapore | 6,791,850 | 9,670,192 | — | 16,462,042 | |
| South Africa . | — | 2,991,387 | — | 2,991,387 | |
| South Korea . | — | 8,901,633 | — | 8,901,633 | |
| Spain | — | 5,203,481 | — | 5,203,481 | |
| Switzerland | 4,228,848 | 21,771,950 | — | 26,000,798 | |
| Taiwan | — | 6,326,305 | — | 6,326,305 | |
| Thailand | — | 2,582,743 | — | 2,582,743 | |
| United Kingdom | — | 72,336,999 | — | 72,336,999 | |
| United States | 450,345,904 | — | — | 450,345,904 | |
| Short-Term | |||||
| Securities: | |||||
| Money Market | |||||
| Funds | 43,736,833 | 47,536,750 | — | 91,273,583 | |
| Time Deposits | — | 212,207 | — | 212,207 | |
| Total | $ 597,936,034 | $ 387,453,634 | — | $ 985,389,668 | |
| Derivative Financial Instruments1 | |||||
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | |||||
| Foreign Currency | |||||
| Exchange | |||||
| Contracts | — | $ 27,929 | — | $ 27,929 | |
| Liabilities: | |||||
| Foreign Currency | |||||
| Exchange | |||||
| Contracts | — | (2,314) | — | (2,314) | |
| Total | — | $ 25,615 | — | $ 25,615 | |
1 Derivative financial instruments are foreign currency exchange contracts, which
are shown at the unrealized appreciation/depreciation on the instrument.
The following table is a reconciliation of Level 3 investments for which significant
unobservable inputs were used in determining fair value:
| Common Stocks | |
| Assets: | |
| Balance as of June 30, 2009 | $ 572,970 |
| Accrued discounts/premiums | — |
| Net realized gain (loss) | 173,344 |
| Net change in unrealized appreciation/depreciation | 518 |
| Purchases | — |
| Sales | (746,832) |
| Transfers in | — |
| Transfers out | — |
| Balance as of June 30, 2010 | — |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 21
Schedule of Investments June 30, 2010 BlackRock International Value Fund
(Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Australia — 5.1% | ||
| National Australia Bank Ltd. | 891,751 | $ 17,241,349 |
| Newcrest Mining Ltd. | 384,084 | 11,206,249 |
| Suncorp-Metway Ltd. | 2,019,210 | 13,508,883 |
| 41,956,481 | ||
| Brazil — 2.6% | ||
| Cyrela Brazil Realty SA | 439,906 | 4,786,567 |
| Itau Unibanco Holdings SA — ADR | 901,956 | 16,244,228 |
| 21,030,795 | ||
| Denmark — 1.4% | ||
| Carlsberg A/S | 151,685 | 11,559,765 |
| Finland — 1.3% | ||
| KCI Konecranes Oyj | 414,352 | 10,805,651 |
| France — 8.9% | ||
| European Aeronautic Defense and Space Co. | 599,083 | 12,226,002 |
| Sanofi-Aventis | 185,296 | 11,159,903 |
| Societe Generale SA | 339,491 | 13,969,720 |
| Total SA | 461,537 | 20,602,510 |
| Vinci SA | 352,025 | 14,616,693 |
| 72,574,828 | ||
| Germany — 10.3% | ||
| Bayer AG | 262,738 | 14,682,204 |
| Bilfinger Berger AG | 267,958 | 14,849,803 |
| Continental AG | 245,962 | 12,767,758 |
| DaimlerChrysler AG | 319,080 | 16,140,857 |
| Deutsche Post AG | 926,749 | 13,512,154 |
| HeidelbergCement AG | 265,161 | 12,531,714 |
| 84,484,490 | ||
| Hungary — 0.3% | ||
| OTP Bank Rt. (a) | 135,691 | 2,735,850 |
| Israel — 2.0% | ||
| Teva Pharmaceutical Industries Ltd. — ADR | 311,389 | 16,189,114 |
| Japan — 17.6% | ||
| Fuji Photo Film Co., Ltd. | 461,900 | 13,348,665 |
| Hitachi Ltd. (a) | 3,230,000 | 11,732,350 |
| Inpex Corp. | 2,032 | 11,270,515 |
| JFE Holdings, Inc. | 383,200 | 11,855,058 |
| Mitsubishi Heavy Industries Ltd. | 4,402,000 | 15,185,768 |
| Mitsui Chemicals, Inc. | 3,469,000 | 9,694,935 |
| Nippon Telegraph & Telephone Corp. | 411,700 | 16,770,965 |
| Nomura Holdings, Inc. | 2,271,500 | 12,410,304 |
| Seven & I Holdings Co., Ltd. | 534,900 | 12,255,250 |
| Sony Corp. | 566,900 | 15,120,930 |
| Sumitomo Corp. | 1,418,600 | 14,167,569 |
| 143,812,309 | ||
| Mexico — 1.5% | ||
| America Movil, SA de CV — ADR | 260,839 | 12,389,853 |
| Netherlands — 1.6% | ||
| Koninklijke Ahold NV | 1,060,255 | 13,115,263 |
| Russia — 1.0% | ||
| OAO Gazprom — ADR | 419,825 | 7,896,908 |
| South Korea — 2.9% | ||
| KB Financial Group, Inc. | 291,050 | 11,156,174 |
| Samsung Electronics Co., Ltd. | 19,580 | 12,280,855 |
| 23,437,029 | ||
| Spain — 7.4% | ||
| Banco Santander SA | 1,941,647 | 20,360,520 |
| Repsol YPF SA | 701,122 | 14,148,726 |
| Telefonica SA | 1,392,951 | 25,804,042 |
| 60,313,288 |
| Common Stocks | Shares | Value | |
| Switzerland — 9.9% | |||
| Nestle SA, Registered Shares | 563,670 | $ 27,179,510 | |
| Novartis AG, Registered Shares | 562,382 | 27,254,790 | |
| Transocean Ltd. (a) | 148,532 | 7,055,563 | |
| Zurich Financial Services AG | 88,317 | 19,466,269 | |
| 80,956,132 | |||
| Taiwan — 2.4% | |||
| Quanta Computer, Inc. | 4,828,000 | 8,726,816 | |
| Taiwan Semiconductor Manufacturing | |||
| Co., Ltd. — ADR | 1,141,999 | 11,145,910 | |
| 19,872,726 | |||
| United Kingdom — 18.8% | |||
| Aviva Plc | 3,059,266 | 14,216,977 | |
| BHP Billiton Plc | 685,078 | 17,763,054 | |
| Barclays Plc | 4,121,641 | 16,451,531 | |
| British American Tobacco Plc | 657,802 | 20,875,856 | |
| Centrica Plc | 5,122,924 | 22,607,545 | |
| Ladbrokes Plc | 6,132,800 | 11,589,171 | |
| Lloyds TSB Group Plc (a) | 15,994,000 | 12,626,727 | |
| Royal Dutch Shell Plc, Class B | 881,464 | 21,305,583 | |
| United Business Media Ltd. | 2,145,347 | 15,844,410 | |
| 153,280,854 | |||
| Total Common Stocks — 95.0% | 776,411,336 | ||
| Par | |||
| Structured Notes | (000) | ||
| India — 1.5% | |||
| Deutsche Bank AG (Axis Bank), due 8/17/17 | USD | 335 | 8,887,390 |
| Morgan Stanley BV (Rolta India Ltd.), due 5/26/14 | 909 | 3,289,515 | |
| Total Structured Notes — 1.5% | 12,176,905 | ||
| Total Long-Term Investments | |||
| (Cost — $864,374,482) — 96.5% | 788,588,241 | ||
| Short-Term Securities | Shares | ||
| Money Market Fund — 2.0% | |||
| BlackRock Liquidity Funds, TempFund, | |||
| Institutional Class, 0.16% (b)(c) | 16,699,456 | 16,699,456 | |
| Par | |||
| Time Deposits | (000) | ||
| Denmark —0.0% | |||
| Brown Brothers Harriman & Co., 0.05%, 7/01/10 | DKK | 105 | 17,283 |
| Europe — 0.4% | |||
| Brown Brothers Harriman & Co., 0.08%, 7/01/10 | EUR | 2,261 | 2,769,847 |
| Japan —0.1% | |||
| Brown Brothers Harriman & Co., 0.01%, 7/01/10 | JPY | 53,573 | 605,418 |
| Total Time Deposits — 0.5% | 3,392,548 | ||
| Total Short-Term Securities | |||
| (Cost — $20,092,004) — 2.5% | 20,092,004 | ||
| Total Investments (Cost — $884,466,486*) — 99.0% | 808,680,245 | ||
| Other Assets Less Liabilities — 1.0% | 8,560,885 | ||
| Net Assets — 100.0% | $ 817,241,130 | ||
See Notes to Financial Statements.
22 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (concluded) BlackRock International Value Fund
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 890,510,868 |
| Gross unrealized appreciation | $ 23,584,813 |
| Gross unrealized depreciation | (105,415,436) |
| Net unrealized depreciation | $ (81,830,623) |
(a) Non-income producing security.
(b) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were
as follows:
| Shares Held | Shares Held | |||
| at June 30, | Net | at June 30, | ||
| Affiliate | 2009 | Activity | 2010 | Income |
| BlackRock Liquidity | ||||
| Funds, TempFund, | ||||
| Institutional Class | 12,829,417 | 3,870,039 | 16,699,456 | $ 26,652 |
(c) Represents the current yield as of report date.
•Foreign currency exchange contracts as of June 30, 2010 were as follows:
| Unrealized | ||||||
| Currency | Currency | Settlement Appreciation | ||||
| Purchased | Sold | Counterparty | Date | (Depreciation) | ||
| GBP 2,844,305 | USD | 4,295,484 | Goldman | 7/01/10 | $ (45,822) | |
| Sachs | ||||||
| GBP | 258 | USD | 389 | JPMorgan | 7/01/10 | (4) |
| Chase Co. | ||||||
| USD | 3,551,055 | EUR | 2,891,741 | Goldman | 7/01/10 | 14,870 |
| Sachs | ||||||
| USD | 17,297 | DKK | 105,103 | JPMorgan | 7/02/10 | 43 |
| Chase Co. | ||||||
| USD | 3,484,974 | EUR | 2,857,942 | Citibank, NA | 7/02/10 | (9,892) |
| USD | 241,711 | JPY | 21,422,829 | JPMorgan | 7/02/10 | (588) |
| Chase Co. | ||||||
| USD | 2,599,288 | EUR | 2,119,250 | Citibank NA | 7/06/10 | 7,703 |
| Total | $ (33,690) | |||||
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund's policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund's investments and derivatives:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | |||||
| Investments in Securities: | |||||
| Common Stocks: | |||||
| Long-Term | |||||
| Investments: | |||||
| Australia | — | $ 41,956,481 | — | $ 41,956,481 | |
| Brazil | $ 21,030,795 | — | — | 21,030,795 | |
| Denmark | — | 11,559,765 | — | 11,559,765 | |
| Finland | — | 10,805,651 | — | 10,805,651 | |
| France | — | 72,574,828 | — | 72,574,828 | |
| Germany | — | 84,484,490 | — | 84,484,490 | |
| Hungary | — | 2,735,850 | — | 2,735,850 | |
| Israel | 16,189,114 | — | — | 16,189,114 | |
| Japan | — | 143,812,309 | — | 143,812,309 | |
| Mexico | 12,389,853 | — | — | 12,389,853 | |
| Netherlands . | — | 13,115,263 | — | 13,115,263 | |
| Russia | 7,896,908 | — | — | 7,896,908 | |
| South Korea . | — | 23,437,029 | — | 23,437,029 | |
| Spain | — | 60,313,288 | — | 60,313,288 | |
| Switzerland | 7,055,563 | 73,900,569 | — | 80,956,132 | |
| Taiwan | 11,145,910 | 8,726,816 | — | 19,872,726 | |
| United Kingdom | — | 153,280,854 | — | 153,280,854 | |
| Structured Notes: | |||||
| Long-Term | |||||
| Investments: | |||||
| India | — | 12,176,905 | — | 12,176,905 | |
| Short-Term | |||||
| Securities: | |||||
| Money Market | |||||
| Funds | 16,699,456 | — | — | 16,699,456 | |
| Time Deposits | — | 3,392,548 | — | 3,392,548 | |
| Total | $ 92,407,599 | $ 716,272,646 | — | $ 808,680,245 | |
| Derivative Financial Instruments1 | |||||
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | |||||
| Foreign Currency | |||||
| Exchange | |||||
| Contracts | — | $ 22,616 | — | $ 22,616 | |
| Liabilities: | |||||
| Foreign Currency | |||||
| Exchange | |||||
| Contracts | — | (56,306) | — | (56,306) | |
| Total | — | $ (33,690) | — | $ (33,690) | |
1 Derivative financial instruments are foreign currency exchange contracts, which
are shown at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 23
Statements of Assets and Liabilities
| BlackRock | BlackRock | BlackRock | ||
| BlackRock | Focus Value | Global SmallCap | International | |
| June 30, 2010 | EuroFund | Fund, Inc. | Fund, Inc. | Value Fund |
| Assets | ||||
| Investments at value — unaffiliated1,2 | $ 307,923,572 | $ 135,812,183 | $ 889,815,299 | $ 791,980,789 |
| Investments at value — affiliated3 | 893,336 | 3,159,007 | 95,574,369 | 16,699,456 |
| Foreign currency at value4 | — | — | 26,740 | 232,692 |
| Unrealized appreciation on foreign currency exchange contracts | 34,239 | — | 27,929 | 22,616 |
| Investments sold receivable | 7,703,103 | — | 15,176,318 | 9,622,545 |
| Dividends receivable | 1,754,295 | 162,192 | 1,490,976 | 6,586,736 |
| Capital shares sold receivable | 75,365 | 117,348 | 3,291,295 | 1,895,369 |
| Securities lending income receivable — affiliated | — | 184 | 8,723 | — |
| Prepaid expenses | 23,947 | 22,030 | 43,283 | 52,555 |
| Other assets | 43 | 78 | — | 5,773 |
| Total assets | 318,407,900 | 139,273,022 | 1,005,454,932 | 827,098,531 |
| Liabilities | ||||
| Collateral on securities loaned at value | — | 1,960,000 | 47,536,750 | — |
| Unrealized depreciation on foreign currency exchange contracts | 4,458 | — | 2,314 | 56,306 |
| Capital shares redeemed payable | 541,908 | 321,990 | 3,707,414 | 1,301,269 |
| Investments purchased payable | — | — | 1,342,191 | 7,015,264 |
| Investment advisory fees payable | 206,524 | 92,191 | 689,724 | 521,111 |
| Distribution fees payable | 62,170 | 23,638 | 349,487 | 205,060 |
| Bank overdraft | 34,093 | — | — | — |
| Bank overdraft — Foreign currency at value4 | 7 | — | — | — |
| Other affiliates payable | 19,076 | 7,000 | 32,797 | 24,691 |
| Officer's and Directors' fees payable | 671 | 531 | 1,053 | 1,004 |
| Other liabilities payable | — | — | 479 | — |
| Other accrued expenses payable | 185,130 | 61,464 | 568,394 | 732,696 |
| Total liabilities | 1,054,037 | 2,466,814 | 54,230,603 | 9,857,401 |
| Net Assets | $ 317,353,863 | $ 136,806,208 | $ 951,224,329 | $ 817,241,130 |
| Net Assets Consist of | ||||
| Paid-in capital | $ 505,209,340 | $ 184,646,894 | $ 1,085,800,380 | $ 1,244,393,390 |
| Undistributed/accumulated (distributions in excess of) net investment income (loss) | 5,381,987 | 1,071,775 | (44,202) | 829,634 |
| Accumulated net realized loss | (167,638,986) | (59,767,283) | (179,791,780) | (352,000,399) |
| Net unrealized appreciation/depreciation | (25,598,478) | 10,854,822 | 45,259,931 | (75,981,495) |
| Net Assets | $ 317,353,863 | $ 136,806,208 | $ 951,224,329 | $ 817,241,130 |
| 1 Securities loaned at value | — | $ 1,888,950 | $ 45,167,235 | — |
| 2 Investments at cost — unaffiliated | $ 333,479,324 | $ 124,957,361 | $ 834,600,934 | $ 867,767,030 |
| 3 Investments at cost — affiliated | $ 893,336 | $ 3,159,007 | $ 105,467,103 | $ 16,699,456 |
| 4 Foreign currency at cost | $ 8 | — | $ 26,801 | $ 235,497 |
See Notes to Financial Statements.
24 ANNUAL REPORT JUNE 30, 2010
Statements of Assets and Liabilities (concluded)
| BlackRock | BlackRock | BlackRock | ||
| BlackRock | Focus Value | Global SmallCap | International | |
| June 30, 2010 | EuroFund | Fund, Inc. | Fund, Inc. | Value Fund |
| Net Asset Value | ||||
| Institutional: | ||||
| Net assets | $ 101,632,119 | $ 65,786,934 | $ 326,440,353 | $ 403,644,660 |
| Shares outstanding | 9,765,576 | 7,083,890 | 17,814,116 | 23,252,513 |
| Net asset value | $ 10.41 | $ 9.29 | $ 18.32 | $ 17.36 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 50 million | 100 million | Unlimited |
| Investor A: | ||||
| Net assets | $ 189,787,807 | $ 58,124,641 | $ 264,525,810 | $ 200,266,874 |
| Shares outstanding | 18,573,023 | 6,331,130 | 14,733,275 | 11,626,626 |
| Net asset value | $ 10.22 | $ 9.18 | $ 17.95 | $ 17.22 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 100 million | 100 million | Unlimited |
| Investor B: | ||||
| Net assets | $ 2,853,844 | $ 1,967,486 | $ 28,246,928 | $ 24,943,851 |
| Shares outstanding | 339,502 | 238,942 | 1,668,336 | 1,488,202 |
| Net asset value | $ 8.41 | $ 8.23 | $ 16.93 | $ 16.76 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 100 million | 100 million | Unlimited |
| Investor C: | ||||
| Net assets | $ 20,997,353 | $ 10,063,481 | $ 293,633,235 | $ 145,995,808 |
| Shares outstanding | 2,784,394 | 1,272,110 | 17,853,824 | 8,860,770 |
| Net asset value | $ 7.54 | $ 7.91 | $ 16.45 | $ 16.48 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 50 million | 100 million | Unlimited |
| Class R: | ||||
| Net assets | $ 2,082,740 | $ 863,666 | $ 38,378,003 | $ 42,389,937 |
| Shares outstanding | 259,535 | 103,576 | 2,245,975 | 2,494,224 |
| Net asset value | $ 8.02 | $ 8.34 | $ 17.09 | $ 17.00 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 100 million | 100 million | Unlimited |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 25
Statements of Operations
| BlackRock | BlackRock | BlackRock | ||
| BlackRock | Focus Value | Global SmallCap | International | |
| Year Ended June 30, 2010 | EuroFund | Fund, Inc. | Fund, Inc. | Value Fund |
| Investment Income | ||||
| Dividends — unaffiliated | $ 13,251,700 | $ 3,712,711 | $ 14,607,392 | $ 23,630,100 |
| Foreign taxes withheld | (1,388,337) | (16,066) | (665,064) | (2,191,291) |
| Interest | 24 | — | — | 321 |
| Dividends — affiliated | 14,966 | 5,674 | 48,174 | 26,652 |
| Securities lending — affiliated | — | 6,677 | 96,427 | — |
| Total income | 11,878,353 | 3,708,996 | 14,086,929 | 21,465,782 |
| Expenses | ||||
| Investment advisory | 3,189,825 | 1,678,887 | 8,463,290 | 7,502,328 |
| Service — Investor A | 610,561 | 160,316 | 685,039 | 588,552 |
| Service and distribution — Investor B | 45,448 | 34,965 | 385,865 | 322,253 |
| Service and distribution — Investor C | 275,013 | 118,936 | 3,215,360 | 1,734,875 |
| Service and distribution — Class R | 13,828 | 4,442 | 197,546 | 250,343 |
| Transfer agent — Institutional | 285,919 | 99,385 | 546,865 | 674,473 |
| Transfer agent — Investor A | 343,351 | 98,776 | 612,967 | 676,772 |
| Transfer agent — Investor B | 34,094 | 10,914 | 144,557 | 195,289 |
| Transfer agent — Investor C | 66,090 | 26,997 | 1,027,275 | 1,019,998 |
| Transfer agent — Class R | 13,256 | 5,321 | 154,944 | 182,167 |
| Accounting services | 190,951 | 99,798 | 340,407 | 344,655 |
| Custodian | 134,487 | 6,731 | 261,483 | 300,346 |
| Professional | 76,849 | 63,006 | 92,795 | 82,728 |
| Registration | 67,979 | 65,179 | 95,738 | 76,724 |
| Printing | 49,501 | 44,536 | 100,666 | 141,271 |
| Officer and Directors | 27,208 | 20,745 | 40,299 | 41,249 |
| Miscellaneous | 47,403 | 28,776 | 67,084 | 68,531 |
| Total expenses | 5,471,763 | 2,567,710 | 16,432,180 | 14,202,554 |
| Less fees waived by advisor | (5,666) | (422,091) | (18,240) | (11,177) |
| Total expenses after fees waived | 5,466,097 | 2,145,619 | 16,413,940 | 14,191,377 |
| Net investment income (loss) | 6,412,256 | 1,563,377 | (2,327,011) | 7,274,405 |
| Realized and Unrealized Gain (Loss) | ||||
| Net realized gain (loss) from: | ||||
| Investments | 59,329,577 | 10,459,130 | 71,421,900 | 187,525,337 |
| Payment by affiliate | 111,300 | — | — | — |
| Foreign currency transactions | 664,753 | — | (293,892) | (6,889,306) |
| 60,105,630 | 10,459,130 | 71,128,008 | 180,636,031 | |
| Net change in unrealized appreciation/depreciation on | ||||
| Investments | (53,219,282) | 8,437,011 | 35,524,037 | (159,111,331) |
| Foreign currency transactions | (1,921,522) | – | (180,444) | (736,519) |
| (55,140,804) | 8,437,011 | 35,343,593 | (159,847,850) | |
| Total realized and unrealized gain | 4,964,826 | 18,896,141 | 106,471,601 | 20,788,181 |
| Net Increase in Net Assets Resulting from Operations | $ 11,377,082 | $ 20,459,518 | $ 104,144,590 | $ 28,062,586 |
See Notes to Financial Statements.
26 ANNUAL REPORT JUNE 30, 2010
Statements of Changes in Net Assets
| BlackRock | BlackRock | |||
| EuroFund | Focus Value Fund | |||
| Year Ended June 30, | Year Ended June 30, | |||
| Increase (Decrease) in Net Assets: | 2010 | 2009 | 2010 | 2009 |
| Operations | ||||
| Net investment income | $ 6,412,256 | $ 11,977,252 | $ 1,563,377 | $ 2,472,751 |
| Net realized gain (loss) | 60,105,630 | (223,457,154) | 10,459,130 | (61,420,326) |
| Net change in unrealized appreciation/depreciation | (55,140,804) | (51,777,663) | 8,437,011 | 8,232,052 |
| Net increase (decrease) in net assets resulting from operations | 11,377,082 | (263,257,565) | 20,459,518 | (50,715,523) |
| Dividends and Distributions to Shareholders From | ||||
| Net investment income: | ||||
| Institutional | (4,787,749) | (5,123,918) | (1,098,820) | (1,562,094) |
| Investor A | (7,712,559) | (7,939,628) | (639,493) | (898,953) |
| Investor B | (49,605) | (154,501) | (3,370) | (22,459) |
| Investor C | (929,917) | (925,942) | (54,217) | (80,625) |
| Class R | (96,261) | (85,252) | (4,123) | (5,274) |
| Net realized gain: | ||||
| Institutional | — | (9,250,420) | �� | — |
| Investor A | — | (15,311,220) | — | — |
| Investor B | — | (666,812) | — | — |
| Investor C | — | (2,424,044) | — | — |
| Class R | — | (184,774) | — | — |
| Decrease in net assets resulting from dividends and distributions to shareholders | (13,576,091) | (42,066,511) | (1,800,023) | (2,569,405) |
| Capital Share Transactions | ||||
| Net decrease in net assets derived from capital share transactions | (66,918,607) | (90,120,433) | (28,753,823) | (33,089,217) |
| Redemption Fee | ||||
| Redemption fee | 3,932 | 3,959 | — | — |
| Net Assets | ||||
| Total decrease in net assets | (69,113,684) | (395,440,550) | (10,094,328) | (86,374,145) |
| Beginning of year | 386,467,547 | 781,908,097 | 146,900,536 | 233,274,681 |
| End of year | $ 317,353,863 | $ 386,467,547 | $ 136,806,208 | $ 146,900,536 |
| Undistributed net investment income | $ 5,381,987 | $ 11,866,989 | $ 1,071,775 | $ 1,308,421 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 27
Statements of Changes in Net Assets (concluded)
| BlackRock Global | BlackRock | ||||
| SmallCap Fund, Inc. | International Value Fund | ||||
| Year Ended June 30, | Year Ended June 30, | ||||
| Increase (Decrease) in Net Assets: | 2010 | 2009 | 2010 | 2009 | |
| Operations | |||||
| Net investment income (loss) | $ (2,327,011) | $ 651,318 | $ 7,274,405 | $ 19,665,396 | |
| Net realized gain (loss) | 71,128,008 | (241,450,114) | 180,636,031 | (522,400,187) | |
| Net change in unrealized appreciation/depreciation | 35,343,593 | (141,300,356) | (159,847,850) | (8,726,652) | |
| Net increase (decrease) in net assets resulting from operations | 104,144,590 | (382,099,152) | 28,062,586 | (511,461,443) | |
| Dividends and Distributions to Shareholders From | |||||
| Net investment income: | |||||
| Institutional | — | (677,093) | (14,158,979) | (15,053,273) | |
| Investor A | — | (152,149) | (5,714,335) | (4,589,545) | |
| Investor B | — | — | (359,168) | (505,351) | |
| Investor C | — | — | (2,417,426) | (2,421,079) | |
| Class R | — | — | (1,032,961) | (966,676) | |
| Net realized gain: | |||||
| Institutional | — | (28,424,001) | — | (8,534,436) | |
| Investor A | — | (24,273,866) | — | (2,831,575) | |
| Investor B | — | (6,176,424) | — | (515,717) | |
| Investor C | — | (34,504,639) | — | (2,323,398) | |
| Class R | — | (3,605,420) | — | (659,425) | |
| Decrease in net assets resulting from dividends and distributions to shareholders | — | (97,813,592) | (23,682,869) | (38,400,475) | |
| Capital Share Transactions | |||||
| Net increase (decrease) in net assets derived from capital share transactions | 14,413,235 | (25,808,909) | (101,613,873) | (260,550,944) | |
| Redemption Fee | |||||
| Redemption fee | 26,871 | 29,781 | 29,624 | 49,880 | |
| Proceeds from Regulatory Settlement | |||||
| Proceeds from regulatory settlement | — | — | 768,948 | — | |
| Net Assets | |||||
| Total increase (decrease) in net assets | 118,584,696 | (505,691,872) | (96,435,584) | (810,362,982) | |
| Beginning of year | 832,639,633 | 1,338,331,505 | 913,676,714 | 1,724,039,696 | |
| End of year | $ 951,224,329 | $ 832,639,633 | $ 817,241,130 | $ 913,676,714 | |
| Undistributed/accumulated (distributions in excess of) net investment income (loss) | $ (44,202) | $ (1,759,587) | $829,634 | $ 22,483,345 | |
See Notes to Financial Statements.
28 ANNUAL REPORT JUNE 30, 2010
Financial Highlights BlackRock EuroFund
| Institutional | |||||||
| Period | |||||||
| November 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended October 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 10.65 | $ 18.07 | $ 25.59 | $ 23.02 | $ 17.54 | $ 15.25 | |
| Net investment income1 | 0.21 | 0.33 | 0.43 | 0.46 | 0.55 | 0.36 | |
| Net realized and unrealized gain (loss) | (0.05) | (6.63) | (3.61) | 4.56 | 5.32 | 2.15 | |
| Net increase (decrease) from investment operations | 0.16 | (6.30) | (3.18) | 5.02 | 5.87 | 2.51 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.40) | (0.40) | (0.55) | (0.72) | (0.39) | (0.22) | |
| Net realized gain | — | (0.72) | (3.79) | (1.74) | — | — | |
| Total dividends and distributions | (0.40) | (1.12) | (4.34) | (2.46) | (0.39) | (0.22) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | |
| Net asset value, end of period | $ 10.41 | $ 10.65 | $ 18.07 | $ 25.59 | $ 23.02 | $ 17.54 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 0.78%4 | (34.12)%4 | (13.97)%5 | 24.46% | 34.03%6 | 16.52% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.09% | 1.11% | 1.03%7 | 1.01% | 0.99% | 0.99% | |
| Total expenses after fees waived | 1.08% | 1.11% | 1.03%7 | 1.01% | 0.99% | 0.99% | |
| Net investment income | 1.73% | 2.83% | 3.23%7 | 2.01% | 2.68% | 2.09% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 101,632 | $ 133,540 | $ 274,010 | $ 361,175 | $ 330,849 | $ 261,358 | |
| Portfolio turnover | 161% | 124% | 30% | 63% | 76% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatory issue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 29
Financial Highlights (continued) BlackRock EuroFund
| Investor A | |||||||
| Period | |||||||
| November 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended October 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 10.47 | $ 17.78 | $ 25.24 | $ 22.72 | $ 17.33 | $ 15.07 | |
| Net investment income1 | 0.18 | 0.30 | 0.40 | 0.44 | 0.50 | 0.31 | |
| Net realized and unrealized gain (loss) | (0.05) | (6.52) | (3.56) | 4.48 | 5.24 | 2.12 | |
| Net increase (decrease) from investment operations | 0.13 | (6.22) | (3.16) | 4.92 | 5.74 | 2.43 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.38) | (0.37) | (0.51) | (0.67) | (0.35) | (0.17) | |
| Net realized gain | — | (0.72) | (3.79) | (1.74) | — | — | |
| Total dividends and distributions | (0.38) | (1.09) | (4.30) | (2.41) | (0.35) | (0.17) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | |
| Net asset value, end of period | $ 10.22 | $ 10.47 | $ 17.78 | $ 25.24 | $ 22.72 | $ 17.33 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 0.53%4 | (34.21)%4 | (14.09)%5 | 24.29% | 33.64%6 | 16.20% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.28% | 1.30% | 1.21%7 | 1.20% | 1.24% | 1.24% | |
| Total expenses after fees waived | 1.28% | 1.30% | 1.21%7 | 1.20% | 1.24% | 1.24% | |
| Net investment income | 1.51% | 2.68% | 3.07%7 | 1.92% | 2.49% | 1.84% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 189,788 | $ 219,697 | $ 427,206 | $ 550,341 | $ 453,104 | $ 312,606 | |
| Portfolio turnover | 161% | 124% | 30% | 63% | 76% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatory issue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
30 ANNUAL REPORT JUNE 30, 2010
Financial Highlights (continued) BlackRock EuroFund
| Investor B | |||||||
| Period | |||||||
| November 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended October 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.57 | $ 14.70 | $ 21.49 | $ 19.59 | $ 14.99 | $ 13.08 | |
| Net investment income (loss)1 | (0.01) | 0.11 | 0.19 | 0.17 | 0.30 | 0.16 | |
| Net realized and unrealized gain (loss) | (0.04) | (5.35) | (2.94) | 3.86 | 4.54 | 1.84 | |
| Net increase (decrease) from investment operations | (0.05) | (5.24) | (2.75) | 4.03 | 4.84 | 2.00 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.11) | (0.17) | (0.25) | (0.40) | (0.24) | (0.09) | |
| Net realized gain | — | (0.72) | (3.79) | (1.74) | — | — | |
| Total dividends and distributions | (0.11) | (0.89) | (4.04) | (2.14) | (0.24) | (0.09) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | |
| Net asset value, end of period | $ 8.41 | $ 8.57 | $ 14.70 | $ 21.49 | $ 19.59 | $ 14.99 | |
| Total Investment Return3 | |||||||
| Based on net asset value | (0.85)%4 | (34.98)%4 | (14.61)%5 | 23.12% | 32.63%6 | 15.28% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.64% | 2.47% | 2.10%7 | 2.12% | 2.01% | 2.01% | |
| Total expenses after fees waived | 2.64% | 2.47% | 2.10%7 | 2.12% | 2.01% | 2.01% | |
| Net investment income (loss) | (0.05)% | 1.11% | 1.77%7 | 0.98% | 1.73% | 1.06% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 2,854 | $ 5,013 | $ 19,943 | $ 42,829 | $ 62,273 | $ 103,836 | |
| Portfolio turnover | 161% | 124% | 30% | 63% | 76% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatory issue relating to an investment, which increased
the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 31
Financial Highlights (continued) BlackRock EuroFund
| Investor C | |||||||
| Period | |||||||
| November 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended October 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 7.81 | $ 13.67 | $ 20.42 | $ 18.86 | $ 14.47 | $ 12.64 | |
| Net investment income1 | 0.06 | 0.15 | 0.22 | 0.21 | 0.29 | 0.15 | |
| Net realized and unrealized gain (loss) | (0.03) | (5.02) | (2.79) | 3.63 | 4.36 | 1.78 | |
| Net increase (decrease) from investment operations | 0.03 | (4.87) | (2.57) | 3.84 | 4.65 | 1.93 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.30) | (0.27) | (0.39) | (0.55) | (0.26) | (0.10) | |
| Net realized gain | — | (0.72) | (3.79) | (1.74) | — | — | |
| Total dividends and distributions | (0.30) | (0.99) | (4.18) | (2.29) | (0.26) | (0.10) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | |
| Net asset value, end of period | $ 7.54 | $ 7.81 | $ 13.67 | $ 20.42 | $ 18.86 | $ 14.47 | |
| Total Investment Return3 | |||||||
| Based on net asset value | (0.36)%4 | (34.75)%4 | (14.57)%5 | 23.26% | 32.57%6 | 15.33% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.13% | 2.15% | 2.01%7 | 2.00% | 2.01% | 2.02% | |
| Total expenses after fees waived | 2.13% | 2.15% | 2.01%7 | 2.00% | 2.01% | 2.02% | |
| Net investment income | 0.64% | 1.73% | 2.21%7 | 1.11% | 1.71% | 1.05% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 20,997 | $ 25,504 | $ 56,909 | $ 79,355 | $ 60,160 | $ 44,881 | |
| Portfolio turnover | 161% | 124% | 30% | 63% | 76% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatory issue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
32 ANNUAL REPORT JUNE 30, 2010
Financial Highlights (concluded) BlackRock EuroFund
| Class R | |||||||
| Period | |||||||
| November 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended October 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.29 | $ 14.50 | $ 21.45 | $ 19.74 | $ 15.14 | $ 13.23 | |
| Net investment income1 | 0.08 | 0.20 | 0.29 | 0.29 | 0.41 | 0.18 | |
| Net realized and unrealized gain (loss) | (0.02) | (5.36) | (2.97) | 3.80 | 4.55 | 1.93 | |
| Net increase (decrease) from investment operations | 0.06 | (5.16) | (2.68) | 4.09 | 4.96 | 2.11 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.33) | (0.33) | (0.48) | (0.65) | (0.36) | (0.20) | |
| Net realized gain | — | (0.72) | (3.79) | (1.74) | — | — | |
| Total dividends and distributions | (0.33) | (1.05) | (4.27) | (2.39) | (0.36) | (0.20) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | |
| Net asset value, end of period | $ 8.02 | $ 8.29 | $ 14.50 | $ 21.45 | $ 19.74 | $ 15.14 | |
| Total Investment Return3 | |||||||
| Based on net asset value | (0.05)%4 | (34.73)%4 | (14.39)%5 | 23.60% | 33.36%6 | 16.01% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.87% | 2.02% | 1.72%7 | 1.71% | 1.49% | 1.48% | |
| Total expenses after fees waived | 1.86% | 2.02% | 1.72%7 | 1.71% | 1.49% | 1.48% | |
| Net investment income | 0.87% | 2.29% | 2.73%7 | 1.48% | 2.30% | 1.10% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 2,083 | $ 2,713 | $ 3,840 | $ 4,509 | $ 1,948 | $ 823 | |
| Portfolio turnover | 161% | 124% | 30% | 63% | 76% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatory issue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 33
Financial Highlights BlackRock Focus Value Fund, Inc.
| Institutional | |||||||
| Period | |||||||
| August 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended July 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.31 | $ 10.81 | $ 15.47 | $ 14.84 | $ 14.27 | $ 12.16 | |
| Net investment income1 | 0.11 | 0.15 | 0.13 | 0.17 | 0.12 | 0.07 | |
| Net realized and unrealized gain (loss) | 0.99 | (2.49) | (2.62) | 2.15 | 0.99 | 2.04 | |
| Net increase (decrease) from investment operations | 1.10 | (2.34) | (2.49) | 2.32 | 1.11 | 2.11 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.12) | (0.16) | (0.16) | (0.18) | (0.06) | — | |
| Net realized gain | — | — | (2.01) | (1.51) | (0.48) | — | |
| Total dividends and distributions | (0.12) | (0.16) | (2.17) | (1.69) | (0.54) | — | |
| Net asset value, end of period | $ 9.29 | $ 8.31 | $ 10.81 | $ 15.47 | $ 14.84 | $ 14.27 | |
| Total Investment Return2 | |||||||
| Based on net asset value | 13.16% | (21.37)% | (18.55)%3 | 16.67% | 8.06% | 17.35% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.31% | 1.38% | 1.25%4 | 1.22% | 1.26% | 1.26% | |
| Total expenses after fees waived and paid indirectly | 1.06% | 1.13% | 1.00%4 | 0.97% | 1.01% | 1.01% | |
| Net investment income | 1.15% | 1.79% | 1.14%4 | 1.10% | 0.83% | 0.52% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 65,787 | $ 76,359 | $ 113,990 | $ 162,915 | $ 158,175 | $ 173,121 | |
| Portfolio turnover | 61% | 112% | 87% | 65% | 100% | 72% | |
1 Based on average shares outstanding.
2 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
34 ANNUAL REPORT JUNE 30, 2010
Financial Highlights (continued) BlackRock Focus Value Fund, Inc.
| Investor A | |||||||
| Period | |||||||
| August 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended July 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.22 | $ 10.67 | $ 15.29 | $ 14.68 | $ 14.12 | $ 12.06 | |
| Net investment income1 | 0.08 | 0.12 | 0.10 | 0.13 | 0.08 | 0.04 | |
| Net realized and unrealized gain (loss) | 0.98 | (2.45) | (2.59) | 2.12 | 0.98 | 2.02 | |
| Net increase (decrease) from investment operations | 1.06 | (2.33) | (2.49) | 2.25 | 1.06 | 2.06 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.10) | (0.12) | (0.12) | (0.13) | (0.02) | — | |
| Net realized gain | — | — | (2.01) | (1.51) | (0.48) | — | |
| Total dividends and distributions | (0.10) | (0.12) | (2.13) | (1.64) | (0.50) | — | |
| Net asset value, end of period | $ 9.18 | $ 8.22 | $ 10.67 | $ 15.29 | $ 14.68 | $ 14.12 | |
| Total Investment Return2 | |||||||
| Based on net asset value | 12.79% | (21.61)% | (18.77)%3 | 16.30% | 7.79% | 17.08% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.60% | 1.69% | 1.55%4 | 1.49% | 1.51% | 1.51% | |
| Total expenses after fees waived and paid indirectly | 1.35% | 1.44% | 1.30%4 | 1.24% | 1.26% | 1.26% | |
| Net investment income | 0.86% | 1.47% | 0.83%4 | 0.83% | 0.58% | 0.27% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 58,125 | $ 55,243 | $ 92,545 | $ 134,585 | $ 126,028 | $ 135,696 | |
| Portfolio turnover | 61% | 112% | 87% | 65% | 100% | 72% | |
1 Based on average shares outstanding.
2 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 35
Financial Highlights (continued) BlackRock Focus Value Fund, Inc.
| Investor B | |||||||
| Period | |||||||
| August 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended July 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 7.37 | $ 9.53 | $ 13.86 | $ 13.37 | $ 12.98 | $ 11.17 | |
| Net investment income (loss)1 | (0.00)2 | 0.04 | 0.003 | 0.01 | (0.03) | (0.06) | |
| Net realized and unrealized gain (loss) | 0.87 | (2.17) | (2.33) | 1.92 | 0.90 | 1.87 | |
| Net increase (decrease) from investment operations | 0.87 | (2.13) | (2.33) | 1.93 | 0.87 | 1.81 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.01) | (0.03) | — | (0.00)2 | — | — | |
| Net realized gain | — | — | (2.00) | (1.44) | (0.48) | — | |
| Total dividends and distributions | (0.01) | (0.03) | (2.00) | (1.44) | (0.48) | — | |
| Net asset value, end of period | $ 8.23 | $ 7.37 | $ 9.53 | $ 13.86 | $ 13.37 | $ 12.98 | |
| Total Investment Return4 | |||||||
| Based on net asset value | 11.76% | (22.29)% | (19.43)%5 | 15.37% | 6.97% | 16.20% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.52% | 2.59% | 2.36%6 | 2.28% | 2.28% | 2.28% | |
| Total expenses after fees waived and paid indirectly | 2.27% | 2.34% | 2.11%6 | 2.03% | 2.03% | 2.03% | |
| Net investment income (loss) | (0.04)% | 0.59% | 0.02%6 | 0.07% | (0.21)% | (0.50)% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 1,967 | $ 4,051 | $ 9,345 | $ 19,000 | $ 26,537 | $ 42,351 | |
| Portfolio turnover | 61% | 112% | 87% | 65% | 100% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Amount is less than $0.01 per share.
4 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Annualized.
See Notes to Financial Statements.
36 ANNUAL REPORT JUNE 30, 2010
Financial Highlights (continued) BlackRock Focus Value Fund, Inc.
| Investor C | |||||||
| Period | |||||||
| August 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended July 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 7.10 | $ 9.21 | $ 13.49 | $ 13.07 | $ 12.71 | $ 10.94 | |
| Net investment income (loss)1 | 0.002 | 0.05 | 0.01 | 0.01 | (0.03) | (0.06) | |
| Net realized and unrealized gain (loss) | 0.85 | (2.11) | (2.26) | 1.90 | 0.87 | 1.83 | |
| Net increase (decrease) from investment operations | 0.85 | (2.06) | (2.25) | 1.91 | 0.84 | 1.77 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.04) | (0.05) | (0.02) | (0.01) | — | — | |
| Net realized gain | — | — | (2.01) | (1.48) | (0.48) | — | |
| Total dividends and distributions | (0.04) | (0.05) | (2.03) | (1.49) | (0.48) | — | |
| Net asset value, end of period | $ 7.91 | $ 7.10 | $ 9.21 | $ 13.49 | $ 13.07 | $ 12.71 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 11.91% | (22.26)% | (19.42)%4 | 15.50% | 6.88% | 16.18% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.43% | 2.51% | 2.33%5 | 2.26% | 2.28% | 2.29% | |
| Total expenses after fees waived and paid indirectly | 2.17% | 2.26% | 2.08%5 | 2.01% | 2.03% | 2.04% | |
| Net investment income (loss) | 0.04% | 0.65% | 0.05%5 | 0.06% | (0.21)% | (0.50)% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 10,063 | $ 10,539 | $ 16,687 | $ 25,334 | $ 23,819 | $ 31,391 | |
| Portfolio turnover | 61% | 112% | 87% | 65% | 100% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 37
Financial Highlights (concluded) BlackRock Focus Value Fund, Inc.
| Class R | |||||||
| Period | |||||||
| August 1, | |||||||
| Year Ended June 30, | 2007 to | Year Ended July 31, | |||||
| June 30, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 7.48 | $ 9.72 | $ 14.15 | $ 13.71 | $ 13.23 | $ 11.33 | |
| Net investment income1 | 0.01 | 0.04 | 0.02 | 0.06 | 0.05 | 0.002 | |
| Net realized and unrealized gain (loss) | 0.89 | (2.22) | (2.37) | 1.98 | 0.91 | 1.90 | |
| Net increase (decrease) from investment operations | 0.90 | (2.18) | (2.35) | 2.04 | 0.96 | 1.90 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.04) | (0.06) | (0.07) | (0.09) | (0.00)3 | — | |
| Net realized gain | — | — | (2.01) | (1.51) | (0.48) | — | |
| Total dividends and distributions | (0.04) | (0.06) | (2.08) | (1.60) | (0.48) | — | |
| Net asset value, end of period | $ 8.34 | $ 7.48 | $ 9.72 | $ 14.15 | $ 13.71 | $ 13.23 | |
| Total Investment Return4 | |||||||
| Based on net asset value | 12.04% | (22.27)% | (19.29)%5 | 15.85% | 7.56% | 16.77% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.29% | 2.60% | 2.22%6 | 1.90% | 1.76% | 1.76% | |
| Total expenses after fees waived and paid indirectly | 2.04% | 2.35% | 1.97%6 | 1.65% | 1.51% | 1.51% | |
| Net investment income | 0.16% | 0.55% | 0.15%6 | 0.43% | 0.34% | 0.03% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 864 | $ 708 | $ 708 | $ 741 | $ 609 | $ 513 | |
| Portfolio turnover | 61% | 112% | 87% | 65% | 100% | 72% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Amount is less than $(0.01) per share.
4 Where applicable, total investment returns include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Annualized.
See Notes to Financial Statements.
38 ANNUAL REPORT JUNE 30, 2010
| Financial Highlights | BlackRock Global SmallCap Fund, Inc. | ||||||||||||
| Institutional | Investor A | ||||||||||||
| Year Ended June 30, | Year Ended June 30, | ||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
| Per Share Operating Performance | |||||||||||||
| Net asset value, beginning of year | $ 16.17 | $ 24.45 | $ 29.24 | $ 25.77 | $ 23.62 | $ 15.89 | $ 24.10 | $ 28.85 | $ 25.50 | $ 23.39 | |||
| Net investment income (loss)1 | 0.06 | 0.11 | 0.12 | 0.11 | 0.08 | (0.00)2 | 0.06 | 0.05 | 0.04 | 0.02 | |||
| Net realized and unrealized gain (loss)3 | 2.09 | (6.59) | (0.30) | 6.37 | 3.79 | 2.06 | (6.50) | (0.30) | 6.29 | 3.75 | |||
| Net increase (decrease) from | |||||||||||||
| investment operations | 2.15 | (6.48) | (0.18) | 6.48 | 3.87 | 2.06 | (6.44) | (0.25) | 6.33 | 3.77 | |||
| Dividends and distributions from: | |||||||||||||
| Net investment income | — | (0.04) | (0.32) | — | (0.03) | — | (0.01) | (0.25) | — | — | |||
| Net realized gain | — | (1.76) | (4.29) | (3.01) | (1.69) | — | (1.76) | (4.25) | (2.98) | (1.66) | |||
| Total dividends and distributions | — | (1.80) | (4.61) | (3.01) | (1.72) | — | (1.77) | (4.50) | (2.98) | (1.66) | |||
| Net asset value, end of year | $ 18.32 | $ 16.17 | $ 24.45 | $ 29.24 | $ 25.77 | $ 17.95 | $ 15.89 | $ 24.10 | $ 28.85 | $ 25.50 | |||
| Total Investment Return4 | |||||||||||||
| Based on net asset value | 13.30%5 | (27.75)%5 | (1.08)% | 28.15% | 16.80% | 12.96%5 | (27.99)%5 | (1.36)% | 27.78% | 16.51% | |||
| Ratios to Average Net Assets | |||||||||||||
| Total expenses | 1.12% | 1.20% | 1.12% | 1.15% | 1.22% | 1.42% | 1.50% | 1.40% | 1.42% | 1.46% | |||
| Total expenses after fees waived | 1.12% | 1.20% | 1.12% | 1.15% | 1.22% | 1.42% | 1.50% | 1.40% | 1.42% | 1.46% | |||
| Net investment income | 0.31% | 0.65% | 0.46% | 0.42% | 0.31% | (0.01)% | 0.36% | 0.19% | 0.15% | 0.09% | |||
| Supplemental Data | |||||||||||||
| Net assets, end of year (000) | $326,440 | $250,720 | $399,802 | $411,767 | $352,779 | $264,526 | $226,362 | $330,282 | $334,022 | $282,971 | |||
| Portfolio turnover | 73% | 114% | 97% | 95% | 96% | 73% | 114% | 97% | 95% | 96% | |||
| 1 | Based on average shares outstanding. |
| 2 | Includes a redemption fee, which is less than $0.01 per share. |
| 3 | Amount is less than $(0.01) per share. |
| 4 | Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions. |
| 5 | Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
39
| Financial Highlights (continued) | BlackRock Global SmallCap Fund, Inc. | ||||||||||||
| Investor B | Investor C | ||||||||||||
| Year Ended June 30, | Year Ended June 30, | ||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
| Per Share Operating Performance | |||||||||||||
| Net asset value, beginning of year | $ 15.12 | $ 23.13 | $ 27.71 | $ 24.67 | $ 22.76 | $ 14.68 | $ 22.50 | $ 27.15 | $ 24.25 | $ 22.40 | |||
| Net investment loss1 | (0.17) | (0.09) | (0.17) | (0.16) | (0.18) | (0.15) | (0.08) | (0.16) | (0.16) | (0.17) | |||
| Net realized and unrealized gain (loss)2 | 1.98 | (6.23) | (0.27) | 6.06 | 3.65 | 1.92 | (6.05) | (0.28) | 5.94 | 3.59 | |||
| Net increase (decrease) | |||||||||||||
| from investment operations | 1.81 | (6.32) | (0.44) | 5.90 | 3.47 | 1.77 | (6.13) | (0.44) | 5.78 | 3.42 | |||
| Dividends and distributions from: | |||||||||||||
| Net investment income | — | — | — | — | — | — | — | (0.06) | — | — | |||
| Net realized gain | — | (1.69) | (4.14) | (2.86) | (1.56) | — | (1.69) | (4.15) | (2.88) | (1.57) | |||
| Total dividends and distributions | — | (1.69) | (4.14) | (2.86) | (1.56) | — | (1.69) | (4.21) | (2.88) | (1.57) | |||
| Net asset value, end of year | $ 16.93 | $ 15.12 | $ 23.13 | $ 27.71 | $ 24.67 | $ 16.45 | $ 14.68 | $ 22.50 | $ 27.15 | $ 24.25 | |||
| Total Investment Return3 | |||||||||||||
| Based on net asset value | 11.97%4 | (28.62)%4 | (2.14)% | 26.79% | 15.60% | 12.06%4 | (28.58)%4 | (2.19)% | 26.79% | 15.62% | |||
| Ratios to Average Net Assets | |||||||||||||
| Total expenses | 2.33% | 2.37% | 2.21% | 2.21% | 2.24% | 2.27% | 2.35% | 2.21% | 2.21% | 2.25% | |||
| Total expenses after fees waived | 2.33% | 2.37% | 2.21% | 2.21% | 2.24% | 2.27% | 2.35% | 2.21% | 2.21% | 2.25% | |||
| Net investment loss | (0.96)% | (0.56)% | (0.68)% | (0.66)% | (0.72)% | (0.86)% | (0.51)% | (0.64)% | (0.63)% | (0.69)% | |||
| Supplemental Data | |||||||||||||
| Net assets, end of year (000) | $ 28,247 | $ 40,600 | $ 91,693 | $130,954 | $142,522 | $293,633 | $281,387 | $470,280 | $518,216 | $418,363 | |||
| Portfolio turnover | 73% | 114% | 97% | 95% | 96% | 73% | 114% | 97% | 95% | 96% | |||
| 1 | Based on average shares outstanding. |
| 2 | Includes a redemption fee, which is less than $0.01 per share. |
| 3 | Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions. |
| 4 | Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. |
See Notes to Financial Statements.
40 ANNUAL REPORT
JUNE 30, 2010
| Financial Highlights (concluded) | BlackRock Global SmallCap Fund, Inc. | ||||
| Class R | |||||
| Year Ended June 30, | |||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Per Share Operating Performance | |||||
| Net asset value, beginning of year | $ 15.18 | $ 23.18 | $ 27.94 | $ 24.83 | $ 22.85 |
| Net investment loss1 | (0.08) | (0.02) | (0.05) | (0.04) | (0.03) |
| Net realized and unrealized gain (loss)2 | 1.99 | (6.25) | (0.30) | 6.10 | 3.65 |
| Net increase (decrease) from investment operations | 1.91 | (6.27) | (0.35) | 6.06 | 3.62 |
| Dividends and distributions from: | |||||
| Net investment income | — | — | (0.20) | — | — |
| Net realized gain | — | (1.73) | (4.21) | (2.95) | (1.64) |
| Total dividends and distributions | — | (1.73) | (4.41) | (2.95) | (1.64) |
| Net asset value, end of year | $ 17.09 | $ 15.18 | $ 23.18 | $ 27.94 | $ 24.83 |
| Total Investment Return3 | |||||
| Based on net asset value | 12.58%4 | (28.37)%4 | (1.77)% | 27.42% | 16.22% |
| Ratios to Average Net Assets | |||||
| Total expenses | 1.84% | 2.00% | 1.81% | 1.73% | 1.71% |
| Total expenses after fees waived | 1.84% | 2.00% | 1.81% | 1.73% | 1.71% |
| Net investment loss | (0.42)% | (0.13)% | (0.20)% | (0.15)% | (0.11)% |
| Supplemental Data | |||||
| Net assets, end of year (000) | $ 38,378 | $ 33,571 | $ 46,275 | $ 33,662 | $ 23,568 |
| Portfolio turnover | 73% | 114% | 97% | 95% | 96% |
| 1 | Based on average shares outstanding. |
| 2 | Includes a redemption fee, which is less than $0.01 per share. |
| 3 | Where applicable, total investment returns include the reinvestment of dividends and distributions. |
| 4 | Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
41
| Financial Highlights | BlackRock International Value Fund | |||||||||||
| Institutional | Investor A | |||||||||||
| Year Ended June 30, | Year Ended June 30, | |||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | |||
| Per Share Operating Performance | ||||||||||||
| Net asset value, beginning of year | $ 17.46 | $ 26.00 | $ 34.48 | $ 30.55 | $ 26.41 | $ 17.35 | $ 25.89 | $ 34.33 | $ 30.44 | $ 26.33 | ||
| Net investment income1 | 0.22 | 0.41 | 0.55 | 0.71 | 0.56 | 0.15 | 0.36 | 0.46 | 0.62 | 0.49 | ||
| Net realized and unrealized gain (loss)2 | 0.21 | (8.32) | (4.30) | 6.10 | 6.19 | 0.19 | (8.30) | (4.28) | 6.08 | 6.16 | ||
| Net increase (decrease) | ||||||||||||
| from investment operations | 0.43 | (7.91) | (3.75) | 6.81 | 6.75 | 0.34 | (7.94) | (3.82) | 6.70 | 6.65 | ||
| Dividends and distributions from: | ||||||||||||
| Net investment income | (0.55) | (0.40) | (0.68) | (0.90) | (0.62) | (0.49) | (0.37) | (0.59) | (0.83) | (0.55) | ||
| Net realized gain | — | (0.23) | (4.05) | (1.98) | (1.99) | — | (0.23) | (4.03) | (1.98) | (1.99) | ||
| Total dividends and distributions | (0.55) | (0.63) | (4.73) | (2.88) | (2.61) | (0.49) | (0.60) | (4.62) | (2.81) | (2.54) | ||
| Proceeds from regulatory settlement | 0.02 | — | — | — | — | 0.02 | — | — | — | — | ||
| Net asset value, end of year | $ 17.36 | $ 17.46 | $ 26.00 | $ 34.48 | $ 30.55 | $ 17.22 | $ 17.35 | $ 25.89 | $ 34.33 | $ 30.44 | ||
| Total Investment Return3 | ||||||||||||
| Based on net asset value | 2.08%4,5 (30.81)%5 | (12.23)% | 24.20% | 27.18%6 | 1.62%4,5 (31.06)%5 (12.47)% | 23.84% | 26.84%6 | |||||
| Ratios to Average Net Assets | ||||||||||||
| Total expenses | 0.99% | 1.08% | 1.04% | 1.01% | 1.02% | 1.39% | 1.43% | 1.34% | 1.30% | 1.27% | ||
| Total expenses after fees waived | 0.99% | 1.08% | 1.04% | 1.01% | 1.02% | 1.39% | 1.43% | 1.34% | 1.30% | 1.27% | ||
| Net investment income | 1.15% | 2.24% | 1.86% | 2.27% | 1.97% | 0.76% | 2.04% | 1.55% | 1.98% | 1.75% | ||
| Supplemental Data | ||||||||||||
| Net assets, end of year (000) | $403,645 | $462,171 $1,007,433 $1,253,724 | $961,207 | $200,267 | $215,337 | $320,764 | $390,547 | $320,926 | ||||
| Portfolio turnover | 155% | 187% | 122% | 65% | 81% | 155% | 187% | 122% | 65% | 81% | ||
| 1 | Based on average shares outstanding. |
| 2 | Includes a redemption fee, which is less than $0.01 per share. |
| 3 | Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions. |
| 4 | Includes proceeds received from a settlement of litigation which impacted the Fund’s total return. Not including these proceeds, the total return would have been 1.97% for Institutional Shares and 1.51% for Investor A Shares. |
| 5 | Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. |
| 6 | A portion of total investment return consists of payments by the previous investment advisor in order to resolve a regulatory issue relating to an investment, which increased the return of the Fund’s Institutional Shares by 0.21% and Investor A Shares by 0.17%. |
See Notes to Financial Statements.
42 ANNUAL REPORT
JUNE 30, 2010
| Financial Highlights (continued) | BlackRock International Value Fund | ||||||||||||
| Investor B | Investor C | ||||||||||||
| Year Ended June 30, | Year Ended June 30, | ||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||
| Per Share Operating Performance | |||||||||||||
| Net asset value, beginning of year | $ 16.84 | $ 25.28 | $ 33.60 | $ 29.88 | $ 25.94 | $ 16.60 $ | 24.94 | $ 33.24 | $ 29.59 | $ 25.72 | |||
| Net investment income (loss)1 | (0.06) | 0.13 | 0.14 | 0.34 | 0.26 | (0.05) | 0.14 | 0.16 | 0.35 | 0.28 | |||
| Net realized and unrealized gain (loss)2 | 0.17 | (8.12) | (4.16) | 5.96 | 6.07 | 0.18 | (8.01) | (4.13) | 5.90 | 5.99 | |||
| Net increase (decrease) | |||||||||||||
| from investment operations | 0.11 | (7.99) | (4.02) | 6.30 | 6.33 | 0.13 | (7.87) | (3.97) | 6.25 | 6.27 | |||
| Dividends and distributions from: | |||||||||||||
| Net investment income | (0.21) | (0.22) | (0.43) | (0.60) | (0.40) | (0.27) | (0.24) | (0.45) | (0.62) | (0.41) | |||
| Net realized gain | — | (0.23) | (3.87) | (1.98) | (1.99) | — | (0.23) | (3.88) | (1.98) | (1.99) | |||
| Total dividends and distributions | (0.21) | (0.45) | (4.30) | (2.58) | (2.39) | (0.27) | (0.47) | (4.33) | (2.60) | (2.40) | |||
| Proceeds from regulatory settlement | 0.02 | — | — | — | — | 0.02 | — | — | — | — | |||
| Net asset value, end of year | $ 16.76 | $ 16.84 | $ 25.28 | $ 33.60 | $ 29.88 | $ 16.48 | $ 16.60 | $ 24.94 | $ 33.24 | $ 29.59 | |||
| Total Investment Return3 | |||||||||||||
| Based on net asset value | 0.59%4,5 (31.91)%5 | (13.31)% | 22.78% | 25.84%6 | 0.63%4,5 (31.89)%5 (13.32)% | 22.82% | 25.86%6 | ||||||
| Ratios to Average Net Assets | |||||||||||||
| Total expenses | 2.46% | 2.61% | 2.30% | 2.15% | 2.06% | 2.44% | 2.60% | 2.31% | 2.15% | 2.06% | |||
| Total expenses after fees waived | 2.46% | 2.61% | 2.30% | 2.15% | 2.06% | 2.44% | 2.60% | 2.31% | 2.15% | 2.06% | |||
| Net investment income (loss) | (0.34)% | 0.74% | 0.47% | 1.11% | 0.95% | (0.28)% | 0.83% | 0.55% | 1.15% | 1.01% | |||
| Supplemental Data | |||||||||||||
| Net assets, end of year (000) | $ 24,944 | $ 31,261 | $ 61,007 | $ 90,447 | $ 79,165 | $145,996 $159,516 | $262,573 | $332,940 | $244,931 | ||||
| Portfolio turnover | 155% | 187% | 122% | 65% | 81% | 155% | 187% | 122% | 65% | 81% | |||
| 1 | Based on average shares outstanding. |
| 2 | Includes a redemption fee, which is less than $0.01 per share. |
| 3 | Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions. |
| 4 | Includes proceeds received from a settlement of litigation which impacted the Fund’s total return. Not including these proceeds, the total return would have been 0.47% for Investor B Shares and 0.50% for Investor C Shares. |
| 5 | Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. |
| 6 | A portion of total investment return consists of payments by the previous investment advisor in order to resolve a regulatory issue relating to an investment, which increased the return of the Fund’s Investor B Shares by 0.21% and Investor C Shares by 0.17%. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
43
| Financial Highlights (concluded) | BlackRock International Value Fund | |||||
| Class R | ||||||
| Year Ended June 30, | ||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 17.11 | $ 25.61 | $ 34.06 | $ 30.24 | $ 26.19 | |
| Net investment income1 | 0.09 | 0.28 | 0.39 | 0.55 | 0.50 | |
| Net realized and unrealized gain (loss)2 | 0.193 | (8.22) | (4.27) | 6.02 | 6.04 | |
| Net increase (decrease) from investment operations | 0.28 | (7.94) | (3.88) | 6.57 | 6.54 | |
| Dividends and distributions from: | ||||||
| Net investment income | (0.41) | (0.33) | (0.57) | (0.77) | (0.50) | |
| Net realized gain | — | (0.23) | (4.00) | (1.98) | (1.99) | |
| Total dividends and distributions | (0.41) | (0.56) | (4.57) | (2.75) | (2.49) | |
| Proceeds from regulatory settlement | 0.02 | — | — | — | — | |
| Net asset value, end of year | $ 17.00 | $ 17.11 | $ 25.61 | $ 34.06 | $ 30.24 | |
| Total Investment Return4 | ||||||
| Based on net asset value | 1.35%5,6 | (31.36)%6 | (12.76)% | 23.53% | 26.52%7 | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.72% | 1.86% | 1.65% | 1.57% | 1.52% | |
| Total expenses after fees waived | 1.72% | 1.86% | 1.65% | 1.57% | 1.52% | |
| Net investment income | 0.45% | 1.58% | 1.35% | 1.78% | 1.76% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 42,390 | $ 45,391 | $ 72,262 | $ 60,258 | $ 36,048 | |
| Portfolio turnover | 155% | 187% | 122% | 65% | 81% | |
| 1 | Based on average shares outstanding. |
| 2 | Includes a redemption fee, which is less than $0.01 per share. |
| 3 | Includes litigation proceeds, which are less than $0.01 per share. |
| 4 | Where applicable, total investment returns include the reinvestment of dividends and distributions. |
| 5 | Includes proceeds received from a settlement of litigation which impacted the Fund’s total return. Not including these proceeds, the total return would have been 1.23%. |
| 6 | Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. |
| 7 | A portion of total investment return consists of payments by the previous investment advisor in order to resolve a regulatory issue relating to an investment, which increased the return by 0.16%. |
44 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements
1. Organization and Significant Accounting Policies:
BlackRock EuroFund (“EuroFund”), BlackRock Focus Value Fund, Inc.
(“Focus Value”), BlackRock Global SmallCap Fund, Inc. (“Global
SmallCap”) and BlackRock International Value Fund (“International Value”),
a series of BlackRock International Value Trust (the “Trust”) (collectively
the “Funds”), are registered under the Investment Company Act of 1940,
as amended (the “1940 Act”), as diversified, open-end management
investment companies. The EuroFund and the Trust are organized as
Massachusetts business trusts. Focus Value and Global SmallCap are
organized as Maryland corporations. The Funds’ financial statements are
prepared in conformity with accounting principles generally accepted in
the United States of America (“US GAAP”), which may require management
to make estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from
those estimates. The Boards of Trustees and the Boards of Directors of the
Funds are referred to throughout this report as the “Board of Directors” or
the “Board”. Each Fund offers multiple classes of shares. Institutional
Shares are sold without a sales charge and only to certain eligible
investors. Investor A Shares are generally sold with a front-end sales
charge. Investor B and Investor C Shares may be subject to a contingent
deferred sales charge. Class R Shares are sold without a sales charge and
only to certain retirement and other similar plans. All classes of shares
have identical voting, dividend, liquidation and other rights and the same
terms and conditions, except that Investor A, Investor B, Investor C and
Class R Shares bear certain expenses related to the shareholder servicing
of such shares, and Investor B, Investor C and Class R Shares also bear
certain expenses related to the distribution of such shares. Investor B
Shares automatically convert to Investor A Shares after approximately eight
years. Investor B Shares are only available through exchanges, dividend
reinvestment by existing shareholders or for purchase by certain qualified
employee benefit plans. Each class has exclusive voting rights with respect
to matters relating to its shareholder servicing and distribution expendi-
tures (except that Investor B shareholders may vote on material changes
to the Investor A distribution plan).
The following is a summary of significant accounting policies followed by
the Funds:
Valuation: The Funds’ policy is to fair value their financial instruments and
derivatives at market value using independent dealers or pricing services
selected under the supervision of the Board of Directors (the “Board”).
Equity investments traded on a recognized securities exchange or the
NASDAQ Global Market System are valued at the last reported sale price
that day or the NASDAQ official closing price, if applicable. For equity
investments traded on more than one exchange, the last reported sale
price on the exchange where the stock is primarily traded is used. Equity
investments traded on a recognized exchange for which there were no
sales on that day are valued at the last available bid (long positions) or
ask (short positions) price. If no bid or ask price is available, the prior
day’s price will be used, unless it is determined that such prior day’s price
no longer reflects the fair value of the security. Investments in open-end
investment companies are valued at net asset value each business day.
Short-term securities with remaining maturities of 60 days or less may be
valued at amortized cost, which approximates fair value.
Certain Funds value their investments in BlackRock Liquidity Series, LLC
Money Market Series (the “Money Market Series”) at fair value, which is
ordinarily based upon their pro rata ownership in the net assets of the
underlying fund. The Money Market Series seeks current income consistent
with maintaining liquidity and preserving capital. Although the Money
Market Series is not registered under the 1940 Act, its investments will fol-
low the parameters of investments by a money market fund that is subject
to Rule 2a-7 promulgated by the Securities and Exchange Commission
(“SEC”) under the 1940 Act. The Funds may withdraw up to 25% of their
investment daily, although the manager of the Money Market Series, in its
sole discretion, may permit an investor to withdraw more than 25% on any
one day.
Securities and other assets and liabilities denominated in foreign curren-
cies are translated into US dollars using exchange rates determined as of
the close of business on the New York Stock Exchange (“NYSE”). Foreign
currency exchange contracts are valued at the mean between the bid and
ask prices and are determined as of the close of business on the NYSE.
Interpolated values are derived when the settlement date of the contract
is an interim date for which quotations are not available.
In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued in accordance with a policy approved by the Board as reflecting fair
value (“Fair Value Assets”). When determining the price for Fair Value
Assets, the investment advisor and/or the sub-advisor seeks to determine
the price that each Fund might reasonably expect to receive from the cur-
rent sale of that asset in an arm’s-length transaction. Fair value determina-
tions shall be based upon all available factors that the investment advisor
and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.
Generally, trading in foreign instruments is substantially completed
each day at various times prior to the close of business on the NYSE.
Occasionally, events affecting the values of such instruments may occur
between the foreign market close and the close of business on the NYSE
that may not be reflected in the computation of each Fund’s net assets.
If events (for example, a company announcement, market volatility or a
natural disaster) occur during such periods that are expected to materially
affect the value of such instruments, those instruments may be Fair Value
Assets and be valued at their fair values, as determined in good faith by
the investment advisor using a pricing service and/or policies approved
by the Board.
Foreign Currency Transactions: The Funds’ books and records are main-
tained in US dollars. Purchases and sales of investment securities are
recorded at the rates of exchange prevailing on the date the transactions
are entered into. Generally, when the US dollar rises in value against for-
eign currency, the Funds’ investments denominated in that currency will
lose value because its currency is worth fewer US dollars; the opposite
effect occurs if the US dollar falls in relative value.
The Funds report foreign currency related transactions as components of
realized gain (loss) for financial reporting purposes, whereas such compo-
nents are treated as ordinary income for federal income tax purposes.
ANNUAL REPORT
JUNE 30, 2010
45
Notes to Financial Statements (continued)
Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the SEC require that the Funds either deliver collat-
eral or segregate assets in connection with certain investments (e.g., for-
eign currency exchange contracts), the Funds will, consistent with SEC rules
and/or certain interpretive letters issued by the SEC, segregate collateral
or designate on their books and records cash or other liquid securities hav-
ing a market value at least equal to the amount that would otherwise be
required to be physically segregated. Furthermore, based on requirements
and agreements with certain exchanges and third party broker-dealers,
each party has requirements to deliver/deposit securities as collateral
for certain investments.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses
on investment transactions are determined on the identified cost basis.
Dividend income is recorded on the ex-dividend dates. Dividends from
foreign securities where the ex-dividend date may have passed are subse-
quently recorded when the Funds have determined the ex-dividend date.
Under the applicable foreign tax laws, a withholding tax at various rates
may be imposed on capital gains, dividends and interest. Interest income,
including amortization of premium and accretion of discount on debt secu-
rities, is recognized on the accrual basis. Income and realized and unreal-
ized gains and losses are allocated daily to each class based on its relative
net assets.
Dividends and Distributions: Dividends and distributions paid by the Funds
are recorded on the ex-dividend dates. The amount and timing of dividends
and distributions are determined in accordance with federal income tax
regulations, which may differ from US GAAP.
Securities Lending: The Funds may lend securities to financial institutions
that provide cash as collateral, which will be maintained at all times in an
amount equal to at least 100% of the current market value of the loaned
securities. The market value of the loaned securities is determined at the
close of business of the Funds and any additional required collateral is
delivered to the Funds on the next business day. Securities lending income,
as disclosed in the Statements of Operations, represents the income
earned from the investment of the cash collateral, net of rebates paid to,
or fees paid by, borrowers and less the fees paid to the securities lending
agent. 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. In the event that the
borrower defaults on its obligation to return borrowed securities because
of insolvency or for any other reason, the Funds could experience delays
and costs in gaining access to the collateral. The Funds also could suffer
a loss if the value of an investment purchased with cash collateral falls
below the market value of loaned securities or if the value of an investment
purchased with cash collateral falls below the value of the original cash
collateral received.
Income Taxes: It is each Fund’s policy to comply with the requirements
of the Internal Revenue Code of 1986, as amended, applicable to
regulated investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no federal income tax
provision is required.
Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Funds’ US federal tax returns remains open for each of the
four years ended June 30, 2010 for Global SmallCap and International
Value and the periods ended July 31, 2007, June 30, 2008, June 30,
2009 and June 30, 2010 for Focus Value and the periods ended October
31, 2007, June 30, 2008, June 30, 2009, and June 30, 2010 for
EuroFund. The statutes of limitations on the Funds’ state and local tax
returns may remain open for an additional year depending upon the juris-
diction. There are no uncertain tax positions that require recognition of a
tax liability.
Proceeds from Regulatory Settlement: During the year ended June 30,
2010, as a result of a settlement of an administrative proceeding brought
by the SEC against an unaffiliated third party relating to market timing
and/or late trading of mutual funds, International Value received $768,948,
which represented International Value’s portion of the proceeds from the
settlement. The proceeds received by International Value were recorded
as an increase to paid-in capital.
Other: Expenses directly related to each Fund or its classes are charged to
that Fund or class. Other operating expenses shared by several funds are
pro rated among those funds on the basis of relative net assets or other
appropriate methods. Other expenses of the Fund are allocated daily to
each class based on its relative net assets.
2. Derivative Financial Instruments:
The Funds engage in various portfolio investment strategies using derivative
contracts both to increase the returns of the Funds and to economically
hedge, or protect, their exposure to certain risks such as foreign currency
exchange rate risk. These contracts may be transacted on an exchange
or OTC.
Losses may arise if the value of the contract decreases due to an unfavor-
able change in the market rates or values of the underlying instrument or if
the counterparty does not perform under the contract. The Funds’ maximum
risk of loss from counterparty credit risk on OTC derivatives is generally the
aggregate unrealized gain netted against any collateral pledged by/posted
to the counterparty.
The Funds may mitigate counterparty risk by procuring collateral and
through netting provisions included within an International Swaps and
Derivatives Association, Inc. (“ISDA”) Master Agreement implemented
between a Fund and each of its respective counterparties. The ISDA Master
Agreement allows the Fund to offset with each separate counterparty
certain derivative financial instrument’s payables and/or receivables with
collateral held. The amount of collateral moved to/from applicable counter-
parties is generally based upon minimum transfer amounts of up to
$500,000. To the extent amounts due to the Funds from its counterparties
are not fully collateralized contractually or otherwise, the Funds bears the
risk of loss from counterparty non-performance. See Note 1 “Segregation
and Collateralization” for information with respect to collateral practices. In
addition, the Funds manage counterparty risk by entering into agreements
only with counterparties that it believes have the financial resources to
honor their obligations and by monitoring the financial stability of
those counterparties.
46 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (continued)
Certain ISDA Master Agreements allow counterparties of OTC derivatives to
terminate derivative contracts prior to maturity in the event the Funds’ net
assets decline by a stated percentage or the Funds fails to meet the terms
of its ISDA Master Agreements, which would cause the Funds to accelerate
payment of any net liability owed to the counterparty.
Foreign Currency Exchange Contracts: The Funds enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio instruments or to gain exposure to foreign curren-
cies (foreign currency exchange rate risk). A foreign currency exchange
contract is an agreement between two parties to buy and sell a currency at
a set exchange rate on a future date. Foreign currency exchange contracts,
when used by the Funds, help to manage the overall exposure to the cur-
rency backing some of the investments held by the Funds. The contract is
marked-to-market daily and the change in market value is recorded by the
Funds as an unrealized gain or loss. When the contract is closed, the Funds
record a realized gain or loss equal to the difference between the value at
the time it was opened and the value at the time it was closed. The use of
foreign currency exchange contracts involves the risk that the value of a for-
eign currency contract changes unfavorably due to movements in the value
of the referenced foreign currencies and the risk that a counterparty to the
contract does not perform its obligations under the agreement.
Derivative Instruments Categorized by Risk Exposure:
| Fair Values of Derivative Instruments as of June 30, 2010 | ||||
| Asset Derivatives | ||||
| Statements of Assets | Global | |||
| and Liabilities | SmallCap | International | ||
| Location | EuroFund | Fund | Value Fund | |
| Unrealized appreciation | ||||
| Foreign currency | on foreign currency | |||
| exchange contracts | exchange contracts | $34,239 | $27,929 | $22,616 |
| Liability Derivatives | ||||
| Statements of Assets | Global | |||
| and Liabilities | SmallCap | International | ||
| Location | EuroFund | Fund | Value Fund | |
| Unrealized depreciation | ||||
| Foreign currency | on foreign currency | |||
| exchange contracts | exchange contracts | $ 4,458 | $ 2,314 | $56,306 |
The Effect of Derivative Instruments on the Statements of Operations
Year Ended June 30, 2010
| Net Realized Gain (Loss) from | |||
| Global | |||
| SmallCap International | |||
| EuroFund | Fund | Value Fund | |
| Foreign currency | |||
| transactions | $ (116,740) | $ 90,484 $(5,172,896) | |
| Net Change in Unrealized Appreciation/Depreciation on | |||
| Global | |||
| SmallCap International | |||
| EuroFund | Fund | Value Fund | |
| Foreign currency | |||
| transactions | $(1,679,282) | $ 21,292 $ | (416,133) |
For the year ended June 30, 2010, the average quarterly balance of out-
standing derivative financial instruments were as follows:
| Global | |||
| SmallCap | International | ||
| EuroFund | Fund | Value Fund | |
| Foreign currency exchange contracts: | |||
| Average number of | |||
| contracts purchased | 4 | 13 | 6 |
| Average number of | |||
| contracts sold | 2 | 7 | 2 |
| Average US dollar amount | $ 43,600,924 | $ 5,794,874 | $ 54,121,738 |
| Average US dollar amount | $ 41,585,293 | $ 2,768,552 | $ 62,312,814 |
3. Investment Advisory Agreement and Other Transactions
with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”), Bank of America
Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest
stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership
structure, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC
and Barclays are not.
Each Fund entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect,
wholly owned subsidiary of BlackRock, to provide investment advisory and
administration services. The Manager is responsible for the management
of each Fund’s portfolio and provides the necessary personnel, facilities,
equipment and certain other services necessary to the operations of each
Fund. For such services, each Fund pays the Manager a monthly fee at the
annual rates set forth below, of each Fund’s average daily net assets.
| EuroFund | 0.75% |
| Focus Value | 1.00% |
| Global SmallCap | 0.85% |
| International Value | |
| Portfolio of Average Daily Value of Net Assets | Rate |
| Not exceeding $2 billion | 0.75% |
| In excess of $2 billion, but not exceeding $4 billion | 0.70% |
| In excess of $4 billion | 0.65% |
The Manager contractually agreed to waive 0.25% of Focus Value’s
investment advisory fees until November 1, 2010. The contractual waiver
may be terminated upon 90 day’s notice by a majority of the non-inter-
ested directors of the Fund or by a vote of a majority of the outstanding
voting securites of the Fund. For the year ended June 30, 2010, the
Manager waived $419,722, which is included in fees waived by advisor in
the Statements of Operations.
The Manager voluntarily agreed to waive its advisory fees by the amount
of investment advisory fees each Fund pays to the Manager indirectly
through its investment in affiliated money market funds, however the
Manager does not waive its advisory fees by the amount of investment
advisory fees paid through its investment in other affiliated investment
companies, if any. This amount is shown as, or included in, fees waived by
advisor in the Statements of Operations.
| EuroFund | $ 5,666 |
| Focus Value | $ 2,369 |
| Global SmallCap | $ 18,240 |
| International Value | $ 11,177 |
ANNUAL REPORT
JUNE 30, 2010
47
Notes to Financial Statements (continued)
The Manager reimbursed EuroFund $111,300 for net losses associated
with certain investment transactions executed in December 2009.
The Manager, on behalf of EuroFund, entered into a sub-advisory agree-
ment with BlackRock Investment Management, LLC (“BIM”) and BlackRock
International Ltd., both affiliates of the Manager. The Manager pays each
sub-advisor for services it provides, a monthly fee that is a percentage of
the investment advisory fees paid by the Fund to the Manager.
The Manager, on behalf of Focus Value and Global SmallCap, entered into
a sub-advisory agreement with BIM. The Manager pays the sub-advisor for
services it provides, a monthly fee that is a percentage of the investment
advisory fees paid by each Fund to the Manager.
The Manager, on behalf of International Value, entered into a sub-advisory
agreement with BlackRock International Ltd., an affiliate of the Manager.
The Manager pays the sub-advisor for services it provides, a monthly fee
that is a percentage of the investment advisory fees paid by each Fund to
the Manager.
For the year ended June 30, 2010, each Fund reimbursed the Manager
for certain accounting services, which are included in accounting services
in the Statements of Operations. The reimbursements were as follows:
| Reimbursement | |
| EuroFund | $ 8,528 |
| Focus Value | $ 3,313 |
| Global SmallCap | $ 19,382 |
| International Value | $ 19,931 |
The Funds received an exemptive order from the SEC permitting, among
other things, to pay an affiliated securities lending agent a fee based on a
share of the income derived from the securities lending activities and has
retained BIM as the securities lending agent. BIM may, on behalf of the
Funds, invest cash collateral received by the Funds for such loans, among
other things, in a private investment company managed by the Manager or
in registered money market funds advised by the Manager or its affiliates.
The share of income earned by the Funds on such investments is shown
as securities lending — affiliated in the Statements of Operations. For the
year ended June 30, 2010, BIM received securities lending agent fees
as follows:
| Focus Value | $ 1,956 |
| Global SmallCap | $ 23,913 |
The Funds entered into a Distribution Agreement and Distribution Plan with
BlackRock Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to
the Distribution Plan and in accordance with Rule 12b-1 under the 1940
Act, each Fund pay BRIL ongoing service and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the average
daily net assets of the shares of Funds, as follows:
| Service | Distribution | |
| Fee | Fee | |
| Investor A | 0.25% | — |
| Investor B | 0.25% | 0.75% |
| Investor C | 0.25% | 0.75% |
| Class R | 0.25% | 0.25% |
Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide
shareholder servicing and distribution services to each Fund. The ongoing
service and/or distribution fee compensates BRIL and each broker-dealer
for providing shareholder servicing and/or distribution related services to
Investor A, Investor B, Investor C and Class R shareholders.
For the year ended June 30, 2010, affiliates earned underwriting discounts,
direct commissions and dealer concessions on sales of the Funds’ Investor
A Shares as follows:
| Investor A | |
| EuroFund | $ 2,075 |
| Focus Value | $ 1,793 |
| Global SmallCap | $ 33,719 |
| International Value | $ 9,607 |
| For the year ended June 30, 2010, affiliates received the following | ||
| contingent deferred sales charges relating to transactions in Investor B | ||
| and Investor C Shares. | ||
| Investor B | Investor C | |
| EuroFund | $ 6,085 | $ 1,892 |
| Focus Value | $ 3,199 | $ 480 |
| Global SmallCap | $34,858 | $23,913 |
| International Value | $14,492 | $ 7,107 |
Furthermore, affiliates received contingent deferred sale charges relating to
transactions subject to front-end sales charge waivers as follows:
| Investor A | |
| EuroFund | $ 104 |
| Global SmallCap | $ 647 |
| International Value | $ 508 |
PNC Global Investment Servicing (U.S.) Inc. (“PNCGIS”), an indirect, wholly
owned subsidiary of PNC and an affiliate of the Manager, serves as transfer
agent and dividend disbursing agent. Effective July 1, 2010, PNCGIS was
sold to The Bank of New York Mellon Corporation and is no longer consid-
ered an affiliate of the Administrator. At the close of the sale, PNCGIS
changed its name to BNY Mellon Investment Servicing (US) Inc. Transfer
agency fees borne by the Funds are comprised of those fees charged for
all shareholder communications including mailing of shareholder reports,
dividend and distribution notices, and proxy materials for shareholder
meetings, as well as per account and per transaction fees related to
servicing and maintenance of shareholder accounts, including the issuing,
redeeming and transferring of shares, check writing, anti-money laundering
services, and customer identification services.
Pursuant to written agreements, certain affiliates provide the Funds with
sub-accounting, recordkeeping, sub-transfer agency and other administra-
tive services with respect to sub-accounts they service. For these services,
these affiliates receive an annual fee per shareholder account which will
vary depending on share class. For the year ended June 30, 2010, the
following Funds paid the following in return for these services which is
included in transfer agent — class specific in the Statements of Operations:
| Global SmallCap | $ 310 |
| International Value | $ 63 |
48 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (continued)
The Manager maintains a call center, which is responsible for providing cer-
tain shareholder services to the Funds, such as responding to shareholder
inquiries and processing transactions based upon instructions from share-
holders with respect to the subscription and redemption of Fund shares.
For the year ended June 30, 2010, the Funds reimbursed the Manager the
following amounts for costs incurred in running the call center, which are
included in transfer agent — class specific in the Statements of Operations.
| Focus | Global | International | ||
| EuroFund | Value | SmallCap | Value | |
| Institutional | $4,062 | $1,396 | $2,571 | $6,150 |
| Investor A | $5,426 | $1,490 | $7,159 | $3,621 |
| Investor B | $ 423 | $ 145 | $1,259 | $ 669 |
| Investor C | $ 745 | $ 343 | $7,580 | $3,098 |
| Class R | $ 33 | $ 10 | $ 437 | $ 455 |
Certain officers and/or directors of the Funds are officers and/or directors
of BlackRock or its affiliates. The Funds reimburses the Manager for com-
pensation paid to the Funds’ Chief Compliance Officer.
4. Investments:
Purchases and sales, excluding short-term securities for the year ended
June 30, 2010, were as follows:
| Purchases | Sales | |
| EuroFund | $ 645,415,955 | $ 719,497,490 |
| Focus Value | $ 99,248,755 | $ 126,742,162 |
| Global SmallCap | $ 707,380,203 | $ 694,300,707 |
| International Value | $1,479,308,576 | $1,608,613,538 |
| 5. Borrowings: |
The Funds, along with certain other funds managed by the Manager and
its affiliates, is a party to a $500 million credit agreement with a group of
lenders, which was renewed until November 2010. The Funds may borrow
under the credit agreement to fund shareholder redemptions. The Fund
paid its pro rata share of 0.02% upfront fee on the aggregate commitment
amount which was allocated to each Fund based on its net assets as of
October 31, 2009, a commitment fee of 0.10% per annum based on each
Fund’s pro rata share of the unused portion of the credit agreement, which
included in miscellaneous in the Statement of Operations and interest at
a rate equal to the higher of (a) the one-month LIBOR plus 1.25% per
annum and (b) the Fed Funds rate plus 1.25% per annum on amounts
borrowed. The Funds did not borrow under the credit agreement during the
year ended June 30, 2010.
6. Income Tax Information:
Reclassifications: US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax report-
ing. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of June 30,2010 attributable
to the classification of settlement proceeds, foreign currency transactions, the sale of stock of passive foreign investment companies, and the expiration of
capital loss carryforwards were reclassified to the following accounts:
| Global | International | |||||
| EuroFund | SmallCap | Value | ||||
| Paid-in capital | — | $ (44,593) | $ (11,705,335) | |||
| Undistributed/accumulated (distributions in excess of) net investment income (loss) | $ 678,833 | 4,042,396 | (5,245,247) | |||
| Accumulated net realized loss | (678,833) | (3,997,803) | 16,950,582 | |||
| The tax character of distributions paid during fiscal year ended June 30, 2010 and fiscal year ended June 30, 2009 was as follows: | ||||||
| Global | International | |||||
| EuroFund | Focus Value | SmallCap | Value | |||
| Ordinary income | 6/30/2010 | $ 13,576,091 | $ 1,800,023 | — | $ 23,682,869 | |
| 6/30/2009 | 14,229,241 | 2,569,405 | $ 2,933,937 | 23,535,982 | ||
| Long-term capital gains | 6/30/2009 | $ 27,837,270 | — | $ 94,879,655 | $ 14,864,493 | |
| Total | 6/30/2010 | $ 13,576,091 | $ 1,800,023 | — | $ 23,682,869 | |
| 6/30/2009 | $ 42,066,511 | $ 2,569,405 | $ 97,813,592 | $ 38,400,475 | ||
| As of June 30, 2010, the tax components of accumulated net losses were as follows: | ||||||
| Global | International | |||||
| EuroFund | Focus Value | SmallCap | Value | |||
| Undistributed ordinary income | $ 5,411,749 | $ 1,071,008 | $ 4,773,270 | $ 795,900 | ||
| Capital loss carryforwards | (153,789,236) | (57,767,123) | (172,003,492) | (345,956,017) | ||
| Net unrealized gains (losses)* | (39,477,990) | 8,855,429 | 32,654,171 | (81,992,143) | ||
| Total | $(187,855,477) | $(47,840,686) | $(134,576,051) | $(427,152,260) | ||
* The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses
on straddles, the realization for tax purposes of unrealized gains/losses on certain foreign currency contracts, the deferral of post-October capital losses for tax purposes, the
timing and recognition of partnership income, the realization for tax purposes of unrealized gain on investments in passive foreign investment companies and the classification
of investments.
ANNUAL REPORT
JUNE 30, 2010
49
Notes to Financial Statements (continued)
As of June 30, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:
| Global | International | |||
| Expires June 30, | EuroFund | Focus Value | SmallCap | Value |
| 2017 | $ 67,839,175 | $ 14,541,173 | $ 45,917,435 | $ 226,455,864 |
| 2018 | 85,950,061 | 43,225,950 | 126,086,057 | 119,500,153 |
| Total | $ 153,789,236 | $ 57,767,123 | $ 172,003,492 | $ 345,956,017 |
7. Concentration, Market and Credit Risk:
In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (issuer
credit risk). The value of securities held by the Fund may decline in
response to certain events, including those directly involving the issuers
whose securities are owned by the Funds; conditions affecting the general
economy; overall market changes; local, regional or global political, social
or economic instability; and currency and interest rate and price fluctua-
tions. Similar to issuer credit risk, the Funds may be exposed to counter-
party credit risk, or the risk that an entity with which the Funds have
unsettled or open transactions may fail to or be unable to perform on its
commitments. The Funds manage counterparty credit risk by entering into
transactions only with counterparties that it believes have the financial
resources to honor their obligations and by monitoring the financial stability
of those counterparties. Financial assets, which potentially expose the
Funds to market, issuer and counterparty credit risks, consist principally
of financial instruments and receivables due from counterparties. The
extent of the Funds’ exposure to market, issuer and counterparty credit
risks with respect to these financial assets is generally approximated by
their value recorded in the Funds’ Statements of Assets and Liabilities, less
any collateral held by the Fund.
EuroFund, Global SmallCap and International Value
The Funds invest a substantial amount of its assets in issuers located in a
single country or a limited number of countries. When the Funds concen-
trate their investments in this manner, they assume the risk that economic,
political and social conditions in those countries may have a significant
impact on their investment performance. Please see the Schedules of
Investments for concentrations in specific countries.
As of June 30, 2010, the Funds had the following industry classifications
as a percent of long-term investments:
| Global International | |||
| Industry | EuroFund SmallCap | Value | |
| Software | — | 6% | — |
| Semiconductors & Semiconductor Equipment | — | 6 | — |
| Pharmaceuticals | 10% | — | 9% |
| Commercial Banks | 17 | — | 14 |
| Oil, Gas & Consumable Fuels | 10 | — | 10 |
| Diversified Telecommunication Services | 6 | — | 5 |
| Construction & Engineering | 5 | — | — |
| Food Products | 5 | — | — |
| Metals & Mining | 5 | 5 | 5 |
| Machinery | — | 6 | — |
| Other* | 42 | 77 | 57 |
* All other industries held were each less than 5% of long-term investments.
8. Capital Share Transactions:
| Year Ended June 30, | ||||
| 2010 | 2009 | |||
| EuroFund | Shares | Amount | Shares | Amount |
| Institutional | ||||
| Shares sold | 864,251 | $ 10,721,971 | 1,460,138 | $ 16,161,353 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 314,699 | 4,091,816 | 1,293,422 | 12,259,844 |
| Total issued | 1,178,950 | 14,813,787 | 2,753,560 | 28,421,197 |
| Shares redeemed | (3,950,409) | (45,897,216) | (5,379,100) | (64,289,598) |
| Net decrease | (2,771,459) | $(31,083,429) | (2,625,540) | $(35,868,401) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 1,230,158 | $ 15,151,813 | 1,197,790 | $ 13,360,632 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 502,630 | 6,424,367 | 2,088,623 | 19,462,176 |
| Total issued | 1,732,788 | 21,576,180 | 3,286,413 | 32,822,808 |
| Shares redeemed | (4,149,446) | (50,094,831) | (6,326,059) | (70,869,488) |
| Net decrease | (2,416,658) | $(28,518,651) | (3,039,646) | $(38,046,680) |
50 ANNUAL REPORT JUNE 30, 2010
| Notes to Financial Statements (continued) | ||||
| Year Ended June 30, | ||||
| 2010 | 2009 | |||
| EuroFund (continued) | Shares | Amount | Shares | Amount |
| Investor B | ||||
| Shares sold | 39,404 | $ 398,064 | 82,038 | $ 755,014 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 3,894 | 41,240 | 94,383 | 724,752 |
| Total issued | 43,298 | 439,304 | 176,421 | 1,479,766 |
| Shares redeemed and automatic conversion of shares | (289,078) | (2,927,261) | (947,583) | (9,096,353) |
| Net decrease | (245,780) | $ (2,487,957) | (771,162) | $ (7,616,587) |
| Investor C | ||||
| Shares sold | 282,943 | $ 2,546,749 | 216,658 | $ 1,873,508 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 87,606 | 829,683 | 432,215 | 3,021,002 |
| Total issued | 370,549 | 3,376,432 | 648,873 | 4,894,510 |
| Shares redeemed | (852,938) | (7,554,574) | (1,543,650) | (13,823,844) |
| Net decrease | (482,389) | $ (4,178,142) | (894,777) | $ (8,929,334) |
| Class R | ||||
| Shares sold | 122,331 | $ 1,186,904 | 169,661 | $ 1,453,868 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 9,535 | 96,018 | 36,290 | 269,269 |
| Total issued | 131,866 | 1,282,922 | 205,951 | 1,723,137 |
| Shares redeemed | (199,381) | (1,933,350) | (143,682) | (1,382,568) |
| Net increase (decrease) | (67,515) | $ (650,428) | 62,269 | $ 340,569 |
| Focus Value | ||||
| Institutional | ||||
| Shares sold | 573,048 | $ 5,573,629 | 566,599 | $ 4,647,742 |
| Shares issued to shareholders in reinvestment of dividends | 98,151 | 966,840 | 199,496 | 1,383,010 |
| Total issued | 671,199 | 6,540,469 | 766,095 | 6,030,752 |
| Shares redeemed | (2,778,849) | (26,874,826) | (2,123,841) | (17,029,977) |
| Net decrease | (2,107,650) | $(20,334,357) | (1,357,746) | $(10,999,225) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 647,308 | $ 6,326,110 | 724,912 | $ 5,818,854 |
| Shares issued to shareholders in reinvestment of dividends | 58,383 | 569,259 | 118,787 | 813,292 |
| Total issued | 705,691 | 6,895,369 | 843,699 | 6,632,146 |
| Shares redeemed | (1,096,909) | (10,759,700) | (2,797,520) | (23,449,242) |
| Net decrease | (391,218) | $(3,864,331) | (1,953,821) | $(16,817,096) |
| Investor B | ||||
| Shares sold | 17,245 | $ 146,385 | 47,233 | $ 336,478 |
| Shares issued to shareholders in reinvestment of dividends | 319 | 2,800 | 3,135 | 18,519 |
| Total issued | 17,564 | 149,185 | 50,368 | 354,997 |
| Shares redeemed and automatic conversion of shares | (328,306) | (2,902,015) | (480,808) | (3,501,802) |
| Net decrease | (310,742) | $ (2,752,830) | (430,440) | $ (3,146,805) |
| Investor C | ||||
| Shares sold | 226,077 | $ 1,876,927 | 176,248 | $ 1,235,902 |
| Shares issued to shareholders in reinvestment of dividends | 5,501 | 46,430 | 12,076 | 70,342 |
| Total issued | 231,578 | 1,923,357 | 188,324 | 1,306,244 |
| Shares redeemed | (443,651) | (3,807,264) | (515,587) | (3,589,847) |
| Net decrease | (212,073) | $ (1,883,907) | (327,263) | $ (2,283,603) |
ANNUAL REPORT
JUNE 30, 2010
51
| Notes to Financial Statements (continued) | ||||
| Year Ended June 30, | ||||
| 2010 | 2009 | |||
| Focus Value (continued) | Shares | Amount | Shares | Amount |
| Class R | ||||
| Shares sold | 28,000 | $ 248,492 | 49,745 | $ 355,793 |
| Shares issued to shareholders in reinvestment of dividends | 463 | 4,122 | 850 | 5,274 |
| Total issued | 28,463 | 252,614 | 50,595 | 361,067 |
| Shares redeemed | (19,565) | (171,012) | (28,734) | (203,555) |
| Net increase | 8,898 | $ 81,602 | 21,861 | $ 157,512 |
| Global SmallCap | ||||
| Institutional | ||||
| Shares sold | 6,136,279 | $118,722,072 | 4,485,041 | $ 72,524,824 |
| Shares issued to shareholders in reinvestment of dividends and distributions | — | — | 1,292,842 | 25,210,490 |
| Total issued | 6,136,279 | 118,722,072 | 5,777,883 | 97,735,314 |
| Shares redeemed | (3,831,606) | (73,495,863) | (6,620,223) | (104,409,249) |
| Net increase (decrease) | 2,304,673 | $ 45,226,209 | (842,340) | $ (6,673,935) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 3,978,681 | $ 75,186,517 | 3,977,126 | $ 63,620,067 |
| Shares issued to shareholders in reinvestment of dividends and distributions | — | — | 1,164,477 | 22,369,622 |
| Total issued | 3,978,681 | 75,186,517 | 5,141,603 | 85,989,689 |
| Shares redeemed | (3,493,869) | (65,870,679) | (4,598,347) | (72,698,891) |
| Net increase | 484,812 | $ 9,315,838 | 543,256 | $ 13,290,798 |
| Investor B | ||||
| Shares sold | 129,206 | $ 2,273,237 | 298,014 | $ 4,544,670 |
| Shares issued to shareholders in reinvestment of dividends and distributions | — | — | 311,301 | 5,727,939 |
| Total issued | 129,206 | 2,273,237 | 609,315 | 10,272,609 |
| Shares redeemed and automatic conversion of shares | (1,146,748) | (20,494,205) | (1,888,307) | (28,758,559) |
| Net decrease | (1,017,542) | $ (18,220,968) | (1,278,992) | $ (18,485,950) |
| Investor C | ||||
| Shares sold | 3,180,506 | $ 55,171,854 | 3,798,162 | $ 55,245,824 |
| Shares issued to shareholders in reinvestment of dividends and distributions | — | — | 1,806,330 | 32,279,164 |
| Total issued | 3,180,506 | 55,171,854 | 5,604,492 | 87,524,988 |
| Shares redeemed | (4,499,745) | (77,966,157) | (7,328,338) | (106,128,519) |
| Net decrease | (1,319,239) | $ (22,794,303) | (1,723,846) | $ (18,603,531) |
| Class R | ||||
| Shares sold | 960,385 | $ 17,320,556 | 1,004,661 | $ 15,560,191 |
| Shares issued to shareholders in reinvestment of dividends and distributions | — | — | 195,376 | 3,600,783 |
| Total issued | 960,385 | 17,320,556 | 1,200,037 | 19,160,974 |
| Shares redeemed | (925,449) | (16,434,097) | (985,343) | (14,497,265) |
| Net increase | 34,936 | $ 886,459 | 214,694 | $ 4,663,709 |
52 ANNUAL REPORT
JUNE 30, 2010
| Notes to Financial Statements (concluded) | ||||
| Year Ended June 30, | ||||
| 2010 | 2009 | |||
| International Value | Shares | Amount | Shares | Amount |
| Institutional | ||||
| Shares sold | 4,216,370 | $ 83,023,378 | 5,816,862 | $ 95,634,573 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 660,817 | 13,562,794 | 936,953 | 19,345,513 |
| Total issued | 4,877,187 | 96,586,172 | 6,753,815 | 114,980,086 |
| Shares redeemed | (8,093,784) | (157,966,063) | (19,026,770) | (354,195,904) |
| Net decrease | (3,216,597) | $ (61,379,891) | (12,272,955) | $(239,215,818) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 2,013,939 | $ 39,367,834 | 3,434,693 | $ 59,848,115 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 267,115 | 5,451,912 | 344,649 | 7,089,290 |
| Total issued | 2,281,054 | 44,819,746 | 3,779,342 | 66,937,405 |
| Shares redeemed | (3,067,038) | (60,639,619) | (3,756,287) | (63,233,969) |
| Net increase (decrease) | (785,984) | $ (15,819,873) | 23,055 | $ 3,703,436 |
| Investor B | ||||
| Shares sold | 415,953 | $ 7,992,241 | 644,754 | $ 10,792,856 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 17,376 | 347,017 | 48,841 | 984,615 |
| Total issued | 433,329 | 8,339,258 | 693,595 | 11,777,471 |
| Shares redeemed and automatic conversion of shares | (801,265) | (15,419,130) | (1,251,145) | (21,002,550) |
| Net decrease | (367,936) | $ (7,079,872) | (557,550) | $ (9,225,079) |
| Investor C | ||||
| Shares sold | 2,248,152 | $ 42,381,360 | 3,410,251 | $ 55,856,558 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 116,442 | 2,285,844 | 228,224 | 4,534,691 |
| Total issued | 2,364,594 | 44,667,204 | 3,638,475 | 60,391,249 |
| Shares redeemed | (3,112,800) | (58,867,895) | (4,559,171) | (74,845,775) |
| Net decrease | (748,206) | $ (14,200,691) | (920,696) | $ (14,454,526) |
| Class R | ||||
| Shares sold | 962,520 | $ 18,827,640 | 1,348,323 | $ 23,691,262 |
| Shares issued to shareholders in reinvestment of dividends and distributions | 51,204 | 1,032,783 | 79,855 | 1,625,856 |
| Total issued | 1,013,724 | 19,860,423 | 1,428,178 | 25,317,118 |
| Shares redeemed | (1,172,605) | (22,993,969) | (1,596,470) | (26,676,075) |
| Net decrease | (158,881) | $ (3,133,546) | (168,292) | $ (1,358,957) |
There is a 2% redemption fee on shares redeemed or exchanged that have been held for 30 days or less for each Fund (except Focus Value). The
redemption fees are collected and retained by each Fund for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to
paid-in-capital.
9. Subsequent Events:
Management has evaluated the impact of all subsequent events on each Fund through the date the financial statements were issued and has determined
that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
ANNUAL REPORT
JUNE 30, 2010
53
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors/Trustees
BlackRock EuroFund, BlackRock Focus Value Fund, Inc.
BlackRock Global SmallCap Fund, Inc. and BlackRock
International Value Fund of BlackRock International Value
Trust (collectively, the “Funds”):
We have audited the accompanying statements of assets and liabilities of
BlackRock EuroFund, BlackRock Focus Value Fund, Inc., BlackRock Global
SmallCap Fund, Inc. and BlackRock International Value Fund, one of the
funds constituting BlackRock International Value Trust, including the sched-
ules of investments, as of June 30, 2010, and the related statements of
operations for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended, and the financial
highlights of BlackRock EuroFund, BlackRock Focus Value Fund, Inc., and
BlackRock Global SmallCap Fund, Inc. for the respective periods presented
and the financial highlights for BlackRock International Value Fund for each
of the four years in the period then ended. These financial statements and
financial highlights are the responsibility of the Funds’ management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights of
BlackRock International Value Fund for the period ended June 30, 2006
were audited by other auditors whose report, dated August 9, 2006,
expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of
material misstatement. The Funds are not required to have, nor were we
engaged to perform, audits of their internal controls over financial reporting
as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Funds’ internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall
financial statement presentation. Our procedures included confirmation
of securities owned as of June 30, 2010, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
BlackRock EuroFund, BlackRock Focus Value Fund, Inc., BlackRock Global
SmallCap Fund, Inc., and BlackRock International Value Fund of BlackRock
International Value Trust as of June 30, 2010, the results of their opera-
tions for the year then ended, the changes in their net assets for each of
the two years in the period then ended, and the financial highlights of
BlackRock EuroFund, BlackRock Focus Value Fund, Inc., and BlackRock
Global SmallCap Fund, Inc. for the respective periods presented and the
financial highlights for BlackRock International Value Fund for each of the
four years in the period then ended in conformity with accounting princi-
ples generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
August 26, 2010
Important Tax Information (Unaudited)
The following information is provided with respect to the ordinary income distributions paid during the fiscal year ended June 30, 2010:
| International | ||||
| Payable Date | EuroFund | Focus Value | Value | |
| Qualified Dividend Income for Individuals | 12/7/2009 | —† | 100% | 100%† |
| 12/15/2009 | 100%† | — | —†† | |
| Dividends Qualifying for the Dividend Received Deduction for Corporations | 12/7/2009 | —† | 100% | —†† |
| Foreign Source Income | 12/15/2009 | 91.90%†† | — | 89.79%† |
| Foreign Taxes Paid Per Share | 12/15/2009 | $0.051117† | — | $0.057266†† |
† Expressed as a percentage of the cash distribution grossed-up for foreign taxes.
The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an
offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment
of foreign taxes paid.
54 ANNUAL REPORT
JUNE 30, 2010
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
The Board of Trustees of BlackRock EuroFund (the “EuroFund”), the Board
of Directors of BlackRock Focus Value Fund, Inc. (the “Focus Value Fund”),
the Board of Directors of BlackRock Global SmallCap Fund, Inc. (the
“Global SmallCap Fund”) and the Board of Trustees of BlackRock
International Value Fund (the “International Value Fund,” along with the
EuroFund, the Focus Value Fund, and the Global SmallCap Fund, each a
“Fund,” and collectively, the “Funds”), a series of BlackRock International
Value Trust (the “International Value Trust,” along with the EuroFund, the
Focus Value Fund, and the Global SmallCap Fund, each a “Trust”), (collec-
tively, the “Board,” and the members of which are referred to as “Board
Members”) met on April 13, 2010 and May 11 — 12, 2010 to consider the
approval of the investment advisory agreement between each Trust (on
behalf of the International Value Fund for the International Value Trust)
(collectively, the “Advisory Agreements”) and BlackRock Advisors, LLC (the
“Manager”), each Fund’s investment advisor. The Board also considered
the approval of the sub-advisory agreements (collectively, the “Sub-Advisory
Agreements”) between the Manager and each of (a) BlackRock Investment
Management, LLC, and (b) BlackRock International Limited (collectively, the
“Sub-Advisors”) with respect to the Funds, as applicable. The Manager and
the Sub-Advisors are referred to herein as “BlackRock.” The Advisory
Agreements and the Sub-Advisory Agreements are referred to herein as
the “Agreements.”
Activities and Composition of the Board
The Board consists of fourteen individuals, eleven of whom are not “inter-
ested persons” of any Trust as defined in the Investment Company Act of
1940, as amended (the “1940 Act”) (the “Independent Board Members”).
The Board Members are responsible for the oversight of the operations of
the Funds and perform the various duties imposed on the directors of
investment companies by the 1940 Act. The Independent Board Members
have retained independent legal counsel to assist them in connection with
their duties. The Chairman of the Board is an Independent Board Member.
The Board has established five standing committees: an Audit Committee,
a Governance and Nominating Committee, a Compliance Committee, a
Performance Oversight Committee and an Executive Committee, each of
which is composed of Independent Board Members (except for the
Performance Oversight Committee and the Executive Committee, each
of which also has one interested Board Member) and is chaired by
Independent Board Members. The Board also has one ad hoc committee,
the Joint Product Pricing Committee, which consists of Independent Board
Members and directors/trustees of the boards of certain other BlackRock-
managed funds, who are not “interested persons” of their respective funds.
The Agreements
Pursuant to the 1940 Act, the Board is required to consider the continua-
tion of the Agreements on an annual basis. In connection with this process,
the Board assessed, among other things, the nature, scope and quality of
the services provided to each Fund by the personnel of BlackRock and its
affiliates, including investment management, administrative and share-
holder services, oversight of fund accounting and custody, marketing
services and assistance in meeting applicable legal and regulatory
requirements.
From time to time throughout the year, the Board, acting directly and
through its committees, considers at each of its meetings factors that are
relevant to its annual consideration of the renewal of the Agreements,
including the services and support provided by BlackRock to each Fund
and its shareholders. Among the matters the Board considered were: (a)
investment performance for one-, three- and five-year periods, as applica-
ble, against peer funds, and applicable benchmarks, if any, as well as
senior management and portfolio managers’ analysis of the reasons for
any over performance or underperformance against its peers and/or
benchmark, as applicable; (b) fees, including advisory, administration, if
applicable, and other amounts paid to BlackRock and its affiliates by each
Fund for services, such as transfer agency, marketing and distribution, call
center and fund accounting; (c) Fund operating expenses; (d) the
resources devoted to and compliance reports relating to each Fund’s
investment objective, policies and restrictions, (e) each Fund’s compliance
with its Code of Ethics and compliance policies and procedures; (f) the
nature, cost and character of non-investment management services pro-
vided by BlackRock and its affiliates; (g) BlackRock’s and other service
providers’ internal controls; (h) BlackRock’s implementation of the proxy
voting policies approved by the Board; (i) the use of brokerage commis-
sions and execution quality of portfolio transactions; (j) BlackRock’s imple-
mentation of each Fund’s valuation and liquidity procedures; (k) an
analysis of contractual and actual management fees for products with simi-
lar investment objectives across the open-end fund, closed-end fund and
institutional account product channels; and (l) periodic updates on
BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the April 13, 2010 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in a process with BlackRock to periodically review
the nature and scope of the information provided to better assist its delib-
erations. The materials provided in connection with the April meeting
included (a) information independently compiled and prepared by Lipper,
Inc. (“Lipper”) on Fund fees and expenses, and the investment perform-
ance of each Fund as compared with a peer group of funds as determined
by Lipper (collectively, “Peers”); (b) information on the profitability of the
Agreements to BlackRock and a discussion of fall-out benefits to
BlackRock and its affiliates and significant shareholders; (c) a general
analysis provided by BlackRock concerning investment advisory fees
charged to other clients, such as institutional clients and closed-end funds,
under similar investment mandates, as well as the performance of such
other clients, as applicable; (d) the impact of economies of scale; (e) a
summary of aggregate amounts paid by each Fund to BlackRock; (f) sales
and redemption data regarding each Fund’s shares; and (g) if applicable, a
ANNUAL REPORT
JUNE 30, 2010
55
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
comparison of management fees to similar BlackRock open-end funds, as
classified by Lipper.
At an in-person meeting held on April 13, 2010, the Board reviewed mate-
rials relating to its consideration of the Agreements. As a result of the dis-
cussions that occurred during the April 13, 2010 meeting, the Board
presented BlackRock with questions and requests for additional informa-
tion and BlackRock responded to these requests with additional written
information in advance of the May 11 — 12, 2010 Board meeting.
At an in-person meeting held on May 11 — 12, 2010, the Board, including
the Independent Board Members, unanimously approved the continuation
of the Advisory Agreements between the Manager and each Trust (on behalf
of the International Value Fund for the International Value Trust), and the
Sub-Advisory Agreements between the Manager and the Sub-Advisors with
respect to each Fund, as applicable, each for a one-year term ending June
30, 2011. In approving the continuation of the Agreements, the Board con-
sidered: (a) the nature, extent and quality of the services provided by
BlackRock; (b) the investment performance of each Fund and BlackRock;
(c) the advisory fee and the cost of the services and profits to be realized
by BlackRock and its affiliates from their relationship with each Fund; (d)
economies of scale; and (e) other factors deemed relevant by the
Board Members.
The Board also considered other matters it deemed important to the
approval process, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valuation
and pricing of Fund portfolio holdings, direct and indirect benefits to
BlackRock and its affiliates and significant shareholders from their relation-
ship with each Fund and advice from independent legal counsel with
respect to the review process and materials submitted for the Board’s
review. The Board noted the willingness of BlackRock personnel to engage
in open, candid discussions with the Board. The Board did not identify any
particular information as controlling, and each Board Member may have
attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock: The
Board, including the Independent Board Members, reviewed the nature,
extent and quality of services provided by BlackRock, including the invest-
ment advisory services and the resulting performance of each Fund.
Throughout the year, the Board compared Fund performance to the per-
formance of a comparable group of mutual funds, and the performance of
a relevant benchmark, if any. The Board met with BlackRock’s senior man-
agement personnel responsible for investment operations, including the
senior investment officers. The Board also reviewed the materials provided
by each Fund’s portfolio management team discussing Fund performance
and the Fund’s investment objective, strategies and outlook.
The Board considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and each
Fund’s portfolio management team, investments by portfolio managers
in the funds they manage, BlackRock’s portfolio trading capabilities,
BlackRock’s use of technology, BlackRock’s commitment to compliance
and BlackRock’s approach to training and retaining portfolio managers
and other research, advisory and management personnel. The Board also
reviewed a general description of BlackRock’s compensation structure with
respect to each Fund’s portfolio management team and BlackRock’s ability
to attract and retain high-quality talent.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to each
Fund. BlackRock and its affiliates and significant shareholders provide
each Fund with certain administrative, transfer agency, shareholder and
other services (in addition to any such services provided to a Fund by third
parties) and officers and other personnel as are necessary for the opera-
tions of the Fund. In addition to investment advisory services, BlackRock
and its affiliates provide each Fund with other services, including (i)
preparing disclosure documents, such as the prospectus, the statement of
additional information and periodic shareholder reports; (ii) assisting with
daily accounting and pricing; (iii) overseeing and coordinating the activities
of other service providers; (iv) organizing Board meetings and preparing the
materials for such Board meetings; (v) providing legal and compliance sup-
port; and (vi) performing other administrative functions necessary for the
operation of the Fund, such as tax reporting, fulfilling regulatory filing
requirements, and call center services. The Board reviewed the structure
and duties of BlackRock’s fund administration, accounting, legal and com-
pliance departments and considered BlackRock’s policies and procedures
for assuring compliance with applicable laws and regulations.
B. The Investment Performance of each Fund and BlackRock: The Board,
including the Independent Board Members, also reviewed and considered
the performance history of each Fund. In preparation for the April 13, 2010
meeting, the Board was provided with reports, independently prepared by
Lipper, which included a comprehensive analysis of each Fund’s perform-
ance. The Board also reviewed a narrative and statistical analysis of the
Lipper data that was prepared by BlackRock, which analyzed various fac-
tors that affect Lipper’s rankings. In connection with its review, the Board
received and reviewed information regarding the investment performance
of each Fund as compared to a representative group of similar funds as
determined by Lipper and to all funds in the Fund’s applicable Lipper
category. The Board was provided with a description of the methodology
used by Lipper to select peer funds. The Board regularly reviews the per-
formance of each Fund throughout the year. The Board attaches more
importance to performance over relatively long periods of time, typically
three to five years.
The Board noted that the EuroFund ranked in the second quartile against
its Lipper Performance Universe for each of the one-, three- and five-year
periods reported.
56 ANNUAL REPORT
JUNE 30, 2010
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
The Board noted that the Focus Value Fund ranked in the second quartile
against its Lipper Performance Universe for each of the one-, three- and
five-year periods reported.
The Board noted that the Global SmallCap Fund ranked in the third, first
and second quartiles against its Lipper Performance Universe for the one-,
three- and five-year periods reported, respectively.
The Board noted that the International Value Fund ranked in the second
quartile against its Lipper Performance Universe for each of the one-, three-
and five-year periods reported.
C. Consideration of the Advisory Fees and the Cost of the Services and
Profits to be Realized by BlackRock and its Affiliates from their
Relationship with each Fund: The Board, including the Independent Board
Members, reviewed each Fund’s contractual advisory fee rate compared
with the other funds in its Lipper category. It also compared each Fund’s
total expenses, as well as actual management fees, to those of other funds
in its Lipper category. The Board considered the services provided and the
fees charged by BlackRock to other types of clients with similar investment
mandates, including separately managed institutional accounts.
The Board received and reviewed statements relating to BlackRock’s finan-
cial condition and profitability with respect to the services it provided each
Fund. The Board was also provided with a profitability analysis that detailed
the revenues earned and the expenses incurred by BlackRock for services
provided to each Fund. The Board reviewed BlackRock’s profitability with
respect to each Fund and other funds the Board currently oversees for the
year ended December 31, 2009 compared to available aggregate prof-
itability data provided for the year ended December 31, 2008. The Board
reviewed BlackRock’s profitability with respect to other fund complexes
managed by the Manager and/or its affiliates. The Board reviewed
BlackRock’s assumptions and methodology of allocating expenses in the
profitability analysis, noting the inherent limitations in allocating costs
among various advisory products. The Board recognized that profitability
may be affected by numerous factors including, among other things, fee
waivers and expense reimbursements by the Manager, the types of funds
managed, expense allocations and business mix, and the difficulty of com-
paring profitability as a result of those factors.
The Board noted that, in general, individual fund or product line profitability
of other advisors is not publicly available. Nevertheless, to the extent such
information was available, the Board considered BlackRock’s operating
margin, in general, compared to the operating margin for leading invest-
ment management firms whose operations include advising open-end
funds, among other product types. That data indicates that operating mar-
gins for BlackRock with respect to its registered funds are generally consis-
tent with margins earned by similarly situated publicly traded competitors.
In addition, the Board considered, among other things, certain third party
data comparing BlackRock’s operating margin with that of other publicly-
traded asset management firms. That third party data indicates that larger
asset bases do not, in themselves, translate to higher profit margins.
In addition, the Board considered the cost of the services provided to each
Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the
management and distribution of each Fund and the other funds advised by
BlackRock and its affiliates. As part of its analysis, the Board reviewed
BlackRock’s methodology in allocating its costs to the management of
each Fund. The Board also considered whether BlackRock has the financial
resources necessary to attract and retain high quality investment manage-
ment personnel to perform its obligations under the Agreements and
to continue to provide the high quality of services that is expected by
the Board.
The Board noted that the EuroFund’s contractual advisory fee rate was
lower than or equal to the median contractual advisory fee rate paid by the
EuroFund's Peers, in each case, before taking into account any expense
reimbursements or fee waivers.
The Board noted that the Focus Value Fund’s contractual advisory fee rate
was above the median contractual advisory fee rate paid by the Focus
Value Fund’s Peers, in each case, before taking into account any expense
reimbursements or fee waivers. The Board also noted, however, that the
Focus Value Fund’s actual advisory fee rate, after giving effect to any
expense reimbursements or fee waivers by BlackRock, was lower than or
equal to the median actual advisory fee rate paid by the Focus Value
Fund’s Peers, after giving effect to any expense reimbursements or fee
waivers. Additionally, the Board noted that BlackRock has contractually
agreed to waive or reimburse management fees for the Focus Value Fund.
The Board noted that the Global SmallCap Fund’s contractual advisory fee
rate was above the median contractual advisory fee rate paid by the Global
SmallCap Fund’s Peers, in each case, before taking into account any
expense reimbursements or fee waivers. The Board also noted, however,
that the Global SmallCap Fund’s contractual advisory fee rate was reason-
able relative to the median contractual advisory fee rate paid by the Global
SmallCap Fund’s peers.
The Board noted that the International Value Fund’s contractual advisory
fee rate was lower than or equal to the median contractual advisory fee
rate paid by the International Value Fund's Peers, in each case, before tak-
ing into account any expense reimbursements or fee waivers. The Board
also noted that the International Value Fund has an advisory fee arrange-
ment that includes breakpoints that adjust the fee rate downward as the
size of the International Value Fund increases above certain contractually
specified levels.
D. Economies of Scale: The Board, including the Independent Board
Members, considered the extent to which economies of scale might be
ANNUAL REPORT
JUNE 30, 2010
57
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)
realized as the assets of each Fund increase. The Board also considered
the extent to which each Fund benefits from such economies and whether
there should be changes in the advisory fee rate or structure in order to
enable each Fund to participate in these economies of scale, for example
through the use of breakpoints or revised breakpoints, as applicable, in the
advisory fee based upon the asset level of each Fund.
E. Other Factors Deemed Relevant by the Board Members: The Board,
including the Independent Board Members, also took into account other
ancillary or “fall-out” benefits that BlackRock or its affiliates and significant
shareholders may derive from their respective relationships with each Fund,
both tangible and intangible, such as BlackRock’s ability to leverage its
investment professionals who manage other portfolios, an increase in
BlackRock’s profile in the investment advisory community, and the engage-
ment of BlackRock’s affiliates and significant shareholders as service
providers to the Fund, including for administrative, transfer agency and dis-
tribution services. The Board also considered BlackRock’s overall opera-
tions and its efforts to expand the scale of, and improve the quality of, its
operations. The Board also noted that BlackRock may use and benefit from
third party research obtained by soft dollars generated by certain mutual
fund transactions to assist in managing all or a number of its other client
accounts. The Board further noted that BlackRock completed the acquisi-
tion of a complex of exchange-traded funds (“ETFs”) on December 1,
2009, and that BlackRock’s funds may invest in such ETFs without any off-
set against the management fees payable by the funds to BlackRock.
In connection with its consideration of the Agreements, the Board also
received information regarding BlackRock’s brokerage and soft dollar prac-
tices. The Board received reports from BlackRock which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.
The Board noted the competitive nature of the open-end fund marketplace,
and that shareholders are able to redeem their Fund shares if they believe
that the Fund’s fees and expenses are too high or if they are dissatisfied
with the performance of the Fund.
Conclusion
The Board, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreements between the
Manager and each Trust (on behalf of the International Value Fund for the
International Value Trust) for a one-year term ending June 30, 2011 and
the Sub-Advisory Agreements between the Manager and the Sub-Advisors,
with respect to each Fund, as applicable, for a one-year term ending June
30, 2011. As part of its approval, the Board considered the detailed review
of BlackRock’s fee structure, as it applies to each Fund, being conducted
by the ad hoc Joint Product Pricing Committee. Based upon its evaluation
of all of the aforementioned factors in their totality, the Board, including
the Independent Board Members, was satisfied that the terms of the
Agreements were fair and reasonable and in the best interest of each Fund
and its shareholders. In arriving at a decision to approve the Agreements,
the Board did not identify any single factor or group of factors as all-impor-
tant or controlling, but considered all factors together, and different Board
Members may have attributed different weights to the various factors con-
sidered. The Independent Board Members were also assisted by the advice
of independent legal counsel in making this determination. The contractual
fee arrangements for each Fund reflect the results of several years of review
by the Board Members and predecessor Board Members, and discussions
between such Board Members (and predecessor Board Members) and
BlackRock. Certain aspects of the arrangements may be the subject of
more attention in some years than in others, and the Board Members’ con-
clusions may be based in part on their consideration of these arrange-
ments in prior years.
58 ANNUAL REPORT
JUNE 30, 2010
| Officers and Directors | |||||
| Number of BlackRock- | |||||
| Advised Registered | |||||
| Length | Investment Companies | ||||
| Position(s) | of Time | (“RICs”) Consisting of | |||
| Name, Address | Held with | Served as | Investment Portfolios | Public | |
| and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
| Non-Interested Directors | |||||
| Robert M. Hernandez | Chairman of the | Since | Director, Vice Chairman and Chief Financial Officer of USX | 36 RICs consisting of | ACE Limited |
| 55 East 52nd Street | Board, Director | 2007 | Corporation (energy and steel business) from 1991 to 2001. | 97 Portfolios | (insurance company); |
| New York, NY 10055 | and Member of | Eastman Chemical | |||
| 1944 | the Audit | Company (chemical); | |||
| Committee | RTI International | ||||
| Metals, Inc. (metals); | |||||
| TYCO Electronics | |||||
| (electronics) | |||||
| Fred G. Weiss | Vice Chairman | Since | Managing Director, FGW Associates (consulting and investment | 36 RICs consisting of | Watson |
| 55 East 52nd Street | of the Board, | 2007 | company) since 1997; Director, Michael J. Fox Foundation for | 97 Portfolios | Pharmaceutical, Inc. |
| New York, NY 10055 | Chairman of the | Parkinson’s Research since 2000; Director, BTG International | |||
| 1941 | Audit Committee | Plc (a global technology commercialization company) from | |||
| and Director | 2001 to 2007. | ||||
| James H. Bodurtha | Director | Since | Director, The China Business Group, Inc. (consulting firm) since | 36 RICs consisting of | None |
| 55 East 52nd Street | 2002 | 1996 and Executive Vice President thereof from 1996 to 2003; | 97 Portfolios | ||
| New York, NY 10055 | Chairman of the Board, Berkshire Holding Corporation since 1980. | ||||
| 1944 | |||||
| Bruce R. Bond | Director | Since | Trustee and Member of the Governance Committee, State Street | 36 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Research Mutual Funds from 1997 to 2005; Board Member | 97 Portfolios | ||
| New York, NY 10055 | of Governance, Audit and Finance Committee, Avaya Inc. | ||||
| 1946 | (computer equipment) from 2003 to 2007. | ||||
| Donald W. Burton | Director | Since | Managing General Partner, The Burton Partnership, LP (an | 36 RICs consisting of | Knology, Inc. (tele- |
| 55 East 52nd Street | 2007 | investment partnership) since 1979; Managing General Partner, | 97 Portfolios | communications); | |
| New York, NY 10055 | The South Atlantic Venture Funds since 1983; Member of the | Capital Southwest | |||
| 1944 | Investment Advisory Council of the Florida State Board of | (financial) | |||
| Administration from 2001 to 2007. | |||||
| Stuart E. Eizenstat | Director | Since | Partner and Head of International Practice, Covington and | 36 RICs consisting of | Alcatel-Lucent (tele- |
| 55 East 52nd Street | 2007 | Burling (law firm) since 2001; International Advisory Board | 97 Portfolios | communications); | |
| New York, NY 10055 | Member, The Coca Cola Company since 2002; Advisory Board | Global Specialty | |||
| 1943 | Member, BT Americas (telecommunications) since 2004; | Metallurgical (metal- | |||
| Member of the Board of Directors, Chicago Climate Exchange | lurgical industry); | ||||
| (environmental) since 2006; Member of the International | UPS Corporation | ||||
| Advisory Board GML (energy) since 2003. | (delivery service) | ||||
| Kenneth A. Froot | Director | Since | Professor, Harvard University since 1992. | 36 RICs consisting of | None |
| 55 East 52nd Street | 2005 | 97 Portfolios | |||
| New York, NY 10055 | |||||
| 1957 | |||||
| John F. O’Brien | Director | Since | Chairman and Director, Woods Hole Oceanographic Institute | 36 RICs consisting of | Cabot Corporation |
| 55 East 52nd Street | 2007 | since 2009 and Trustee thereof from 2003 to 2009;Director, | 97 Portfolios | (chemicals); LKQ | |
| New York, NY 10055 | Allmerica Financial Corporation from 1995 to 2003;Director, | Corporation (auto | |||
| 1943 | ABIOMED from 1989 to 2006; Director, Ameresco, Inc. | parts manufacturing); | |||
| (energy solutions company) from 2006 to 2007; Vice Chairman | TJX Companies, Inc. | ||||
| and Director, Boston Lyric Opera from 2002 to 2007. | (retailer) | ||||
| Roberta Cooper Ramo | Director | Since | Shareholder, Modrall, Sperling, Roehl, Harris & Sisk, P.A. (law | 36 RICs consisting of | None |
| 40 East 52nd Street | 2002 | firm) since 1993; Chairman of the Board, Cooper’s Inc., (retail) | 97 Portfolios | ||
| New York, NY 10022 | since 2000; Director of ECMC Group (service provider to | ||||
| 1942 | students, schools and lenders) since 2001; President, The | ||||
| American Law Institute, (non-profit) since 2008; President, | |||||
| American Bar Association from 1995 to 1996. | |||||
ANNUAL REPORT
JUNE 30, 2010
59
| Officers and Directors (continued) | |||||
| Number of BlackRock- | |||||
| Advised Registered | |||||
| Length | Investment Companies | ||||
| Position(s) | of Time | (“RICs”) Consisting of | |||
| Name, Address | Held with | Served as | Investment Portfolios | Public | |
| and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
| Non-Interested Trustees1 (concluded) | |||||
| David H. Walsh | Director | Since | Director, National Museum of Wildlife Art since 2007; Director, | 36 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Ruckleshaus Institute and Haub School of Natural Resources | 97 Portfolios | ||
| New York, NY 10055 | at the University of Wyoming from 2006 to 2008; Trustee, | ||||
| 1941 | University of Wyoming Foundation since 2008; Director, The | ||||
| American Museum of Fly Fishing since 1997; Director, The | |||||
| National Audubon Society from 1998 to 2005. | |||||
| Richard R. West | Director | Since | Dean Emeritus, New York University’s Leonard N. Stern School | 36 RICs consisting of | Bowne & Co., Inc. |
| 55 East 52nd Street | and Member | 1986 | of Business Administration since 1995. | 97 Portfolios | (financial printers); |
| New York, NY 10055 | of the Audit | Vornado Realty Trust | |||
| 1938 | Committee | (real estate company); | |||
| Alexander’s Inc. (real | |||||
| estate company) | |||||
| 1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. | |||||
| 2 Date shown is the earliest date a person has served as a director for any of the Funds covered by this annual report. Following the combination of Merrill | |||||
| Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund | |||||
| boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain directors as joining a Fund’s | |||||
| board in 2007, each director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha, 1995; | |||||
| Bruce R. Bond, 2005; Donald W. Burton, 2002; Stuart E. Eizenstat, 2001; Kenneth A. Froot, 2005; Robert M. Hernandez, 1996; John F. O’Brien, 2004; | |||||
| Roberta Cooper Ramo, 2000; David H. Walsh, 2003; Fred G. Weiss, 1998; and Richard R. West, 1978. | |||||
| Interested Trustees3 | |||||
| Richard S. Davis | Director | Since | Managing Director, BlackRock, Inc. since 2005; Chief Executive | 169 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Officer, State Street Research & Management Company from | 291 Portfolios | ||
| New York, NY 10055 | 2000 to 2005; Chairman of the Board of Trustees, State Street | ||||
| 1945 | Research Mutual Funds from 2000 to 2005. | ||||
| Laurence D. Fink | Director | Since | Chairman and Chief Executive Officer of BlackRock, Inc. since its | 36 RICs consisting of | None |
| 55 East 52nd Street | 2007 | formation in 1998 and of BlackRock, Inc.’s predecessor entities | 97 Portfolios | ||
| New York, NY 10055 | since 1988 and Chairman of the Executive and Management | ||||
| 1952 | Committees; Formerly Managing Director, The First Boston Corp- | ||||
| oration, Member of its Management Committee, Co-head of its | |||||
| Taxable Fixed Income Division and Head of its Mortgage and Real | |||||
| Estate Products Group; Chairman of the Board of several of | |||||
| BlackRock’s alternative investment vehicles; Director of several of | |||||
| BlackRock’s offshore funds; Member of the Board of Trustees of | |||||
| New York University, Chair of the Financial Affairs Committee and | |||||
| a member of the Executive Committee, the Ad Hoc Committee on | |||||
| Board Governance, and the Committee on Trustees; Co-Chairman | |||||
| of the NYU Hospitals Center Board of Trustees, Chairman of the | |||||
| Development/Trustee Stewardship Committee and Chairman of | |||||
| the Finance Committee; Trustee, The Boys’ Club of New York. | |||||
| Henry Gabbay | Director | Since | Consultant, BlackRock, Inc. from 2007 to 2008; Managing | 169 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Director, BlackRock, Inc. from 1989 to 2007; Chief | 291 Portfolios | ||
| New York, NY 10055 | Administrative Officer, BlackRock Advisors, LLC from 1998 to | ||||
| 1947 | 2007; President of BlackRock Funds and BlackRock Bond | ||||
| Allocation Target Shares from 2005 to 2007 and Treasurer of | |||||
| certain closed-end funds in the BlackRock fund complex from | |||||
| 1989 to 2006. | |||||
3 Messrs. Davis and Fink are both “interested persons,” as defined in the Investment Company Act of 1940, of the Funds based on their positions with
BlackRock, Inc. and its affiliates. Mr. Gabbay is an "interested person" of the Funds based on his former positions with BlackRock, Inc. and its affiliates as
well as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Directors serve until their resignation, removal or death, or
until December 31 of the year in which they turn 72.
60 ANNUAL REPORT
JUNE 30, 2010
Officers and Directors (concluded)
| Position(s) | |||
| Name, Address | Held with | Length of | |
| and Year of Birth | Funds | Time Served | Principal Occupation(s) During Past 5 Years |
| Officers1 | |||
| Anne Ackerley | President | Since | Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to |
| 55 East 52nd Street | and Chief | 20092 | 2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer |
| New York, NY 10055 | Executive | of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 | |
| 1962 | Officer | to 2006. | |
| Jeffrey Holland, CFA | Vice | Since | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2006 to 2009; Chief Operating |
| 55 East 52nd Street | President | 2009 | Officer of BlackRock’s U.S. Retail Group since 2009; Co-head of Product Development and Management for |
| New York, NY 10055 | BlackRock’s U.S. Retail Group from 2007 to 2009; Product Manager of Raymond James & Associates from | ||
| 1971 | 2003 to 2006. | ||
| Brendan Kyne | Vice | Since | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product |
| 55 East 52nd Street | President | 2009 | Development and Management for BlackRock's U.S. Retail Group since 2009, Co-head thereof from 2007 to |
| New York, NY 10055 | 2009; Vice President of BlackRock, Inc. from 2005 to 2008. | ||
| 1977 | |||
| Brian Schmidt | Vice | Since | Managing Director of BlackRock, Inc. since 2004; Various positions with U.S. Trust Company from 1991 to 2003 |
| 55 East 52nd Street | President | 2009 | including Director from 2001 to 2003 and Senior Vice President from 1998 to 2003; Vice President, Chief Financial |
| New York, NY 10055 | Officer and Treasurer of Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Funds Trust from 2001 | ||
| 1958 | to 2003. | ||
| Neal Andrews | Chief | Since | Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund |
| 55 East 52nd Street | Financial | 2007 | Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. |
| New York, NY 10055 | Officer | ||
| 1966 | |||
| Jay Fife | Treasurer | Since | Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch |
| 55 East 52nd Street | 2007 | Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director | |
| New York, NY 10055 | of MLIM Fund Services Group from 2001 to 2006. | ||
| 1970 | |||
| Brian Kindelan | Chief | Since | Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of |
| 55 East 52nd Street | Compliance | 2007 | BlackRock, Inc. since 2005. |
| New York, NY 10055 | Officer | ||
| 1959 | |||
| Howard Surloff | Secretary | Since | Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General |
| 55 East 52nd Street | 2007 | Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006. | |
| New York, NY 10055 | |||
| 1965 |
1 Officers of the Funds serve at the pleasure of the Board.
2 Ms. Ackerley has been President and Chief Executive Officer since 2009 and was Vice President from 2007 to 2009.
Further information about the Series’ Officers and Trustees is available in the Funds’ Statement of Additional Information, which can be obtained without
charge by calling (800) 441-7762.
| Investment Advisor | Custodian | Accounting Agent | Legal Counsel | Address of the Funds |
| BlackRock Advisors, LLC | Brown Brothers | State Street Bank | Willkie Farr & Gallagher LLP | 100 Bellevue Parkway |
| Wilmington, DE 19809 | Harriman & Co.5 | and Trust Company | New York, NY 10019 | Wilmington, DE 19809 |
| Boston, MA 02101 | Princeton, NJ 08540 | |||
| Sub-Advisor | Independent Registered | |||
| BlackRock Investment | JPMorgan Chase | Distributor | Public Accounting Firm | |
| Management, LLC3 | Bank, N.A.6 | |||
| BlackRock Investments, LLC | Deloitte & Touche LLP | |||
| Plainsboro, NJ 08536 | Brooklyn, NY 11245 | New York, NY 10022 | Princeton, NJ 08540 | |
| BlackRock International | Transfer Agent | |||
| Limited4 | BNY Mellon Investment | |||
| Edinburgh, EH3 8JB, | Servicing (US) Inc. | |||
| United Kingdom | Wilmington, DE 19809 |
| 3 | For all Funds except International Value. |
| 4 | For EuroFund and International Value. |
| 5 | For all Funds except Focus Value. |
| 6 | For Focus Value. |
ANNUAL REPORT
JUNE 30, 2010
61
Additional Information
General Information
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available
on the Funds’ website or shareholders can sign up for e-mail notifications
of quarterly statements, annual and semi-annual reports and prospectuses
by enrolling in the Funds’ electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or
Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at
http://www.blackrock.com/edelivery
2) Click on the applicable link and follow the steps to sign up
3) Log into your account
Householding
The Funds will mail only one copy of shareholder documents, including
prospectuses, 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 com-
bined with those for other members of your household, please contact the
Funds at (800) 441-7762.
Availability of Quarterly Portfolio Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the
Securities and Exchange Commission (the “SEC”) for the first and third
quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are avail-
able 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, D.C.
Information on the operation of the Public Reference Room may be
obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be
obtained upon request and without charge by calling (800) 441-7762.
Availability of Proxy Voting Record
Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolio during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
http://www.blackrock.com or by calling (800) 441-7762 and (2) on
the SEC’s website at http://www.sec.gov.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
(1) without charge, upon request, by calling (800) 441-7762; (2) at
http://www.blackrock.com; and (3) on the SEC’s website at
http://www.sec.gov.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM to 6:00 PM EST on any business day to
get information about your account balances, recent transactions and share
prices. You can also reach us on the Web at http://www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to
have $50 or more automatically deducted from their checking or savings
account and invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as
long as their account balance is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
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 non-public personal information. The following infor-
mation 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 non-public information from and
about you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a con-
sumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated 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
non-public 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 non-public personal information of its Clients, including pro-
cedures relating to the proper storage and disposal of such information.
62 ANNUAL REPORT
JUNE 30, 2010
A World-Class Mutual Fund Family
BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and
tax-exempt investing.
| Equity Funds | ||||
| BlackRock All-Cap Energy & Resources Portfolio | BlackRock Global SmallCap Fund | BlackRock Natural Resources Trust | ||
| BlackRock Asset Allocation Portfolio† | BlackRock Health Sciences Opportunities Portfolio | BlackRock Pacific Fund | ||
| BlackRock Balanced Capital Fund† | BlackRock Healthcare Fund | BlackRock Science & Technology | ||
| BlackRock Basic Value Fund | BlackRock Index Equity Portfolio* | Opportunities Portfolio | ||
| BlackRock Capital Appreciation Fund | BlackRock International Fund | BlackRock Small Cap Core Equity Portfolio | ||
| BlackRock Energy & Resources Portfolio | BlackRock International Index Fund | BlackRock Small Cap Growth Equity Portfolio | ||
| BlackRock Equity Dividend Fund | BlackRock International Opportunities Portfolio | BlackRock Small Cap Growth Fund II | ||
| BlackRock EuroFund | BlackRock International Value Fund | BlackRock Small Cap Index Fund | ||
| BlackRock Focus Growth Fund | BlackRock Large Cap Core Fund | BlackRock Small/Mid-Cap Growth Portfolio | ||
| BlackRock Focus Value Fund | BlackRock Large Cap Core Plus Fund | BlackRock S&P 500 Index Fund | ||
| BlackRock Global Allocation Fund† | BlackRock Large Cap Growth Fund | BlackRock U.S. Opportunities Portfolio | ||
| BlackRock Global Dynamic Equity Fund | BlackRock Large Cap Value Fund | BlackRock Utilities and Telecommunications Fund | ||
| BlackRock Global Emerging Markets Fund | BlackRock Latin America Fund | BlackRock Value Opportunities Fund | ||
| BlackRock Global Financial Services Fund | BlackRock Mid-Cap Growth Equity Portfolio | BlackRock World Gold Fund | ||
| BlackRock Global Growth Fund | BlackRock Mid-Cap Value Equity Portfolio | |||
| BlackRock Global Opportunities Portfolio | BlackRock Mid Cap Value Opportunities Fund | |||
| Fixed Income Funds | ||||
| BlackRock Bond Portfolio | BlackRock Income Builder Portfolio† | BlackRock Multi-Sector Bond Portfolio | ||
| BlackRock Emerging Market Debt Portfolio | BlackRock Inflation Protected Bond Portfolio | BlackRock Short-Term Bond Fund | ||
| BlackRock Floating Rate Income Portfolio | BlackRock Intermediate Government | BlackRock Strategic Income | ||
| BlackRock GNMA Portfolio | Bond Portfolio | Opportunities Portfolio | ||
| BlackRock Government Income Portfolio | BlackRock International Bond Portfolio | BlackRock Total Return Fund | ||
| BlackRock High Income Fund | BlackRock Long Duration Bond Portfolio | BlackRock Total Return Portfolio II | ||
| BlackRock High Yield Bond Portfolio | BlackRock Low Duration Bond Portfolio | BlackRock World Income Fund | ||
| BlackRock Income Portfolio† | BlackRock Managed Income Portfolio | |||
| Municipal Bond Funds | ||||
| BlackRock AMT-Free Municipal Bond Portfolio | BlackRock Kentucky Municipal Bond Portfolio | BlackRock New York Municipal Bond Fund | ||
| BlackRock California Municipal Bond Fund | BlackRock Municipal Insured Fund | BlackRock Ohio Municipal Bond Portfolio | ||
| BlackRock High Yield Municipal Fund | BlackRock National Municipal Fund | BlackRock Pennsylvania Municipal Bond Fund | ||
| BlackRock Intermediate Municipal Fund | BlackRock New Jersey Municipal Bond Fund | BlackRock Short-Term Municipal Fund | ||
| Target Risk & Target Date Funds† | ||||
| BlackRock Prepared Portfolios | BlackRock Lifecycle Prepared Portfolios | BlackRock LifePath Portfolios | ||
| Conservative Prepared Portfolio | 2010 | 2035 | Retirement | 2040 |
| Moderate Prepared Portfolio | 2015 | 2040 | 2020 | 2045 |
| Growth Prepared Portfolio | 2020 | 2045 | 2025 | 2050 |
| Aggressive Growth Prepared Portfolio | 2025 | 2050 | 2030 | 2055 |
| 2030 | 2035 | |||
| * | See the prospectus for information on specific limitations on investments in the fund. |
| † | Mixed asset fund. |
BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and
expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at
| www. | blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing. |
ANNUAL REPORT
JUNE 30, 2010
63
This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless accompanied or preceded by the Funds’
current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change.
Investment in foreign securities involves special risks including fluctuating foreign exchange rates, foreign government regulations, differing degrees of liquid-
ity and the possibility of substantial volatility due to adverse political, economic or other developments.
GO
PAPERLESS
It’s Fast,Convenient, & Timely!
To sign up today, go to www.blackrock.com/edelivery.
#EFGSCIV-6/10
Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant’s principal executive officer,
principal financial officer and principal accounting officer, or persons performing similar
functions. During the period covered by this report, there have been no amendments to or
waivers granted under the code of ethics. A copy of the code of ethics is available without
charge at www.blackrock.com.
Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as
applicable (the “board of directors”), has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Robert M. Hernandez
Fred G. Weiss
Richard R. West
Under applicable securities laws, a person determined to be an audit committee financial
expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities imposed on such person as a
member of the audit committee and board of directors in the absence of such designation or
identification.
Item 4 – Principal Accountant Fees and Services
| (a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||
| Current | Previous | Current | Previous | Current | Previous | Current | Previous | |
| Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | |
| Entity Name | End | End | End | End | End | End | End | End |
| BlackRock | ||||||||
| International Value | ||||||||
| Fund of BlackRock | $35,700 | $35,700 | $0 | $0 | $6,100 | $6,100 | $208 | $1,028 |
| International Value | ||||||||
| Trust | ||||||||
1 The nature of the services include assurance and related services reasonably related to the performance of the audit of
financial statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and
procedures with regard to the pre-approval of services. Audit, audit-related and tax
compliance services provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the registrant’s affiliated
service providers that relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee believes are a) consistent
with the SEC’s auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”).
The term of any general pre-approval is 12 months from the date of the pre-approval, unless
the Committee provides for a different period. Tax or other non-audit services provided to
the registrant which have a direct impact on the operation or financial reporting of the
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose,
multiple projects will be aggregated to determine if they exceed the previously mentioned
cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to the Committee Chairman the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
| (f) Not Applicable | ||
| (g) Affiliates’ Aggregate Non-Audit Fees: | ||
| Current Fiscal Year | Previous Fiscal Year | |
| Entity Name | End | End |
| BlackRock International Value | ||
| Fund of BlackRock | $17,085 | $409,628 |
| International Value Trust | ||
(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.
Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%
Item 5 – Audit Committee of Listed Registrants – Not Applicable
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
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
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 of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that 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 15(d)-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 – See Item 2 |
| 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 International Value Fund of BlackRock International Value Trust
By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock International Value Fund of BlackRock International Value Trust
Date: September 2, 2010
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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock International Value Fund of BlackRock International Value Trust
Date: September 2, 2010
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock International Value Fund of BlackRock International Value Trust
Date: September 2, 2010