UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04612
Name of Fund: BlackRock EuroFund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
EuroFund, 40 East 52nd Street, New York, NY 10022.
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 06/30/2009
Date of reporting period: 06/30/2009
Item 1 – Report to Stockholders
BlackRock EuroFund
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 | 10 | ||
Disclosure of Expenses | 10 | ||
Derivative Instruments | 11 | ||
Financial Statements: | |||
Schedules of Investments | 12 | ||
Statements of Assets and Liabilities | 20 | ||
Statements of Operations | 22 | ||
Statements of Changes in Net Assets | 23 | ||
Financial Highlights | 26 | ||
Notes to Financial Statements | 37 | ||
Report of Independent Registered Public Accounting Firm | 47 | ||
Important Tax Information (Unaudited) | 47 | ||
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements | 48 | ||
Officers and Directors | 52 | ||
Additional Information | 55 | ||
Mutual Fund Family | 58 | ||
2 | ANNUAL REPORT | JUNE 30, 2009 |
Dear Shareholder
The past 12 months reveal two distinct market backdrops — one of investor pessimism and decided weakness, and another of optimism and nascent signs
of recovery. The first half of the year was characterized by the former, as the global financial crisis erupted into the worst recession in decades. Daily head-
lines recounted universal macroeconomic deterioration, financial sector casualties, volatile swings in global equity markets, and unprecedented government
intervention that included widespread (and globally coordinated) monetary and quantitative easing by central banks and large-scale fiscal stimuli. Sentiment
improved noticeably in March, however, on the back of new program announcements by the Treasury and Federal Reserve, as well as generally stronger-
than-expected economic data in a few key areas, including retail sales, business and consumer confidence, manufacturing and housing.
In this environment, US equities contended with extraordinary volatility, posting steep declines early, and then recouping those losses — and more —
between March and May. Investor enthusiasm eased off in the final month of the period, mostly as a result of profit taking and portfolio rebalancing, as
opposed to a change in the economic outlook. Through June 30, stocks did quite well on a year-to-date basis, with nearly all major indices crossing into
positive territory. The experience in international markets was similar to that in the United States, though performance was generally more extreme both on
the decline and on the upturn. Notably, emerging markets, which lagged most developed regions through the downturn, reassumed leadership in 2009 as
these areas of the globe have generally seen a stronger acceleration in economic recovery.
In fixed income markets, while a flight to quality remained a prevalent theme, relatively attractive yields and distressed valuations, alongside a more favor-
able macro environment, eventually captured investor attention, leading to a sharp recovery in non-Treasury assets. A notable example from the opposite
end of the credit spectrum was the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. At the same time,
the municipal bond market enjoyed a strong return after the exceptional market volatility of 2008, buoyed by a combination of attractive valuations, robust
retail investor demand and a slowdown in forced selling. Direct aid to state and local governments via the American Recovery and Reinvestment Act of
2009 has also lent support.
All told, results for the major benchmark indexes reflected a bifurcated market.
Total Returns as of June 30, 2009 | 6-month | 12-month |
US equities (S&P 500 Index) | 3.16% | (26.21)% |
Small cap US equities (Russell 2000 Index) | 2.64 | (25.01) |
International equities (MSCI Europe, Australasia, Far East Index) | 7.95 | (31.35) |
US Treasury securities (Merrill Lynch 10-Year US Treasury Index) | (8.74) | 7.41 |
Taxable fixed income (Barclays Capital US Aggregate Bond Index) | 1.90 | 6.05 |
Tax-exempt fixed income (Barclays Capital Municipal Bond Index) | 6.43 | 3.77 |
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index) | 30.92 | (1.91) |
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index. |
The market environment has clearly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market turbu-
lence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional insight and timely “food for thought,” we invite
you to visit our award-winning Shareholder® magazine, now available exclusively online at www.blackrock.com/shareholdermagazine. We thank you for
entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.
Announcement to Shareholders
On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had
accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of
BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of
BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is
scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.
THIS PAGE NOT PART OF YOUR FUND REPORT 3
Fund Summary as of June 30, 2009 BlackRock EuroFund
Portfolio Management Commentary
How did the Fund perform?
•The Fund’s Institutional and Investor A Shares outperformed the benchmark
MSCI Europe Index for the 12-month period, while Investor B, Investor C
and Class R Shares lagged the index.
What factors influenced performance?
•Sector allocation was the main driver of performance for the year. The
telecommunications sector made the largest positive contribution, as its
defensive characteristics were beneficial in a volatile market environment.
Fund holding Deutsche Telekom AG was a standout performer. Elsewhere,
stock selection within the materials, energy and consumer staples sectors
was additive to returns. Other stocks that outperformed during the period
included UK retailer NEXT Plc and Swedish white goods manufacturer
Electrolux AB, as well as investment bank Credit Suisse Group AG.
•Stocks that detracted from Fund performance over the 12 months were
found mainly within the financials sector, where a number of bank holdings
underperformed after the collapse of Lehman Brothers. Specifically, the
Fund’s positions in UK banks, The Royal Bank of Scotland Group Plc and
Lloyds TSB Group Plc as well as Dutch bank and insurer ING Groep NVCVA,
all underperformed. Elsewhere within the Fund, stock selection in industri-
als and automobiles negatively affected performance, as did the Fund’s
holding in media conglomerate Vivendi SA.
Describe recent portfolio activity.
•During the 12 months, we increased the Fund’s consumer discretionary
exposure, mainly through the media sector, where we purchased Vivendi
and WPP Plc, as well as more recent additions to the auto sector. We also
added to financials, where valuations were attractive after the sell-off in
2008. We rotated money out of insurance and into banks, where we added
to HSBC Holdings Plc, and purchased BNP Paribas SA and a basket of
smaller, recovery situation companies. These additions were funded by
reductions in the materials sector, where we reduced exposure to mining
companies BHP Billiton Plc, Anglo American Plc and Xstrata Plc, along with
a reduction in energy through the sale of Royal Dutch Shell Plc. We also
reduced the Fund’s exposure to the utilities sector.
Describe Fund positioning at period end.
•At period end, we were not expressing strong sector views; however, the Fund
was overweight in financials, industrials and consumer discretionary, and was
underweight in materials, consumer staples and information technology.
•Overall, we remain confident in the outlook for equities, and continue to iden-
tify attractively valued investment opportunities. We believe that after a tem-
porary break, markets will respond positively to earnings improvements and
economic data confirming that we are through the worst of the recession.
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 | |
Long-Term | |
Ten Largest Holdings | Investments |
BP Plc | 5% |
Nestle SA Registered Shares | 4 |
Banco Santander SA | 4 |
HSBC Holdings Plc | 4 |
Vodafone Group Plc | 4 |
Telefonica SA | 4 |
Roche Holding AG | 4 |
Total SA | 3 |
E.ON AG | 3 |
BNP Paribas SA | 3 |
Percent of | |
Long-Term | |
Geographic Allocation | Investments |
United Kingdom | 28% |
France | 18 |
Germany | 17 |
Switzerland | 10 |
Spain | 8 |
Italy | 5 |
Finland | 3 |
Norway | 2 |
Netherlands | 2 |
Sweden | 2 |
Luxembourg | 2 |
Other1 | 3 |
1 Other includes a 1% holding in each of the following countries: Belgium, Austria | |
and Greece. |
4 ANNUAL REPORT JUNE 30, 2009
BlackRock EuroFund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. 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 capitalization-weighted Index is comprised of a representative sampling of large-, medium- and small-capitalization companies in devel-
oped European countries.
Performance Summary for the Period Ended June 30, 2009
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 | 6.18% | (34.12)% | N/A | 2.73% | N/A | 3.00% | N/A |
Investor A | 6.08 | (34.21) | (37.67)% | 2.53 | 1.43% | 2.77 | 2.21% |
Investor B | 5.54 | (34.98) | (37.60) | 1.60 | 1.34 | 2.12 | 2.12 |
Investor C | 5.68 | (34.75) | (35.32) | 1.71 | 1.71 | 1.95 | 1.95 |
Class R | 5.61 | (34.73) | N/A | 2.09 | N/A | 2.54 | N/A |
MSCI Europe Index | 7.03 | (34.53) | N/A | 2.31 | N/A | 1.30 | 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 10 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 | |
January 1, 2009 | June 30, 2009 | During the Period5 | January 1, 2009 | June 30, 2009 | During the Period5 | |
Institutional | $1,000 | $1,061.80 | $ 5.62 | $1,000 | $1,019.35 | $ 5.51 |
Investor A | $1,000 | $1,060.80 | $ 6.80 | $1,000 | $1,018.20 | $ 6.66 |
Investor B | $1,000 | $1,055.40 | $13.15 | $1,000 | $1,012.01 | $12.87 |
Investor C | $1,000 | $1,056.80 | $11.17 | $1,000 | $1,013.94 | $10.94 |
Class R | $1,000 | $1,056.10 | $10.60 | $1,000 | $1,014.49 | $10.39 |
5 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.10% for Institutional, 1.33% for Investor A, 2.58% for Investor B, 2.19% for | ||||||
Investor C and 2.08% for Class R), 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 10 for further information on how expenses were calculated. |
ANNUAL REPORT JUNE 30, 2009 5
Fund Summary as of June 30, 2009 BlackRock Global SmallCap Fund, Inc.
Portfolio Management Commentary
How did the Fund perform?
•The Fund underperformed the benchmark MSCI World Small Cap Index for
the 12-month period, but outperformed the broader MSCI World Index.
What factors influenced performance?
•Market return was the primary determinant of equity fund absolute returns
during this volatile period.
•Detracting from relative performance during the 12 months was security
selection in energy, health care and industrials. Particularly notable were
several companies involved in coal production, as well as exploration and
production companies servicing the broader energy industry. Among health
care companies, several names involved in health care technology proved
to be meaningful detractors. Finally, within industrials, companies in the
cyclical transportation area performed poorly.
•Notable contributions to relative performance over the trailing year came
from an overweight allocation in cash, and from security selection among
financials. The increase in cash holdings resulted from a realization that
most companies appeared unable to meet the portfolio team’s target
return requirements as market conditions deteriorated. Rather than invest
in the best of inferior options, the team allowed a cash balance to accu-
mulate as they awaited better opportunities. Some such opportunities
were created in the form of improved valuations as stock prices declined.
Selection decisions among financials were additive, as the Fund’s holdings
among non-life insurance companies and diversified financial companies
outperformed the broader finance sector.
Describe recent portfolio activity.
•The 12-month period represented one of the most volatile periods in
equity market history. In adjusting to the rapidly-evolving market climate,
the team took steps early in the period to reduce cyclical exposure and
move to a more defensive posture. To that end, we increased exposure
to consumer staples and healthcare, while significantly reducing energy
holdings and accumulating a considerable cash position. The process of
redeploying that cash initially began around the turn of year, but then
occurred more meaningfully in the later part of the second quarter of
2009. The Fund’s underweight in financials was reduced through selective
additions within the sector. Additions were also made within information
technology (“IT”), in order to reintroduce some cyclicality without reducing
the quality of the Fund.
Describe Fund positioning at period end.
•The count of holdings remains at the high end of the Fund’s historic range
(typically 125 to 175, now about 200), reflecting a lack of clarity as to the
implications for companies of continued sluggish global economic growth
over the next few quarters. Fund sector positioning remains fairly neutral as
well, although IT is a notable overweight and industrials and utilities are
notable underweights. Cash also remains slightly higher than normal, mak-
ing up roughly 7% of the Fund. Geographically, the Fund is underweight in
developed Asia and North America, and overweight in emerging markets,
especially those within Asia.
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 | |
Long-Term | |
Ten Largest Holdings | Investments |
Zoran Corp. | 1% |
Merit Medical Systems, Inc. | 1 |
Cullen/Frost Bankers, Inc. | 1 |
Ryanair Holdings Plc | 1 |
PetroHawk Energy Corp. | 1 |
j2 Global Communications, Inc. | 1 |
Bonduelle SA | 1 |
Rheinmetall AG | 1 |
IPC The Hospitalist Co., Inc. | 1 |
Citrix Systems, Inc. | 1 |
Percent of | |
Long-Term | |
Geographic Allocation | Investments |
United States | 47% |
United Kingdom | 10 |
Japan | 7 |
Canada | 4 |
France | 4 |
Germany | 4 |
Bermuda | 3 |
Israel | 2 |
China | 2 |
Hong Kong | 2 |
Denmark | 2 |
Other1 | 13 |
1 Other includes a 1% holding in each of the following countries: India, Ireland, | |
Indonesia, Italy, Australia, Spain, Singapore, Norway, Cayman Islands, Switzerland, | |
Mexico, Philippines and Sweden. |
6 ANNUAL REPORT JUNE 30, 2009
BlackRock Global SmallCap Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. 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, 2009
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 | 10.07% | (27.75)% | N/A | 4.09% | N/A | 10.13% | N/A |
Investor A | 9.89 | (27.99) | (31.77)% | 3.81 | 2.69% | 9.84 | 9.25% |
Investor B | 9.41 | (28.62) | (31.56) | 2.98 | 2.71 | 9.15 | 9.15 |
Investor C | 9.47 | (28.58) | (29.23) | 2.98 | 2.98 | 8.97 | 8.97 |
Class R | 9.60 | (28.37) | N/A | 3.44 | N/A | 9.58 | N/A |
MSCI World Index | 6.35 | (29.50) | N/A | 0.03 | N/A | (0.84) | N/A |
MSCI World Small Cap Index | 14.68 | (26.77) | N/A | 0.68 | N/A | 5.35 | 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 10 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 | |
January 1, 2009 | June 30, 2009 | During the Period6 | January 1, 2009 | June 30, 2009 | During the Period6 | |
Institutional | $1,000 | $1,100.70 | $ 6.35 | $1,000 | $1,018.75 | $ 6.11 |
Investor A | $1,000 | $1,098.90 | $ 8.01 | $1,000 | $1,017.16 | $ 7.70 |
Investor B | $1,000 | $1,094.10 | $12.51 | $1,000 | $1,012.85 | $12.03 |
Investor C | $1,000 | $1,094.70 | $12.41 | $1,000 | $1,012.95 | $11.93 |
Class R | $1,000 | $1,096.00 | $10.76 | $1,000 | $1,014.54 | $10.34 |
6 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.22% for Institutional, 1.54% for Investor A, 2.41% for Investor B, 2.39% for | ||||||
Investor C and 2.07% for Class R), 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 10 for further information on how expenses were calculated. |
ANNUAL REPORT JUNE 30, 2009 7
Fund Summary as of June 30, 2009 BlackRock International Value Fund
Portfolio Management Commentary
How did the Fund perform?
•The Fund’s Institutional and Investor A Shares outperformed the benchmark
MSCI EAFE Index for the 12-month period, while Investor B and Investor C
Shares lagged. Class R Shares performed in line with the index.
What factors influenced performance?
•Positive stock selection, together with favorable sector and country alloca-
tion, all contributed to Fund performance during the annual period. The
Fund’s emerging market exposure was a significant source of positive
returns; holdings in Brazil, India and Turkey were particularly valuable.
Individual emerging markets positions that stood out during the 12 months
included materials conglomerate Vale SA, mining and metallurgical com-
pany MMC Norilsk Nickel and financial firm ICICI Bank Ltd.
•On a sector basis, the financial sector made the largest positive
contribution thanks to successful stock selection in the insurance and real
estate industries. Likewise, good stock selection in the materials sector
helped performance. Elsewhere, the Fund benefited from holding cash dur-
ing a period of significant market declines. Successful holdings in other
sectors included white goods manufacturer Electrolux AB, telecommunica-
tions provider Deutsche Telekom AG and consumer cleaning products
maker Kao Corp.
•On a less positive note, the healthcare and utilities sectors detracted from
Fund performance during the period due to weak stock selection. Other
holdings that hampered performance included banks DnB NOR ASA, Dexia
NV/SA and Intesa Sanpaolo SpA, as well as car manufacturer Peugeot SA.
Describe recent portfolio activity.
During the 12 months, we increased the Fund’s consumer discretionary
exposure, mainly through the media sector where we purchased United
Business Media Ltd., Fairfax Media Ltd. and WPP Plc. We also added to
financials where valuations were attractive after the sell-off in 2008. We
rotated money out of insurance and into banks, where we added to Banco
Santander SA and purchased BNP Paribas SA, as well as a basket of
smaller, recovery situation companies. These additions were funded by
reductions in materials holdings ArcelorMittal and Akzo Nobel NV; energy
holdings Royal Dutch Shell Plc and LUKOIL; and health care holding
Novartis AG.
Emerging markets outperformed the developed world over the year, and we
took profits toward the end of the period. We recycled the proceeds into
European areas where we found more attractive relative valuations.
Describe Fund positioning at period end.
At period end, we were not expressing strong sector views; however, the
Fund was overweight in consumer discretionary, telecommunications and
materials, and was underweight in financials, consumer staples and infor-
mation technology. Geographically, the Fund was overweight in Asia, Japan
and selected emerging markets, and it maintained an underweight alloca-
tion to Europe, largely through the United Kingdom.
Overall, we remain confident in the outlook for equities, and continue to iden-
tify attractively valued investment opportunities. We believe that after a tem-
porary break, markets will respond positively to earnings improvements and
economic data confirming that we are through the worst of the recession.
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 | |
Long-Term | |
Ten Largest Holdings | Investments |
Banco Santander SA | 4% |
Total SA | 3 |
Nestle SA Registered Shares | 3 |
Telefonica SA | 3 |
Vodafone Group Plc | 3 |
GDF Suez | 3 |
BHP Billiton Ltd. | 3 |
Sanofi-Aventis | 3 |
Eni SpA | 3 |
E.ON AG | 2 |
Percent of | |
Long-Term | |
Geographic Allocation | Investments |
Japan | 25% |
France | 14 |
Germany | 13 |
United Kingdom | 12 |
Australia | 7 |
Spain | 7 |
Italy | 5 |
Switzerland | 3 |
Brazil | 2 |
Sweden | 2 |
Norway | 2 |
Hong Kong | 2 |
Taiwan | 2 |
Other1 | 4 |
1 Other includes a 1% holding in each of the following countries: Russia, Austria, | |
Singapore and the Cayman Islands. |
8 ANNUAL REPORT JUNE 30, 2009
BlackRock International Value Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. 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 unmanaged Index measures the total returns of developed foreign stock markets in Europe, Australasia and the Far East (in US dollars).
Performance Summary for the Period Ended June 30, 2009
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 | 6.72% | (30.81)% | N/A | 1.91% | N/A | 3.12% | N/A |
Investor A | 6.51 | (31.06) | (34.68)% | 1.62 | 0.53% | 2.85 | 2.30% |
Investor B | 5.85 | (31.91) | (34.90) | 0.68 | 0.40 | 2.13 | 2.13 |
Investor C | 5.87 | (31.89) | (32.56) | 0.69 | 0.69 | 2.03 | 2.03 |
Class R | 6.27 | (31.36) | N/A | 1.31 | N/A | 2.62 | N/A |
MSCI EAFE Index | 7.95 | (31.35) | N/A | 2.31 | N/A | 1.18 | 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 10 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 | |||
January 1, 2009 | June 30, 2009 | During the Period5 | January 1, 2009 | June 30, 2009 | During the Period5 | |||
Institutional | $1,000 | $1,067.80 | $ | 5.59 | $1,000 | $1,019.39 | $ | 5.46 |
Investor A | $1,000 | $1,065.10 | $ | 7.37 | $1,000 | $1,017.66 | $ | 7.20 |
Investor B | $1,000 | $1,059.10 | $13.63 | $1,000 | $1,011.56 | $13.32 | ||
Investor C | $1,000 | $1,059.30 | $13.58 | $1,000 | $1,011.61 | $13.27 | ||
Class R | $1,000 | $1,062.70 | $ | 9.97 | $1,000 | $1,015.13 | $ | 9.74 |
5 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.09% for Institutional, 1.44% for Investor A, 2.67% for Investor B, 2.66% for
Investor C and 1.95% for Class R), 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 10 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2009 9
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 no longer avail-
able for purchase except through exchanges, dividend reinvestments, and for
purchase by certain qualified employee benefit plans.
•Investor C Shares are subject to a distribution fee of 0.75% per year and a
service fee of 0.25% per year. In addition, Investor C Shares are subject to a
1% contingent deferred sales charge if redeemed within one year of pur-
chase.
•Class R Shares do not incur any 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
inception, 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, Investor C
and Class R Shares prior to their respective inception dates (October 6,
2000, October 6, 2000 and January 3, 2003, respectively), are based upon
performance of the Fund’s Institutional Shares. The returns for Investor B,
Investor C and Class R Shares, however, are adjusted to reflect the distribu-
tion 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 pages 5, 7 and 9 assume reinvestment
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 pages 5, 7 and 9 (which are based on hypothetical invest-
ments of $1,000 invested on January 1, 2009 and held through June 30,
2009) 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.
10 ANNUAL REPORT JUNE 30, 2009
Derivative Instruments
The Funds may invest in various derivative instruments, including financial
futures contracts, foreign currency exchange contracts and other instru-
ments specified in the Notes to Financials Statements, which constitute
forms of economic leverage. Such instruments are used to obtain expo-
sure to a market without owning or taking physical custody of securities
or to hedge market and/or interest rate risks. Such derivative instruments
involve risks, including the imperfect correlation between the value of a
derivative instrument and the underlying asset, possible default of the
counterparty to the transaction and 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 investment or may cause the Funds to hold a security
that it might otherwise sell. The Funds’ investments in these instruments
are discussed in detail in the Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 11
Schedule of Investments June 30, 2009 BlackRock EuroFund
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | Common Stocks | Shares | Value | |
Austria — 0.6% | United Kingdom — 27.8% | |||||
Erste Bank der Oesterreichischen Sparkassen AG | 83,303 | $ | 2,261,539 | BAE Systems Plc | 1,035,741 $ | 5,787,740 |
Belgium — 1.0% | BP Plc | 2,334,092 | 18,443,541 | |||
Fortis | 1,091,468 | 3,737,247 | Barclays Plc | 1,712,318 | 7,957,218 | |
British American Tobacco Plc | 262,069 | 7,234,191 | ||||
Finland — 3.1% | Cookson Group Plc | 484,990 | 2,089,732 | |||
KCI Konecranes Oyj | 235,171 | 5,542,047 | HSBC Holdings Plc | 1,786,466 | 14,883,346 | |
Nokia Oyj | 297,245 | 4,353,798 | Land Securities Group Plc | 844,623 | 6,568,243 | |
Stora Enso Oyj Class R | 422,709 | 2,235,948 | Lloyds TSB Group Plc | 4,868,963 | 5,612,890 | |
12,131,793 | Meggitt Plc | 1,459,818 | 3,818,316 | |||
France — 17.7% | Tesco Plc | 1,308,539 | 7,641,667 | |||
BNP Paribas SA | 180,667 | 11,781,774 | Vodafone Group Plc | 7,264,460 | 14,128,926 | |
GDF Suez | 257,424 | 9,635,981 | WPP Plc | 952,620 | 6,334,915 | |
Peugeot SA | 182,859 | 4,827,355 | Xstrata Plc | 631,258 | 6,860,670 | |
Sanofi-Aventis | 169,215 | 9,998,895 | 107,361,395 | |||
Schneider Electric SA | 116,549 | 8,920,455 | Total Common Stocks — 93.3% | 360,504,186 | ||
Total SA | 233,348 | 12,647,635 | ||||
Vallourec SA | 34,413 | 4,206,243 | ||||
Vivendi SA | 267,712 | 6,426,143 | ||||
68,444,481 | Preferred Stocks | |||||
Germany — 13.0% | Germany — 4.0% | |||||
Allianz AG Registered Shares | 95,999 | 8,855,204 | Fresenius AG | 127,352 | 6,890,155 | |
BASF SE | 136,885 | 5,453,744 | Porsche Automobil Holding SE | 89,582 | 6,029,856 | |
Bayer AG | 175,818 | 9,448,504 | Volkswagen AG, 4.35% | 33,941 | 2,375,117 | |
DaimlerChrysler AG | 60,306 | 2,190,059 | ||||
Deutsche Lufthansa AG | 466,852 | 5,863,050 | Total Preferred Stocks — 4.0% | 15,295,128 | ||
E.ON AG | 334,618 | 11,878,263 | Total Long-Term Investments | |||
MAN SE | 103,182 | 6,348,748 | (Cost — $348,135,784) — 97.3% | 375,799,314 | ||
50,037,572 | ||||||
Greece — 0.5% | ||||||
EFG Eurobank Ergasias SA (a) | 197,494 | 2,077,350 | ||||
Short-Term Securities | ||||||
Italy — 4.7% | ||||||
Eni SpA | 411,647 | 9,763,093 | BlackRock Liquidity Funds, TempFund, | |||
UniCredit SpA | 3,329,524 | 8,421,371 | 0.45% (b)(c) | 8,551,926 | 8,551,926 | |
18,184,464 | Total Short-Term Securities | |||||
(Cost — $8,551,926) — 2.2% | 8,551,926 | |||||
Luxembourg — 1.6% | ||||||
ArcelorMittal | 181,094 | 5,992,976 | Total Investments (Cost — $356,687,710*) — 99.5% | 384,351,240 | ||
Other Assets Less Liabilities — 0.5% | 2,116,307 | |||||
Netherlands — 1.9% | ||||||
Heineken NV | 199,251 | 7,425,802 | Net Assets — 100.0% | $ | 386,467,547 | |
Norway — 1.9% | * The cost and unrealized appreciation (depreciation) of investments as of June 30, | |||||
StatoilHydro ASA | 377,645 | 7,459,686 | 2009, as computed for federal income tax purposes, were as follows: | |||
Spain — 7.4% | Aggregate cost | $ | 364,105,304 | |||
Banco Santander SA | 1,237,013 | 14,953,259 | Gross unrealized appreciation | $ | 44,988,451 | |
Telefonica SA | 601,342 | 13,656,281 | Gross unrealized depreciation | (24,742,515) | ||
28,609,540 | Net unrealized appreciation | $ | 20,245,936 | |||
Sweden — 1.9% | ||||||
Electrolux AB | 335,597 | 4,694,879 | (a) Non-income producing security. | |||
Swedbank AB-A Shares | 426,458 | 2,493,110 | (b) Investments in companies considered to be an affiliate of the Fund, for purposes of | |||
7,187,989 | Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | |||||
Switzerland — 10.2% | Net | |||||
Nestle SA Registered Shares | 433,698 | 16,375,763 | Affiliate | Activity | Income | |
Roche Holding AG | 98,071 | 13,362,392 | ||||
UBS AG | 357,009 | 4,383,505 | BlackRock Liquidity Series, LLC | |||
Zurich Financial Services AG | 30,951 | 5,470,692 | Cash Sweep Series | $(8,650,211) | $141,958 | |
BlackRock Liquidity Funds, TempFund | 8,551,926 | $ 2,593 | ||||
39,592,352 |
See Notes to Financial Statements.
12 ANNUAL REPORT JUNE 30, 2009
Schedule of Investments (concluded) BlackRock EuroFund
(c) Represents the current yield as of report date. | |||||||
•Foreign currency exchange contracts as of June 30, 2009 were as follows: | |||||||
Unrealized | |||||||
Currency | Currency | Settlement Appreciation | |||||
Purchased | Sold | Counterparty | Date | (Depreciation) | |||
CHF | 3,577,795 | USD | 3,289,019 | State Street | |||
Bank | |||||||
& Trust Co. | 7/01/09 | $ 3,784 | |||||
EUR | 1,117,778 | USD | 1,573,943 | JPMorgan | |||
Chase Bank, NA | 7/01/09 | (5,849) | |||||
EUR 11,451,649 | USD | 16,046,051 | State Street | ||||
Bank | |||||||
& Trust Co. | 7/01/09 | 18,999 | |||||
GBP 13,143,658 | USD | 18,853,000 | Brown | ||||
Brothers | |||||||
Harriman & Co. | 7/01/09 | 2,770,904 | |||||
USD | 3,142,000 | CHF | 3,577,795 | Brown | |||
Brothers | |||||||
Harriman & Co. | 7/01/09 | (150,829) | |||||
USD | 15,170,000 | EUR 11,451,649 | Brown | ||||
Brothers | |||||||
Harriman & Co. | 7/01/09 | (895,146) | |||||
USD | 21,643,661 | GBP 13,143,658 | State Street | ||||
Bank | |||||||
& Trust Co. | 7/01/09 | 19,757 | |||||
EUR | 2,393,469 | USD | 3,359,054 | Barclays | |||
Bank, Plc | 7/03/09 | (1,294) | |||||
USD | 2,015,475 | GBP | 1,224,174 | Goldman | |||
Sachs & Co. | 7/03/09 | 1,468 | |||||
USD | 632,661 | SEK | 4,880,363 | Goldman | |||
Sachs & Co. | 7/03/09 | 59 | |||||
GBP 15,672,568 | USD | 25,805,040 | State Street | ||||
Bank | |||||||
& Trust Co. | 9/23/09 | (24,751) | |||||
USD | 5,091,055 | CHF | 5,532,144 | State Street | |||
Bank | |||||||
& Trust Co. | 9/23/09 | (5,941) | |||||
USD | 18,537,657 | EUR 13,232,393 | State Street | ||||
Bank | |||||||
& Trust Co. | 9/23/09 | (22,098) | |||||
Total | $ 1,709,063 | ||||||
•CurrencyAbbreviations: | |||||||
CHF Swiss Franc | |||||||
EUR Euro | |||||||
GBP British Pound | |||||||
SEK Swedish Krona | |||||||
USD | US Dollar |
•Effective July 1, 2008, the Fund adopted Financial Accounting Standards Board | |||
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” | |||
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework | |||
for measuring fair values and requires additional disclosures about the use of fair | |||
value measurements. Various inputs are used in determining the fair value of invest- | |||
ments, which are as follows: | |||
•Level 1 — price quotations in active markets/exchanges for identical securities | |||
•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 methodology used for valuing securities are not necessarily an indi- | |||
cation 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, 2009 in determining | |||
the fair valuation of the Fund’s investments: | |||
Valuation | Investments in | ||
Inputs | Securities | ||
Assets | |||
Level 1 — Short-Term | |||
Securities | $ | 8,551,926 | |
Level 2 — Long-Term | |||
Investments1 | $ 375,799,314 | ||
Level 3 | — | ||
Total | $ | 384,351,240 | |
1 See above Schedule of Investments for values in each country. | |||
Valuation | Other Financial | ||
Inputs | Instruments2 | ||
Assets | Liabilities | ||
Level 1 | — | — | |
Level 2 | $ | 2,814,971 | $ (1,105,908) |
Level 3 | — | — | |
Total | $ | 2,814,971 | $ (1,105,908) |
2 Other 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, 2009 13
Schedule of Investments June 30, 2009 BlackRock Global SmallCap Fund, Inc.
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | |
Australia — 1.0% | |||
CFS Retail Property Trust | 4,713,238 | $ | 6,244,070 |
Cochlear Ltd. | 37,200 | 1,726,753 | |
Western Areas NL (a) | 67,565 | 318,625 | |
8,289,448 | |||
Austria — 0.3% | |||
Intercell AG (a) | 64,700 | 2,223,791 | |
Bermuda — 2.5% | |||
Golar LNG Ltd. | 55,800 | 477,090 | |
Lazard Ltd. Class A | 213,200 | 5,739,344 | |
PartnerRe Ltd. | 95,200 | 6,183,240 | |
Ports Design Ltd. | 2,331,800 | 5,464,702 | |
RenaissanceRe Holdings Ltd. | 55,900 | 2,601,586 | |
20,465,962 | |||
Brazil — 0.4% | |||
Santos Brasil Participacoes SA | 527,400 | 2,960,653 | |
Canada — 3.5% | |||
Addax Petroleum Corp. | 126,800 | 5,377,676 | |
Agnico-Eagle Mines Ltd. | 109,500 | 5,746,560 | |
Biovail Corp. | 262,300 | 3,527,935 | |
DiagnoCure, Inc. (a)(b) | 4,278,880 | 3,237,256 | |
Eldorado Gold Corp. (a) | 546,100 | 4,920,370 | |
Inmet Mining Corp. | 52,600 | 1,929,624 | |
Lundin Mining Corp. (a) | 1,146,400 | 3,301,758 | |
Magma Energy Corp. (a) | 444,300 | 572,970 | |
SXC Health Solutions Corp. (a) | 31,900 | 810,898 | |
29,425,047 | |||
Cayman Islands — 0.8% | |||
Ming Fai International Holdings Ltd. | 18,753,700 | 2,874,619 | |
Parkson Retail Group Ltd. | 2,949,100 | 4,200,530 | |
7,075,149 | |||
China — 1.6% | |||
Duoyuan Global Water, Inc. (c) | 106,400 | 2,583,392 | |
Mindray Medical International Ltd. (c)(d) | 172,400 | 4,813,408 | |
Shenzhen Expressway Co., Ltd. | 8,423,100 | 3,997,399 | |
WuXi PharmaTech Cayman, Inc. (a)(c) | 188,400 | 1,778,496 | |
13,172,695 | |||
Denmark — 1.3% | |||
TrygVesta A/S | 103,315 | 6,094,190 | |
Vestas Wind Systems A/S (a) | 73,616 | 5,283,027 | |
11,377,217 | |||
Finland — 0.5% | |||
Ramirent Oyj | 627,550 | 3,857,190 | |
France — 3.5% | |||
Bonduelle SA | 99,600 | 7,804,025 | |
Compagnie Generale de Geophysique SA (a) | 187,300 | 3,390,647 | |
Eurofins Scientific SA | 53,075 | 3,125,660 | |
NicOx SA (a) | 63,600 | 801,318 | |
Scor SE | 352,420 | 7,240,985 | |
UBISOFT Entertainment (a) | 275,300 | 6,733,190 | |
29,095,825 | |||
Germany — 3.5% | |||
Celesio AG | 23,100 | 530,641 | |
Deutsche Euroshop AG | 112,900 | 3,479,530 | |
GEA Group AG | 120,250 | 1,826,033 | |
Gerresheimer AG | 195,500 | 4,345,577 | |
K+S AG | 36,400 | 2,053,191 | |
Paion AG (a) | 475,886 | 641,995 | |
Rheinmetall AG | 170,200 | 7,394,653 |
Common Stocks | Shares | Value | |
Germany (concluded) | |||
SGL Carbon AG (a) | 24,500 | $ | 758,673 |
Salzgitter AG | 18,800 | 1,657,047 | |
Symrise AG | 421,400 | 6,239,844 | |
28,927,184 | |||
Hong Kong — 1.4% | |||
Clear Media Ltd. (a) | 4,052,000 | 1,633,977 | |
Li Ning Co. Ltd. | 1,994,300 | 5,852,026 | |
Melco International Development Ltd. | 33,300 | 18,214 | |
Shanghai Industrial Holdings Ltd. | 1,143,300 | 4,586,258 | |
12,090,475 | |||
India — 1.1% | |||
Container Corp. of India | 156,300 | 3,179,537 | |
Steel Authority of India | 741,200 | 2,330,143 | |
United Phosphorus Ltd. | 1,311,200 | 3,888,716 | |
9,398,396 | |||
Indonesia — 1.1% | |||
Perusahaan Gas Negara Tbk PT | 20,393,500 | 6,251,477 | |
Surya Citra Media Tbk PT | 40,895,600 | 2,840,985 | |
9,092,462 | |||
Ireland — 1.1% | |||
Ryanair Holdings Plc (a)(c) | 328,196 | 9,317,484 | |
Israel — 1.7% | |||
Frutarom | 550,400 | 4,042,790 | |
NICE Systems Ltd. (a)(c) | 292,000 | 6,736,440 | |
Strauss-Elite Ltd. | 353,200 | 3,723,882 | |
14,503,112 | |||
Italy — 1.1% | |||
Credito Emiliano SpA (a) | 492,369 | 2,364,696 | |
DiaSorin SpA | 172,000 | 4,279,598 | |
Iride SpA | 269,588 | 466,957 | |
Milano Assicurazioni SpA | 526,500 | 1,750,531 | |
8,861,782 | |||
Japan — 6.8% | |||
Aioi Insurance Co., Ltd. | 829,300 | 3,779,838 | |
Asics Corp. | 422,550 | 3,854,132 | |
Don Quijote Co., Ltd. | 189,000 | 3,625,442 | |
Fukuoka Financial Group, Inc. | 1,511,300 | 6,758,863 | |
Hisaka Works Ltd. | 311,700 | 3,727,925 | |
Jupiter Telecommunications Co., Ltd. | 4,385 | 3,326,151 | |
Koito Manufacturing Co., Ltd. | 375,700 | 4,547,172 | |
Komori Corp. | 233,000 | 2,781,921 | |
Makita Corp. | 16,200 | 392,016 | |
NGK Insulators Ltd. | 208,400 | 4,247,559 | |
Nippon Building Fund, Inc. | 389 | 3,325,160 | |
Osaka Securities Exchange Co., Ltd. | 1,275 | 6,117,182 | |
PanaHome Corp. | 484,100 | 2,954,048 | |
Santen Pharmaceutical Co., Ltd. | 29,200 | 885,005 | |
Suruga Bank Ltd. | 207,400 | 1,984,293 | |
Tokyu Land Corp. | 969,635 | 4,405,226 | |
56,711,933 | |||
Malaysia — 0.3% | |||
AirAsia Bhd (a) | 8,864,400 | 2,793,803 | |
Mexico — 0.5% | |||
Embotelladoras Arca SA de CV | 1,951,900 | 4,595,060 | |
Netherlands — 0.4% | |||
Core Laboratories NV | 43,900 | 3,825,885 | |
Norway — 0.9% | |||
Petroleum Geo-Services ASA (a) | 254,300 | 1,585,743 | |
Prosafe Production Public Ltd. (a) | 600,500 | 1,136,376 | |
Tandberg ASA | 273,100 | 4,608,235 | |
7,330,354 |
See Notes to Financial Statements.
14 ANNUAL REPORT JUNE 30, 2009
Schedule of Investments (continued) BlackRock Global SmallCap Fund, Inc.
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | |
Philippines — 0.5% | |||
Bank of the Philippine Islands | 5,103,364 | $ | 4,433,229 |
Singapore — 1.0% | |||
CapitaMall Trust | 1,363,700 | 1,311,571 | |
Cityspring Infrastructure Trust | 6,914,200 | 3,124,402 | |
Olam International Ltd. | 889,500 | 1,483,317 | |
UOL Group Ltd. | 934,600 | 2,120,660 | |
8,039,950 | |||
South Africa — 0.3% | |||
Massmart Holdings Ltd. | 206,850 | 2,146,587 | |
South Korea — 0.3% | |||
LG Household & Health Care Ltd. | 16,100 | 2,723,849 | |
Spain — 1.0% | |||
Bolsas y Mercados Espanoles | 42,800 | 1,270,865 | |
Laboratorios Farmaceuticos Rovi SA | 751,994 | 6,792,801 | |
8,063,666 | |||
Sweden — 0.5% | |||
Millicom International Cellular SA (a)(c) | 18,550 | 1,046,405 | |
Swedish Match AB | 200,400 | 3,264,692 | |
4,311,097 | |||
Switzerland — 0.7% | |||
Addex Pharmaceuticals Ltd. | 12,300 | 321,297 | |
Basilea Pharmaceutica (a) | 20,002 | 1,715,305 | |
Foster Wheeler AG (a) | 87,000 | 2,066,250 | |
Rieter Holding AG | 8,831 | 1,483,108 | |
5,585,960 | |||
Thailand — 0.4% | |||
Mermaid Maritime PCL (a) | 7,801,900 | 3,028,863 | |
United Kingdom — 9.5% | |||
Amlin Plc | 1,439,715 | 7,177,499 | |
Antofagasta Plc | 178,000 | 1,728,186 | |
BTG Plc (a) | 173,300 | 414,010 | |
Britvic Plc | 1,365,000 | 6,274,034 | |
Cairn Energy Plc (a) | 111,500 | 4,311,200 | |
Central African Mining & Exploration Co. Plc (a) | 2,402,900 | 426,373 | |
Charter International Plc | 411,600 | 2,934,570 | |
Dana Petroleum Plc (a) | 209,800 | 4,843,607 | |
Dragon Oil Plc (a) | 694,400 | 4,168,459 | |
EasyJet Plc (a) | 689,700 | 3,075,888 | |
Game Group Plc | 854,091 | 2,317,414 | |
Group 4 Securicor Plc | 1,640,097 | 5,648,952 | |
Halfords Group Plc | 879,600 | 4,510,098 | |
Hikma Pharmaceuticals Plc | 901,800 | 6,987,483 | |
Intertek Group Plc | 362,800 | 6,240,265 | |
Kesa Electricals Plc | 2,932,600 | 5,371,665 | |
Prostrakan Group Plc (a) | 605,100 | 863,310 | |
QinetiQ Plc | 2,373,600 | 5,614,687 | |
Rexam Plc | 881,300 | 4,142,271 | |
Rightmove Plc | 331,400 | 1,920,401 | |
78,970,372 | |||
United States — 43.5% | |||
Advanced Energy Industries, Inc. (a) | 195,900 | 1,761,141 | |
Alexion Pharmaceuticals, Inc. (a) | 98,800 | 4,062,656 | |
Alliant Energy Corp. | 50,200 | 1,311,726 | |
American Superconductor Corp. (a) | 99,400 | 2,609,250 | |
Arch Capital Group Ltd. (a) | 71,800 | 4,206,044 | |
Arena Resources, Inc. (a) | 10,800 | 343,980 | |
Autoliv, Inc. | 104,900 | 3,017,973 | |
BJ’s Restaurants, Inc. (a) | 197,800 | 3,336,886 | |
BMC Software, Inc. (a) | 115,300 | 3,895,987 | |
BancorpSouth, Inc. | 157,300 | 3,229,369 | |
Bank of Hawaii Corp. | 120,500 | 4,317,515 | |
Bio-Reference Labs, Inc. (a) | 44,500 | 1,406,645 | |
BioMarin Pharmaceuticals, Inc. (a) | 189,000 | 2,950,290 |
Common Stocks | Shares | Value | |
United States (continued) | |||
Blackboard, Inc. (a) | 230,000 | $ | 6,637,800 |
BorgWarner, Inc. (d) | 80,150 | 2,737,123 | |
Brooks Automation, Inc. (a) | 677,750 | 3,036,320 | |
Burger King Holdings, Inc. | 113,800 | 1,965,326 | |
Cadence Design Systems, Inc. (a) | 524,600 | 3,095,140 | |
Celanese Corp. Series A | 204,700 | 4,861,625 | |
Ciena Corp. (a)(d) | 402,600 | 4,166,910 | |
Citrix Systems, Inc. (a)(d) | 231,200 | 7,372,968 | |
ComScore, Inc. (a) | 218,600 | 2,911,752 | |
Commerce Bancshares, Inc. | 36,500 | 1,161,795 | |
Commercial Vehicle Group, Inc. (a) | 418,200 | 602,208 | |
Conceptus, Inc. (a) | 101,400 | 1,713,660 | |
Covanta Holding Corp. (a) | 292,550 | 4,961,648 | |
Cullen/Frost Bankers, Inc. | 206,500 | 9,523,780 | |
DSP Group, Inc. (a) | 804,300 | 5,437,068 | |
Delta Air Lines, Inc. (a) | 334,900 | 1,939,071 | |
Digital River, Inc. (a) | 129,400 | 4,699,808 | |
Douglas Emmett, Inc. | 301,300 | 2,708,687 | |
Dresser-Rand Group, Inc. (a) | 105,700 | 2,758,770 | |
Drew Industries, Inc. (a) | 211,800 | 2,577,606 | |
Electronics for Imaging, Inc. (a) | 181,400 | 1,933,724 | |
EnergySolutions, Inc. | 464,900 | 4,277,080 | |
FTI Consulting, Inc. (a) | 106,500 | 5,401,680 | |
Fidelity National Title Group, Inc. Class A | 435,700 | 5,895,021 | |
Fifth Third Bancorp | 358,739 | 2,547,047 | |
First Financial Bankshares, Inc. | 38,100 | 1,918,716 | |
Guess?, Inc. | 217,850 | 5,616,173 | |
IDEX Corp. | 242,450 | 5,956,997 | |
IPC: The Hospitalist Co., Inc. (a) | 276,400 | 7,377,116 | |
Informatica Corp. (a) | 333,500 | 5,732,865 | |
Integrated Device Technology, Inc. (a) | 706,550 | 4,267,562 | |
Interactive Brokers Group, Inc. Class A (a) | 103,600 | 1,608,908 | |
Intersil Corp. Class A | 546,500 | 6,869,505 | |
Intrepid Potash, Inc. (a)(d) | 56,400 | 1,583,712 | |
j2 Global Communications, Inc. (a) | 368,950 | 8,323,512 | |
K-Swiss, Inc. Class A | 140,500 | 1,194,250 | |
Kinetic Concepts, Inc. (a) | 74,600 | 2,032,850 | |
LKQ Corp. (a) | 377,563 | 6,210,911 | |
Landstar System, Inc. | 115,000 | 4,129,650 | |
Linear Technology Corp. | 181,550 | 4,239,193 | |
LogMeIn, Inc. | 6,700 | 107,200 | |
The Macerich Co. (d) | 47,300 | 832,953 | |
Marvel Entertainment, Inc. (a) | 107,200 | 3,815,248 | |
Maxim Integrated Products, Inc. | 442,100 | 6,936,549 | |
Melco Crown Entertainment Ltd. (a)(c) | 834,800 | 3,756,600 | |
Mentor Graphics Corp. (a) | 414,150 | 2,265,401 | |
Merit Medical Systems, Inc. (a) | 641,961 | 10,463,964 | |
MoSys, Inc. (a) | 494,850 | 816,503 | |
Monolithic Power Systems, Inc. (a) | 150,700 | 3,377,187 | |
National Instruments Corp. | 42,600 | 961,056 | |
Nektar Therapeutics (a) | 352,000 | 2,280,960 | |
Nordson Corp. | 87,450 | 3,380,817 | |
Oceaneering International, Inc. (a) | 16,800 | 759,360 | |
Omnicare, Inc. | 70,100 | 1,805,776 | |
Owens-Illinois, Inc. (a) | 209,500 | 5,868,095 | |
PMC-Sierra, Inc. (a) | 663,200 | 5,279,072 | |
Packaging Corp. of America | 298,700 | 4,838,940 | |
People’s United Financial, Inc. | 319,174 | 4,800,377 | |
PetroHawk Energy Corp. (a)(d) | 376,500 | 8,395,950 | |
Phase Forward, Inc. (a) | 26,600 | 401,926 | |
Phillips-Van Heusen Corp. | 244,400 | 7,011,836 | |
Polycom, Inc. (a) | 292,500 | 5,928,975 | |
Priceline.com, Inc. (a)(d) | 15,175 | 1,692,771 | |
Pride International, Inc. (a) | 169,900 | 4,257,694 | |
ProAssurance Corp. (a) | 45,500 | 2,102,555 | |
Regency Centers Corp. | 62,900 | 2,195,839 | |
Regis Corp. | 245,200 | 4,268,932 | |
Sanderson Farms, Inc. | 69,900 | 3,145,500 | |
Sepracor, Inc. (a) | 72,700 | 1,259,164 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 15
Schedule of Investments (continued) BlackRock Global SmallCap Fund, Inc.
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | ||
United States (concluded) | ||||
Silgan Holdings, Inc. | 111,800 | $ | 5,481,554 | |
Steel Dynamics, Inc. | 218,200 | 3,214,086 | ||
Support.com Inc. (a) | 1,811,179 | 3,948,370 | ||
Sybase, Inc. (a) | 221,825 | 6,951,995 | ||
Synaptics, Inc. (a)(d) | 34,400 | 1,329,560 | ||
Tanger Factory Outlet Centers, Inc. | 221,400 | 7,180,002 | ||
Timken Co. | 216,150 | 3,691,842 | ||
Urban Outfitters, Inc. (a) | 289,250 | 6,036,647 | ||
Ventas, Inc. | 124,100 | 3,705,626 | ||
Vishay Intertechnology, Inc. (a) | 551,100 | 3,741,969 | ||
Watsco, Inc. (d) | 53,400 | 2,612,862 | ||
Winnebago Industries, Inc. | 264,150 | 1,962,635 | ||
Zoran Corp. (a) | 960,250 | 10,466,725 | ||
361,766,072 | ||||
Total Long-Term Investments (Cost — $764,662,958) — 93.0% | 774,460,552 | |||
Par | ||||
Short-Term Securities | (000) | |||
Time Deposits — 0.1% | ||||
Australia — 0.0% | ||||
Brown Brothers Harriman & Co., 1.83% 7/01/09 | AUD | 2 | 1,510 | |
Europe — 0.0% | ||||
Brown Brothers Harriman & Co., 0.11% 7/01/09 | EUR | 1 | 1,066 | |
United Kingdom — 0.0% | ||||
Brown Brothers Harriman & Co., 0.11% 7/01/09 | GBP | 2 | 1,772 | |
United States — 0.1% | ||||
Brown Brothers Harriman & Co., 0.03% 7/01/09 | USD | 455 | 455,051 | |
Total Time Deposits — 0.1% | 459,399 | |||
Money Market Funds | Shares | |||
United States — 8.9% | ||||
BlackRock Liquidity Funds, TempFund, | ||||
0.45% (e)(f) | 54,166,551 | 54,166,551 | ||
Beneficial | ||||
Interest | ||||
(000) | ||||
BlackRock Liquidity Series, LLC | ||||
Money Market Series, 0.55% (e)(f)(g) | USD | 20,080 | 20,080,000 | |
Total Money Market Funds — 8.9% | 74,246,551 | |||
Total Short-Term Securities (Cost — $74,705,950) — 9.0% | 74,705,950 | |||
Total Investments (Cost — $839,368,908*) — 102.0% | 849,166,502 | |||
Liabilities in Excess of Other Assets — (2.0)% | (16,526,869) | |||
Net Assets — 100.0% | $ | 832,639,633 | ||
* The cost and unrealized appreciation (depreciation) of investments as of June 30, | ||||
2009, as computed for federal income tax purposes, were as follows: | ||||
Aggregate cost | $ | 853,499,266 | ||
Gross unrealized appreciation | $ | 108,499,657 | ||
Gross unrealized depreciation | (112,832,421) | |||
Net unrealized appreciation | $ | (4,332,764) | ||
(a) Non-income producing security. |
(b) 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, were as follows: | ||||||||
Purchase | Sales | Realized | ||||||
Affiliate | Cost | Cost | Losses | Income | ||||
DiagnoCure, Inc. | $364,267 | — | — | — | ||||
(c) Depositary receipts. | ||||||||
(d) Security, or a portion of security, is on loan. | ||||||||
(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, were as follows: | ||||||||
Net | ||||||||
Affiliate | Activity | Income | ||||||
BlackRock Liquidity Fund, TempFund | 54,166,551 | $ 49,242 | ||||||
BlackRock Liquidity Series, LLC | ||||||||
Cash Sweep Series�� | $(149,595,217) | $1,605,428 | ||||||
BlackRock Liquidity Series, LLC | ||||||||
Money Market Series | $(152,801,825) | $ 533,056 | ||||||
(f) Represents the current yield as of report date. | ||||||||
(g) Security was purchased with the cash proceeds from securities loans. | ||||||||
•Foreigncurrency exchange contracts as of June 30, 2009 were as follows: | ||||||||
Unrealized | ||||||||
Currency | Currency | Settlement Appreciation | ||||||
Purchased | Sold | Counterparty | Date | (Depreciation) | ||||
AUD | 544,225 | USD | 439,440 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/01/09 | $ | (934) | |||||
EUR | 241,995 | USD | 340,445 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/01/09 | (957) | ||||||
ILS | 438,035 | USD | 111,658 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/01/09 | (199) | ||||||
USD 1,026,392 | EUR | 729,879 | State Street | |||||
Bank | ||||||||
& Trust Co. | 7/01/09 | 2,469 | ||||||
USD | 421,577 | GBP | 254,919 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/01/09 | 2,185 | ||||||
USD | 490,582 | JPY 47,111,712 | State Street | |||||
Bank | ||||||||
& Trust Co. | 7/01/09 | 1,536 | ||||||
CHF | 11,931 | USD | 11,040 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | (59) | ||||||
EUR | 79,691 | USD | 111,993 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | (196) | ||||||
GBP | 118,887 | USD | 197,127 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | (1,534) | ||||||
ILS | 592,261 | USD | 151,132 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | (430) | ||||||
SGD | 778,659 | USD | 536,112 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | 1,477 | ||||||
USD | 375,181 | CAD | 433,304 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | 2,652 | ||||||
USD | 71,137 | DKK | 375,899 | State Street | ||||
Bank | ||||||||
& Trust Co. | 7/02/09 | 328 |
See Notes to Financial Statements.
16 ANNUAL REPORT JUNE 30, 2009
Schedule of Investments (concluded) BlackRock Global SmallCap Fund, Inc.
Unrealized | |||||||
Currency | Currency | Settlement Appreciation | |||||
Purchased | Sold | Counterparty | Date | (Depreciation) | |||
USD | 591,246 | EUR | 420,768 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | $ | 961 | ||||
USD | 110,502 | GBP | 66,644 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | 860 | |||||
CHF | 36,500 | USD | 33,614 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | (20) | |||||
EUR 320,268 | USD | 449,454 | State Street | ||||
Bank | |||||||
& Trust Co. | 7/03/09 | (155) | |||||
GBP | 146,139 | USD | 240,465 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | (38) | |||||
USD | 391,217 | CAD | 452,336 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | 2,323 | |||||
USD | 516,563 | DKK 2,744,004 | State Street | ||||
Bank | |||||||
& Trust Co. | 7/03/09 | (324) | |||||
USD | 337,716 | EUR | 240,646 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | 117 | |||||
USD | 64,265 | GBP | 39,045 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | 29 | |||||
USD | 381,170 | CAD | 443,430 | State Street | |||
Bank | |||||||
& Trust Co. | 7/06/09 | (71) | |||||
CAD | 666,450 | USD | 578,681 | State Street | |||
Bank | |||||||
& Trust Co. | 7/07/09 | (5,697) | |||||
Total | $ | 4,323 | |||||
•CurrencyAbbreviations: | |||||||
AUD | Australian Dollar | GBP | British Pound | ||||
CAD | Canadian Dollar | ILS | Israeli Shekel | ||||
CHF | Swiss Franc | JPY | Japanese Yen | ||||
DKK | Danish Krona | SGD | Singapore Dollar | ||||
EUR | Euro | USD | US Dollar | ||||
•Effective July 1, 2008, the Fund adopted Financial Accounting Standards Board | |||||||
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” | |||||||
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework | |||||||
for measuring fair values and requires additional disclosures about the use of fair | |||||||
value measurements. Various inputs are used in determining the fair value of invest- | |||||||
ments, which are as follows: | |||||||
•Level1 — price quotations in active markets/exchanges for identical securities | |||||||
•Level2 — other observable inputs (including, but not limited to: quoted prices | |||||||
for similar assets or liabilities in markets that are active, quoted prices for identi- | |||||||
cal 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) | |||||||
•Level3 — 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 methodology used for valuing securities are not necessarily an indi- | |||||||
cation 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 table summarizes the inputs used as of June 30, 2009 in determining | |||
the fair valuation of the Fund’s investments: | |||
Valuation | Investments in | ||
Inputs | Securities | ||
Assets | |||
Level 1 | |||
Long-Term Investments | |||
Bermuda | $ | 15,001,260 | |
Brazil | 2,960,653 | ||
Canada | 28,852,077 | ||
China | 9,175,296 | ||
Ireland | 9,317,484 | ||
Israel | 6,736,440 | ||
Mexico | 4,595,060 | ||
Netherlands | 3,825,885 | ||
Switzerland | 2,066,250 | ||
United States | 361,766,072 | ||
Short-Term Securities | 54,166,551 | ||
Total Level 1 | 498,463,028 | ||
Level 2 | |||
Long-Term Investments | |||
Australia | 8,289,448 | ||
Austria | 2,223,791 | ||
Bermuda | 5,464,702 | ||
Cayman Islands | 7,075,149 | ||
China | 3,997,399 | ||
Denmark | 11,377,217 | ||
Finland | 3,857,190 | ||
France | 29,095,825 | ||
Germany | 28,927,184 | ||
Hong Kong | 12,090,475 | ||
India | 9,398,396 | ||
Indonesia | 9,092,462 | ||
Israel | 7,766,672 | ||
Italy | 8,861,782 | ||
Japan | 56,711,933 | ||
Malaysia | 2,793,803 | ||
Norway | 7,330,354 | ||
Philippines | 4,433,229 | ||
Singapore | 8,039,950 | ||
South Africa | 2,146,587 | ||
South Korea | 2,723,849 | ||
Spain | 8,063,666 | ||
Sweden | 4,311,097 | ||
Switzerland | 3,519,710 | ||
Thailand | 3,028,863 | ||
United Kingdom | 78,970,372 | ||
Short-Term Securities | 20,539,399 | ||
Total Level 2 | 350,130,504 | ||
Level 3 | |||
Long-Term Investments | |||
Canada | 572,970 | ||
Total | $ 849,166,502 | ||
Valuation | Other Financial | ||
Inputs | Instruments1 | ||
Assets | Liabilities | ||
Level 1 | — | — | |
Level 2 | $ | 14,937 $ | (10,614) |
Level 3 | — | — | |
Total | $ | 14,937 $ | (10,614) |
1 Other financial instruments are foreign currency exchange contracts which are | |||
shown at the unrealized appreciation/depreciation on the instrument. | |||
The following is a reconciliation of investments for unobservable inputs (Level 3) | |||
used in determining fair value: | |||
Investments in | |||
Securities | |||
Canada | |||
Balance, as of June 30, 2008 | — | ||
Accrued discounts/premiums | — | ||
Realized gain (loss) | — | ||
Change in unrealized appreciation/depreciation | — | ||
Net purchases (sales) | — | ||
Net transfer in | $ | 572,970 | |
Balance, as of June 30, 2009 | $ | 572,970 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 17
Schedule of Investments June 30, 2009 BlackRock International Value Fund
(Percentages shown are based on Net Assets)
Common Stocks | Shares | Value | |
Australia — 7.0% | |||
Australia & New Zealand Banking Group Ltd. | 673,848 | $ | 8,930,161 |
BHP Billiton Ltd. | 883,997 | 24,217,892 | |
Fairfax Media Ltd. | 9,905,153 | 9,706,368 | |
Newcrest Mining Ltd. | 550,728 | 13,460,499 | |
Qantas Airways Ltd. | 4,711,371 | 7,629,116 | |
63,944,036 | |||
Austria — 0.8% | |||
Erste Bank der Oesterreichischen Sparkassen AG | 247,245 | 6,712,294 | |
Brazil — 2.0% | |||
All America Latina Logistica SA | 1,117,030 | 6,857,806 | |
Cyrela Brazil Realty SA | 678,047 | 5,086,650 | |
Tam SA (Preference Shares) (a)(b) | 636,711 | 6,628,161 | |
18,572,617 | |||
France — 13.1% | |||
BNP Paribas SA | 305,232 | 19,904,987 | |
GDF Suez | 699,734 | 26,192,677 | |
Sanofi-Aventis | 403,818 | 23,861,560 | |
Schneider Electric SA | 249,905 | 19,127,288 | |
Total SA | 566,506 | 30,705,047 | |
119,791,559 | |||
Germany — 12.3% | |||
Allianz AG Registered Shares | 215,111 | 19,842,414 | |
BASF SE | 366,196 | 14,589,907 | |
Bayer AG | 393,473 | 21,145,339 | |
DaimlerChrysler AG | 469,867 | 17,063,586 | |
E.ON AG | 619,726 | 21,999,021 | |
MAN SE | 286,951 | 17,655,981 | |
112,296,248 | |||
Hong Kong — 1.8% | |||
Hutchison Whampoa Ltd. | 2,549,000 | 16,581,609 | |
Italy — 4.8% | |||
Eni SpA | 979,795 | 23,237,942 | |
UniCredit SpA | 8,010,212 | 20,260,242 | |
43,498,184 | |||
Japan — 24.8% | |||
Asahi Breweries Ltd. | 1,449,300 | 20,768,089 | |
Daiichi Sankyo Co., Ltd. | 979,200 | 17,478,186 | |
Fuji Media Holdings, Inc. | 5,723 | 8,612,550 | |
Fuji Photo Film Co., Ltd. | 400,800 | 12,755,377 | |
Honda Motor Co., Ltd. | 385,600 | 10,608,184 | |
JFE Holdings, Inc. | 360,700 | 12,118,555 | |
Japan Prime Realty Investment Corp. | 1,468 | 3,166,808 | |
Japan Tobacco, Inc. | 6,385 | 19,958,440 | |
KDDI Corp. | 3,394 | 18,008,716 | |
Mazda Motor Corp. | 4,366,000 | 11,165,995 | |
Mitsui Chemicals, Inc. | 2,057,000 | 6,557,172 | |
Mitsui OSK Lines Ltd. | 2,009,000 | 12,982,846 | |
NOK Corp. | 43,700 | 507,755 | |
Nomura Holdings, Inc. | 2,160,500 | 18,236,447 | |
Sony Corp. | 786,700 | 20,524,228 | |
Sumitomo Mitsui Financial Group, Inc. | 473,600 | 19,164,368 | |
Tokio Marine Holdings, Inc. | 495,500 | 13,604,744 | |
226,218,460 | |||
Norway — 1.9% | |||
StatoilHydro ASA | 876,277 | 17,309,250 | |
Russia — 1.3% | |||
MMC Norilsk Nickel (b) | 874,366 | 8,044,167 | |
Mechel OAO (b) | 486,605 | 4,063,152 | |
12,107,319 | |||
Singapore — 1.4% | |||
DBS Group Holdings Ltd. | 1,612,500 | 13,072,778 |
Common Stocks | Shares | Value |
Spain — 6.8% | ||
Banco Santander SA | 2,644,261 $ | 31,964,352 |
Telefonica SA | 1,340,510 | 30,442,546 |
62,406,898 | ||
Sweden — 2.0% | ||
Electrolux AB | 714,818 | 10,000,042 |
Swedbank AB-A Shares | 1,429,588 | 8,357,492 |
18,357,534 | ||
Switzerland — 3.3% | ||
Nestle SA Registered Shares | 806,325 | 30,445,580 |
Taiwan — 1.6% | ||
HTC Corp. | 1,046,000 | 14,698,410 |
United Kingdom — 11.7% | ||
BAE Systems Plc | 3,035,190 | 16,960,697 |
Cookson Group Plc | 1,441,430 | 6,210,854 |
Land Securities Group Plc | 1,883,912 | 14,650,314 |
United Business Media Ltd. | 2,270,511 | 14,968,262 |
Vodafone Group Plc | 14,430,827 | 28,067,068 |
WPP Plc | 2,006,770 | 13,345,003 |
Xstrata Plc | 1,115,213 | 12,120,415 |
106,322,613 | ||
Total Common Stocks — 96.6% | 882,335,389 | |
Warrants (c) | ||
Cayman Islands — 0.4% | ||
Morgan Stanley (Rolta India Ltd.) | ||
(expires 5/26/14) | 1,501,267 | 3,950,209 |
United Kingdom — 0.4% | ||
HSBC Bank Plc (Emaar Properties PJSC) | ||
(expires 4/05/12) | 4,318,725 | 3,268,757 |
Total Warrants — 0.8% | 7,218,966 | |
Total Long-Term Investments (Cost — $806,229,265) — 97.4% | 889,554,355 | |
Short-Term Securities | ||
Money Market Fund — 1.4% | ||
BlackRock Liquidity Funds, TempFund, | ||
0.45% (d)(e) | 12,829,417 | 12,829,417 |
Par | ||
Time Deposits | (000) | |
Hong Kong — 0.0% | ||
Brown Brothers Harriman & Co., | ||
0.02%%, 7/01/09 | HKD 1,340 | 172,926 |
Japan — 0.1% | ||
Brown Brothers Harriman & Co., | ||
0.01%, 7/01/09 | JPY 120,879 | 1,254,780 |
Total Time Deposits — 0.1% | 1,427,706 | |
Total Short-Term Securities (Cost — $14,257,123) — 1.5% | 14,257,123 | |
Total Investments (Cost — $820,486,388*) — 98.9% | 903,811,478 | |
Other Assets Less Liabilities — 1.1% | 9,865,236 | |
Net Assets — 100.0% | $ | 913,676,714 |
* The cost and unrealized appreciation (depreciation) of investments as of June 30, | ||
2009, as computed for federal income tax purposes, were as follows: | ||
Aggregate cost | $ | 839,439,288 |
Gross unrealized appreciation | $ | 102,164,610 |
Gross unrealized depreciation | (37,792,420) | |
Net unrealized appreciation | $ | 64,372,190 |
See Notes to Financial Statements.
18 ANNUAL REPORT JUNE 30, 2009
Schedule of Investments (concluded) BlackRock International Value Fund
(a) Non-income producing security. | |||||||
(b) Depositary receipts. | |||||||
(c) Warrants entitle the Fund to purchase a predetermined number of shares of | |||||||
common stock and are non-income producing. The purchase price and number of | |||||||
shares are subject to adjustment under certain conditions until the expiration 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, were as follows: | |||||||
Net | |||||||
Affiliate | Activity | Income | |||||
BlackRock Liquidity Funds, | |||||||
TempFund | $ 12,829,417 | $ 11,169 | |||||
BlackRock Liquidity Series, LLC | |||||||
Cash Sweep Series | $(20,797,911) | $ 281,695 | |||||
(e) Represents the current yield as of report date. | |||||||
•Foreigncurrency exchange contracts as of June 30, 2009 were as follows: | |||||||
Unrealized | |||||||
Currency | Currency | Settlement Appreciation | |||||
Purchased | Sold | Counterparty | Date | (Depreciation) | |||
AUD | 222,916 | USD | 179,626 | State Street | |||
Bank | |||||||
& Trust Co. | 7/01/09 | $ | (13) | ||||
EUR | 14,740,664 | USD | 20,756,329 | JP Morgan | |||
Chase | 7/01/09 | (77,132) | |||||
JPY | 53,373,121 | USD | 553,548 | State Street | |||
Bank | |||||||
& Trust Co. | 7/01/09 | 494 | |||||
USD | 4,231,255 | GBP | 2,562,068 | Barclays | |||
Bank, Plc | 7/01/09 | 16,149 | |||||
USD 25,717,907 | GBP | 15,535,766 | State Street | ||||
Bank | |||||||
& Trust Co. | 7/01/09 | 158,514 | |||||
USD | 1,218,885 | JPY | 116,647,341 | State Street | |||
Bank | |||||||
& Trust Co. | 7/01/09 | 8,034 | |||||
USD | 33,130 | JPY | 3,178,416 | Citibank, NA | 7/01/09 | 137 | |
USD | 1,363,861 | SEK | 10,624,481 | State Street | |||
Bank | |||||||
& Trust Co. | 7/01/09 | (13,315) | |||||
AUD | 243,945 | USD | 196,327 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | 216 | |||||
EUR | 5,373,917 | USD | 7,561,639 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | (22,700) | |||||
GBP | 1,791,153 | USD | 2,966,508 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | (19,708) | |||||
JPY | 127,749 | USD | 1,338 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | (12) | |||||
USD | 2,849,445 | SEK | 21,990,590 | State Street | |||
Bank | |||||||
& Trust Co. | 7/02/09 | (1,029) | |||||
AUD | 707,547 | USD | 575,660 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | (5,642) | |||||
GBP | 1,333,689 | USD | 2,196,852 Citibank, NA | 7/03/09 | (2,672) | ||
JPY | 383,649 | USD | 4,016 | State Street | |||
Bank | |||||||
& Trust Co. | 7/03/09 | (34) | |||||
USD | 1,678,898 | SEK | 12,951,055 | Goldman | |||
Sachs | 7/03/09 | 158 | |||||
GBP 42,989,293 | USD | 70,002,700 | State Street | ||||
Bank | |||||||
& Trust Co. | 9/17/09 | 713,338 |
Unrealized | ||||||
Currency | Currency | Settlement Appreciation | ||||
Purchased | Sold | Counterparty | Date | (Depreciation) | ||
USD 19,071,000 EUR | 13,861,753 | State Street | ||||
Bank | ||||||
& Trust Co. | 9/17/09 | $(372,094) | ||||
USD 23,839,000 HKD 184,627,095 | State Street | |||||
Bank | ||||||
& Trust Co. | 9/17/09 | (246) | ||||
Total | $ 382,443 | |||||
Currency Abbreviations: | ||||||
AUD Australian Dollar | JPY | Japanese Yen | ||||
EUR Euro | SEK | Swedish Krona | ||||
GBP British Pound | USD | US Dollar | ||||
HKD Hong Kong Dollar | ||||||
Effective July 1, 2008, the Fund adopted Financial Accounting Standards Board | ||||||
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” | ||||||
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for | ||||||
measuring fair values and requires additional disclosures about the use of fair value | ||||||
measurements. Various inputs are used in determining the fair value of investments, | ||||||
which are as follows: | ||||||
•Level1 — price quotations in active markets/exchanges for identical securities | ||||||
•Level2 — other observable inputs (including, but not limited to: quoted prices | ||||||
for similar assets or liabilities in markets that are active, quoted prices for identi- | ||||||
cal 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) | ||||||
•Level3 — 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 methodology used for valuing securities are not necessarily an indi- | ||||||
cation 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 table summarizes the inputs used as of June 30, 2009 in determining | ||||||
the fair valuation of the Fund’s investments: | ||||||
Valuation | Investments in | |||||
Inputs | Securities | |||||
Assets | ||||||
Level 1 | ||||||
Long-Term Investments | ||||||
Brazil | $ | 18,572,617 | ||||
Russia | 12,107,319 | |||||
Short-Term Securities | 12,829,417 | |||||
Total Level 1 | 43,509,353 | |||||
Level 2 | ||||||
Long-Term Investments1 | 858,874,419 | |||||
Short-Term Securities | 1,427,706 | |||||
Total Level 2 | 860,302,125 | |||||
Level 3 | — | |||||
Total | $ | 903,811,478 | ||||
1 See above Schedule of Investments for values in each country excluding Level 1 | ||||||
within the table. | ||||||
Valuation | Other Financial | |||||
Inputs | Instruments2 | |||||
Assets | Liabilities | |||||
Level 1 | — | — | ||||
Level 2 | $ | 897,040 | $ (514,597) | |||
Level 3 | — | — | ||||
Total | $ | 897,040 | $ (514,597) | |||
2 Other 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, 2009 19
Statements of Assets and Liabilities
BlackRock | BlackRock | ||
BlackRock | Global SmallCap | International | |
June 30, 2009 | EuroFund | Fund, Inc. | Value Fund |
Assets | |||
Investments at value — unaffiliated1,2 | $ 375,799,314 | $ 771,682,695 | $ 890,982,061 |
Investments at value — affiliated3 | 8,551,926 | 77,483,807 | 12,829,417 |
Foreign currency at value4 | 62 | 3,664,355 | 719,003 |
Unrealized appreciation on foreign currency exchange contracts | 2,814,971 | 14,937 | 897,040 |
Investments sold receivable | 3,975,197 | 8,081,992 | 41,675,872 |
Dividends receivable | 3,114,370 | 2,338,208 | 8,695,089 |
Capital shares sold receivable | 201,582 | 2,212,675 | 646,739 |
Prepaid expenses | 28,560 | 47,333 | 61,571 |
Securities lending income receivable — affiliated | — | 13,847 | — |
Other assets | 336,582 | 52 | 1,699,543 |
Total assets | 394,822,564 | 865,539,901 | 958,206,335 |
Liabilities | |||
Collateral at value — securities loaned | — | $ 20,080,000 | — |
Unrealized depreciation on foreign currency exchange contracts | $ 1,105,908 | 10,614 | $ 514,597 |
Investments purchased payable — unaffiliated | 6,254,365 | 9,465,573 | 40,826,525 |
Capital shares redeemed payable | 493,714 | 1,946,712 | 1,415,036 |
Investment advisory fees payable | 242,282 | 581,826 | 573,202 |
Service and distribution fees payable | 72,396 | 328,199 | 224,708 |
Other affiliates payable | 26,438 | 32,415 | 30,914 |
Officer’s and Directors’ fees payable | 145 | 588 | 348 |
Other accrued expenses payable | 159,769 | 454,341 | 944,291 |
Total liabilities | 8,355,017 | 32,900,268 | 44,529,621 |
Net Assets | $ 386,467,547 | $ 832,639,633 | $ 913,676,714 |
Net Assets Consist of | |||
Paid-in capital | $ 572,124,015 | $ 1,071,404,867 | $ 1,356,914,026 |
Undistributed (accumulated) net investment income (loss) | 11,866,989 | (1,759,587) | 22,483,345 |
Accumulated net realized loss | (227,065,783) | (246,921,985) | (549,587,012) |
Net unrealized appreciation/depreciation | 29,542,326 | 9,916,338 | 83,866,355 |
Net Assets | $ 386,467,547 | $ 832,639,633 | $ 913,676,714 |
1 Securities loaned — at value | — | $ 19,369,060 | — |
2 Cost — unaffiliated | $ 348,135,784 | $ 750,928,837 | $ 807,656,971 |
3 Cost — affiliated | $ 8,551,926 | $ 88,440,071 | $ 12,829,417 |
4 Cost — foreign currency | $ 52 | $ 3,571,606 | $ 723,374 |
See Notes to Financial Statements.
20 ANNUAL REPORT JUNE 30, 2009
Statements of Assets and Liabilities (concluded)
BlackRock | BlackRock | ||||
BlackRock | Global SmallCap | International | |||
June 30, 2009 | EuroFund | Fund, Inc. | Value Fund | ||
Net Asset Value | |||||
Institutional: | |||||
Net assets | $ 133,540,112 | $ 250,720,291 | $ | 462,171,037 | |
Shares outstanding5 | 12,537,035 | 15,509,443 | 26,469,110 | ||
Net asset value | $ 10.65 | $ | 16.17 | $ | 17.46 |
Par value | $ 0.10 | $ | 0.10 | — | |
Investor A: | |||||
Net assets | $ 219,697,345 | $ 226,362,029 | $ | 215,337,044 | |
Shares outstanding5 | 20,989,681 | 14,248,463 | 12,412,610 | ||
Net asset value | $ 10.47 | $ | 15.89 | $ | 17.35 |
Par value | $ 0.10 | $ | 0.10 | — | |
Investor B: | |||||
Net assets | $ 5,013,280 | $ 40,600,004 | $ | 31,261,171 | |
Shares outstanding5 | 585,282 | 2,685,878 | 1,856,138 | ||
Net asset value | $ 8.57 | $ | 15.12 | $ | 16.84 |
Par value | $ 0.10 | $ | 0.10 | �� | |
Investor C: | |||||
Net assets | $ 25,504,120 | $ 281,386,544 | $ | 159,516,203 | |
Shares outstanding5 | 3,266,782 | 19,173,063 | 9,608,976 | ||
Net asset value | $ 7.81 | $ | 14.68 | $ | 16.60 |
Par value | $ 0.10 | $ | 0.10 | — | |
Class R: | |||||
Net assets | $ 2,712,690 | $ 33,570,765 | $ | 45,391,259 | |
Shares outstanding5 | 327,050 | 2,211,039 | 2,653,105 | ||
Net asset value | $ 8.29 | $ | 15.18 | $ | 17.11 |
Par value | $ 0.10 | $ | 0.10 | — | |
5 Authorized shares | Unlimited | 100 Million | Unlimited |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 21
Statements of Operations
BlackRock | BlackRock | ||
BlackRock | Global SmallCap | International | |
Year Ended June 30, 2009 | EuroFund | Fund, Inc. | Value Fund |
Investment Income | |||
Dividends | $ 19,691,830 | $ 15,062,364 | $ 37,798,385 |
Foreign tax withheld | (1,834,392) | (788,763) | (2,943,269) |
Income — affiliated | 144,872 | 1,655,143 | 293,261 |
Interest | 605 | 11,417 | 153,853 |
Securities lending — affiliated | — | 533,056 | — |
Total income | 18,002,915 | 16,473,217 | 35,302,230 |
Expenses | |||
Investment advisory | 3,414,035 | 7,568,135 | 7,838,031 |
Service — Investor A | 635,004 | 571,120 | 556,965 |
Service and distribution — Investor B | 92,834 | 533,613 | 366,790 |
Service and distribution — Investor C | 313,716 | 3,098,470 | 1,716,522 |
Service and distribution — Class R | 12,642 | 170,540 | 244,213 |
Transfer agent — Institutional | 343,776 | 571,992 | 1,215,501 |
Transfer agent — Investor A | 394,738 | 619,522 | 695,812 |
Transfer agent — Investor B | 53,480 | 205,725 | 272,172 |
Transfer agent — Investor C | 80,347 | 1,143,874 | 1,260,700 |
Transfer agent — Class R | 15,667 | 177,924 | 240,335 |
Accounting services | 202,404 | 323,895 | 359,517 |
Custodian | 133,127 | 333,935 | 415,726 |
Printing | 91,816 | 157,241 | 162,060 |
Professional | 88,346 | 137,709 | 99,125 |
Registration | 72,843 | 91,862 | 78,032 |
Officer and Directors | 31,408 | 45,808 | 50,803 |
Miscellaneous | 49,898 | 77,126 | 66,097 |
Total expenses | 6,026,081 | 15,828,491 | 15,638,401 |
Less fees waived by advisor | (418) | (6,592) | (1,567) |
Total expenses after fees waived | 6,025,663 | 15,821,899 | 15,636,834 |
Net investment income | 11,977,252 | 651,318 | 19,665,396 |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) from: | |||
Investments | (223,117,243) | (240,870,894) | (524,278,083) |
Financial futures contracts | — | — | (4,011,419) |
Foreign currency | (339,911) | (970,952) | 5,889,315 |
Options written | — | 391,732 | — |
(223,457,154) | (241,450,114) | (522,400,187) | |
Net change in unrealized appreciation/depreciation on: | |||
Investments — unaffiliated | (53,361,635) | (133,200,068) | (8,127,088) |
Investments — affiliated | — | (9,169,641) | — |
Options written | — | 1,176,026 | — |
Foreign currency | 1,583,972 | (106,673) | (599,564) |
(51,777,663) | (141,300,356) | (8,726,652) | |
Total realized and unrealized loss | (275,234,817) | (382,750,470) | (531,126,839) |
Net Decrease in Net Assets Resulting from Operations | $ (263,257,565) | $ (382,099,152) | $ (511,461,443) |
See Notes to Financial Statements.
22 ANNUAL REPORT JUNE 30, 2009
Statements of Changes in Net Assets BlackRock EuroFund
Period | ||||
Year Ended | November 1, 2007 | Year Ended | ||
June 30, | to June 30, | October 31, | ||
Increase (Decrease) in Net Assets: | 2009 | 2008 | 2007 | |
Operations | ||||
Net investment income | $ 11,977,252 | $ | 17,542,173 | $ 18,580,347 |
Net realized gain (loss) | (223,457,154) | 35,756,385 | 167,445,702 | |
Net change in unrealized appreciation/depreciation | (51,777,663) | (193,407,461) | 30,861,424 | |
Net increase (decrease) in net assets resulting from operations | (263,257,565) | (140,108,903) | 216,887,473 | |
Dividends and Distributions to Shareholders From | ||||
Net investment income: | ||||
Institutional | (5,123,918) | (7,760,691) | (10,325,989) | |
Institutional 1 | — | — | (980) | |
Investor A | (7,939,628) | (10,971,154) | (13,410,828) | |
Investor B | (154,501) | (476,846) | (1,257,875) | |
Investor C | (925,942) | (1,499,376) | (1,763,659) | |
Class R | (85,252) | (102,168) | (63,672) | |
Net realized gain: | ||||
Institutional | (9,250,420) | (53,283,448) | (24,978,128) | |
Institutional 1 | — | — | (4,786) | |
Investor A | (15,311,220) | (81,881,064) | (34,649,059) | |
Investor B | (666,812) | (7,163,723) | (5,523,034) | |
Investor C | (2,424,044) | (14,722,261) | (5,542,809) | |
Class R | (184,774) | (811,896) | (171,525) | |
Decrease in net assets resulting from dividends and distributions to shareholders | (42,066,511) | (178,672,627) | (97,692,344) | |
Capital Share Transactions | ||||
Net increase (decrease) in net assets derived from capital share transactions | (90,120,433) | 62,480,407 | 10,110,593 | |
Redemption Fee | ||||
Redemption fee | 3,959 | 1,411 | 568,035 | |
Net Assets | ||||
Total increase (decrease) in net assets | (395,440,550) | (256,299,712) | 129,873,757 | |
Beginning of period | 781,908,097 | 1,038,207,809 | 908,334,052 | |
End of period | $ 386,467,547 | $ | 781,908,097 | $1,038,207,809 |
End of period undistributed net investment income | $ 11,866,989 | $ | 14,417,484 | $ 13,415,141 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 23
Statements of Changes in Net Assets BlackRock Global SmallCap Fund, Inc.
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2009 | 2008 |
Operations | ||
Net investment income (loss) | $ 651,318 | $ (1,579,237) |
Net realized gain (loss) | (241,450,114) | 172,389,492 |
Net change in unrealized appreciation/depreciation | (141,300,356) | (192,879,644) |
Net decrease in net assets resulting from operations | (382,099,152) | (22,069,389) |
Dividends and Distributions to Shareholders From | ||
Net investment income: | ||
Institutional | (677,093) | (4,405,764) |
Investor A | (152,149) | (2,841,827) |
Investor C | — | (1,109,414) |
Class R | — | (267,273) |
Net realized gain: | ||
Institutional | (28,424,001) | (62,293,067) |
Investor A | (24,273,866) | (50,446,159) |
Investor B | (6,176,424) | (18,489,459) |
Investor C | (34,504,639) | (80,433,774) |
Class R | (3,605,420) | (6,309,511) |
Decrease in net assets resulting from dividends and distributions to shareholders | (97,813,592) | (226,596,248) |
Capital Share Transactions | ||
Net increase (decrease) in net assets derived from capital share transactions | (25,808,909) | 158,334,404 |
Redemption Fee | ||
Redemption fee | 29,781 | 41,570 |
Net Assets | ||
Total decrease in net assets | (505,691,872) | (90,289,663) |
Beginning of year | 1,338,331,505 | 1,428,621,168 |
End of year | $ 832,639,633 | $1,338,331,505 |
End of year accumulated net investment loss | $ (1,759,587) | $ (4,990,744) |
See Notes to Financial Statements.
24 ANNUAL REPORT JUNE 30, 2009
Statements of Changes in Net Assets BlackRock International Value Fund
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2009 | 2008 |
Operations | ||
Net investment income | $ 19,665,396 | $ 29,198,544 |
Net realized gain (loss) | (522,400,187) | 119,949,094 |
Net change in unrealized appreciation/depreciation | (8,726,652) | (397,575,345) |
Net decrease in net assets resulting from operations | (511,461,443) | (248,427,707) |
Dividends and Distributions to Shareholders From | ||
Net investment income: | ||
Institutional | (15,053,273) | (24,308,269) |
Investor A | (4,589,545) | (6,530,767) |
Investor B | (505,351) | (1,130,214) |
Investor C | (2,421,079) | (4,445,860) |
Class R | (966,676) | (1,218,803) |
Net realized gain: | ||
Institutional | (8,534,436) | (144,017,293) |
Investor A | (2,831,575) | (45,810,501) |
Investor B | (515,717) | (10,160,625) |
Investor C | (2,323,398) | (38,928,559) |
Class R | (659,425) | (9,071,016) |
Decrease in net assets resulting from dividends and distributions to shareholders | (38,400,475) | (285,621,907) |
Capital Share Transactions | ||
Net increase (decrease) in net assets derived from capital share transactions | (260,550,944) | 130,155,557 |
Redemption Fee | ||
Redemption fee | 49,880 | 16,463 |
Net Assets | ||
Total decrease in net assets | (810,362,982) | (403,877,594) |
Beginning of year | 1,724,039,696 | 2,127,917,290 |
End of year | $ 913,676,714 | $1,724,039,696 |
End of year undistributed net investment income | $ 22,483,345 | $ 19,526,662 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 25
Financial Highlights BlackRock EuroFund
Institutional | ||||||||||||
November 1, | ||||||||||||
Year Ended | 2007 to | |||||||||||
June 30, | June 30, | Year Ended October 31, | ||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of period | $ | 18.07 | $ | 25.59 | $ | 23.02 | $ | 17.54 | $ | 15.25 | $ | 13.01 |
Net investment income1 | 0.33 | 0.43 | 0.46 | 0.55 | 0.36 | 0.21 | ||||||
Net realized and unrealized gain (loss) | (6.63) | (3.61) | 4.56 | 5.32 | 2.15 | 2.27 | ||||||
Net increase (decrease) from investment operations | (6.30) | (3.18) | 5.02 | 5.87 | 2.51 | 2.48 | ||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.40) | (0.55) | (0.72) | (0.39) | (0.22) | (0.24) | ||||||
Net realized gain | (0.72) | (3.79) | (1.74) | — | — | — | ||||||
Total dividends and distributions | (1.12) | (4.34) | (2.46) | (0.39) | (0.22) | (0.24) | ||||||
Redemption fee | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | 0.002 | ||||||
Net asset value, end of period | $ | 10.65 | $ | 18.07 | $ | 25.59 | $ | 23.02 | $ | 17.54 | $ | 15.25 |
Total Investment Return3 | ||||||||||||
Based on net asset value | (34.12)%4 | (13.97)%5 | 24.46% | 34.03%6 | 16.52% | 19.26% | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 1.11% | 1.03%7 | 1.01% | 0.99% | 0.99% | 1.05% | ||||||
Total expenses after fees waived | 1.11% | 1.03%7 | 1.01% | 0.99% | 0.99% | 1.05% | ||||||
Net investment income | 2.83% | 3.23%7 | 2.01% | 2.68% | 2.09% | 1.50% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 133,540 | $ | 274,010 | $ | 361,175 | $ | 330,849 | $ | 261,358 | $ | 252,580 |
Portfolio turnover | 124% | 30% | 63% | 76% | 72% | 78% | ||||||
1 Based on average shares outstanding. | ||||||||||||
2 Amount is less than $0.01 per share. | ||||||||||||
3 Total investment returns exclude the effects of any sales charges. | ||||||||||||
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.
26 ANNUAL REPORT JUNE 30, 2009
Financial Highlights (continued) BlackRock EuroFund
Investor A | ||||||||||||
Period, | ||||||||||||
Year Ended | November 1, | |||||||||||
June 30, | 2007 to | Year Ended October 31, | ||||||||||
2009 | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of period | $ | 17.78 | $ | 25.24 | $ | 22.72 | $ | 17.33 | $ | 15.07 | $ | 12.86 |
Net investment income1 | 0.30 | 0.40 | 0.44 | 0.50 | 0.31 | 0.18 | ||||||
Net realized and unrealized gain (loss) | (6.52) | (3.56) | 4.48 | 5.24 | 2.12 | 2.24 | ||||||
Net increase (decrease) from investment operations | (6.22) | (3.16) | 4.92 | 5.74 | 2.43 | 2.42 | ||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.37) | (0.51) | (0.67) | (0.35) | (0.17) | (0.21) | ||||||
Net realized gain | (0.72) | (3.79) | (1.74) | — | — | — | ||||||
Total dividends and distributions | (1.09) | (4.30) | (2.41) | (0.35) | (0.17) | (0.21) | ||||||
Redemption fee | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | 0.002 | ||||||
Net asset value, end of period | $ | 10.47 | $ | 17.78 | $ | 25.24 | $ | 22.72 | $ | 17.33 | $ | 15.07 |
Total Investment Return3 | ||||||||||||
Based on net asset value | (34.21)%4 | (14.09)%5 | 24.29% | 33.64%6 | 16.20% | 18.98% | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 1.30% | 1.21%7 | 1.20% | 1.24% | 1.24% | 1.30% | ||||||
Total expenses after fees waived | 1.30% | 1.21%7 | 1.20% | 1.24% | 1.24% | 1.30% | ||||||
Net investment income | 2.68% | 3.07%7 | 1.92% | 2.49% | 1.84% | 1.24% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 219,697 | $ | 427,206 | $ | 550,341 | $ | 453,104 | $ | 312,606 | $ | 296,757 |
Portfolio turnover | 124% | 30% | 63% | 76% | 72% | 78% | ||||||
1 Based on average shares outstanding. | ||||||||||||
2 Amount is less than $0.01 per share. | ||||||||||||
3 Total investment returns exclude the effects of sales charges. | ||||||||||||
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, 2009 27
Financial Highlights (continued) BlackRock EuroFund
Period, | ||||||||||||
Year Ended | November 1, | |||||||||||
June 30, | 2007 to | Year Ended October 31, | ||||||||||
2009 | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of period | $ | 14.70 | $ | 21.49 | $ | 19.59 | $ | 14.99 | $ | 13.08 | $ | 11.18 |
Net investment income1 | 0.11 | 0.19 | 0.17 | 0.30 | 0.16 | 0.03 | ||||||
Net realized and unrealized gain (loss) | (5.35) | (2.94) | 3.86 | 4.54 | 1.84 | 1.99 | ||||||
Net increase (decrease) from investment operations | (5.24) | (2.75) | 4.03 | 4.84 | 2.00 | 2.02 | ||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.17) | (0.25) | (0.40) | (0.24) | (0.09) | (0.12) | ||||||
Net realized gain | (0.72) | (3.79) | (1.74) | — | — | — | ||||||
Total dividends and distributions | (0.89) | (4.04) | (2.14) | (0.24) | (0.09) | (0.12) | ||||||
Redemption fee | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | 0.002 | ||||||
Net asset value, end of period | $ | 8.57 | $ | 14.70 | $ | 21.49 | $ | 19.59 | $ | 14.99 | $ | 13.08 |
Total Investment Return3 | ||||||||||||
Based on net asset value | (34.98)%4 | (14.61)%5 | 23.12% | 32.63%6 | 15.28% | 18.14% | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 2.47% | 2.10%7 | 2.12% | 2.01% | 2.01% | 2.09% | ||||||
Total expenses after fees waived | 2.47% | 2.10%7 | 2.12% | 2.01% | 2.01% | 2.09% | ||||||
Net investment income | 1.11% | 1.77%7 | 0.98% | 1.73% | 1.06% | 0.23% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 5,013 | $ | 19,943 | $ | 42,829 | $ | 62,273 | $ | 103,836 | $ | 132,725 |
Portfolio turnover | 124% | 30% | 63% | 76% | 72% | 78% | ||||||
1 Based on average shares outstanding. | ||||||||||||
2 Amount is less than $0.01 per share. | ||||||||||||
3 Total investment returns exclude the effects of sales charges. | ||||||||||||
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.
28 ANNUAL REPORT JUNE 30, 2009
Financial Highlights (continued) BlackRock EuroFund
Investor C | ||||||||||||
Period, | ||||||||||||
Year Ended | November 1, | |||||||||||
June 30, | 2007 to | Year Ended October 31, | ||||||||||
2009 | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of period | $ | 13.67 | $ | 20.42 | $ | 18.86 | $ | 14.47 | $ | 12.64 | $ | 10.83 |
Net investment income1 | 0.15 | 0.22 | 0.21 | 0.29 | 0.15 | 0.02 | ||||||
Net realized and unrealized gain (loss) | (5.02) | (2.79) | 3.63 | 4.36 | 1.78 | 1.92 | ||||||
Net increase (decrease) from investment operations | (4.87) | (2.57) | 3.84 | 4.65 | 1.93 | 1.94 | ||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.27) | (0.39) | (0.55) | (0.26) | (0.10) | (0.13) | ||||||
Net realized gain | (0.72) | (3.79) | (1.74) | — | — | — | ||||||
Total dividends and distributions | (0.99) | (4.18) | (2.29) | (0.26) | (0.10) | (0.13) | ||||||
Redemption fee | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | 0.002 | ||||||
Net asset value, end of period | $ | 7.81 | $ | 13.67 | $ | 20.42 | $ | 18.86 | $ | 14.47 | $ | 12.64 |
Total Investment Return3 | ||||||||||||
Based on net asset value | (34.75)%4 | (14.57)%5 | 23.26% | 32.57%6 | 15.33% | 18.06% | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 2.15% | 2.01%7 | 2.00% | 2.01% | 2.02% | 2.08% | ||||||
Total expenses after fees waived | 2.15% | 2.01%7 | 2.00% | 2.01% | 2.02% | 2.08% | ||||||
Net investment income | 1.73% | 2.21%7 | 1.11% | 1.71% | 1.05% | 0.20% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 25,504 | $ | 56,909 | $ | 79,355 | $ | 60,160 | $ | 44,881 | $ | 44,166 |
Portfolio turnover | 124% | 30% | 63% | 76% | 72% | 78% | ||||||
1 Based on average shares outstanding. | ||||||||||||
2 Amount is less than $0.01 per share. | ||||||||||||
3 Total investment returns exclude the effects of sales charges. | ||||||||||||
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, 2009 29
Financial Highlights (concluded) BlackRock EuroFund
Class R | ||||||||||||
November 1, | ||||||||||||
Year Ended | 2007 to | |||||||||||
June 30, | June 30, | Year Ended October 31, | ||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of period | $ | 14.50 | $ | 21.45 | $ | 19.74 | $ | 15.14 | $ | 13.23 | $ | 11.32 |
Net investment income1 | 0.20 | 0.29 | 0.29 | 0.41 | 0.18 | 0.33 | ||||||
Net realized and unrealized gain (loss) | (5.36) | (2.97) | 3.80 | 4.55 | 1.93 | 1.82 | ||||||
Net increase (decrease) from investment operations | (5.16) | (2.68) | 4.09 | 4.96 | 2.11 | 2.15 | ||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.33) | (0.48) | (0.65) | (0.36) | (0.20) | (0.24) | ||||||
Net realized gain | (0.72) | (3.79) | (1.74) | — | — | — | ||||||
Total dividends and distributions | (1.05) | (4.27) | (2.39) | (0.36) | (0.20) | (0.24) | ||||||
Redemption fee | 0.002 | 0.002 | 0.01 | 0.002 | 0.002 | 0.002 | ||||||
Net asset value, end of period | $ | 8.29 | $ | 14.50 | $ | 21.45 | $ | 19.74 | $ | 15.14 | $ | 13.23 |
Total Investment Return | ||||||||||||
Based on net asset value | (34.73)%3 | (14.39)%4 | 23.60% | 33.36%5 | 16.01% | 19.22% | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 2.02% | 1.72%6 | 1.71% | 1.49% | 1.48% | 1.35% | ||||||
Total expenses after fees waived | 2.02% | 1.72%6 | 1.71% | 1.49% | 1.48% | 1.35% | ||||||
Net investment income | 2.29% | 2.73%6 | 1.48% | 2.30% | 1.10% | 2.51% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 2,713 | $ | 3,840 | $ | 4,509 | $ | 1,948 | $ | 823 | $ | 104 |
Portfolio turnover | 124% | 30% | 63% | 76% | 72% | 78% | ||||||
1 Based on average shares outstanding. | ||||||||||||
2 Amount is less than $0.01 per share. | ||||||||||||
3 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. | ||||||||||||
4 Aggregate total investment return. | ||||||||||||
5 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%. | ||||||||||||
6 Annualized. |
See Notes to Financial Statements.
30 ANNUAL REPORT JUNE 30, 2009
Financial Highlights BlackRock Global SmallCap Fund, Inc.
Institutional | Investor A | |||||||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||
Per Share Operating Performance | ||||||||||||||||
Net asset value, beginning of year | $ | 24.45 | $ | 29.24 | $ 25.77 | $ | 23.62 | $ | 20.77 | $ 24.10 | $ 28.85 | $ | 25.50 | $ | 23.39 | $ 20.59 |
Net investment income1 | 0.11 | 0.12 | 0.11 | 0.08 | 0.14 | 0.06 | 0.05 | 0.04 | 0.02 | 0.09 | ||||||
Net realized and unrealized gain (loss)2 | (6.59) | (0.30) | 6.37 | 3.79 | 2.79 | (6.50) | (0.30) | 6.29 | 3.75 | 2.77 | ||||||
Net increase (decrease) from investment operations | (6.48) | (0.18) | 6.48 | 3.87 | 2.93 | (6.44) | (0.25) | 6.33 | 3.77 | 2.86 | ||||||
Dividends and distributions from: | ||||||||||||||||
Net investment income | (0.04) | (0.32) | — | (0.03) | (0.08) | (0.01) | (0.25) | — | — | (0.06) | ||||||
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) | (0.08) | (1.77) | (4.50) | (2.98) | (1.66) | (0.06) | ||||||
Net asset value, end of year | $ | 16.17 | $ | 24.45 | $ 29.24 | $ | 25.77 | $ | 23.62 | $ 15.89 | $ 24.10 | $ | 28.85 | $ | 25.50 | $ 23.39 |
Total Investment Return3 | ||||||||||||||||
Based on net asset value | (27.75)%4 | (1.08)% | 28.15% | 16.80% | 14.23% | (27.99)%4 | (1.36)% | 27.78% | 16.51% | 13.96% | ||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 1.20% | 1.12% | 1.15% | 1.22% | 1.17% | 1.50% | 1.40% | 1.42% | 1.46% | 1.42% | ||||||
Total expenses after fees waived | 1.20% | 1.12% | 1.15% | 1.22% | 1.17% | 1.50% | 1.40% | 1.42% | 1.46% | 1.42% | ||||||
Net investment income | 0.65% | 0.46% | 0.42% | 0.31% | 0.63% | 0.36% | 0.19% | 0.15% | 0.09% | 0.39% | ||||||
Supplemental Data | ||||||||||||||||
Net assets, end of year (000) | $250,720 | $399,802 | $411,767 | $352,779 | $426,718 | $226,362 | $330,282 | $334,022 | $282,971 | $218,687 | ||||||
Portfolio turnover | 114% | 97% | 95% | 96% | 97% | 114% | 97% | 95% | 96% | 97% | ||||||
1 Based on average shares outstanding. | ||||||||||||||||
2 Includes a redemption fee, which is less than $0.01 per share. | ||||||||||||||||
3 Total investment returns exclude the effects of any sales charges. | ||||||||||||||||
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, 2009 31
Financial Highlights (continued) BlackRock Global SmallCap Fund, Inc.
Investor B | Investor C | ||||||||||||||||
Year Ended June 30, | Year Ended June 30, | ||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||
Per Share Operating Performance | |||||||||||||||||
Net asset value, beginning of year | $ | 23.13 | $ | 27.71 | $ 24.67 | $ | 22.76 | $ | 20.12 | $ 22.50 | $ | 27.15 | $ | 24.25 | $ | 22.40 | $ 19.81 |
Net investment loss1 | (0.09) | (0.17) | (0.16) | (0.18) | (0.09) | (0.08) | (0.16) | (0.16) | (0.17) | (0.08) | |||||||
Net realized and unrealized gain (loss)2 | (6.23) | (0.27) | 6.06 | 3.65 | 2.73 | (6.05) | (0.28) | 5.94 | 3.59 | 2.67 | |||||||
Net increase (decrease) from investment operations | (6.32) | (0.44) | 5.90 | 3.47 | 2.64 | (6.13) | (0.44) | 5.78 | 3.42 | 2.59 | |||||||
Dividends and distributions from: | |||||||||||||||||
Net investment income | — | — | — | — | — | — | (0.06) | — | — | (0.00)3 | |||||||
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) | (0.00)3 | |||||||
Net asset value, end of year | $ | 15.12 | $ | 23.13 | $ 27.71 | $ | 24.67 | $ | 22.76 | $ 14.68 | $ | 22.50 | $ | 27.15 | $ | 24.25 | $ 22.40 |
Total Investment Return4 | |||||||||||||||||
Based on net asset value | (28.62)%5 | (2.14)% | 26.79% | 15.60% | 13.12% | (28.58)%5 | (2.19)% | 26.79% | 15.62% | 13.08% | |||||||
Ratios to Average Net Assets | |||||||||||||||||
Total expenses | 2.37% | 2.21% | 2.21% | 2.24% | 2.21% | 2.35% | 2.21% | 2.21% | 2.25% | 2.21% | |||||||
Total expenses after fees waived | 2.37% | 2.21% | 2.21% | 2.24% | 2.21% | 2.35% | 2.21% | 2.21% | 2.25% | 2.21% | |||||||
Net investment loss | (0.56)% | (0.68)% | (0.66)% | (0.72)% | (0.40)% | (0.51)% | (0.64)% | (0.63)% | (0.69)% | (0.40)% | |||||||
Supplemental Data | |||||||||||||||||
Net assets, end of year (000) | $ 40,600 | $ 91,693 | $130,954 | $142,522 | $152,598 | $281,387 | $470,280 | $518,216 | $418,363 | $331,059 | |||||||
Portfolio turnover | 114% | 97% | 95% | 96% | 97% | 114% | 97% | 95% | 96% | 97% | |||||||
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 Total investment returns exclude the effects of sales charges. | |||||||||||||||||
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.
32 ANNUAL REPORT JUNE 30, 2009
Financial Highlights (concluded) BlackRock Global SmallCap Fund, Inc.
Class R | ||||||||||
Year Ended June 30, | ||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||
Per Share Operating Performance | ||||||||||
Net asset value, beginning of year | $ | 23.18 | $ | 27.94 | $ | 24.83 | $ | 22.85 | $ | 20.16 |
Net investment income (loss)1 | (0.02) | (0.05) | (0.04) | (0.03) | 0.04 | |||||
Net realized and unrealized gain (loss)2 | (6.25) | (0.30) | 6.10 | 3.65 | 2.702 | |||||
Net increase (decrease) from investment operations | (6.27) | (0.35) | 6.06 | 3.62 | 2.74 | |||||
Dividends and distributions from: | ||||||||||
Net investment income | — | (0.20) | — | — | (0.05) | |||||
Net realized gain | (1.73) | (4.21) | (2.95) | (1.64) | — | |||||
Total dividends and distributions | (1.73) | (4.41) | (2.95) | (1.64) | (0.05) | |||||
Net asset value, end of year | $ | 15.18 | $ | 23.18 | $ | 27.94 | $ | 24.83 | $ | 22.85 |
Total Investment Return | ||||||||||
Based on net asset value | (28.37)%3 | (1.77)% | 27.42% | 16.22% | 13.67% | |||||
Ratios to Average Net Assets | ||||||||||
Total expenses | 2.00% | 1.81% | 1.73% | 1.71% | 1.65% | |||||
Total expenses after fees waived | 2.00% | 1.81% | 1.73% | 1.71% | 1.65% | |||||
Net investment income (loss) | (0.13)% | (0.20)% | (0.15)% | (0.11)% | 0.19% | |||||
Supplemental Data | ||||||||||
Net assets, end of year (000) | $ | 33,571 | $ | 46,275 | $ | 33,662 | $ | 23,568 | $ | 12,212 |
Portfolio turnover | 114% | 97% | 95% | 96% | 97% | |||||
1 Based on average shares outstanding. | ||||||||||
2 Includes a redemption fee, which is less than $0.01 per share. | ||||||||||
3 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, 2009 33
Financial Highlights BlackRock International Value Fund
Institutional | Investor A | |||||||||||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year | $ | 26.00 | $ | 34.48 | $ | 30.55 | $ | 26.41 | $ | 23.54 | $ | 25.89 | $ | 34.33 | $ | 30.44 | $ | 26.33 | $ | 23.48 |
Net investment income1 | 0.41 | 0.55 | 0.71 | 0.56 | 0.52 | 0.36 | 0.46 | 0.62 | 0.49 | 0.50 | ||||||||||
Net realized and unrealized | ||||||||||||||||||||
gain (loss)2 | (8.32) | (4.30) | 6.10 | 6.19 | 2.83 | (8.30) | (4.28) | 6.08 | 6.16 | 2.77 | ||||||||||
Net increase (decrease) from | ||||||||||||||||||||
investment operations | (7.91) | (3.75) | 6.81 | 6.75 | 3.35 | (7.94) | (3.82) | 6.70 | 6.65 | 3.27 | ||||||||||
Dividends and distributions from: | ||||||||||||||||||||
Net investment income | (0.40) | (0.68) | (0.90) | (0.62) | (0.48) | (0.37) | (0.59) | (0.83) | (0.55) | (0.42) | ||||||||||
Net realized gain | (0.23) | (4.05) | (1.98) | (1.99) | — | (0.23) | (4.03) | (1.98) | (1.99) | — | ||||||||||
Total dividends and distributions | (0.63) | (4.73) | (2.88) | (2.61) | (0.48) | (0.60) | (4.62) | (2.81) | (2.54) | (0.42) | ||||||||||
Net asset value, end of year | $ | 17.46 | $ | 26.00 | $ | 34.48 | $ | 30.55 | $ | 26.41 | $ | 17.35 | $ | 25.89 | $ | 34.33 | $ | 30.44 | $ | 26.33 |
Total Investment Return3 | ||||||||||||||||||||
Based on net asset value | (30.81)%4 | (12.23)% | 24.20% | 27.18%5 | 14.59% | (31.06)%4 | (12.47)% | 23.84% | 26.84%5 | 14.29% | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 1.08% | 1.04% | 1.01% | 1.02% | 1.08% | 1.43% | 1.34% | 1.30% | 1.27% | 1.33% | ||||||||||
Total expenses after fees waived | 1.08% | 1.04% | 1.01% | 1.02% | 1.08% | 1.43% | 1.34% | 1.30% | 1.27% | 1.33% | ||||||||||
Net investment income | 2.24% | 1.86% | 2.27% | 1.97% | 2.07% | 2.04% | 1.55% | 1.98% | 1.75% | 1.94% | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 462,171 | $1,007,433 | $1,253,724 $ | 961,207 | $ | 800,990 | $ | 215,337 | $ | 320,764 | $ | 390,547 | $ | 320,926 | $ | 254,207 | |||
Portfolio turnover | 187% | 122% | 65% | 81% | 70% | 187% | 122% | 65% | 81% | 70% | ||||||||||
1 Based on average shares outstanding. | ||||||||||||||||||||
2 Includes a redemption fee, which is less than $0.01 per share. | ||||||||||||||||||||
3 Total investment returns exclude the effect of any sales charges. | ||||||||||||||||||||
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. | ||||||||||||||||||||
5 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 and Investor A Shares by 0.21% and 0.17%, respectively. |
See Notes to Financial Statements.
34 ANNUAL REPORT JUNE 30, 2009
Financial Highlights (continued) BlackRock International Value Fund
Investor B | Investor C | ||||||||||||||||
Year Ended June 30, | Year Ended June 30, | ||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||
Per Share Operating Performance | |||||||||||||||||
Net asset value, beginning of year | $ | 25.28 | $ | 33.60 | $ | 29.88 | $ | 25.94 | $ | 23.24 | $ 24.94 | $ 33.24 | $ | 29.59 | $ | 25.72 | $ 23.09 |
Net investment income1 | 0.13 | 0.14 | 0.34 | 0.26 | 0.32 | 0.14 | 0.16 | 0.35 | 0.28 | 0.37 | |||||||
Net realized and unrealized gain (loss)2 | (8.12) | (4.16) | 5.96 | 6.07 | 2.74 | (8.01) | (4.13) | 5.90 | 5.99 | 2.65 | |||||||
Net increase (decrease) from investment | |||||||||||||||||
operations | (7.99) | (4.02) | 6.30 | 6.33 | 3.06 | (7.87) | (3.97) | 6.25 | 6.27 | 3.02 | |||||||
Dividends and distributions from: | |||||||||||||||||
Net investment income | (0.22) | (0.43) | (0.60) | (0.40) | (0.36) | (0.24) | (0.45) | (0.62) | (0.41) | (0.39) | |||||||
Net realized gain | (0.23) | (3.87) | (1.98) | (1.99) | — | (0.23) | (3.88) | (1.98) | (1.99) | — | |||||||
Total dividends and distributions | (0.45) | (4.30) | (2.58) | (2.39) | (0.36) | (0.47) | (4.33) | (2.60) | (2.40) | (0.39) | |||||||
Net asset value, end of year | $ | 16.84 | $ | 25.28 | $ | 33.60 | $ | 29.88 | $ | 25.94 | $ 16.60 | $ 24.94 | $ | 33.24 | $ | 29.59 | $ 25.72 |
Total Investment Return3 | |||||||||||||||||
Based on net asset value | (31.91)%4 | (13.31)% | 22.78% | 25.84%5 | 13.45% | (31.89)%4 | (13.32)% | 22.82% | 25.86%5 | 13.41% | |||||||
Ratios to Average Net Assets | |||||||||||||||||
Total expenses | 2.61% | 2.30% | 2.15% | 2.06% | 2.12% | 2.60% | 2.31% | 2.15% | 2.06% | 2.12% | |||||||
Total expenses after fees waived | 2.61% | 2.30% | 2.15% | 2.06% | 2.12% | 2.60% | 2.31% | 2.15% | 2.06% | 2.12% | |||||||
Net investment income | 0.74% | 0.47% | 1.11% | 0.95% | 1.27% | 0.83% | 0.55% | 1.15% | 1.01% | 1.45% | |||||||
Supplemental Data | |||||||||||||||||
Net assets, end of year (000) | $ 31,261 | $ 61,007 | $ 90,447 | $ 79,165 | $ 62,261 | $159,516 | $262,573 | $332,940 | $244,931 | $164,317 | |||||||
Portfolio turnover | 187% | 122% | 65% | 81% | 70% | 187% | 122% | 65% | 81% | 70% | |||||||
1 Based on average shares outstanding. | |||||||||||||||||
2 Includes a redemption fee, which is less than $0.01 per share. | |||||||||||||||||
3 Total investment returns exclude the effect of sales charges. | |||||||||||||||||
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. | |||||||||||||||||
5 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 and Investor C Shares by 0.21% and 0.17%, respectively. |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2009 35
Financial Highlights (concluded) BlackRock International Value Fund
Year Ended June 30, | ||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||
Per Share Operating Performance | ||||||||||
Net asset value, beginning of year | $ | 25.61 | $ | 34.06 | $ | 30.24 | $ | 26.19 | $ | 23.39 |
Net investment income1 | 0.28 | 0.39 | 0.55 | 0.50 | 0.50 | |||||
Net realized and unrealized gain (loss)2 | (8.22) | (4.27) | 6.02 | 6.04 | 2.70 | |||||
Net increase (decrease) from investment operations | (7.94) | (3.88) | 6.57 | 6.54 | 3.20 | |||||
Dividends and distributions from: | ||||||||||
Net investment income | (0.33) | (0.57) | (0.77) | (0.50) | (0.40) | |||||
Net realized gain | (0.23) | (4.00) | (1.98) | (1.99) | — | |||||
Total dividends and distributions | (0.56) | (4.57) | (2.75) | (2.49) | (0.40) | |||||
Net asset value, end of year | $ | 17.11 | $ | 25.61 | $ | 34.06 | $ | 30.24 | $ | 26.19 |
Total Investment Return | ||||||||||
Based on net asset value | (31.36)%3 | (12.76)% | 23.53% | 26.52%4 | 14.03% | |||||
Ratios to Average Net Assets | ||||||||||
Total expenses | 1.86% | 1.65% | 1.57% | 1.52% | 1.58% | |||||
Total expenses after fees waived | 1.86% | 1.65% | 1.57% | 1.52% | 1.58% | |||||
Net investment income | 1.58% | 1.35% | 1.78% | 1.76% | 1.96% | |||||
Supplemental Data | ||||||||||
Net assets, end of year (000) | $ | 45,391 | $ | 72,262 | $ | 60,258 | $ | 36,048 | $ | 16,951 |
Portfolio turnover | 187% | 122% | 65% | 81% | 70% | |||||
1 Based on average shares outstanding. | ||||||||||
2 Includes a redemption fee, which is less than $0.01 per share. | ||||||||||
3 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%. | ||||||||||
4 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 Class R Shares by 0.16%. |
See Notes to Financial Statements.
36 ANNUAL REPORT JUNE 30, 2009
Notes to Financial Statements
1. Organization and Significant Accounting Policies:
BlackRock EuroFund (“EuroFund”), BlackRock Global SmallCap Fund, Inc.
(“Global SmallCap”) and BlackRock International Value Fund (“International
Value”), a series of BlackRock International Value Trust (the “Trust”) (collec-
tively referred to as the “Funds” or individually as the “Fund”), are regis-
tered 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
and Global SmallCap is organized as a Maryland corporation. The Funds’
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America, which may require the
use of management accruals and estimates. Actual results may differ from
these estimates. The Boards of Trustees and the Board of Directors of the
Funds are referred to throughout this report as the “Board of Directors” or
the “Board.” The Funds offer multiple classes of shares. Institutional Shares
are sold only to certain eligible investors. Investor A Shares are generally
sold with a front-end sales charge. Shares of Investor B and Investor C may
be subject to a contingent deferred sales charge. Class R Shares are sold
only to certain retirement or similar plans. EuroFund’s Institutional 1 Shares
were issued in connection with the Fund’s acquisition of The Europe Fund,
Inc. on November 6, 2006. Institutional 1 Shares generally were not avail-
able for purchase except for dividend and capital gain reinvestments for
existing shareholders and automatically converted to Institutional Shares
on May 7, 2007. All classes of shares have identical voting, dividend, liqui-
dation 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. Each class has exclusive voting rights with respect to mat-
ters relating to its shareholder servicing and distribution expenditures
(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 Fund:
Valuation of Securities: 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
price. If no bid 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. Financial futures contracts traded on exchanges are valued
at their last sale price. Investments in open-end investment companies
are valued at net asset value each business day. Short-term securities
with maturities less than 60 days may be valued at amortized cost, which
approximates fair value. Each Fund values its investments in Cash Sweep
Series and Money Market Series, each of BlackRock Liquidity Series, LLC
at fair value, which is ordinarily based upon their pro-rata ownership in the
net assets of the underlying fund.
Exchange-traded options are valued at the mean between the last bid and
ask prices at the close of the options market in which the options trade.
An exchange-traded option for which there is no mean price is valued at
the last 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 option.
Over-the-counter options are valued by an independent pricing service
using a mathematical model which incorporates a number of market data
factors, such as the trades and prices of the underlying securities.
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, the investment will be valued by a method
approved by each Fund’s Board as reflecting fair value (“Fair Value Assets”).
When determining the price for Fair Value Assets, the investment advisor
and/or sub-advisor seeks to determine the price that the Funds might rea-
sonably expect to receive from the current sale of that asset in an arm’s-
length transaction. Fair value determinations shall be based upon all
available factors that the investment advisor and/or sub-advisor deems rel-
evant. The pricing of all Fair Value Assets is subsequently reported to the
Board or a committee thereof.
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of business on the New York Stock
Exchange (“NYSE”). The values of such securities used in computing the
net assets of the Funds are determined as of such times. Foreign currency
exchange rates will be determined as of the close of business on the
NYSE. Occasionally, events affecting the values of such securities and such
exchange rates may occur between the times at which they are determined
and the close of business on the NYSE that may not be reflected in the
computation of the Funds’ 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 securities,
those securities will be valued at their fair value as determined in good
faith by the Board or by the investment advisor using a pricing service
and/or procedures approved by the Board. Foreign currency exchange
contracts and forward foreign currency exchange contracts are valued at
the mean between the bid and ask prices. Interpolated values are derived
when the settlement date of the contract is an interim date for which quo-
tations are not available.
Foreign Currency Transactions: Foreign currency amounts are translated into
United States dollars on the following basis: (i) market value of investment
securities, assets and liabilities at the current rate of exchange; and (ii) pur-
chases and sales of investment securities, income and expenses at the
rates of exchange prevailing on the respective dates of such transactions.
The Funds report foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components
are treated as ordinary income for federal income tax purposes.
ANNUAL REPORT JUNE 30, 2009 37
Notes to Financial Statements (continued)
Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that each Fund segregates assets in connection with cer-
tain investments (e.g., financial futures contracts, options, written options,
or foreign currency exchange contracts), the Funds will, consistent with
certain interpretive letters issued by the SEC, designate on its books and
records cash or other liquid securities having a market value at least equal
to the amount that would otherwise be required to be physically segre-
gated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each Fund may also be required
to deliver or deposit securities as collateral for certain investments (e.g.,
financial futures contracts and written options). As part of these agree-
ments when the value of these investments achieves a previously agreed
upon value (minimum transfer amount), each Fund may be required to
deliver and/or receive additional collateral.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the transac-
tions 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 sub-
sequently recorded when the Funds have determined the ex-dividend date.
Interest income is recognized on the accrual basis. Income and realized
and unrealized gains and losses are allocated daily to each class based
on its relative net assets.
Dividends and Distributions: Dividends and distributions paid by each
Fund are recorded on the ex-dividend dates.
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. The Funds typically
receive the income on the loaned securities but do not receive the
income on the collateral. The Funds may invest the cash collateral and
retain the amount earned on such investment, net of any amount rebated
to the borrower. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within the
standard time period for settlement of securities transactions. The Funds
may pay reasonable lending agent, administrative and custodial fees in
connection with their loans. 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.
Income Taxes: It is each Fund’s policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends
and capital gains at various rates.
Each Fund files US federal and various state and local tax returns. No income
tax returns are currently under examination. The statutes of limitations on
the Funds’ US federal tax returns remain open for each of the four years
ended June 30, 2009. The statutes of limitations on the Funds’ state and
local tax returns may remain open for an additional year depending upon
the jurisdiction.
Recent Accounting Pronouncement: In June 2009, Statement of Financial
Accounting Standards No. 166, “Accounting for Transfers of Financial Assets
— an amendment of FASB Statement No. 140” (“FAS 166”), was issued.
FAS 166 is intended to improve the relevance, representational faithfulness
and comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows;
and a transferor’s continuing involvement, if any, in transferred financial
assets. FAS 166 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2009. Earlier application
is prohibited. The recognition and measurement provisions of FAS 166
must be applied to transfers occurring on or after the effective date.
Additionally, the disclosure provisions of FAS 166 should be applied to
transfers that occurred both before and after the effective date of FAS 166.
The impact of FAS 166 on the Fund’s financial statement disclosures, if
any, is currently being assessed.
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 each Fund are allocated daily to
each class based on its relative net assets.
2. Derivative Financial Instruments:
The Funds may engage in various portfolio investment strategies both to
increase the returns of the Funds and to economically hedge, or protect,
their exposure to interest rate movements and movements in the securi-
ties markets. Losses may arise if the value of the contract decreases
due to an unfavorable change in the price of the underlying security, or
if the counterparty does not perform under the contract. The Funds may
mitigate these losses through master netting agreements included within
an International Swap and Derivatives Association, Inc. (“ISDA”) Master
Agreement between the Funds and their counterparties. The ISDA allows
the Funds to offset with their counterparties their derivative financial
instruments’ payables and/or receivables with collateral held. To the extent
amounts due to the Funds from their counterparty are not fully collateralized
contractually or otherwise, the Funds bear the risk of loss from counterparty
non-performance. See Note 1 “Segregation and Collateralization” for addi-
tional information with respect to collateral practices.
The Funds are subject to equity risk and foreign currency exchange rate risk
in the normal course of pursuing their investment objectives by investing in
various derivative instruments, as described below.
38 ANNUAL REPORT JUNE 30, 2009
Notes to Financial Statements (continued)
Financial Futures Contracts: The Funds may purchase or sell financial
futures contracts and options on financial futures contracts to gain
exposure to, or economically hedge against, changes in the value of equity
securities (equity risk) or foreign currencies (foreign currency exchange
rate risk). Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield. Pursuant
to the contract, the Funds agree to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as margin variation and are recognized by
the Funds as unrealized gains or losses. When the contract is closed, the
Funds record a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time
it was closed. The use of financial futures transactions involves the risk of
an imperfect correlation in the movements in the price of futures contracts,
interest rates and the underlying assets. Financial futures transactions
involve minimal counterparty risk since financial futures contracts are
guaranteed against default by the exchange on which they trade.
Foreign Currency Exchange Contracts: The Funds may enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio positions (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 foreign currency 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 con-
tracts involves the risk that counterparties may not meet the terms of the
agreement and market risk of unanticipated movements in the value of a
foreign currency relative to the US dollar. In the event of default by the
counterparty to the transaction, the Funds’ maximum amount of loss, as
either the buyer or seller, is the unrealized loss of the contract.
Options: The Funds may purchase and write call and put options to
increase or decrease its exposure to underlying securities (equity risk).
When the Funds purchase a call option it may increase their exposure to
the underlying security and when the Funds purchase a put option it may
decrease their exposure to the underlying security. When the Funds write a
call option it may decrease their exposure to the underlying security and
when the Funds write a put option it may increase their exposure to the
underlying security. A call option gives the purchaser of the option the right
(but not the obligation) to buy, and obligates the seller to sell (when the
option is exercised), the underlying position at the exercise price at any
time or at a specified time during the option period. A put option gives the
holder the right to sell and obligates the writer to buy the underlying posi-
tion at the exercise price at any time or at a specified time during the
option period. When the Funds purchase (write) an option, an amount
equal to the premium paid (received) by the Funds is reflected as an
asset (liability) and an equivalent liability (asset). The amount of the asset
(liability) is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Funds enter into a closing transaction), the Funds realize a gain or
loss on the option to the extent of the premiums received or paid (or gain
or loss to the extent the cost of the closing transaction exceeds the pre-
mium received or paid). When the Funds write a call option, such option is
“covered,” meaning that the Funds hold the underlying security subject to
being called by the option counterparty, or cash in an amount sufficient
to cover the obligation. When the Funds write a put option, such option is
covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, the Funds bear the market risk of an
unfavorable change in the price of the underlying security or the risk that
the Funds may not be able to enter into a closing transaction due to an
illiquid market. Exercise of a written option could result in the Funds pur-
chasing a security at a price different from the current market value. The
Funds may execute transactions in both listed and over-the-counter options.
Listed options involve minimal counterparty risk since listed options are
guaranteed against default by the exchange on which they trade. Trans-
actions in certain over-the-counter options may expose the Funds to the
risk of default by the counterparty to the transaction. In the event of default
by the counterparty to the over-the-counter option transaction, the Funds’
maximum amount of loss is the premium paid (as purchaser) or the unre-
alized loss of the contract (as writer).
Derivatives Not Accounted for as Hedging Instruments Under Financial | |||
Accounting Standards No. 133, “Accounting for Derivative Instruments | |||
and Hedging Activities”: | |||
EuroFund | |||
Values of Derivatives as of June 30, 2009* | |||
Asset Derivatives | Liability Derivatives | ||
Balance | Balance | ||
Sheet | Sheet | ||
Location Value | Location | Value | |
Unrealized | Unrealized | ||
appreciation | depreciation | ||
on foreign | on foreign | ||
currency | currency | ||
Foreign currency | exchange | exchange | |
exchange contracts | contracts $2,814,971 | contracts | $1,105,908 |
* For open derivative instruments as of June 30, 2009, see the Schedule of Invest- | |||
ments, which is also indicative of activity for the year ended June 30, 2009. | |||
The Effect of Derivative Instruments on the Statement of Operations | |||
Year Ended June 30, 2009 | |||
Net Realized Gain From Derivatives Recognized in Income | |||
Foreign Currency | |||
Exchange Contracts | |||
Foreign currency exchange contracts | $1,031,450 | ||
Net Change in Unrealized Appreciation on Derivatives Recognized in Income | |||
Foreign Currency | |||
Exchange Contracts | |||
Foreign currency exchange contracts | $1,712,925 |
ANNUAL REPORT JUNE 30, 2009 39
Notes to Financial Statements (continued)
Global SmallCap | ||||||
Values of Derivatives as of June 30, 2009* | ||||||
Asset Derivatives | Liability Derivatives | |||||
Balance | Balance | |||||
Sheet | Sheet | |||||
Location | Value | Location | Value | |||
Unrealized | Unrealized | |||||
appreciation | depreciation | |||||
on foreign | on foreign | |||||
currency | currency | |||||
Foreign currency | exchange | exchange | ||||
exchange contracts | contracts $ 14,937 contracts | $ 10,614 | ||||
* For open derivative instruments as of June 30, 2009, see the Schedule of Invest- | ||||||
ments, which is also indicative of activity for the year ended June 30, 2009. | ||||||
The Effect of Derivative Instruments on the Statement of Operations | ||||||
Year Ended June 30, 2009 | ||||||
Net Realized Gain (Loss) From Derivatives Recognized in Income | ||||||
Foreign Currency | ||||||
Options Exchange Contracts | Total | |||||
Foreign currency | ||||||
exchange contracts | — | $ | 213,264 | $ 213,264 | ||
Equity contracts | $ (249,837) | — | $ (249,837) | |||
Total | $ (249,837) | $ | 213,264 | $ (36,573) | ||
Net Change in Unrealized Appreciation on Derivatives Recognized in Income | ||||||
Foreign Currency | ||||||
Options Exchange Contracts | Total | |||||
Foreign currency | ||||||
exchange contracts | — | $ | 16,867 | $ 16,867 | ||
Equity contracts | $1,176,026 | — | $1,176,026 | |||
Total | $1,176,026 | $ | 16,867 | $1,192,893 | ||
International Value | ||||||
Values of Derivatives as of June 30, 2009* | ||||||
Asset Derivatives | Liability Derivatives | |||||
Balance | Balance | |||||
Sheet | Sheet | |||||
Location | Value | Location | Value | |||
Unrealized | Unrealized | |||||
appreciation | depreciation | |||||
on foreign | on foreign | |||||
currency | currency | |||||
Foreign currency | exchange | exchange | ||||
exchange contracts | contracts $ | 897,040 | contracts | $ 514,597 | ||
* For open derivative instruments as of June 30, 2009, see the Schedule of Invest- | ||||||
ments, which is also indicative of activity for the year ended June 30, 2009. | ||||||
The Effect of Derivative Instruments on the Statement of Operations | ||||||
Year Ended June 30, 2009 | ||||||
Net Realized Gain (Loss) From Derivatives Recognized in Income | ||||||
Foreign | ||||||
Financial | Currency | |||||
Futures | Exchange | |||||
Contracts | Contracts | Total | ||||
Foreign currency | ||||||
exchange contracts | — | $9,299,424 | $ 9,299,424 | |||
Equity contracts | $(4,011,419) | — | $(4,011,419) | |||
Total | $(4,011,419) | $9,299,424 | $ 5,288,005 | |||
Net Change in Unrealized Appreciation on Derivatives Recognized in Income | ||||||
Foreign Currency | ||||||
Exchange Contracts | ||||||
Foreign currency exchange contracts | $1,087,224 |
3. Investment Advisory Agreements and Other Transactions
with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”) and Bank of America
Corporation (“BAC”) are the largest stockholders of BlackRock, Inc.
(“BlackRock”). BAC became a stockholder of BlackRock following its acqui-
sition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009.
Prior to that date, both PNC and Merrill Lynch were considered affiliates
of the Funds under the 1940 Act. Subsequent to the acquisition, PNC
remains an affiliate, but due to the restructuring of Merrill Lynch’s owner-
ship interest of BlackRock, BAC is not deemed to be an affiliate under
the 1940 Act.
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 operation of each Fund. For such services,
EuroFund and Global SmallCap pay the Manager a monthly fee at an
annual rate of 0.75% and 0.85%, respectively, on an annual basis of
the average daily value of each Fund’s net assets. International Value pays
the Manager a monthly fee of 0.75%, on an annual basis, of the average
daily value of the Fund’s net assets not exceeding $2 billion, 0.70% of the
average daily value of the Fund’s net assets in excess of $2 billion but not
exceeding $4 billion and 0.65% of the average daily value of the Fund’s
net assets in excess of $4 billion.
The Manager has agreed to waive its advisory fee by the amount of invest-
ment advisory fees the Funds pay to the Manager indirectly through its
investment in affiliated money market funds. The amount is shown as fees
waived by advisor on the Statement of Operations.
The Manager, on behalf of EuroFund, has entered into separate sub-
advisory agreements with BlackRock Investment Management, LLC
(“BIM”) and BlackRock International Ltd. which replaced BlackRock Asset
Management U.K. Limited as the sub-advisor, all affiliates of the Manager,
under which the Manager pays each sub-advisor for services it provides,
a monthly fee that is a percentage of the investment advisory fee paid by
the Fund to the Manager.
The Manager, on behalf of Global SmallCap, has entered into separate
subadvisory agreements with BIM, under which the Manager pays the sub-
advisor for services it provides, a monthly fee that is a percentage of the
investment advisory fee paid by the Fund to the Manager.
The Manager, on behalf of International Value, has entered into a separate
sub-advisory agreement with BlackRock International Ltd. which replaced
BlackRock Investment Management International Limited as the sub-
advisor, each an affiliate of the Manager, under which the Manager pays
40 ANNUAL REPORT JUNE 30, 2009
Notes to Financial Statements (continued)
the sub-advisor for services it provides, a monthly fee that is a percentage
of the investment advisory fee paid by the Fund to the Manager.
Effective October 1, 2008, the Funds entered into a Distribution Agreement
and Distribution Plans with BlackRock Investments, LLC (“BIL”), which
replaced FAM Distributors, Inc. (“FAMD”) and BlackRock Distributors, Inc.
and its affiliates (“BDI”) (collectively, the “Distributor”) as the sole distribu-
tor of the Funds. FAMD is a wholly owned subsidiary of Merrill Lynch Group,
Inc. BIL and BDI are affiliates of BlackRock. The service and distribution
fees did not change as a result of this transaction.
Pursuant to the Distribution Plans adopted by the Funds in accordance
with Rule 12b-1 under the 1940 Act, each Fund pays the Distributor
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 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 each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a wholly
owned subsidiary of Merrill Lynch, and the Distributor provide shareholder
servicing and distribution services to each Fund. The ongoing service and/or
distribution fee compensates the Distributor 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, 2009, affiliates, including Merrill Lynch, from
July 1, 2008 to December 31, 2008, (after which Merrill Lynch was no
longer considered an affiliate) earned underwriting discounts, direct com-
missions and dealer concessions on sales of the Funds’ Investor A Shares
as follows:
Investor A | ||||
Shares | ||||
EuroFund | $ | 4,363 | ||
Global SmallCap | $110,088 | |||
International Value | $ | 49,431 | ||
For the year ended June 30, 2009, affiliates received contingent deferred | ||||
sales charges relating to transactions in Investor B and Investor C Shares | ||||
as follows: | ||||
Investor B | Investor C | |||
EuroFund | $ | 9,305 | $ | 5,068 |
Global SmallCap | $ | 74,577 | $ | 54,714 |
International Value | $ | 27,380 | $ | 16,234 |
Furthermore, affiliates received contingent deferred sales charges relating | ||
to transactions subject to front-end sales charge waivers as follows: | ||
Investor A | ||
EuroFund | $ | 2,643 |
Global SmallCap | $ | 2,943 |
International Value | $ | 1,965 |
In addition, for the year ended June 30, 2009, MLPF&S, from July 1, 2008 | ||
to December 31, 2008, (after which MLPF&S was no longer considered an | ||
affiliate) received commissions on the execution of portfolio transactions | ||
as follows: | ||
Global SmallCap | $173,513 | |
International Value | $ | 1,741 |
Global SmallCap has received an exemptive order from the SEC permitting
it to lend portfolio securities to MLPF&S or its affiliates. Pursuant to that
order, the Fund has retained BIM as the securities lending agent for a fee
based on a share of the income from investment of cash collateral. BIM
may, on behalf of the Fund, invest cash collateral received by the Fund
for such loans, among other things, in a private investment company man-
aged by the Manager or in registered money market funds advised by the
Manager or its affiliates. The share of income earned by the Fund on such
investments is shown as securities lending — affiliated in the Statements
of Operations. For the year ended June 30, 2009, BIM received from
Global SmallCap $120,685 in securities lending agent fees.
PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned
subsidiary of PNC and an affiliate of the Manager, is the transfer agent
and dividend disbursing agent. Each class of the Funds bear the costs
of transfer agent fees associated with such respective classes. Transfer
agency fees borne by each class of 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 of each class of the
Funds, 12b-1 fee calculation, check writing, anti-money laundering serv-
ices, and customer identification services.
Pursuant to written agreements, certain affiliates, including Merrill Lynch,
from July 1, 2008 to December 31, 2008, (after which Merrill Lynch was
no longer considered an affiliate) provide the Funds with sub-accounting,
recordkeeping, sub-transfer agency and other administrative 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, 2009, in return for these serv-
ices, which are included in transfer agent in the Statement of Operations,
the Funds paid fees as follows:
ANNUAL REPORT JUNE 30, 2009 41
Notes to Financial Statements (continued)
EuroFund | $ 401,894 | ||||
Global SmallCap | $1,314,319 | ||||
International Value | $1,815,795 | ||||
The Funds may earn income on positive cash balances in demand deposit | |||||
accounts that are maintained by the transfer agent on behalf of the Funds. | |||||
For the year ended June 30, 2009, the Funds earned the following, which | |||||
are included in income — affiliated in the Statements of Operations: | |||||
EuroFund | $ | 321 | |||
Global SmallCap | $ | 473 | |||
International Value | $ | 397 | |||
The Manager maintains a call center, which is responsible for providing | |||||
certain shareholder services to the Funds, such as responding to share- | |||||
holder inquiries and processing transactions based upon instructions from | |||||
shareholders with respect to the subscription and redemption of Fund | |||||
shares. For the year ended June 30, 2009, the following amounts have | |||||
been accrued by the Funds to reimburse the Manager for costs incurred | |||||
running the call center, which are included in transfer agent fees in the | |||||
Statements of Operations. | |||||
Global | International | ||||
EuroFund | SmallCap | Value | |||
Institutional | $ 8,317 | $3,816 | $11,033 | ||
Investor A | $10,317 | $7,756 | $ 6,081 | ||
Investor B | $ 1,128 | $2,577 | $ 1,371 | ||
Investor C | $ 1,542 | $9,700 | $ 4,568 | ||
Class R | $ | 46 | $ 540 | $ | 719 |
For the year ended June 30, 2009, each Fund reimbursed the Manager for | |||||
certain accounting services, which are included in accounting services in | |||||
the Statements of Operations as follows: | |||||
Accounting | |||||
Services | |||||
EuroFund | $ | 7,169 | |||
Global SmallCap | $ 16,144 | ||||
International Value | $ 15,849 | ||||
Certain officers and/or trustees of the Funds are officers and/or directors | |||||
of BlackRock or its affiliates. The Funds reimburse the Manager for | |||||
compensation paid to the Funds’ Chief Compliance Officer. | |||||
4. Investments: | |||||
Purchases and sales of investments, excluding short-term securities, for the | |||||
year ended June 30, 2009 were as follows: | |||||
Purchases | Sales | ||||
EuroFund | $ 572,474,228 | $ 694,023,249 | |||
Global SmallCap | $ 925,426,868 | $ 971,535,383 | |||
International Value | $1,923,978,518 | $2,146,283,870 |
For Global SmallCap transactions in options written for the year ended | ||
June 30, 2009 were as follows: | ||
Premiums | ||
Contracts | Received | |
Outstanding call options written, beginning | ||
of period | 2,805 | $2,808,881 |
Options written | 3,851 | 108,604 |
Options closed | (92) | (371,172) |
Options expired | (3,851) | (108,604) |
Options exercised | (2,713) | (2,437,709) |
Outstanding call options written, end of period | — | — |
5. Short-Term Borrowings:
Each Fund, 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 expired November 2008 and was subsequently renewed
until November 2009. The Funds may borrow under the credit agreement
to fund shareholder redemptions and for other lawful purposes other than
for leverage. The Funds may borrow up to the maximum amount allowable
under each Fund’s current Prospectus and Statement of Additional Infor-
mation, subject to various other legal, regulatory or contractual limits. Each
Fund paid its pro rata share of a 0.02% upfront fee on the aggregate com-
mitment amount based on its net assets as of October 31, 2008. Each
Fund pays a commitment fee of 0.08% per annum based on each Fund’s
pro rata share of the unused portion of the credit agreement, which is
included in miscellaneous in the Statement of Operations. Amounts
borrowed under the credit agreement bear interest at a rate equal to the
higher of the (a) federal funds effective rate and (b) reserve adjusted one
month LIBOR, plus, in each case, the higher of (i) 1.50% and (ii) 50% of
the CDX Index (as defined in the credit agreement) in effect from time to
time. The Funds did not borrow under the credit agreement during the year
ended June 30, 2009.
6. Income Tax Information:
Reclassifications: Accounting principles generally accepted in the United
States of America require 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, 2009 attribu-
table to the classification of settlement proceeds, foreign currency transac-
tions, gains from the sale of stock of passive foreign investment companies,
net operating losses, the expiration of capital loss carryforwards and the
classification of income recognition from partnership interests were reclas-
sified to the following accounts:
BlackRock | BlackRock | ||
BlackRock | Global | International | |
EuroFund | SmallCap Fund | Value Fund | |
Paid-in capital | (4,079,201) | (3,171,112) | — |
Undistributed (accumulated) net | |||
investment income (loss) | (298,506) | 3,409,081 | 6,827,211 |
Accumulated net realized loss | 4,377,707 | (237,969) | (6,827,211) |
42 ANNUAL REPORT JUNE 30, 2009
Notes to Financial Statements (continued)
The tax character of distributions paid during the fiscal year ended October | ||||
31, 2007, fiscal period ended June 30, 2008 and fiscal year ended June | ||||
2009 was as follows: | ||||
BlackRock | BlackRock | |||
BlackRock | Global | International | ||
EuroFund | SmallCap Fund Value Fund | |||
Ordinary Income | 2009 $ 14,229,241 $ 2,933,937 $ 23,535,982 | |||
2008 46,587,366 | 94,796,664 | 71,183,475 | ||
2007 26,823,003 | — | |||
Long Term Capital Gains | 2009 $ 27,837,270 $ 94,879,655 $ 14,864,493 | |||
2008 132,085,261 | 131,799,584 | 214,438,432 | ||
2007 70,869,341 | — | |||
Total Distributions | 2009 $ 42,066,511 $ 97,813,592 $ 38,400,475 | |||
2008 178,672,627 | 226,596,248 | 285,621,907 | ||
2007 97,692,344 | — | |||
As of June 30, 2009 the tax components of accumulated net losses were | ||||
as follows: | ||||
BlackRock | BlackRock | |||
BlackRock | Global | International | ||
EuroFund | SmallCap Fund | Value Fund | ||
Undistributed ordinary income | $ 13,576,051 | - | $ 23,682,796 | |
Capital loss carryforwards | (67,839,175) | $ (45,917,435) | (237,392,251) | |
Net unrealized losses* | (131,393,344) | (192,847,799) | (229,527,857) | |
Total | $(185,656,468) | $(238,765,234) | $(443,237,312) | |
* The differences between book-basis and tax-basis net unrealized losses are attribut | ||||
able 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 on investments in | ||||
passive foreign investment companies, the realization for tax purposes of unrealized | ||||
gains/(losses) on certain foreign currency contracts, the deferral of post-October | ||||
currency and capital losses for tax purposes, the deferral of post-October losses on | ||||
investments in passive foreign investment companies for tax purposes and the tim | ||||
ing and recognition of partnership income. | ||||
As of June 30, 2009, the Funds had capital loss carryforwards available | ||||
offset future realized capital gains through the indicated expiration dates: | ||||
BlackRock | BlackRock | |||
BlackRock | Global | International | ||
Expires | EuroFund | SmallCap Fund | Value Fund | |
2010 | — | — | $ 10,936,387 | |
2017 | $ 67,839,175 | $ 45,917,435 | 226,455,864 | |
Total | $ 67,839,175 | $ 45,917,435 | $237,392,251 |
7. Acquisition of The Europe Fund, Inc.
EuroFund
On November 6, 2006, the Fund acquired substantially all of the assets
and assumed substantially all of the liabilities of The Europe Fund, Inc.,
pursuant to a plan of reorganization. The acquisition was accomplished by
a tax-free exchange of 10,066,319 shares of common stock of The Europe
Fund, Inc. for 5,532,829 shares of common stock of the Fund. The Europe
Fund, Inc.’s net assets on that date of $113,021,126, including $152,626
of distributions in excess of net investment income, $141,914 of accumu-
lated net realized losses and $8,113,020 of net unrealized appreciation
were combined with those of the Fund. The Fund’s aggregate net assets
immediately after the acquisition amounted to $1,001,508,858.
8. Geographic, 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 of its obliga-
tions (credit risk). The value of securities held by the Funds 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 credit risk, the Funds may be exposed to counterparty
risk, or the risk that an entity with which the Funds have unsettled or
open transactions may default. Financial assets, which potentially
expose the Funds to credit and counterparty risks, consist principally of
investments and cash due from counterparties. The extent of the Funds’
exposure to credit and counterparty risks with respect to these financial
assets approximates their value as recorded in the Funds’ Statements of
Assets and Liabilities.
EuroFund and International Value
The Funds invest from time to time a substantial amount of their assets in
issuers located in a single country or a limited number of countries. When
the Funds concentrate 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, 2009, the Funds had the following industry classifications | |||
as a percent of long-term investments: | |||
Global International | |||
Industry | EuroFund SmallCap | Value | |
Commercial Banks | 19% | 5% | 15% |
Oil, Gas & Consumable Fuels | 13 | 4 | 8 |
Pharmaceuticals | 9 | 3 | 7 |
Insurance | 4 | 6 | 4 |
Wireless Telecommunication Services | 4 | — | 5 |
Metals & Mining | 3 | 3 | 8 |
Media | 3 | 2 | 5 |
Semiconductors & Semiconductor Equipment | — | 7 | — |
Software | — | 6 | — |
Other* | 45 | 64 | 48 |
* All other industries held were each less than 5% of long-term investments. |
ANNUAL REPORT JUNE 30, 2009 43
Notes to Financial Statements (continued)
9. Capital Share Transactions: | |||||||||
Transactions in capital shares for each class were as follows: | |||||||||
Year Ended | Period November 1, 2007 | Year Ended | |||||||
June 30, 2009 | to June 30, 2008 | October 31, 2007 | |||||||
EuroFund | Shares | Amount | Shares | Amount | Shares | Amount | |||
Institutional | |||||||||
Shares sold | 1,460,138 | $ | 16,161,353 | 1,124,949 | $ | 22,605,588 | 7,263,929 | $ 168,689,472 | |
Shares issued to shareholders in reinvestment | |||||||||
of dividends and distributions | 1,293,422 | 12,259,844 | 2,580,306 | 51,297,021 | 1,537,937 | 31,589,732 | |||
Total issued | 2,753,560 | 28,421,197 | 3,705,255 | 73,902,609 | 8,801,866 | 200,279,204 | |||
Shares redeemed | (5,379,100) | (64,289,598) | (2,653,936) | (51,428,242) | (9,064,709) | (204,000,880) | |||
Net increase (decrease) | (2,625,540) | $ | (35,868,401) | 1,051,319 | $ | 22,474,367 | (262,843) | $ | (3,721,676) |
Period November 6, 20061 | |||||||||
to May 7, 20072 | |||||||||
Shares | Amount | ||||||||
Institutional 1 | |||||||||
Shares sold | 1,493 | $ | 43,112 | ||||||
Shares issued as a result of reorganization | 5,532,829 | 113,021,126 | |||||||
Shares issued to shareholders in reinvestment of dividends and distributions | 169 | 3,664 | |||||||
Total issued | 5,534,491 | 113,067,902 | |||||||
Shares redeemed | (5,534,491) | (127,809,960) | |||||||
Net decrease | — | $ | (14,742,058) | ||||||
1 Prior to November 6, 2006 (commencement of operations), the Fund issued 5 shares to BDI for $100. | |||||||||
2 On May 7, 2007, Institutional 1 Shares converted to Institutional Shares. | |||||||||
Year Ended | Period November 1, 2007 | Year Ended | |||||||
June 30, 2009 | to June 30, 2008 | October 31, 2007 | |||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||
Investor A | |||||||||
Shares sold and automatic conversion of shares | 1,197,790 | $ | 13,360,632 | 1,320,671 | $ | 25,449,638 | 3,006,721 | $ | 67,212,029 |
Shares issued to shareholders in reinvestment | |||||||||
of dividends and distributions | 2,088,623 | 19,462,176 | 3,863,256 | 75,607,215 | 1,914,464 | 38,843,557 | |||
Total issued | 3,286,413 | 32,822,808 | 5,183,927 | 101,056,853 | 4,921,185 | 106,055,586 | |||
Shares redeemed | (6,326,059) | (70,869,488) | (2,962,815) | (56,738,897) | (3,052,717) | (68,860,817) | |||
Net increase (decrease) | (3,039,646) | $ | (38,046,680) | 2,221,112 | $ | 44,317,956 | 1,868,468 | $ | 37,194,769 |
Investor B | |||||||||
Shares sold | 82,038 | $ | 755,014 | 111,071 | $ | 1,852,769 | 436,237 | $ | 8,367,613 |
Shares issued to shareholders in reinvestment | |||||||||
of dividends and distributions | 94,383 | 724,752 | 404,759 | 6,585,620 | 336,659 | 5,871,474 | |||
Total issued | 176,421 | 1,479,766 | 515,830 | 8,438,389 | 772,896 | 14,239,087 | |||
Shares redeemed and automatic conversion of shares | (947,583) | (9,096,353) | (1,152,334) | (18,366,726) | (1,958,575) | (37,244,713) | |||
Net decrease | (771,162) | $ | (7,616,587) | (636,504) | $ | (9,928,337) | (1,185,679) | $ (23,005,626) | |
Investor C | |||||||||
Shares sold | 216,658 | $ | 1,873,508 | 350,622 | $ | 5,483,909 | 911,338 | $ | 16,922,267 |
Shares issued to shareholders in reinvestment | |||||||||
of dividends and distributions | 432,215 | 3,021,002 | 929,042 | 14,047,301 | 383,571 | 6,348,265 | |||
Total issued | 648,873 | 4,894,510 | 1,279,664 | 19,531,210 | 1,294,909 | 23,270,532 | |||
Shares redeemed | (1,543,650) | (13,823,844) | (1,004,344) | (14,785,963) | (598,396) | (11,062,232) | |||
Net increase (decrease) | (894,777) | $ | (8,929,334) | 275,320 | $ | 4,745,247 | 696,513 | $ | 12,208,300 |
Class R | |||||||||
Shares sold | 169,661 | $ | 1,453,868 | 81,027 | $ | 1,267,243 | 156,930 | $ | 3,096,905 |
Shares issued to shareholders in reinvestment | |||||||||
of dividends and distributions | 36,290 | 269,269 | 56,836 | 909,947 | 13,571 | 235,197 | |||
Total issued | 205,951 | 1,723,137 | 137,863 | 2,177,190 | 170,501 | 3,332,102 | |||
Shares redeemed | (143,682) | (1,382,568) | (83,269) | (1,306,016) | (59,021) | (1,155,218) | |||
Net increase | 62,269 | $ | 340,569 | 54,594 | $ | 871,174 | 111,480 | $ | 2,176,884 |
44 ANNUAL REPORT JUNE 30, 2009
Notes to Financial Statements (continued)
Year Ended | Year Ended | |||||
June 30, 2009 | June 30, 2008 | |||||
Global SmallCap | Shares | Amount | Shares | Amount | ||
Institutional | ||||||
Shares sold | 4,485,041 | $ | 72,524,824 | 4,731,841 | $ | 122,650,275 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 1,292,842 | 25,210,490 | 2,205,883 | 57,683,519 | ||
Total issued | 5,777,883 | 97,735,314 | 6,937,724 | 180,333,794 | ||
Shares redeemed | (6,620,223) | (104,409,249) | (4,668,644) | (120,441,102) | ||
Net increase (decrease) | (842,340) | $ | (6,673,935) | 2,269,080 | $ | 59,892,692 |
Investor A | ||||||
Shares sold and automatic conversion of shares | 3,977,126 | $ | 63,620,067 | 3,864,190 | $ | 95,563,922 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 1,164,477 | 22,369,622 | 1,825,450 | 47,131,354 | ||
Total issued | 5,141,603 | 85,989,689 | 5,689,640 | 142,695,276 | ||
Shares redeemed | (4,598,347) | (72,698,891) | (3,563,083) | (90,235,404) | ||
Net increase | 543,256 | $ | 13,290,798 | 2,126,557 | $ | 52,459,872 |
Investor B | ||||||
Shares sold | 298,014 | $ | 4,544,670 | 254,522 | $ | 6,310,737 |
Shares issued to shareholders in reinvestment of distributions | 311,301 | 5,727,939 | 681,940 | 16,969,452 | ||
Total issued | 609,315 | 10,272,609 | 936,462 | 23,280,189 | ||
Shares redeemed and automatic conversion of shares | (1,888,307) | (28,758,559) | (1,697,021) | (41,675,519) | ||
Net decrease | (1,278,992) | $ | (18,485,950) | (760,559) | $ | (18,395,330) |
Investor C | ||||||
Shares sold | 3,798,162 | $ | 55,245,824 | 3,694,837 | $ | 88,841,367 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 1,806,330 | 32,279,164 | 3,155,476 | 76,488,950 | ||
Total issued | 5,604,492 | 87,524,988 | 6,850,313 | 165,330,317 | ||
Shares redeemed | (7,328,338) | (106,128,519) | (5,042,446) | (121,212,452) | ||
Net increase (decrease) | (1,723,846) | $ | (18,603,531) | 1,807,867 | $ | 44,117,865 |
Class R | ||||||
Shares sold | 1,004,661 | $ | 15,560,191 | 1,214,158 | $ | 30,518,717 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 195,376 | 3,600,783 | 263,876 | 6,568,394 | ||
Total issued | 1,200,037 | 19,160,974 | 1,478,034 | 37,087,111 | ||
Shares redeemed | (985,343) | (14,497,265) | (686,550) | (16,827,806) | ||
Net increase | 214,694 | $ | 4,663,709 | 791,484 | $ | 20,259,305 |
ANNUAL REPORT JUNE 30, 2009 45
Notes to Financial Statements (concluded)
Year Ended | Year Ended | |||||
June 30, 2009 | June 30, 2008 | |||||
International Value | Shares | Amount | Shares | Amount | ||
Institutional | ||||||
Shares sold | 5,816,862 | $ | 95,634,573 | 12,656,577 | $ 358,348,801 | |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 936,953 | 19,345,513 | 5,510,169 | 164,120,647 | ||
Total issued | 6,753,815 | 114,980,086 | 18,166,746 | 522,469,448 | ||
Shares redeemed | (19,026,770) | (354,195,904) | (15,787,157) | (460,665,669) | ||
Net increase (decrease) | (12,272,955) | $ | (239,215,818) | 2,379,589 | $ | 61,803,779 |
Investor A | ||||||
Shares sold and automatic conversion of shares | 3,434,693 | $ | 59,848,115 | 2,247,426 | $ | 65,894,583 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 344,649 | 7,089,290 | 1,683,305 | 49,935,359 | ||
Total issued | 3,779,342 | 66,937,405 | 3,930,731 | 115,829,942 | ||
Shares redeemed | (3,756,287) | (63,233,969) | (2,916,214) | (87,067,956) | ||
Net increase | 23,055 | $ | 3,703,436 | 1,014,517 | $ | 28,761,986 |
Investor B | ||||||
Shares sold | 644,754 | $ | 10,792,856 | 862,525 | $ | 25,046,767 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 48,841 | 984,615 | 375,153 | 10,913,993 | ||
Total issued | 693,595 | 11,777,471 | 1,237,678 | 35,960,760 | ||
Shares redeemed and automatic conversion of shares | (1,251,145) | (21,002,550) | (1,515,907) | (43,511,361) | ||
Net decrease | (557,550) | $ | (9,225,079) | (278,229) | $ | (7,550,601) |
Investor C | ||||||
Shares sold | 3,410,251 | $ | 55,856,558 | 3,112,700 | $ | 87,882,423 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 228,224 | 4,534,691 | 1,450,506 | 41,654,731 | ||
Total issued | 3,638,475 | 60,391,249 | 4,563,206 | 129,537,154 | ||
Shares redeemed | (4,559,171) | (74,845,775) | (4,050,173) | (114,252,015) | ||
Net increase (decrease) | (920,696) | $ | (14,454,526) | 513,033 | $ | 15,285,139 |
Class R | ||||||
Shares sold | 1,348,323 | $ | 23,691,262 | 1,876,989 | $ | 55,186,340 |
Shares issued to shareholders in reinvestment of dividends | ||||||
and distributions | 79,855 | 1,625,856 | 347,664 | 10,213,924 | ||
Total issued | 1,428,178 | 25,317,118 | 2,224,653 | 65,400,264 | ||
Shares redeemed | (1,596,470) | (26,676,075) | (1,172,529) | (33,545,010) | ||
Net increase (decrease) | (168,292) | $ | (1,358,957) | 1,052,124 | $ | 31,855,254 |
There is a 2% redemption fee on shares redeemed or exchanged that have been held for 30 days or less. 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. There was a 2% redemption fee | ||||||
on redemptions of EuroFund’s Institutional 1 Shares made prior to May 7, 2007. | ||||||
10. Subsequent Events: | ||||||
Management has evaluated the impact of all subsequent events on the | ||||||
Funds through August 26, 2009, the date the financial statements were | ||||||
issued, and has determined that there were no subsequent events requir- | ||||||
ing adjustment or disclosure in the financial statements. |
46 ANNUAL REPORT JUNE 30, 2009
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors/Trustees
BlackRock EuroFund, 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,
including the schedules of investments, of BlackRock Global SmallCap
Fund, Inc. and BlackRock International Value Fund, one of the Funds con-
stituting BlackRock International Value Trust, as of June 30, 2009, 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 for each of the five years in the period
then ended for BlackRock Global SmallCap Fund, Inc. and for each of the
three years in the period then ended for BlackRock International Value
Fund. We have also audited the accompanying statement of assets and lia-
bilities, including the schedule of investments, of BlackRock EuroFund as of
June 30, 2009, and the related statement of operations for the year then
ended, the statements of changes in net assets for the year then ended,
the period November 1, 2007 to June 30, 2008, and the year ended
October 31, 2007, and the financial highlights for the respective periods
presented. These financial statements 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 high-
lights of BlackRock International Value Fund for each of the two years in
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 the 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 report-
ing. Our audits included consideration of internal control 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, 2009, by correspondence with the cus-
todian and brokers; where replies were not received from brokers, we per-
formed 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 Global SmallCap Fund, Inc. and BlackRock International Value
Fund of BlackRock International Value Trust as of June 30, 2009, the
results of their operations for the year then ended, and the changes in
their net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended
for BlackRock Global SmallCap Fund, Inc. and for each of the three years
in the period then ended for BlackRock International Value Fund, in con-
formity with accounting principles generally accepted in the United States
of America. Additionally, in our opinion, the financial statements and finan-
cial highlights referred to above present fairly, in all material respects, the
financial position of BlackRock EuroFund as of June 30, 2009, the results
of its operations for the year then ended, the changes in its net assets for
the year ended June 30, 2009, the period November 1, 2007 to June 30,
2008, and the year ended October 31, 2007, and the financial highlights
for the respective periods presented, in conformity with accounting princi-
ples generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
August 26, 2009
Important Tax Information (Unaudited) | ||||
The following information is provided with respect to the distributions paid during the fiscal year ended June 30, 2009: | ||||
BlackRock | BlackRock | |||
BlackRock | Global SmallCap | International | ||
Payable Date | EuroFund | Fund, Inc. | Value Fund | |
Qualified Dividend Income for Individuals | 9/19/2008 | —† | 100.00%† | 100.00%†† |
12/12/2008 | 100%† | — | —†† | |
Dividends Qualifying for the Dividend Received Deduction for Corporations | 9/19/2008 | —† | 27.17%† | —†† |
Foreign Source Income | 9/19/2008 | —† | — | 100%†† |
12/12/2008 | 100%† | — | —†† | |
Foreign Taxes Paid Per Share | 9/19/2008 | —† | — | $0.065176†† |
12/12/2008 | $0.074520† | — | —†† | |
Long-Term Capital Gain Per Share | 9/19/2008 | —† | $1.692526 | $0.226034†† |
12/12/2008 | $0.719015† | — | —†† | |
Short-Term Capital Gain Dividends for Non-U.S. Residents* | 9/19/2008 | —† | 71.74%† | —†† |
† Expressed as a percentage of the ordinary income distributions | ||||
†† Expressed as a percentage of the ordinary income 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. | ||||
* Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. |
ANNUAL REPORT JUNE 30, 2009 47
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
The Board of Trustees of BlackRock EuroFund (the “EuroFund”), 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”), a series of BlackRock
International Value Trust (the “Trust”), (collectively, the “Board,” and the
members of which are referred to as “Board Members”) met on May 5,
2009 and June 4 – 5, 2009 to consider the approval of the funds’ invest-
ment advisory agreements (collectively, the “Advisory Agreements”) with
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. The Manager and the Sub-Advisors are referred to herein as
“BlackRock.” For simplicity, the EuroFund, the Global SmallCap Fund, the
International Value Fund and the Trust are referred to herein as the “Fund.”
The Advisory Agreements and the Sub-Advisory Agreements are referred
to herein as the “Agreements.”
Activities and Composition of the Board
The Board of the Fund consisted of fifteen individuals, twelve of whom
were not “interested persons” of the Fund as defined in the Investment
Company Act of 1940, as amended (the “1940 Act”) (the “Independent
Board Members”), at the time of the Board’s approval of the Agreements.
The Board Members are responsible for the oversight of the operations
of the Fund 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, which
each have one interested Board Member) and is chaired by Independent
Board Members.
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 the Fund by the personnel of BlackRock and its
affiliates, including investment management, administrative services, share-
holder services, oversight of fund accounting and custody, marketing serv-
ices and assistance in meeting legal and regulatory requirements.
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 the Fund and its shareholders. Among
the matters the Board considered were: (a) investment performance for
one-, three- and five-year periods, as applicable, against peer funds, and
applicable benchmarks, if any, as well as senior management and portfolio
managers’ analysis of the reasons for any underperformance against its
peers; (b) fees, including advisory, administration, if applicable, and other
amounts paid to BlackRock and its affiliates by the 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 the Fund’s investment objective,
policies and restrictions, (e) the Fund’s compliance with its Code of
Ethics and compliance policies and procedures; (f) the nature, cost and
character of non-investment management services provided by BlackRock
and its affiliates; (g) BlackRock’s and other service providers’ internal con-
trols; (h) BlackRock’s implementation of the proxy voting policies approved
by the Board; (i) the use of brokerage commissions and execution quality;
(j) BlackRock’s implementation of the Fund’s valuation and liquidity proce-
dures; and (k) periodic updates on BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the May 5, 2009 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in an ongoing process with BlackRock to continu-
ously review the nature and scope of the information provided to better
assist its deliberations. The materials provided in connection with the May
meeting included (a) information independently compiled and prepared
by Lipper, Inc. (“Lipper”) on Fund fees and expenses, and the investment
performance of the Fund as compared with a peer group of funds as
determined by Lipper (collectively, “Peers”); (b) information on the prof-
itability of the Agreements to BlackRock and a discussion of fall-out bene-
fits 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 and closed-end funds,
under similar investment mandates, as well as the performance of such
other clients; (d) the impact of economies of scale; (e) a summary of
aggregate amounts paid by the Fund to BlackRock; (f) sales and redemp-
tion data regarding the Fund’s shares; and (g) an internal comparison of
management fees classified by Lipper, if applicable.
At an in-person meeting held on May 5, 2009, the Board reviewed materials
relating to its consideration of the Agreements. As a result of the discus-
sions that occurred during the May 5, 2009 meeting, the Board presented
BlackRock with questions and requests for additional information and
BlackRock responded to these requests with additional written information
in advance of the June 4 – 5, 2009 Board meeting.
At an in-person meeting held on June 4 – 5, 2009, the Fund’s Board,
including the Independent Board Members, unanimously approved the
continuation of the Advisory Agreements between the Manager and the
48 ANNUAL REPORT JUNE 30, 2009
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
Fund and the Sub-Advisory Agreements between the Manager and the
Sub-Advisors with respect to the Fund, each for a one-year term ending
June 30, 2010. The Board considered all factors it believed relevant with
respect to the Fund, including, among other factors: (a) the nature, extent
and quality of the services provided by BlackRock; (b) the investment
performance of the Fund and BlackRock portfolio management; (c) the
advisory fee and the cost of the services and profits to be realized by
BlackRock and certain affiliates from the relationship with the Fund;
(d) economies of scale; and (e) other factors.
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 from their relationship with the 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 will-
ingness 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: The Board, including the
Independent Board Members, reviewed the nature, extent and quality of
services provided by BlackRock, including the investment advisory services
and the resulting performance of the Fund. Throughout the year, the Board
compared Fund performance to the performance of a comparable group
of mutual funds, and the performance of at least one relevant benchmark,
if any. The Board met with BlackRock’s senior management personnel
responsible for investment operations, including the senior investment
officers. The Board also reviewed the materials provided by the 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 the 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 the
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 the Fund.
BlackRock and its affiliates provide the Fund with certain administrative,
transfer agency, shareholder and other services (in addition to any such
services provided to the Fund by third parties) and officers and other per-
sonnel as are necessary for the operations of the Fund. In addition to
investment advisory services, BlackRock and its affiliates provide the 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 support; and (vi) performing
other administrative functions necessary for the operation of the Fund,
such as tax reporting, fulfilling regulatory filing requirements, and call cen-
ter services. The Board reviewed the structure and duties of BlackRock’s
fund administration, accounting, legal and compliance departments and
considered BlackRock’s policies and procedures for assuring compliance
with applicable laws and regulations.
B. The Investment Performance of the Fund and BlackRock: The Board,
including the Independent Board Members, also reviewed and considered
the performance history of the Fund. In preparation for the May 5, 2009
meeting, the Board was provided with reports, independently prepared by
Lipper, which included a comprehensive analysis of the 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 the Fund as compared to a representative group of similar funds as
determined by Lipper and to all funds in the Fund’s applicable Lipper cate-
gory. The Board was provided with a description of the methodology used
by Lipper to select peer funds. The Board regularly reviews the performance
of the 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 first, first and second
quartiles against its Lipper Performance Universe for the one-, three- and
five-year periods reported, respectively.
The Board noted that the Global SmallCap Fund ranked in the first quartile
against its Lipper Performance Universe for each of the one-, three- and
five-year periods reported.
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 the Fund: The Board, including the Independent Board
Members, reviewed the Fund’s contractual advisory fee rates compared
with the other funds in its Lipper category. It also compared the Fund’s
ANNUAL REPORT JUNE 30, 2009 49
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
total expenses, as well as actual management fees, to those of other com-
parable funds. 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 the
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 the Fund. The Board reviewed BlackRock’s profitability with
respect to the Fund and each fund the Board currently oversees for the
year ended December 31, 2008 compared to aggregate profitability data
provided for the year ended December 31, 2007. 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 therefore comparability of
profitability is somewhat limited.
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 is available, the Board considered BlackRock’s operating mar-
gin in general compared to the operating margin for leading investment
management firms whose operations include advising open-end funds,
among other product types. The comparison indicated that operating mar-
gins for BlackRock with respect to its registered funds are consistent with
margins earned by similarly situated publicly traded competitors. In addi-
tion, the Board considered, among other things, certain third party data
comparing BlackRock’s operating margin with that of other publicly-traded
asset management firms, which concluded 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 the
Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the
management and distribution of the 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 the
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 con-
tinue to provide the high quality of services that is expected by the Board.
The Board noted that the EuroFund’s contractual advisory fees, which do
not take into account any expense reimbursements or fee waivers, were
lower than or equal to the median contractual advisory fees paid by the
EuroFund’s Peers.
The Board noted that, although the Global SmallCap Fund’s contractual
advisory fees, which do not take into account any expense reimburse-
ments or fee waivers, were above the median contractual advisory fees
paid by the Global SmallCap Fund’s Peers, such fees were within 5%
of the median amount.
The Board noted that the International Value Fund’s contractual advisory
fees, which do not take into account any expense reimbursements or fee
waivers, were lower than or equal to the median contractual advisory fees
paid by the International Value Fund’s Peers. The Board also noted that the
International Value Fund has an advisory fee arrangement that includes
breakpoints that adjust the fee rate downward as the size of the
International Value Fund increases, thereby allowing shareholders the
potential to participate in economies of scale.
D. Economies of Scale: The Board, including the Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of the Fund increase and whether there should be
changes in the advisory fee rate or structure in order to enable the Fund
to participate in these economies of scale, for example through the use
of breakpoints in the advisory fee based upon the assets of the Fund. The
Board considered that the funds in the BlackRock fund complex share
some common resources and, as a result, an increase in the overall size
of the complex could permit each fund to incur lower expenses than it
would otherwise as a stand-alone entity. The Board also considered
BlackRock’s overall operations and its efforts to expand the scale of,
and improve the quality of, its operations.
E. Other Factors: The Board also took into account other ancillary or “fall-
out” benefits that BlackRock or its affiliates and significant shareholders
may derive from its relationship with the Fund, both tangible and intangi-
ble, 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 engagement of BlackRock’s affili-
ates as service providers to the Fund, including for administrative, transfer
agency and distribution services. The Board also noted that BlackRock
may use third party research obtained by soft dollars generated by certain
mutual fund transactions to assist itself in managing all or a number of
its other client accounts.
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.
Conclusion
The Board, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreements between the
Manager and the Fund for a one-year term ending June 30, 2010 and
50 ANNUAL REPORT JUNE 30, 2009
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)
the Sub-Advisory Agreements between the Manager and Sub-Advisors with
respect to the Fund for a one-year term ending June 30, 2010. Based
upon its evaluation of all these 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 the 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-
important or controlling, but considered all factors together, and different
Board Members may have attributed different weights to the various factors
considered. The Independent Board Members were also assisted by the
advice of independent legal counsel in making this determination. The con-
tractual fee arrangements for the Fund reflect the results of several years of
review by the Board Members and predecessor Board Members, and dis-
cussions 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.
ANNUAL REPORT JUNE 30, 2009 51
Officers and Directors
Number of | |||||
Length of | BlackRock- | ||||
Position(s) | Time | Advised Funds | |||
Name, Address | Held with | Served as | and Portfolios | Public | |
and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past Five Years | Overseen | Directorships |
Non-Interested Directors1 | |||||
Robert M. Hernandez | Chairman of the | Since | Director, Vice Chairman and Chief Financial Officer of USX Corporation | 35 Funds | ACE Limited (insurance |
40 East 52nd Street | Board, Director | 2007 | (energy and steel business) from 1991 to 2001. | 101 Portfolios | company); Eastman Chemical |
New York, NY 10022 | and Member of | Company (chemical); RTI | |||
1944 | the Audit | International Metals, Inc. | |||
Committee | (metals); TYCO Electronics | ||||
(electronics) | |||||
Fred G. Weiss | Vice Chairman | Since | Managing Director, FGW Associates (consulting and investment | 35 Funds | Watson |
40 East 52nd Street | of the Board, | 2007 | company) since 1997; Director, Michael J. Fox Foundation for | 101 Portfolios | Pharmaceutical Inc. |
New York, NY 10022 | Director and | Parkinson’s Research since 2000; Director of BTG International Plc | |||
1941 | Member of the | (a global technology commercialization company) from 2001 | |||
Audit Committee | to 2007. | ||||
James H. Bodurtha | Director | Since | Director, The China Business Group, Inc. (consulting firm) since | 35 Funds | None |
40 East 52nd Street | 2002 | 1996 and Executive Vice President thereof from 1996 to 2003; | 101 Portfolios | ||
New York, NY 10022 | Chairman of the Board, Berkshire Holding Corporation since 1980. | ||||
1944 | |||||
Bruce R. Bond | Director | Since | Trustee and Member of the Governance Committee, State Street | 35 Funds | None |
40 East 52nd Street | 2007 | Research Mutual Funds from 1997 to 2005; Board Member of | 101 Portfolios | ||
New York, NY 10022 | Governance, Audit and Finance Committee, Avaya Inc. (computer | ||||
1946 | equipment) from 2003 to 2007. | ||||
Donald W. Burton | Director | Since | Managing General Partner, The Burton Partnership, LP (an invest- | 35 Funds | Knology, Inc. (telecommuni- |
40 East 52nd Street | 2007 | ment partnership) since 1979; Managing General Partner, The South | 101 Portfolios | cations); Capital Southwest | |
New York, NY 10022 | Atlantic Venture Funds since 1983; Member of the Investment | (financial) | |||
1944 | Advisory Council of the Florida State Board of Administration | ||||
from 2001 to 2007. | |||||
Honorable | Director | Since | Partner and Head of International Practice, Covington and Burling | 35 Funds | Alcatel-Lucent (telecommu- |
Stuart E. Eizenstat | 2007 | (law firm) since 2001; International Advisory Board Member, The | 101 Portfolios | nications); Global Specialty | |
40 East 52nd Street | Coca Cola Company since 2002; Advisory Board Member BT | Metallurgical (metallurgical | |||
New York, NY 10022 | Americas (telecommunications) since 2004; Member of the Board | industry); UPS Corporation | |||
1943 | of Directors, Chicago Climate Exchange (environmental) since 2006; | (delivery service) | |||
Member of the International Advisory Board GML (energy) | |||||
since 2003. | |||||
Kenneth A. Froot | Director | Since | Professor, Harvard University since 1992. | 35 Funds | None |
40 East 52nd Street | 2005 | 101 Portfolios | |||
New York, NY 10022 | |||||
1957 | |||||
John F. O’Brien | Director | Since | Trustee, Woods Hole Oceanographic Institute since 2003; Director, | 35 Funds | Cabot Corporation |
40 East 52nd Street | 2007 | Allmerica Financial Corporation from 1995 to 2003; Director, | 101 Portfolios | (chemicals); LKQ Corporation | |
New York, NY 10022 | ABIOMED from 1989 to 2006; Director, Ameresco, Inc. (energy | (auto parts manufacturing); | |||
1943 | solutions company) from 2006 to 2007. | TJX Companies, Inc. | |||
(retailer) | |||||
Roberta Cooper Ramo | Director | Since | Shareholder, Modrall, Sperling, Roehl, Harris & Sisk, P.A. (law firm) | 35 Funds | None |
40 East 52nd Street | 2002 | since 1993; Chairman of the Board, Cooper’s Inc., (retail) since | 101 Portfolios | ||
New York, NY 10022 | 2000; Director of ECMC Group (service provider to students, schools | ||||
1942 | and lenders) since 2001; President, The American Law Institute, | ||||
(non-profit) since 2008; President, American Bar Association from | |||||
1995 to 1996. | |||||
Jean Margo Reid | Director | Since | Self-employed consultant since 2001; Director and Secretary, SCB, | 35 Funds | None |
40 East 52nd Street | 2004 | Inc. (holding company) since 1998; Director and Secretary, SCB | 101 Portfolios | ||
New York, NY 10022 | Partners, Inc. (holding company) since 2000; Director, Covenant | ||||
1945 | House (non-profit) from 2001 to 2004. |
52 ANNUAL REPORT JUNE 30, 2009
Officers and Directors (continued)
Number of | |||||
Length of | BlackRock- | ||||
Position(s) | Time | Advised Funds | |||
Name, Address | Held with | Served as | and Portfolios | Public | |
and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past Five Years | Overseen | Directorships |
Non-Interested Directors1 (concluded) | |||||
David H. Walsh | Director | Since | Director, National Museum of Wildlife Art since 2007; Director, | 35 Funds | None |
40 East 52nd Street | 2007 | Ruckleshaus Institute and Haub School of Natural Resources at | 101 Portfolios | ||
New York, NY 10022 | the University of Wyoming from 2006 to 2008; Trustee, University of | ||||
1941 | 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 of | 35 Funds | Bowne & Co., Inc. |
40 East 52nd Street | and Member | 1986 | Business Administration since 1995. | 101 Portfolios | (financial printers); |
New York, NY 10022 | 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 | |||||
the Fund’s board in 2007, each director first became a member of the board of directors 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; Jean Margo Reid, 2004; David H. Walsh, 2003; Fred G. Weiss, 1998; and Richard R. West, 1978. | |||||
Interested Directors3 | |||||
Richard S. Davis | President4 | Since | Managing Director, BlackRock, Inc. since 2005; Chief Executive | 175 Funds | None |
40 East 52nd Street | and | 2007 | Officer, State Street Research & Management Company from | 285 Portfolios | |
New York, NY 10022 | Director | 2000 to 2005; Chairman of the Board of Trustees, State Street | |||
1945 | Research Mutual Funds from 2000 to 2005; Chairman, SSR Realty | ||||
from 2000 to 2004. | |||||
Laurence D. Fink | Director | Since | Chairman and Chief Executive Officer of BlackRock, Inc. since its | 35 Funds | None |
40 East 52nd Street | 2007 | formation in 1998 and of BlackRock, Inc.’s predecessor entities | 101 Portfolios | ||
New York, NY 10022 | since 1988 and Chairman of the Executive and Management | ||||
1952 | Committees; Managing Director, The First Boston Corporation, 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 invest- | |||||
ment 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 Director, | 175 Funds | None |
40 East 52nd Street | 2007 | BlackRock, Inc. from 1989 to 2007; Chief Administrative | 285 Portfolios | ||
New York, NY 10022 | Officer, BlackRock Advisors, LLC from 1998 to 2007; President of | ||||
1947 | 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 PNC securities. Directors serve until their resignation, removal or death, or until December 31 of the year in | |||||
which they turn 72. | |||||
4 Fund President of BlackRock EuroFund and BlackRock International Value Fund. |
ANNUAL REPORT JUNE 30, 2009 53
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 | |||
Fund Officers1 | ||||||
Donald C. Burke | President | Since | Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) | |||
40 East 52nd Street | and Chief | 2007 | and Fund Asset Management, L.P. (“FAM”) in 2006, First Vice President thereof from 1997 to 2005, Treasurer thereof | |||
New York, NY 10022 | Executive | from 1999 to 2006 and Vice President thereof from 1990 to 1997. | ||||
1960 | Officer | |||||
Anne F. Ackerley | Vice | Since | Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009; | |||
40 East 52nd Street | President | 2007 | Chief Operating Officer of BlackRock’s U.S. Retail Group since 2006; Head of BlackRock’s Mutual Fund Group | |||
New York, NY 10022 | from 2000 to 2006. | |||||
1962 | ||||||
Neal J. Andrews | Chief | Since | Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund | |||
40 East 52nd Street | Financial | 2007 | Accounting and Administration at PNC Global Investment Servicement (U.S.) Inc. (formerly PFPC Inc.) from 1992 | |||
New York, NY 10022 | Officer | to 2006. | ||||
1966 | ||||||
Jay M. Fife | Treasurer | Since | Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch | |||
40 East 52nd Street | 2007 | Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; | ||||
New York, NY 10022 | Director of MLIM Fund Services Group from 2001 to 2006. | |||||
1970 | ||||||
Brian P. Kindelan | Chief | Since | Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel | |||
40 East 52nd Street | Compliance | 2007 | of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004. | |||
New York, NY 10022 | Officer | |||||
1959 | ||||||
Howard B. Surloff | Secretary | Since | Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General | |||
40 East 52nd Street | 2007 | Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006. | ||||
New York, NY 10022 | ||||||
1965 | ||||||
1 Officers of the Funds serve at the pleasure of the Board of Directors. | ||||||
2 Fund President of BlackRock Global SmallCap Fund, Inc. | ||||||
Further information about the Funds’ Officers and Directors is available in the Funds’ Statement of Additional Information, which can be obtained | ||||||
without charge by calling (800) 441-7762. | ||||||
Investment Advisor | Transfer Agent | Accounting Agent | Distributor | Legal Counsel | Independent Registered | |
BlackRock Advisors, LLC | PNC Global Investment | State Street Bank | BlackRock Investments, LLC | Willkie Farr & Gallagher LLP | Public Accounting Firm | |
Wilmington, DE 19809 | Servicing (U.S.) Inc. | and Trust Company | New York, NY 10022 | New York, NY 10019 | Deloitte & Touche LLP | |
Wilmington, DE 19809 | Princeton, NJ 08540 | Princeton, NJ 08540 | ||||
Custodian | ||||||
Brown Brothers Harriman & Co. | ||||||
Boston, MA 02109 | ||||||
Address of the Funds | ||||||
100 Bellevue Parkway | ||||||
Wilmington, DE 19809 | ||||||
Effective July 31, 2009, Donald C. Burke, President of BlackRock Global SmallCap Fund, Inc. and Chief Executive | ||||||
Officer of the Funds retired. The Funds’ Board of Directors wishes Mr. Burke well in his retirement. | ||||||
Effective August 1, 2009, Anne F. Ackerley became President of Global SmallCap Fund, Inc. and Chief Executive | ||||||
Officer of the Funds, and Jeffrey Holland and Brian Schmidt became Vice Presidents of the Funds. | ||||||
Effective August 1, 2009, Jean Margo Reid resigned as a Director of the Funds. The Board wishes Ms. Reid well | ||||||
in her future endeavors. |
54 ANNUAL REPORT JUNE 30, 2009
Additional Information
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 informa-
tion 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 consumer
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.
ANNUAL REPORT JUNE 30, 2009 55
Additional Information (continued)
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.
To enroll:
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
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 toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s (the “SEC”) website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds vote 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
www.blackrock.com or by calling (800) 441-7762 and (2) on the
SEC’s website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedules
The Funds file their complete schedules of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
Forms N-Q are available on the SEC’s website at http://www.sec.gov and
may also be reviewed and copied at the SEC’s Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference
Room may be obtained by calling (202) 551-8090. The Funds’ Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762.
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.
56 ANNUAL REPORT JUNE 30, 2009
Additional Information (concluded)
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get informa-
tion about your account balances, recent transactions and share prices. You
can also reach us on the Web at 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 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.
ANNUAL REPORT JUNE 30, 2009 57
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 Opportunities Portfolio | BlackRock Mid-Cap Value Equity Portfolio |
BlackRock Asset Allocation Portfolio† | BlackRock Global SmallCap Fund | BlackRock Mid Cap Value Opportunities Fund |
BlackRock Aurora Portfolio | BlackRock Health Sciences Opportunities Portfolio | BlackRock Natural Resources Trust |
BlackRock Balanced Capital Fund† | BlackRock Healthcare Fund | BlackRock Pacific Fund |
BlackRock Basic Value Fund | BlackRock Index Equity Portfolio* | BlackRock Science & Technology |
BlackRock Capital Appreciation Portfolio | BlackRock International Fund | Opportunities Portfolio |
BlackRock Energy & Resources Portfolio | BlackRock International Diversification Fund | BlackRock Small Cap Core Equity Portfolio |
BlackRock Equity Dividend Fund | BlackRock International Index Fund | BlackRock Small Cap Growth Equity Portfolio |
BlackRock EuroFund | BlackRock International Opportunities Portfolio | BlackRock Small Cap Growth Fund II |
BlackRock Focus Growth Fund | BlackRock International Value Fund | BlackRock Small Cap Index Fund |
BlackRock Focus Value Fund | BlackRock Large Cap Core Fund | BlackRock Small Cap Value Equity Portfolio |
BlackRock Fundamental Growth Fund | BlackRock Large Cap Core Plus Fund | BlackRock Small/Mid-Cap Growth Portfolio |
BlackRock Global Allocation Fund† | BlackRock Large Cap Growth Fund | BlackRock S&P 500 Index Fund |
BlackRock Global Dynamic Equity Fund | BlackRock Large Cap Value Fund | BlackRock U.S. Opportunities Portfolio |
BlackRock Global Emerging Markets Fund | BlackRock Latin America Fund | BlackRock Utilities and Telecommunications Fund |
BlackRock Global Financial Services Fund | BlackRock Mid-Cap Growth Equity Portfolio | BlackRock Value Opportunities Fund |
BlackRock Global Growth Fund |
Fixed Income Funds | ||
BlackRock Bond Portfolio | BlackRock Income Builder Portfolio† | BlackRock Short-Term Bond Fund |
BlackRock Emerging Market Debt Portfolio | BlackRock Inflation Protected Bond Portfolio | BlackRock Strategic Income Portfolio |
BlackRock Enhanced Income Portfolio | BlackRock Intermediate Government | BlackRock Total Return Fund |
BlackRock GNMA Portfolio | Bond Portfolio | BlackRock Total Return Portfolio II |
BlackRock Government Income Portfolio | BlackRock International Bond Portfolio | BlackRock World Income Fund |
BlackRock High Income Fund | BlackRock Long Duration Bond Portfolio | |
BlackRock High Yield Bond Portfolio | BlackRock Low Duration Bond Portfolio | |
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 Delaware Municipal Bond Portfolio | BlackRock National Municipal Fund | BlackRock Pennsylvania Municipal Bond Fund |
BlackRock High Yield Municipal Fund | BlackRock New Jersey Municipal Bond Fund | BlackRock Short-Term Municipal Fund |
BlackRock Intermediate Municipal Fund |
Target Risk & Target Date Funds | ||
BlackRock Prepared Portfolios | BlackRock Lifecycle Prepared Portfolios | |
Conservative Prepared Portfolio | Prepared Portfolio 2010 | Prepared Portfolio 2030 |
Moderate Prepared Portfolio | Prepared Portfolio 2015 | Prepared Portfolio 2035 |
Growth Prepared Portfolio | Prepared Portfolio 2020 | Prepared Portfolio 2040 |
Aggressive Growth Prepared Portfolio | Prepared Portfolio 2025 | Prepared Portfolio 2045 |
Prepared Portfolio 2050 | ||
* 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) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing.
58 ANNUAL REPORT JUNE 30, 2009
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.
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 | $33,700 | $33,300 | $0 | $0 | $6,100 | $6,100 | $1,028 | $1,049 |
EuroFund | ||||||||
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 for all of the registrants the Committee oversees. 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 one or more of its members 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 EuroFund | $414,628 | $412,149 |
(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) – $407,500, 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 EuroFund
By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock EuroFund
Date: August 21, 2009
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 EuroFund
Date: August 21, 2009
By: /s/Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock EuroFund
Date: August 21, 2009