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: John M. Perlowski, Chief Executive Officer, BlackRock
EuroFund, 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 06/30/2011
Date of reporting period: 06/30/2011
Item 1 – Report to Stockholders
June 30, 2011
Annual Report
BlackRock EuroFund
BlackRock Focus Value Fund, Inc.
BlackRock Global SmallCap Fund, Inc.
BlackRock International Value Fund | of BlackRock International Value Trust
Not FDIC Insured • No Bank Guarantee • May Lose Value
| Table of Contents | |
| Page | |
| Dear Shareholder | 3 |
| Annual Report: | |
| Fund Summaries | 4 |
| About Fund Performance | 12 |
| Disclosure of Expenses | 12 |
| Derivative Instruments | 13 |
| Financial Statements: | |
| Schedules of Investments | 14 |
| Statements of Assets and Liabilities | 25 |
| Statements of Operations | 27 |
| Statements of Changes in Net Assets | 28 |
| Financial Highlights | 30 |
| Notes to Financial Statements | 50 |
| Report of Independent Registered Public Accounting Firm | 60 |
| Important Tax Information | 60 |
| Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements | 61 |
| Officers and Directors | 65 |
| Additional Information | 68 |
| Mutual Fund Family | 70 |
| 2 | ANNUAL REPORT | JUNE | 30, 2011 |
Dear Shareholder
The recent downgrade of US long-term debt by Standard & Poor’s marked an historic event for financial
markets. Stocks tumbled in the days before and after the announcement on August 5 as investors con-
templated the pervasiveness of the lower US credit rating across asset classes and the future direction
of the global economy. BlackRock was well prepared for the possibility of a downgrade and the firm had
no need to execute any forced selling of securities in response to the S&P action.Through periods of
uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets.
The pages that follow reflect your mutual fund’s reporting period ended June 30, 2011.Accordingly, the
below discussion is intended to provide you with perspective on the performance of your investments
during that period.
Economic conditions in the second quarter of 2011 were strikingly similar to the scenario of the same
quarter last year.The sovereign debt crisis in Europe, tightening monetary policy in China and a global
economic slowdown were again the key concerns that drove investors away from risky assets.The sec-
ond-quarter correction in 2010 was significant, but markets were revived toward the end of the summer
as positive economic news and robust corporate earnings whetted investor appetite for yield.The global
economy had finally gained traction and investor fear turned to optimism with the anticipation of a sec-
ond round of quantitative easing (“QE2”) from the US Federal Reserve Board (the “Fed”). Stock markets
rallied despite the ongoing European debt crisis and inflationary pressures looming over emerging mar-
kets. Fixed income markets, however, saw yields move sharply upward, pushing prices down, especially
on the long end of the historically steep yield curve.While high yield bonds benefited from the risk rally,
most fixed income sectors declined in the fourth quarter.The tax-exempt municipal market faced addi-
tional headwinds as it became evident that the Build America Bond program would not be extended and
municipal finance troubles abounded.
The new year brought spikes of volatility as political turmoil swept across the Middle East/North Africa
region and prices of oil and other commodities soared. Natural disasters in Japan disrupted industry
supply chains and concerns mounted over US debt and deficit issues. Equities quickly rebounded from
each of these events as investors chose to focus on the continuing stream of strong corporate earnings
and positive economic data. Global credit markets were surprisingly resilient in this environment and
yields regained relative stability in 2011.The tax-exempt market saw relief from its headwinds and
steadily recovered from its fourth-quarter lows. Equities, commodities and high yield bonds outpaced
higher-quality assets as investors responded to the Fed’s early 2011 reaffirmation that it will keep inter-
est rates low.
However, longer-term headwinds had been brewing. Inflationary pressures intensified in emerging
economies, many of which were overheating, and the European debt crisis was not over. Markets were
met with a sharp reversal in May when political unrest in Greece pushed the nation closer to defaulting
on its debt.This development rekindled fears about the broader debt crisis and its further contagion
among peripheral European countries. Concurrently, it became evident that the pace of global economic
growth had slowed. Higher oil prices and supply chain disruptions in Japan finally caught up with eco-
nomic data. Investors pulled back from riskier assets and stocks generally declined throughout most of
May and June, but year-to-date performance in global equity markets was positive, and 12-month
returns were remarkably strong. In bond markets, yields were volatile but generally moved lower for the
period as a whole (pushing prices up). Continued low short-term interest rates kept yields on money
market securities near their all-time lows.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
“Markets generally moved higher
despite heightened volatility during
the reporting period.”
Rob Kapito
President, BlackRock Advisors, LLC
| Total Returns as of June 30, 2011 | 6-month 12-month | |
| US large cap equities | 6.02% | 30.69% |
| (S&P 500® Index) | ||
| US small cap equities | 6.21 | 37.41 |
| (Russell 2000® Index) | ||
| International equities | 4.98 | 30.36 |
| (MSCI Europe,Australasia, | ||
| Far East Index) | ||
| Emerging market equities | 0.88 | 27.80 |
| (MSCI Emerging Markets Index) | ||
| 3-month Treasury bill | 0.08 | 0.16 |
| (BofA Merrill Lynch 3-Month | ||
| Treasury Bill Index) | ||
| US Treasury securities | 3.26 | 1.88 |
| (BofA Merrill Lynch 10-Year | ||
| US Treasury Index) | ||
| US investment grade bonds | 2.72 | 3.90 |
| (Barclays Capital US Aggregate | ||
| Bond Index) | ||
| Tax-exempt municipal bonds | 4.42 | 3.48 |
| (Barclays Capital Municipal | ||
| Bond Index) | ||
| US high yield bonds | 4.98 | 15.53 |
| (Barclays Capital US | ||
| Corporate High Yield 2% | ||
| Issuer Capped Index) | ||
Past performance is no guarantee of future results.
Index performance is shown for illustrative purposes only.
You cannot invest directly in an index.
| THIS PAGE NOT PART OF YOUR FUND REPORT | 3 |
Fund Summary as of June 30, 2011 BlackRock EuroFund
Investment Objective
BlackRock EuroFund's (the “Fund”) investment objective is to seek capital appreciation primarily through investment in equities of corporations domiciled
in European countries.
Portfolio Management Commentary
How did the Fund perform?
• For the 12-month period ended June 30, 2011, the Fund’s Institutional
and Investor A Shares slightly outperformed the benchmark Morgan Stanley
Capital International (MSCI) Europe Index, while the Investor B, Investor C
and Class R Shares underperformed the benchmark.
What factors influenced performance?
• Overall, stock selection had a positive impact on the Fund’s performance
relative to the MSCI Europe Index, while sector allocation detracted. The
Fund benefited from its holdings in the financials sector, where an over-
weight position in French bank Societe Generale SA and underweights in
British banks Barclays Plc and HSBC Holdings Plc were among the top con-
tributors to performance for the year. Stock selection in the materials sector
was also rewarding as miners BHP Billiton Plc and Xstrata Plc outper-
formed on the back of robust commodities demand. Elsewhere, overweight
positions in a number of automobile-related companies were beneficial
including tire manufacturers Continental AG and Nokian Renkaat Oyj.
• Conversely, stock selection in telecommunication services (telecom) and
industrials had a negative impact on performance, as did overall under-
weight exposures to the energy and health care sectors.
Describe recent portfolio activity.
• During the 12-month period, we reduced the Fund’s exposure to industrials
by selling capital goods companies Koninklijke Philips Electronics NV, Vinci
SA, Bilfinger Berger SE and Prysmian SpA as well as logistics company
Deutsche Post AG. We also moderately decreased the Fund’s weighting in
the consumer discretionary and telecom sectors. The proceeds were used
to add exposure to the energy sector, where we purchased oil services
firms Compagnie Générale de Géophysique-Veritas SA, Saipem SpA and
Technip SA. We substantially increased materials exposure by purchasing
soft commodities producers Syngenta AG and K+S AG, as well as specialty
chemicals firm AZ Electronic Materials SA and food enzyme maker Christian
Hansen Holding A/S. We also made a small addition to the information
technology sector through the purchase of software developer SAP AG.
Describe portfolio positioning at period end.
• As of period end, the Fund was overweight relative to the benchmark index
in the materials, consumer discretionary and energy sectors, and under-
weight in industrials, health care and financials. Geographically, the Fund
was overweight in Germany, Denmark and the United Kingdom, and under-
weight in Switzerland, Spain and Sweden.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changesin 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 |
| Royal Dutch Shell Plc, Class B | 4% |
| GlaxoSmithKline Plc | 4 |
| Rio Tinto Plc, Registered Shares | 3 |
| Bayer AG, Registered Shares | 3 |
| Danone | 3 |
| Imperial Tobacco Group Plc | 3 |
| Continental AG | 3 |
| Vodafone Group Plc | 3 |
| Carlsberg A/S, Class B | 3 |
| Xstrata Plc | 3 |
| Percent of | |
| Long-Term | |
| Geographic Allocations | Investments |
| United Kingdom | 34% |
| France | 17 |
| Germany | 17 |
| Switzerland | 7 |
| Denmark | 6 |
| Netherlands | 5 |
| Italy | 3 |
| Finland | 2 |
| Belgium | 2 |
| Norway | 2 |
| Spain | 2 |
| Luxembourg | 2 |
| Other1 | 1 |
1 Other includes a 1% or less investment in each of the following countries: Sweden
and Greece.
| 4 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock EuroFund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do not
have a sales charge.
2 Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities, including common stock and convertible securities, of
companies located in Europe. The Fund currently expects that a majority of the Fund’s assets will be invested in equity securities of companies in Western
European countries, but may also invest in emerging markets in Eastern European countries.
3 This unmanaged broad-based capitalization-weighted index is comprised of a representative sampling of large-, medium- and small-capitalization compa-
nies in developed European countries.
Performance Summary for the Period Ended June 30, 2011
| 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 | 8.63% | 36.42% | N/A | 1.23% | N/A | 6.29% | N/A |
| Investor A | 8.55 | 36.15 | 29.00% | 1.03 | (0.05)% | 6.05 | 5.48% |
| Investor B | 7.74 | 34.13 | 29.63 | (0.14) | (0.39) | 5.33 | 5.33 |
| Investor C | 8.06 | 35.01 | 34.01 | 0.19 | 0.19 | 5.20 | 5.20 |
| Class R | 8.28 | 35.54 | N/A | 0.47 | N/A | 5.77 | N/A |
| MSCI Europe Index | 9.05 | 36.02 | N/A | 2.02 | N/A | 6.15 | N/A |
4 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical6 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2011 | June 30, 2011 | During the Period5 | January 1, 2011 | June 30, 2011 | During the Period5 | Expense Ratio | |
| Institutional | $1,000.00 | $1,086.30 | $ 5.28 | $1,000.00 | $1,019.74 | $ 5.11 | 1.02% |
| Investor A | $1,000.00 | $1,085.50 | $ 6.31 | $1,000.00 | $1,018.74 | $ 6.11 | 1.22% |
| Investor B | $1,000.00 | $1,077.40 | $14.11 | $1,000.00 | $1,011.21 | $13.66 | 2.74% |
| Investor C | $1,000.00 | $1,080.60 | $10.73 | $1,000.00 | $1,014.48 | $10.39 | 2.08% |
| Class R | $1,000.00 | $1,082.80 | $ 9.35 | $1,000.00 | $1,015.82 | $ 9.05 | 1.81% |
5 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average accountvalue over the period, multiplied by 181/365
(to reflect the one-half year period shown).
6 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
| ANNUAL | REPORT | JUNE | 30, 2011 | 5 |
Fund Summary as of June 30, 2011 BlackRock Focus Value Fund, Inc.
Investment Objective
BlackRock Focus Value Fund, Inc.'s (the “Fund”) investment objective is to seek long-term growth of capital.
Portfolio Management Commentary
How did the Fund perform?
• For the 12-month period ended June 30, 2011, the Fund posted double-
R Shares outperformed the Russell 1000® Value Index, but underper-
formed the S&P digit positive returns. The Fund’s Institutional and Investor A Shares outper-
formed the Fund’s benchmark, the Russell 1000® Value Index, and the
broad-market S&P 500® Index. The Fund’s Investor B, Investor C and
500® Index. The following discussion of relative perform-
ance pertains to the Russell 1000® Value Index.
What factors influenced performance?
• Stock selection was additive in the consumer discretionary sector, where
strong returns were derived from holdings in media, specialty retailers and
leisure companies. Standout performers included CBS Corp., Class B,
Limited Brands, Inc. and Comcast Corp., Special Class A. Metals & mining
holdings, most notably Alcoa, Inc., enhanced performance in the materials
sector. In financials, underweight exposure to commercial banks proved ben-
eficial, as did the avoidance of Berkshire Hathaway, Inc. The overall avoid-
ance of utilities companies also benefited performance.
• The Fund’s holdings in the information technology (IT) sector detracted
from relative performance. In particular, exposure to computers & peripher-
als, electronic equipment and semiconductors through holdings such as
Hewlett-Packard Co. and Micron Technology Co. had a negative impact. In
health care, the Fund’s underweight positions in the biotechnology, phar-
maceutical and health care providers & services industries hindered
returns, particularly with respect to Pfizer, Inc. and UnitedHealth Group, Inc.
Also in the sector, holdings in Bristol-Myers Squibb Co. detracted.
Describe recent portfolio activity.
• During the 12-month period, we increased exposure to the telecommunica-
tion services (telecom) sector with the addition of Sprint Nextel Corp. We
reduced exposure to IT, financials, consumer discretionary and energy.
Notable sales during the period included Micron Technology Co., Novellus
Systems, Inc., Limited Brands, Inc. and Weatherford International Ltd.
Describe portfolio positioning at period end.
• Relative to the Russell 1000® Value Index, the Fund ended the period over-
weight in materials, IT, energy, consumer discretionary, industrials, and tele-
com and underweight in health care, consumer staples and financials.
• The economy has improved, but trails the level of growth typically seen at
this point in the economic cycle. Unemployment remains high; state, local
and federal budget deficits are worrisome and the financial system is still
fragile. Meanwhile, political turmoil in the Middle East and North Africa has
impacted oil prices and natural disasters in Japan have disrupted supply
chains. These concerns are somewhat off-set by improving consumer
confidence, continued reasonable valuations in equity markets, cash-
heavy US corporate balance sheets and a more business-friendly tone
from Washington, DC. Given this backdrop, the Fund maintains cyclical
exposure through its IT holdings, balanced with more defensive positions
in consumer staples and health care. We favor large-cap companies and
companies that have a greater exposure to global growth.
•On March 18, 2011, the Board of Directors of the Fund approved a plan of
reorganization, whereby BlackRock Basic Value Fund, Inc. will acquire sub-
stantially all of the assets and assume certain stated liabilities of the Fund
in exchange for newly issued shares of BlackRock Basic Value Fund, Inc. At
a shareholder meeting on August 25, 2011, shareholders of the Fund
approved the plan of reorganization.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changesin 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 |
| Halliburton Co. | 3% |
| Sprint Nextel Corp. | 3 |
| Honeywell International, Inc. | 3 |
| Tyco International Ltd. | 3 |
| Comcast Corp., Special Class A | 3 |
| MetLife, Inc. | 3 |
| Invesco Ltd. | 3 |
| Merck & Co., Inc. | 3 |
| E.I. du Pont de Nemours & Co. | 3 |
| ACE Ltd. | 3 |
| Percent of | |
| Long-Term | |
| Investment Criteria | Investments |
| Price-to-Earnings Per Share | 28% |
| Earnings Turnaround | 25 |
| Operational Restructuring | 11 |
| Price-to-Cash Flow | 9 |
| Above-Average Yield | 8 |
| Special Situations | 5 |
| Discount to Assets | 5 |
| Price-to-Book Value | 5 |
| Below-Average Price/Earnings Ratio | 2 |
| Low Price-to-Book Value | 2 |
| 6 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock Focus Value Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do not
have a sales charge.
2 The Fund invests primarily in a diversified portfolio of equity securities that Fund management believes are undervalued relative to its assessment of the
current or prospective condition of the issuer or relative to prevailing market ratios, including issuers that are experiencingpoor operating conditions.
3 This unmanaged index is a subset of the Russell 1000® Index consisting of those Russell 1000® securities with lower price-to-book ratios and lower fore-
casted growth values.
4 This unmanaged index covers 500 industrial, utility, transportation and financial companies of the US markets (mostly New YorkStock Exchange (“NYSE”)
issues), representing about 75% of NYSE market capitalization and 30% of NYSE issues.
Performance Summary for the Period Ended June 30, 2011
| 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 | 3.53% | 31.21% | N/A | 2.46% | N/A | 4.24% | N/A |
| Investor A | 3.30 | 30.80 | 23.93% | 2.15 | 1.05% | 3.95 | 3.40% |
| Investor B | 2.89 | 29.65 | 25.15 | 1.25 | 0.94 | 3.29 | 3.29 |
| Investor C | 2.92 | 29.82 | 28.82 | 1.33 | 1.33 | 3.14 | 3.14 |
| Class R | 3.06 | 29.97 | N/A | 1.48 | N/A | 3.56 | N/A |
| Russell 1000® Value Index | 5.92 | 28.94 | N/A | 1.15 | N/A | 3.99 | N/A |
| S&P 500® Index | 6.02 | 30.69 | N/A | 2.94 | N/A | 2.72 | N/A |
5 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical7 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2011 | June 30, 2011 | During the Period6 | January 1, 2011 | June 30, 2011 | During the Period6 | Expense Ratio | |
| Institutional | $1,000.00 | $1,035.30 | $ 5.70 | $1,000.00 | $1,019.19 | $ 5.66 | 1.13% |
| Investor A | $1,000.00 | $1,033.00 | $ 7.26 | $1,000.00 | $1,017.65 | $ 7.20 | 1.44% |
| Investor B | $1,000.00 | $1,028.90 | $11.82 | $1,000.00 | $1,013.14 | $11.73 | 2.35% |
| Investor C | $1,000.00 | $1,029.20 | $11.32 | $1,000.00 | $1,013.64 | $11.23 | 2.25% |
| Class R | $1,000.00 | $1,030.60 | $10.12 | $1,000.00 | $1,014.83 | $10.04 | 2.01% |
6 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average accountvalue over the period, multiplied by 181/365 (to
reflect the one-half year period shown).
7 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
| ANNUAL | REPORT | JUNE | 30, 2011 | 7 |
Fund Summary as of June 30, 2011 BlackRock Global SmallCap Fund, Inc.
Investment Objective
BlackRock Global SmallCap Fund, Inc.'s (the “Fund”) investment objective is to seek long-term growth of capital by investing primarily in a portfolio of
equity securities of small cap issuers located in various foreign countries and in the United States.
Portfolio Management Commentary
How did the Fund perform?
• For the 12-month period ended June 30, 2011, the Fund posted double-
digit positive returns. The Fund underperformed its benchmark, the Morgan
Stanley Capital International (MSCI) World Small Cap Index, but outper-
formed the broader MSCI World Index. The following discussion pertains to
the Fund’s performance relative to the MSCI World Small Cap Index.
What factors influenced performance?
• Stock selection was rewarding in the industrials sector, particularly among
airlines, machinery and transportation infrastructure stocks. Standout per-
formers included the Malaysian discount airline AirAsia Bhd and Brazilian
port operator Santos Brasil Participacoes SA. With respect to sector alloca-
tion, the Fund’s underweight (relative to the MSCI World Small Cap Index
composition) proved beneficial, as the sector underperformed during the
period, and an overweight to the energy sector had a positive impact.
• Conversely, stock selection in the consumer sectors detracted from returns
relative to the benchmark. In consumer discretionary, the Fund’s holdings in
retailers, textiles and automotive stocks hurt returns. Notable individual
detractors included Urban Outfitters, Inc., Halfords Group Plc, Li Ning Co.,
Ltd. and Ports Design Ltd. In consumer staples, the food and personal
products industries were areas of weakness for the Fund. Stock selection in
the materials sector also had a negative impact, particularly within chemi-
cals and metals.
Describe recent portfolio activity.
•During the period, we reduced the Fund’s exposure to consumer discre-
tionary, consumer staples and information technology (IT), and added to
positions in the industrials and health care sectors. The most significant
sales or reductions included Hikma Pharmaceuticals Plc, Urban Outfitters,
Inc., AdTran, Inc., Delhaize Group SA and Northeast Utilities, Inc. Major
purchases included Ingenico, Coventry Health Care, Inc., Sulzer AG, Radiant
Systems, Inc. and Albemarle Corp.
Describe portfolio positioning at period end.
•At period end, the Fund was overweight relative to the benchmark in the IT
and health care sectors, while it was underweight in industrials, financials
and consumer discretionary. Allocations to the remaining sectors were rela-
tively neutral to the benchmark weighting. The Fund remains diversified
globally, with an overweight in emerging markets at the expense of alloca-
tions to the United States and Japan.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changesin 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 |
| Rheinmetall AG | 1% |
| GEA Group AG | 1 |
| Ingenico | 1 |
| Avago Technologies Ltd. | 1 |
| Coventry Health Care, Inc. | 1 |
| Sulzer AG | 1 |
| Radiant Systems, Inc. | 1 |
| Timken Co. | 1 |
| IDEX Corp. | 1 |
| Celanese Corp., Series A | 1 |
| Percent of | |
| Long-Term | |
| Geographic Allocations | Investments |
| United States | 49% |
| Switzerland | 6 |
| United Kingdom | 6 |
| Canada | 5 |
| Germany | 4 |
| Japan | 4 |
| France | 3 |
| Australia | 3 |
| Singapore | 2 |
| Hong Kong | 2 |
| South Korea | 2 |
| Other1 | 14 |
1 Other includes a 1% or less investment in each of the following countries: Austria,
Bermuda, Brazil, China, Denmark, Finland, India, Ireland, Israel, Italy, Malaysia,
Netherlands, Spain and Taiwan.
| 8 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock Global SmallCap Fund, Inc.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do
not have a sales charge.
2 The Fund invests primarily in a diversified portfolio of equity securities of small cap issuers located in various foreign countries and in the United States.
3 This unmanaged market-capitalization weighted index is comprised of a representative sampling of stocks of large-, medium- and small-capitalization com-
panies in 24 countries, including the United States.
4 This unmanaged broad-based index is comprised of small cap companies from 24 developed markets.
Performance Summary for the Period Ended June 30, 2011
| 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 | 4.36% | 34.25% | N/A | 6.85% | N/A | 8.11% | N/A |
| Investor A | 4.27 | 33.88 | 26.85% | 6.54 | 5.40% | 7.82 | 7.24% |
| Investor B | 3.79 | 32.60 | 28.10 | 5.63 | 5.34 | 7.13 | 7.13 |
| Investor C | 3.80 | 32.71 | 31.71 | 5.66 | 5.66 | 6.95 | 6.95 |
| Class R | 4.03 | 33.24 | N/A | 6.10 | N/A | 7.53 | N/A |
| MSCI World Index | 5.29 | 30.51 | N/A | 2.28 | N/A | 3.99 | N/A |
| MSCI World Small Cap Index | 5.63 | 38.39 | N/A | 4.37 | N/A | 9.37 | N/A�� |
5 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical7 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2011 | June 30, 2011 | During the Period6 | January 1, 2011 | June 30, 2011 | During the Period6 | Expense Ratio | |
| Institutional | $1,000.00 | $1,043.60 | $ 5.37 | $1,000.00 | $1,019.54 | $ 5.31 | 1.06% |
| Investor A | $1,000.00 | $1,042.70 | $ 6.89 | $1,000.00 | $1,018.05 | $ 6.81 | 1.36% |
| Investor B | $1,000.00 | $1,037.90 | $11.22 | $1,000.00 | $1,013.79 | $11.08 | 2.22% |
| Investor C | $1,000.00 | $1,038.00 | $11.02 | $1,000.00 | $1,013.98 | $10.89 | 2.18% |
| Class R | $1,000.00 | $1,040.30 | $ 9.06 | $1,000.00 | $1,015.92 | $ 8.95 | 1.79% |
6 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average accountvalue 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 yeardivided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
| ANNUAL | REPORT | JUNE | 30, 2011 | 9 |
Fund Summary as of June 30, 2011 BlackRock International Value Fund
Investment Objective
BlackRock International Value Fund's (the “Fund”) investment objective is to seek current income and long-term growth of income, accompanied by growth
of capital.
Portfolio Management Commentary
How did the Fund perform?
• For the 12-month period ended June 30, 2011, the Fund posted double-
digit positive returns and outperformed its benchmark, the Morgan Stanley
Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index.
What factors influenced performance?
• Overall, the Fund’s outperformance relative to the MSCI EAFE Index is
attributable to both stock selection and sector allocation. Stock selection
was rewarding in the financials, health care, industrials, information
technology (IT) and materials sectors. With respect to sector allocation, the
Fund’s underweight allocations (relative to the benchmark composition)
to financials and utilities benefited performance during the period. From
a geographic perspective, stock selection within Continental European
and Japanese equities had a positive impact. The Fund’s holdings in
United Kingdom stocks also boosted returns.
• The Fund’s overweight exposure to emerging market equities had a negative
impact on performance during the period. Stock selection in the Asia-
Pacific region also detracted. On a sector basis, stock selection in
telecommunication services (telecom) disappointed.
Describe recent portfolio activity.
• During the 12-month period, we reduced exposure to financials, primarily
through sales of bank stocks. We also reduced the Fund’s allocations to
the energy and consumer discretionary sectors. The proceeds from these
reductions were used to increase exposure to materials, industrials and
telecom. On a geographic basis, we increased the Fund’s holdings in
Japanese stocks and increased exposure to France as well. We decreased
the Fund’s allocation to Swiss stocks and moderately reduced exposure
to Spain.
Describe portfolio positioning at period end.
• At period end, the Fund’s sector overweights relative to the MSCI EAFE
Index included industrials, IT, materials and telecom, while underweight
positions included financials, consumer discretionary and utilities.
Geographically, the Fund was overweight in Japan and select emerging
markets and underweight in European and Asia-Pacific stocks.
• On March 18, 2011, the Board of Trustees of the Trust approved a plan
of reorganization, whereby BlackRock International Fund, a series of
BlackRock Series, Inc., will acquire substantially all of the assets and
assume certain stated liabilities of the Fund in exchange for newly issued
shares of BlackRock International Fund. At a shareholder meeting on July
7, 2011, shareholders of the Fund approved the plan of reorganization.
The reorganization took place on August 15, 2011.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changesin 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 |
| Royal Dutch Shell Plc, Class B | 4% |
| Novartis AG, Registered Shares | 4 |
| Bayer AG | 3 |
| British American Tobacco Plc | 3 |
| Schneider Electric SA | 3 |
| Repsol YPF SA | 3 |
| BHP Billiton Plc | 3 |
| Sanofi-Aventis | 3 |
| Telefonica SA | 2 |
| Mitsubishi UFJ Financial Group, Inc. | 2 |
| Percent of | |
| Long-Term | |
| Geographic Allocations | Investments |
| Japan | 22% |
| United Kingdom | 21 |
| France | 15 |
| Germany | 13 |
| Australia | 6 |
| Spain | 5 |
| Switzerland | 4 |
| Netherlands | 3 |
| South Korea | 2 |
| Taiwan | 2 |
| Italy | 2 |
| Sweden | 2 |
| Other ¹ | 3 |
1 Other includes a 1% holding in each of the following countries: Mexico, Finland
and India.
| 10 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock International Value Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, transaction costs and other operating expenses, including investment advisory fees, if any. Institutional Shares do
not have a sales charge.
2 The Fund invests primarily in stocks of companies in developed countries located outside of the United States.
3 This index is an arithmetical average weighted by market value of the performance of over 1,000 non-US companies representing 22 stock markets in
Europe, Australasia and the Far East.
Performance Summary for the Period Ended June 30, 2011
| 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 | 7.67% | 35.25% | N/A | 0.81% | N/A | 5.82% | N/A |
| Investor A | 7.50 | 34.84 | 27.76% | 0.48 | (0.60)% | 5.52 | 4.95% |
| Investor B | 6.89 | 33.29 | 28.79 | (0.57) | (0.88) | 4.79 | 4.79 |
| Investor C | 6.96 | 33.37 | 32.37 | (0.54) | (0.54) | 4.58 | 4.58 |
| Class R | 7.24 | 34.24 | N/A | 0.13 | N/A | 5.26 | N/A |
| MSCI EAFE Index | 4.98 | 30.36 | N/A | 1.48 | N/A | 5.66 | N/A |
4 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
| Actual | Hypothetical6 | ||||||
| Beginning | Ending | Beginning | Ending | ||||
| Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Annualized | |
| January 1, 2011 | June 30, 2011 | During the Period5 | January 1, 2011 | June 30, 2011 | During the Period5 | Expense Ratio | |
| Institutional | $1,000.00 | $1,076.70 | $ 4.74 | $1,000.00 | $1,020.23 | $ 4.61 | 0.92% |
| Investor A | $1,000.00 | $1,075.00 | $ 6.64 | $1,000.00 | $1,018.40 | $ 6.46 | 1.29% |
| Investor B | $1,000.00 | $1,068.90 | $12.31 | $1,000.00 | $1,012.89 | $11.98 | 2.40% |
| Investor C | $1,000.00 | $1,069.60 | $11.80 | $1,000.00 | $1,013.39 | $11.48 | 2.30% |
| Class R | $1,000.00 | $1,072.40 | $ 8.58 | $1,000.00 | $1,016.51 | $ 8.35 | 1.67% |
5 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average accountvalue 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 yeardivided by 365.
See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.
| ANNUAL | REPORT | JUNE | 30, 2011 | 11 |
About Fund Performance
• Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only to
eligible investors.
• Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
• Investor B Shares are subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service fee
of 0.25% per year. These shares automatically convert to Investor A Shares
after approximately eight years. (There is no initial sales charge for auto-
matic share conversions.) All returns for periods greater than eight years
reflect this conversion. Investor B Shares of the Funds are only available
through exchanges, dividend reinvestment by existing shareholders or for
purchase by certain qualified employee benefit plans.
• Investor C Shares are subject to a 1% contingent deferred sales charge if
redeemed within one year of purchase. In addition, Investor C Shares are
subject to a distribution fee of 0.75% per year and a service fee of 0.25%
per year.
• Class R Shares do not incur a maximum initial sales charge (front-end
load) or deferred sales charge. These shares are subject to a distribution fee
of 0.25% per year and a service fee of 0.25% per year. Class R Shares are
available only to certain retirement plans. Prior to January 3, 2003 for
BlackRock EuroFund, BlackRock Focus Value Fund, Inc. and BlackRock
International Value Fund, and February 4, 2003 for BlackRock Global
SmallCap Fund, Inc., Class R Share performance results are those of the
Institutional Shares (which have no distribution or service fees) restated to
reflect Class R Share fees.
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. Figures shown in the performance
tables on the previous pages assume reinvestment of all dividends and cap-
ital 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 lev-
els of service, distribution and transfer agency fees applicable 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 and exchange fees; and
(b) operating expenses including advisory fees, service and distribution
fees, including 12b-1 fees, and other Fund expenses. The expense exam-
ples on the previous pages (which are based on hypothetical investments
of $1,000 invested on January 1, 2011 and held through June 30, 2011)
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 or exchange fees, if any. Therefore, the hypothetical exam-
ples are useful in comparing ongoing expenses only, and will not help share-
holders determine the relative total expenses of owning different funds. If
these transactional expenses were included, shareholder expenses would
have been higher.
| 12 | ANNUAL REPORT | JUNE | 30, 2011 |
Derivative Financial Instruments
The Funds may invest in various derivative financial instruments, including
foreign currency exchange contracts, as specified in Note 2 of the Notes
to Financials Statements, which may constitute forms of economic lever-
age. Such instruments are used to obtain exposure to a market without
owning or taking physical custody of securities or to hedge market and/or
foreign currency exchange rate risk. Such derivative financial instruments
involve risks, including the imperfect correlation between the value of a
derivative financial instrument and the underlying asset, possible default
of the counterparty to the transaction or illiquidity of the derivative finan-
cial instrument. The Funds’ ability to use a derivative financial instrument
successfully depends on the investment advisor’s ability to predict
pertinent market movements accurately, which cannot be assured. The
use of derivative financial instruments may result in losses greater than
if they had not been used, may require the Funds to sell or purchase
portfolio investments at inopportune times or for distressed values, may
limit the amount of appreciation the Funds can realize on an investment,
may result in lower dividends paid to shareholders or may cause the
Funds to hold an investment that they might otherwise sell. The Funds’
investments in these instruments are discussed in detail in the Notes to
Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 13 |
BlackRock EuroFund
Schedule of Investments June 30, 2011 (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Belgium — 1.8% | ||
| KBC Bancassurance Holding | 157,666 | $ 6,186,657 |
| Denmark — 5.8% | ||
| Carlsberg A/S, Class B�� | 86,485 | 9,416,736 |
| Christian Hansen Holding A/S | 152,613 | 3,626,218 |
| Novo-Nordisk A/S, Class B | 58,792 | 7,365,418 |
| 20,408,372 | ||
| Finland — 2.2% | ||
| Kone Oyj, Class B | 78,061 | 4,904,054 |
| Nokian Renkaat Oyj | 59,425 | 2,983,935 |
| 7,887,989 | ||
| France — 17.1% | ||
| AXA SA | 395,816 | 8,985,080 |
| BNP Paribas SA | 104,063 | 8,024,189 |
| Cie de Saint-Gobain | 54,241 | 3,515,794 |
| Cie Generale de Geophysique — Veritas (a) | 237,246 | 8,694,882 |
| Danone | 139,512 | 10,415,003 |
| Legrand Promesses | 198,126 | 8,339,613 |
| Schneider Electric SA | 46,025 | 7,684,873 |
| Technip SA | 42,929 | 4,601,622 |
| 60,261,056 | ||
| Germany — 16.4% | ||
| Bayer AG, Registered Shares | 135,967 | 10,920,400 |
| Continental AG (a) | 91,726 | 9,665,903 |
| Deutsche Bank AG, Registered Shares | 131,241 | 7,745,909 |
| Deutsche Telekom AG, Registered Shares | 337,435 | 5,265,381 |
| K+S AG | 26,593 | 2,042,031 |
| Kabel Deutschland Holding AG (a) | 127,696 | 7,866,141 |
| Linde AG | 50,560 | 8,870,567 |
| SAP AG | 86,812 | 5,263,261 |
| 57,639,593 | ||
| Greece — 0.3% | ||
| Coca Cola Hellenic Bottling Co. SA | 35,024 | 940,778 |
| Italy — 3.5% | ||
| Intesa Sanpaolo SpA | 2,629,842 | 7,002,677 |
| Saipem SpA | 100,965 | 5,213,863 |
| 12,216,540 | ||
| Luxembourg — 1.5% | ||
| AZ Electronic Materials SA (a) | 1,068,125 | 5,243,413 |
| Netherlands — 4.7% | ||
| ING Groep NV CVA (a) | 570,740 | 7,033,516 |
| Koninklijke KPN NV | 400,017 | 5,818,248 |
| TNT Express NV (a) | 347,086 | 3,599,792 |
| 16,451,556 | ||
| Norway — 1.7% | ||
| DnB NOR ASA | 419,774 | 5,848,083 |
| Common Stocks | Shares | Value |
| Spain — 1.6% | ||
| Amadeus IT Holding SA, Class A (a) | 275,090 | $ 5,717,959 |
| Sweden — 1.4% | ||
| Swedbank AB, Class A | 290,306 | 4,881,764 |
| Switzerland — 7.2% | ||
| Julius Baer Group Ltd. | 149,253 | 6,165,347 |
| Nestlé SA, Registered Shares | 97,785 | 6,085,013 |
| The Swatch Group AG, Bearer Shares | 11,967 | 6,039,833 |
| Syngenta AG, Registered Shares | 20,621 | 6,968,874 |
| 25,259,067 | ||
| United Kingdom — 34.1% | ||
| BP Plc | 1,200,723 | 8,840,914 |
| Burberry Group Plc | 283,390 | 6,590,138 |
| Centrica Plc | 1,303,298 | 6,767,341 |
| GlaxoSmithKline Plc | 591,847 | 12,685,802 |
| Imperial Tobacco Group Plc | 307,734 | 10,245,228 |
| International Power Plc | 839,702 | 4,336,849 |
| Johnson Matthey Plc | 107,415 | 3,392,057 |
| Prudential Plc | 523,121 | 6,040,377 |
| Rio Tinto Plc, Registered Shares | 157,601 | 11,379,697 |
| Royal Dutch Shell Plc, Class B | 368,894 | 13,164,327 |
| Tullow Oil Plc | 199,798 | 3,978,799 |
| Vodafone Group Plc | 3,632,241 | 9,631,398 |
| William Morrison Supermarkets Plc | 1,384,970 | 6,624,262 |
| Wolseley Plc | 212,035 | 6,921,140 |
| Xstrata Plc | 421,152 | 9,276,039 |
| 119,874,368 | ||
| Total Long-Term Investments | ||
| (Cost — $315,678,372) — 99.3% | 348,817,195 | |
| Short-Term Securities | ||
| Money Market Funds — 1.8% | ||
| BlackRock Liquidity Funds, TempFund, | ||
| Institutional Class, 0.08% (b)(c) | 6,324,977 | $6,324,977 |
| Par | ||
| (000) | ||
| Time Deposits | ||
| United Kingdom — 0.1% | ||
| Brown Brothers Harriman & Co., 0.10%, 7/01/11 | GBP 108 | 173,402 |
| Total Short-Term Securities | ||
| (Cost — $6,498,509) — 1.9% | 6,498,379 | |
| Total Investments (Cost — $322,176,881*) — 101.2% | 355,315,574 | |
| Liabilities in Excess of Other Assets — (1.2)% | (4,063,419) | |
| Net Assets — 100.0% | $ 351,252,155 |
| Portfolio Abbreviations | ||||
| To simplify the listings of portfolio holdings in | ADR | American Depositary Receipts | JPY | Japanese Yen |
| the Schedules of Investments, the names and | AUD | Australian Dollar | NOK | Norwegian Krone |
| descriptions of many of the securities have been | CHF | Swiss Franc | REIT | Real Estate Investment Trusts |
| abbreviated according to the following list: | EUR | Euro | SEK | Swedish Krona |
| GBP | British Pound | SGD | Singapore Dollar | |
| HKD | Hong Kong Dollar | USD | US Dollar | |
| INR | Indian Rupee | |||
| See Notes to Financial Statements. |
| 14 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock EuroFund
Schedule of Investments (concluded)
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2011, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 324,597,487 |
| Gross unrealized appreciation | $ 34,374,360 |
| Gross unrealized depreciation | (3,656,273) |
| Net unrealized appreciation | $ 30,718,087 |
(a) Non-income producing security.
(b) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:
| Shares Held | Shares Held | |||
| at June 30, | Net | at June 30, | ||
| Affiliate | 2010 | Activity | 2011 | Income |
| BlackRock Liquidity | ||||
| Funds, TempFund, | ||||
| Institutional Class | 893,336 | 5,431,641 | 6,324,977 | $ 6,073 |
(c) Represents the current yield as of report date.
• Foreign currency exchange contracts as of June 30, 2011 were as follows:
| Unrealized | ||||||
| Currency | Currency | Settlement Appreciation | ||||
| Purchased | Sold | Counterparty | Date | (Depreciation) | ||
| EUR | 18,211 | USD | 26,352 | Citibank NA | 7/01/11 | $ 57 |
| EUR | 6,234,531 | USD | 8,970,866 | Goldman Sachs | ||
| International | 7/01/11 | 70,136 | ||||
| GBP | 307,250 | USD | 491,107 | Citibank NA | 7/01/11 | 2,015 |
| USD | 173,386 | GBP | 108,042 | Goldman Sachs | ||
| International | 7/01/11 | (16) | ||||
| USD 5,677,809 | SEK 36,337,980 | Goldman Sachs | ||||
| International | 7/01/11 | (67,144) | ||||
| Total | $ 5,048 | |||||
• Fair Value Measurements — Various inputs are used in determining the fair value
of investments and derivative financial instruments. These inputs are categorized
in three broad levels for financial statement purposes as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments and
derivative financial instruments)
The categorization of a value determined for investments and derivative financial
instruments is based on the pricing transparency of the investment and derivative
financial instrument and does not necessarily correspond to the Fund’s perceived
risk of investing in those securities. For information about the Fund’s policy regarding
valuation of investments and derivative financial instruments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of June 30, 2011 in determining
the fair valuation of the Fund’s investments and derivative financial instruments:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Investments: | ||||
| Common Stocks: | ||||
| Long-Term | ||||
| Investments | ||||
| Belgium | — | $ 6,186,657 | — | $ 6,186,657 |
| Denmark | — | 20,408,372 | — | 20,408,372 |
| Finland | — | 7,887,989 | — | 7,887,989 |
| France | — | 60,261,056 | — | 60,261,056 |
| Germany | — | 57,639,593 | — | 57,639,593 |
| Greece | — | 940,778 | — | 940,778 |
| Italy | — | 12,216,540 | — | 12,216,540 |
| Luxembourg | — | 5,243,413 | — | 5,243,413 |
| Netherlands | $ 9,418,040 | 7,033,516 | — | 16,451,556 |
| Norway | — | 5,848,083 | — | 5,848,083 |
| Spain | — | 5,717,959 | — | 5,717,959 |
| Sweden | — | 4,881,764 | — | 4,881,764 |
| Switzerland | — | 25,259,067 | — | 25,259,067 |
| United Kingdom . | — | 119,874,368 | — | 119,874,368 |
| Short-Term | ||||
| Securities: | ||||
| Money Market | ||||
| Funds | 6,324,977 | — | — | 6,324,977 |
| Time Deposits | — | 173,402 | — | 173,402 |
| Total | $15,743,017 | $ 339,572,557 | — | $ 355,315,574 |
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Derivative Financial Instruments1 | |||||
| Assets: | |||||
| Foreign currency | |||||
| exchange | |||||
| contracts | — | $ 72,208 | — | $ 72,208 | |
| Liabilities: | |||||
| Foreign currency | |||||
| exchange | |||||
| contracts | — | (67,160) | — | (67,160) | |
| Total | — | $ 5,048 | — | $ 5,048 | |
1 Derivative financial instruments are foreign currency exchange contracts, which
are valued at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 15 |
BlackRock Focus Value Fund, Inc.
Schedule of Investments June 30, 2011 (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Above-Average Yield* — 8.0% | ||
| Industrial Conglomerates — 3.2% | ||
| Tyco International Ltd. | 101,950 | $ 5,039,388 |
| Metals & Mining — 2.1% | ||
| Alcoa, Inc. | 209,700 | 3,325,842 |
| Pharmaceuticals — 2.7% | ||
| Merck & Co., Inc. | 123,300 | 4,351,257 |
| Total Above-Average Yield | 12,716,487 | |
| Below-Average Price/Earnings Ratio* — 2.2% | ||
| Oil, Gas & Consumable Fuels — 2.2% | ||
| Devon Energy Corp. | 43,400 | 3,420,354 |
| Total Below-Average Price/Earnings Ratio | 3,420,354 | |
| Discount to Assets* — 4.8% | ||
| Diversified Telecommunication Services — 2.4% | ||
| Verizon Communications, Inc. | 101,600 | 3,782,568 |
| Hotels, Restaurants & Leisure — 2.4% | ||
| Carnival Corp. | 99,600 | 3,747,948 |
| Total Discount to Assets | 7,530,516 | |
| Earnings Turnaround* — 24.9% | ||
| Aerospace & Defense — 3.2% | ||
| Honeywell International, Inc. | 85,200 | 5,077,068 |
| Capital Markets — 1.6% | ||
| Morgan Stanley | 108,100 | 2,487,381 |
| Commercial Banks — 2.2% | ||
| Wells Fargo & Co. | 122,400 | 3,434,544 |
| Diversified Financial Services — 1.7% | ||
| Bank of America Corp. | 247,600 | 2,713,696 |
| Energy Equipment & Services — 3.3% | ||
| Halliburton Co. | 104,200 | 5,314,200 |
| Food Products — 2.3% | ||
| Unilever NV — ADR | 109,400 | 3,593,790 |
| Industrial Conglomerates — 2.2% | ||
| General Electric Co. | 184,600 | 3,481,556 |
| Insurance — 1.4% | ||
| Hartford Financial Services Group, Inc. | 83,300 | 2,196,621 |
| Oil, Gas & Consumable Fuels — 2.4% | ||
| Peabody Energy Corp. | 64,900 | 3,823,259 |
| Semiconductors & Semiconductor | ||
| Equipment — 4.6% | ||
| Intel Corp. | 168,400 | 3,731,744 |
| LSI Corp. (a) | 496,200 | 3,532,944 |
| 7,264,688 | ||
| Total Earnings Turnaround | 39,386,803 | |
| Financial Restructuring* — 0.00% | ||
| Semiconductors & Semiconductor | ||
| Equipment — 0.0% | ||
| Legacy Holdings, Inc. (a) | 1,500 | 3 |
| Total Financial Restructuring | 3 | |
| Low Price-to-Book Value* — 2.1% | ||
| Metals & Mining — 2.1% | ||
| United States Steel Corp. | 73,000 | 3,360,920 |
| Total Low Price-to-Book Value | 3,360,920 |
| Common Stocks | Shares | Value |
| Operational Restructuring* — 10.5% | ||
| Aerospace & Defense — 1.8% | ||
| Raytheon Co. | 56,000 | $ 2,791,600 |
| Chemicals — 2.7% | ||
| E.I. du Pont de Nemours & Co. | 79,400 | 4,291,570 |
| Computers & Peripherals — 1.7% | ||
| Hewlett-Packard Co. | 76,200 | 2,773,680 |
| Diversified Financial Services — 2.7% | ||
| JPMorgan Chase & Co. | 103,400 | 4,233,196 |
| Household Products — 1.6% | ||
| Kimberly-Clark Corp. | 37,200 | 2,476,032 |
| Total Operational Restructuring | 16,566,078 | |
| Price-to-Book Value* — 4.7% | ||
| Diversified Financial Services — 2.6% | ||
| Citigroup, Inc. | 100,680 | 4,192,315 |
| Semiconductors & Semiconductor | ||
| Equipment — 2.1% | ||
| Lam Research Corp. (a) | 72,400 | 3,205,872 |
| Total Price-to-Book Value | 7,398,187 | |
| Price-to-Cash Flow* — 9.0% | ||
| Communications Equipment — 0.9% | ||
| Motorola Mobility Holdings, Inc. (a) | 63,600 | 1,401,744 |
| Media — 4.8% | ||
| Comcast Corp., Special Class A | 201,500 | 4,882,345 |
| Viacom, Inc., Class B | 54,000 | 2,754,000 |
| 7,636,345 | ||
| Wireless Telecommunication Services — 3.3% | ||
| Sprint Nextel Corp. (a) | 951,500 | 5,128,585 |
| Total Price-to-Cash Flow | 14,166,674 | |
| Price-to-Earnings Per Share* — 27.1% | ||
| Capital Markets — 1.2% | ||
| The Goldman Sachs Group, Inc. | 15,000 | 1,996,350 |
| Energy Equipment & Services — 2.7% | ||
| Ensco Plc — ADR | 79,600 | 4,242,680 |
| Health Care Equipment & Supplies — 3.6% | ||
| Baxter International, Inc. | 54,100 | 3,229,229 |
| Medtronic, Inc. | 63,900 | 2,462,067 |
| 5,691,296 | ||
| Insurance — 8.2% | ||
| ACE Ltd. | 65,100 | 4,284,882 |
| MetLife, Inc. | 103,100 | 4,522,997 |
| The Travelers Cos., Inc. | 70,600 | 4,121,628 |
| 12,929,507 | ||
| Media — 4.5% | ||
| CBS Corp., Class B | 129,800 | 3,698,002 |
| Time Warner, Inc. | 94,200 | 3,426,054 |
| 7,124,056 | ||
| Oil, Gas & Consumable Fuels — 4.8% | ||
| Marathon Oil Corp. | 63,100 | 3,324,108 |
| Occidental Petroleum Corp. | 40,600 | 4,224,024 |
| 7,548,132 | ||
| Pharmaceuticals — 2.1% | ||
| Pfizer, Inc. | 161,500 | 3,326,900 |
| Total Price-to-Earnings Per Share | 42,858,921 |
See Notes to Financial Statements.
| 16 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock Focus Value Fund, Inc.
Schedule of Investments (concluded) (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Special Situations* — 5.3% | ||
| Capital Markets — 2.8% | ||
| Invesco Ltd. | 188,900 | $ 4,420,260 |
| IT Services — 2.5% | ||
| International Business Machines Corp. | 22,700 | 3,894,185 |
| Total Special Situations | 8,314,445 | |
| Total Long-Term Investments | ||
| (Cost — $119,229,414) — 98.6% | 155,719,388 | |
| Short-Term Securities | ||
| Money Market Fund* — 1.5% | ||
| BlackRock Liquidity Funds, TempCash, | ||
| Institutional Class, 0.07% (b)(c) | 2,408,520 | 2,408,520 |
| Total Short-Term Securities | ||
| (Cost — $2,408,520) — 1.5% | 2,408,520 | |
| Total Investments (Cost — $121,637,934**) — 100.1% | 158,127,908 | |
| Liabilities in Excess of Other Assets — (0.1)% | (174,179) | |
| Net Assets — 100.0% | $ 157,953,729 | |
* Classification is unaudited.
** The cost and unrealized appreciation (depreciation) of investments as of June 30,
2011, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 123,081,185 |
| Gross unrealized appreciation | $ 37,790,542 |
| Gross unrealized depreciation | (2,743,819) |
| Net unrealized appreciation | $ 35,046,723 |
(a) Non-income producing security.
(b) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:
| Shares Held | Shares Held | |||
| at June 30, | Net | at June 30, | ||
| Affiliate | 2010 | Activity | 2011 | Income |
| BlackRock Liquidity | ||||
| Funds, TempCash, | ||||
| Institutional Class | 1,199,007 | 1,209,513 | 2,408,520 | $ 3,551 |
| BlackRock Liquidity | ||||
| Series, LLC, | ||||
| Money Market | ||||
| Series | $1,960,000 | ($1,960,000) | �� | $ 8,992 |
(c) Represents the current yield as of report date.
• For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
These definitions may not apply for purposes of this report, which may combine
such industry sub-classifications for reporting ease.
• Fair Value Measurements — Various inputs are used in determining the fair value
of investments. These inputs are categorized in three broad levels for financial
statement purposes as follows:
• Level 1 — quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The categorization of a value determined for investments is based on the pricing
transparency of the investment and does not necessarily correspond to the Fund’s
perceived risk of 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, 2011 in determining
the fair valuation of the Fund’s investments:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Investments: | ||||
| Long-Term | ||||
| Investments1 | $ 155,719,388 | — | — | $ 155,719,388 |
| Short-Term | ||||
| Securities | 2,408,520 | — | — | 2,408,520 |
| Total | $ 158,127,908 | — | — | $ 158,127,908 |
1 See above Schedule of Investments for values in each industry.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 17 |
BlackRock Global SmallCap Fund, Inc.
Schedule of Investments June 30, 2011 (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Australia — 2.4% | ||
| Ansell Ltd. | 380,800 | $ 5,790,160 |
| Cochlear Ltd. | 63,100 | 4,883,790 |
| Dexus Property Group | 3,318,300 | 3,143,757 |
| iSOFT Group, Ltd. | 19,154,700 | 3,292,751 |
| Mirvac Group | 3,487,500 | 4,690,668 |
| Mount Gibson Iron Ltd. (a) | 2,027,600 | 4,031,815 |
| Myer Holdings Ltd. | 661,000 | 1,876,437 |
| Paladin Energy Ltd. (a) | 773,600 | 2,101,542 |
| 29,810,920 | ||
| Austria — 0.6% | ||
| Schoeller-Bleckmann Oilfield Equipment AG | 63,200 | 5,474,222 |
| Wienerberger AG | 101,800 | 1,875,247 |
| 7,349,469 | ||
| Belgium — 0.4% | ||
| D’ieteren SA | 64,200 | 4,387,364 |
| Bermuda — 0.9% | ||
| Dominion Petroleum Ltd. (a)(b) | 31,955,100 | 1,864,260 |
| Hoegh Liquified Natural Gas Holdings Ltd. (a) | 471,100 | 3,318,128 |
| Lazard Ltd., Class A | 162,300 | 6,021,330 |
| 11,203,718 | ||
| Brazil — 1.2% | ||
| Anhanguera Educacional Participacoes SA | 241,800 | 5,137,659 |
| Santos Brasil Participacoes SA | 527,400 | 9,472,350 |
| 14,610,009 | ||
| Canada — 4.5% | ||
| Cathedral Energy Services Ltd. | 872,900 | 6,471,289 |
| DiagnoCure, Inc. (a)(c) | 4,371,580 | 4,079,446 |
| Dollarama, Inc. | 70,600 | 2,391,521 |
| Dollarama, Inc. (d) | 182,500 | 6,182,047 |
| Eastern Platinum Ltd. (a) | 4,472,800 | 3,710,135 |
| Eldorado Gold Corp. | 430,500 | 6,351,822 |
| Lundin Mining Corp. (a) | 917,500 | 7,039,764 |
| Open Text Corp. (a) | 148,200 | 9,487,764 |
| Quadra FNX Mining Ltd. (a) | 614,600 | 9,125,483 |
| SunOpta, Inc. (a) | 160,169 | 1,138,802 |
| 55,978,073 | ||
| China — 1.1% | ||
| Parkson Retail Group Ltd. | 2,415,800 | 3,545,194 |
| Shenzhen Expressway Co., Ltd. | 8,423,100 | 4,794,161 |
| WuXi PharmaTech Cayman, Inc. — ADR (a) | 299,400 | 5,257,464 |
| 13,596,819 | ||
| Denmark — 1.0% | ||
| Bavarian Nordic A/S (a) | 188,300 | 2,419,144 |
| Topdanmark A/S (a) | 55,100 | 10,288,896 |
| 12,708,040 | ||
| Finland — 1.0% | ||
| Pohjola Bank Plc | 433,300 | 5,605,273 |
| Ramirent Oyj | 558,249 | 7,204,947 |
| 12,810,220 | ||
| France — 2.9% | ||
| Bonduelle SA | 64,900 | 6,526,855 |
| Eurofins Scientific SA | 76,275 | 7,025,958 |
| GameLoft (a) | 1,028,783 | 7,473,425 |
| Ingenico | 258,500 | 12,578,997 |
| Ipsen SA | 70,700 | 2,507,204 |
| 36,112,439 | ||
| Germany — 4.1% | ||
| Asian Bamboo AG | 27,200 | 1,025,546 |
| Deutsche Euroshop AG | 99,487 | 3,935,941 |
| GEA Group AG | 356,650 | 12,772,559 |
| Gerresheimer AG | 195,500 | 9,333,819 |
| Common Stocks | Shares | Value |
| Germany (concluded) | ||
| Paion AG (a) | 475,886 | $ 1,511,332 |
| Rheinmetall AG | 153,800 | 13,605,545 |
| Salzgitter AG | 51,500 | 3,926,684 |
| Symrise AG | 165,700 | 5,276,652 |
| 51,388,078 | ||
| Hong Kong — 1.7% | ||
| AMVIG Holdings Ltd. | 3,261,100 | 2,457,014 |
| Clear Media Ltd. (a) | 4,052,000 | 2,280,705 |
| Emperor Watch & Jewellery Ltd. | 21,485,000 | 4,027,085 |
| Ming Fai International Holdings Ltd. | 7,455,300 | 2,130,790 |
| Ports Design Ltd. | 1,816,400 | 4,312,398 |
| Techtronic Industries Co. | 4,920,500 | 5,894,254 |
| 21,102,246 | ||
| India — 1.0% | ||
| Container Corp. of India | 156,300 | 3,646,048 |
| Motherson Sumi Systems Ltd. | 582,775 | 2,943,898 |
| United Phosphorus Ltd. | 1,774,300 | 6,080,601 |
| 12,670,547 | ||
| Ireland — 1.0% | ||
| Elan Corp. Plc (a) | 294,041 | 3,375,029 |
| Ryanair Holdings Plc — ADR | 314,396 | 9,224,379 |
| 12,599,408 | ||
| Israel — 0.8% | ||
| NICE Systems Ltd. — ADR (a) | 273,500 | 9,944,460 |
| Italy — 1.3% | ||
| Azimut Holding SpA | 141,100 | 1,317,305 |
| DiaSorin SpA | 69,300 | 3,326,014 |
| Hera SpA | 3,096,200 | 6,560,154 |
| Salvatore Ferragamo Italia SpA (a) | 345,500 | 5,160,575 |
| 16,364,048 | ||
| Japan — 3.7% | ||
| Asics Corp. | 432,950 | 6,462,343 |
| CMIC Co., Ltd. | 196,400 | 3,446,437 |
| Don Quijote Co., Ltd. | 189,000 | 6,572,696 |
| Hisaka Works Ltd. | 298,500 | 4,032,812 |
| Itoham Foods, Inc. | 865,200 | 3,517,972 |
| JSR Corp. | 425,700 | 8,251,403 |
| Japan Petroleum Exploration Co. | 61,700 | 2,896,636 |
| Koito Manufacturing Co., Ltd. | 174,200 | 3,044,213 |
| NGK Insulators Ltd. | 208,400 | 3,882,398 |
| Shinsei Bank Ltd. | 3,532,000 | 3,532,890 |
| 45,639,800 | ||
| Malaysia — 0.6% | ||
| AirAsia Bhd | 5,994,200 | 7,008,821 |
| Netherlands — 0.5% | ||
| InterXion Holding NV (a) | 292,400 | 4,426,936 |
| TomTom NV (a) | 314,300 | 1,663,872 |
| 6,090,808 | ||
| Norway — 0.1% | ||
| Renewable Energy Corp. ASA (a) | 524,700 | 899,530 |
| Sevan Marine ASA (a)(b) | 3,996,300 | 288,345 |
| 1,187,875 | ||
| Singapore — 2.1% | ||
| Avago Technologies Ltd. | 329,700 | 12,528,600 |
| Cityspring Infrastructure Trust | 15,891,300 | 6,926,850 |
| Straits Asia Resources Ltd. | 2,714,700 | 6,635,363 |
| 26,090,813 | ||
| South Korea — 1.5% | ||
| Dongbu Insurance Co., Ltd. | 202,200 | 10,557,750 |
| Kangwon Land, Inc. | 290,657 | 7,803,216 |
| 18,360,966 |
See Notes to Financial Statements.
| 18 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock Global SmallCap Fund, Inc.
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Spain — 1.2% | ||
| Grifols SA | 376,400 | $ 7,550,832 |
| Laboratorios Farmaceuticos Rovi SA | 923,794 | 7,341,225 |
| 14,892,057 | ||
| Switzerland — 5.3% | ||
| Addex Pharmaceuticals Ltd. (a) | 100,700 | 1,316,426 |
| Aryzta AG | 210,200 | 11,289,413 |
| Basilea Pharmaceutica (a) | 40,000 | 2,923,924 |
| Clariant AG (a) | 467,300 | 8,940,101 |
| Foster Wheeler AG (a) | 223,000 | 6,774,740 |
| Lindt & Spruengli AG ‘R’ | 242 | 8,820,803 |
| Lonza Group AG | 48,700 | 3,815,306 |
| Straumann Holding AG, Registered Shares | 31,600 | 7,620,522 |
| Sulzer AG | 71,400 | 11,641,757 |
| Vontobel Holding AG | 81,084 | 2,748,610 |
| 65,891,602 | ||
| Taiwan — 1.1% | ||
| D-Link Corp. | 8,765,000 | 8,040,945 |
| Lite-On Technology Corp. | 3,917,862 | 5,171,568 |
| 13,212,513 | ||
| Thailand — 0.2% | ||
| Mermaid Maritime PCL | 7,639,205 | 2,118,957 |
| United Arab Emirates — 0.5% | ||
| Polarcus Ltd. (a) | 5,761,625 | 5,660,012 |
| United Kingdom — 5.3% | ||
| Britvic Plc | 685,100 | 4,341,835 |
| Charter International Plc (b) | 799,900 | 10,170,879 |
| Chemring Group Plc | 54,500 | 560,485 |
| EasyJet Plc (a) | 701,200 | 4,044,978 |
| F&C Asset Management Plc | 207,458 | 249,720 |
| G4S Plc | 1,588,997 | 7,142,981 |
| GKN Plc | 901,800 | 3,362,157 |
| Guinness Peat Group Plc (a) | 6,277,500 | 4,084,657 |
| Halfords Group Plc | 726,500 | 4,331,045 |
| Inchcape Plc | 856,900 | 5,754,185 |
| Intertek Group Plc | 242,900 | 7,697,963 |
| Mothercare Plc | 390,400 | 2,493,049 |
| Premier Foods Plc (a) | 6,312,800 | 1,927,056 |
| Rexam Plc | 1,486,472 | 9,138,687 |
| 65,299,677 | ||
| United States — 46.1% | ||
| Aegerion Pharmaceuticals, Inc. (a) | 171,700 | 2,704,275 |
| Albemarle Corp. | 150,600 | 10,421,520 |
| American Superconductor Corp. (a)(b) | 275,700 | 2,492,328 |
| Aqua America, Inc. | 106,400 | 2,338,672 |
| Arcos Dorados Holdings, Inc. | 274,000 | 5,778,660 |
| Ariba, Inc. (a) | 141,100 | 4,863,717 |
| Arris Group, Inc. (a) | 708,800 | 8,229,168 |
| Autoliv, Inc. | 56,700 | 4,448,115 |
| BMC Software, Inc. (a) | 181,600 | 9,933,520 |
| Bill Barrett Corp. (a) | 223,400 | 10,354,590 |
| BioMed Realty Trust, Inc. | 500,100 | 9,621,924 |
| Blackboard, Inc. (a)(b) | 186,800 | 8,105,252 |
| BorgWarner, Inc. (a) | 80,150 | 6,475,318 |
| Brocade Communications Systems, Inc. (a) | 1,350,900 | 8,726,814 |
| Brown & Brown, Inc. | 230,900 | 5,924,894 |
| CB Richard Ellis Group, Inc. (a) | 220,600 | 5,539,266 |
| Cabot Oil & Gas Corp., Class A | 67,100 | 4,449,401 |
| Cadence Design Systems, Inc. (a) | 410,950 | 4,339,632 |
| Camden Property Trust | 96,200 | 6,120,244 |
| CardioNet, Inc. (a) | 212,400 | 1,127,844 |
| Celanese Corp., Series A | 212,900 | 11,349,699 |
| Cepheid, Inc. (a) | 145,600 | 5,043,584 |
| Checkpoint Systems, Inc. (a) | 341,500 | 6,106,020 |
| Common Stocks | Shares | Value |
| United States (continued) | ||
| CommonWealth REIT | 140,800 | $ 3,638,272 |
| ComScore, Inc. (a) | 167,400 | 4,335,660 |
| Covanta Holding Corp. | 292,550 | 4,824,150 |
| Coventry Health Care, Inc. (a) | 335,100 | 12,221,097 |
| Cullen/Frost Bankers, Inc. | 102,800 | 5,844,180 |
| Cytec Industries, Inc. | 154,600 | 8,841,574 |
| DSP Group, Inc. (a) | 776,849 | 6,758,586 |
| Developers Diversified Realty Corp. | 318,500 | 4,490,850 |
| Discover Financial Services, Inc. | 236,000 | 6,313,000 |
| Drew Industries, Inc. | 174,000 | 4,301,280 |
| Duke Realty Corp. | 523,900 | 7,339,839 |
| East-West Bancorp, Inc. | 245,300 | 4,957,513 |
| Electronic Arts, Inc. (a) | 450,200 | 10,624,720 |
| Flowers Foods, Inc. | 235,950 | 5,200,338 |
| Foot Locker, Inc. | 221,900 | 5,272,344 |
| The Fresh Market, Inc. (a) | 10,200 | 394,536 |
| Frontier Oil Corp. | 214,600 | 6,933,726 |
| Guess?, Inc. | 111,650 | 4,695,999 |
| Health Net, Inc. (a) | 253,300 | 8,128,397 |
| Healthways, Inc. (a) | 162,600 | 2,468,268 |
| IAC/InterActiveCorp. (a) | 97,700 | 3,729,209 |
| IDEX Corp. | 249,350 | 11,432,697 |
| IPC The Hospitalist Co., Inc. (a) | 171,500 | 7,949,025 |
| j2 Global Communications, Inc. (a) | 321,300 | 9,070,299 |
| Kennametal, Inc. | 52,600 | 2,220,246 |
| Kilroy Realty Corp. | 128,600 | 5,078,414 |
| LKQ Corp. (a) | 298,763 | 7,794,727 |
| Landstar System, Inc. | 164,250 | 7,634,340 |
| LifePoint Hospitals, Inc. (a) | 110,300 | 4,310,524 |
| Manpower, Inc. | 85,600 | 4,592,440 |
| Marshall & Ilsley Corp. | 873,200 | 6,959,404 |
| Maxim Integrated Products, Inc. | 148,700 | 3,800,772 |
| Meadowbrook Insurance Group, Inc. | 559,900 | 5,548,609 |
| Mentor Graphics Corp. (a) | 152,950 | 1,959,290 |
| Mistras Group, Inc. (a) | 241,600 | 3,913,920 |
| Molex, Inc. | 212,900 | 5,486,433 |
| NRG Energy, Inc. (a) | 241,500 | 5,936,070 |
| Nordson Corp. | 162,900 | 8,935,065 |
| Northwest Bancshares, Inc. | 689,700 | 8,676,426 |
| Nuance Communications, Inc. (a) | 502,800 | 10,795,116 |
| Oasis Petroleum, Inc. (a) | 268,000 | 7,954,240 |
| Omnicare, Inc. | 301,900 | 9,627,591 |
| Owens & Minor, Inc. | 78,300 | 2,700,567 |
| PMC-Sierra, Inc. (a) | 1,047,700 | 7,931,089 |
| Packaging Corp. of America | 129,200 | 3,616,308 |
| PartnerRe Ltd. | 55,900 | 3,848,715 |
| Patterson-UTI Energy, Inc. | 100,100 | 3,164,161 |
| PetroHawk Energy Corp. (a) | 285,700 | 7,048,219 |
| Pharmaceutical Product Development, Inc. | 276,500 | 7,421,260 |
| Phillips-Van Heusen Corp. | 69,700 | 4,563,259 |
| QLogic Corp. (a) | 439,200 | 6,992,064 |
| Radiant Systems, Inc. (a) | 553,400 | 11,566,060 |
| Regis Corp. | 259,800 | 3,980,136 |
| SVB Financial Group (a) | 130,400 | 7,786,184 |
| Silgan Holdings, Inc. | 136,200 | 5,580,114 |
| Steel Dynamics, Inc. | 256,700 | 4,171,375 |
| Stratasys, Inc. (a)(b) | 63,400 | 2,136,580 |
| Support.com Inc. (a) | 1,100,579 | 5,282,779 |
| Terex Corp. (a) | 221,850 | 6,311,632 |
| Tetra Technologies, Inc. (a) | 384,000 | 4,888,320 |
| Timken Co. | 227,800 | 11,481,120 |
| UIL Holdings Corp. | 188,000 | 6,081,800 |
| Urban Outfitters, Inc. (a) | 126,300 | 3,555,345 |
| Valley National Bancorp | 122,200 | 1,663,142 |
| VeriFone Systems, Inc. (a) | 86,200 | 3,822,970 |
| Vertex Pharmaceuticals, Inc. (a) | 139,100 | 7,231,809 |
| W.R. Berkley Corp. | 228,600 | 7,415,784 |
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 19 |
BlackRock Global SmallCap Fund, Inc.
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value | |
| United States (concluded) | |||
| The Warnaco Group, Inc. (a) | 114,850 | $ 6,000,913 | |
| Watsco, Inc. | 37,500 | 2,549,625 | |
| Weingarten Realty Investors | 263,900 | 6,639,724 | |
| Winnebago Industries, Inc. (a) | 233,250 | 2,253,195 | |
| Wright Medical Group, Inc. (a) | 315,600 | 4,734,000 | |
| Zoran Corp. (a) | 290,950 | 2,443,980 | |
| 570,345,872 | |||
| Total Long-Term Investments | |||
| (Cost — $938,453,768) — 94.1% | 1,164,435,631 | ||
| Short-Term Securities | |||
| Money Market Funds | |||
| BlackRock Liquidity Funds, TempFund, | |||
| Institutional Class, 0.08% (e)(f) | 74,139,299 | 74,139,299 | |
| Beneficial | |||
| Interest | |||
| (000) | |||
| BlackRock Liquidity Series, LLC | |||
| Money Market Series, 0.10% (e)(f)(g) | USD | 11,783 | 11,783,250 |
| Total Money Market Funds — 6.9% | 85,922,549 | ||
| Par | |||
| Time Deposits | (000) | ||
| Australia — 0.0% | |||
| Brown Brothers Harriman & Co., 3.62%, 7/01/11 AUD | 1 | 1,292 | |
| Hong Kong — 0.1% | |||
| Citibank NA, 0.01%, 7/01/11 | HKD | 6,753 | 867,777 |
| Japan — 0.0% | |||
| JPMorgan Chase & Co., 0.01%, 7/01/11 | JPY | 7,338 | 91,151 |
| United Kingdom — 0.0% | |||
| JPMorgan Chase & Co., 0.01%, 7/01/11 | GBP | 35 | 55,751 |
| Total Time Deposits — 0.1% | 1,015,971 | ||
| Total Short-Term Securities | |||
| (Cost — $86,938,520) — 7.0% | 86,938,520 | ||
| Total Investments (Cost — $1,025,392,288*) — 101.1% | 1,251,374,151 | ||
| Liabilities in Excess of Other Assets — (1.1)% | (13,475,395) | ||
| Net Assets — 100.0% | $1,237,898,756 | ||
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2011, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $1,038,855,910 |
| Gross unrealized appreciation | $ 264,096,060 |
| Gross unrealized depreciation | (51,577,819) |
| Net unrealized appreciation | $ 212,518,241 |
(a) Non-income producing security.
(b) Security, or a portion of security, is on loan.
(c) Investments in companies (whereby the Fund held 5% or more of the companies’
outstanding securities) that were considered to be an affiliate during the period,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:
| Shares Held | Shares Held | Value at | |||||
| at June 30, | Shares | Shares | at June 30, | June 30 | Realized | ||
| Affiliate | 2010 | Purchased | Sold | 2011 | 2011 | Gain | Income |
| DiagnoCure, Inc. | 4,278,880 | 92,700 | — | 4,371,580 | $4,079,446 | — | — |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(e) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were
as follows:
| Shares/Beneficial�� | Shares/Beneficial | |||
| Interest Held | Interest Held | |||
| at June 30, | Net | at June 30, | ||
| Affiliate | 2010 | Activity | 2011 | Income |
| BlackRock Liquidity | ||||
| Funds, TempFund, | ||||
| Institutional Class | 43,736,833 | 30,402,466 | 74,139,299 | $51,227 |
| BlackRock Liquidity | ||||
| Series, LLC | ||||
| Money Market | ||||
| Series | $47,536,750 $(35,753,500) | $11,783,250 | $58,636 | |
(f) Represents the current yield as of report date.
(g) Security was purchased with the cash collateral from loaned securities.
See Notes to Financial Statements.
| 20 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock Global SmallCap Fund, Inc.
Schedule of Investments (continued)
• Foreign currency exchange contracts as of June 30, 2011 were as follows:
| Unrealized | ||||||
| Currency | Currency | Settlement Appreciation | ||||
| Purchased | Sold | Counterparty | Date (Depreciation) | |||
| INR | 1,593,660 | USD | 35,772 | Brown Brothers | 7/1/11 | $ (122) |
| Harriman & Co | ||||||
| GBP | 92,256 | USD | 148,203 | State Street | 7/1/11 | (136) |
| Bank and Trust | ||||||
| Company | ||||||
| GBP | 208,134 | USD | 333,710 | State Street | 7/1/11 | 335 |
| Bank and Trust | ||||||
| Company | ||||||
| JPY | 14,734,581 | USD | 182,387 | State Street | 7/1/11 | 640 |
| Bank and Trust | ||||||
| Company | ||||||
| NOK | 266,521 | USD | 49,573 | State Street | 7/1/11 | (173) |
| Bank and Trust | ||||||
| Company | ||||||
| NOK 17,901,800 | USD | 3,339,813 | State Street | 7/1/11 | (21,685) | |
| Bank and Trust | ||||||
| Company | ||||||
| NOK | 1,502,158 | USD | 276,919 | State Street | 7/1/11 | 1,509 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 166,827 | EUR | 116,244 | State Street | 7/1/11 | (1,744) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 1,065,952 | GBP | 666,828 | State Street | 7/1/11 | (4,275) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 583,004 | NOK | 3,170,526 | State Street | 7/1/11 | (4,658) |
| Bank and Trust | ||||||
| Company | ||||||
| GBP | 70,960 | USD | 113,433 | State Street | 7/1/11 | 455 |
| Bank and Trust | ||||||
| Company | ||||||
| JPY | 13,058,906 | USD | 161,747 | State Street | 7/1/11 | 466 |
| Bank and Trust | ||||||
| Company | ||||||
| AUD | 718,354 | USD | 769,522 | State Street | 7/5/11 | 949 |
| Bank and Trust | ||||||
| Company | ||||||
| GBP | 3,529 | USD | 5,668 | State Street | 7/5/11 | (3) |
| Bank and Trust | ||||||
| Company | ||||||
| HKD | 6,501,011 | USD | 835,582 | State Street | 7/5/11 | (159) |
| Bank and Trust | ||||||
| Company | ||||||
| Unrealized | ||||||
| Currency | Currency | Settlement Appreciation | ||||
| Purchased | Sold | Counterparty | Date (Depreciation) | |||
| JPY 16,414,259 | USD | 203,116 | State Street | 7/5/11 | $ 775 | |
| Bank and Trust | ||||||
| Company | ||||||
| NO | 262,204 | USD | 48,609 | State Street | 7/5/11 | (9) |
| Bank and Trust | ||||||
| Company | ||||||
| SGD | 745,669 | USD | 607,812 | State Street | 7/5/11 | (737) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 762,535 | AUD | 717,113 | State Street | 7/5/11 | (6,605) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 1,365,858 | AUD | 1,275,037 | State Street | 7/5/11 | (1,684) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 505,783 | GBP | 314,843 | State Street | 7/5/11 | 475 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 531,143 | CHF | 446,556 | State Street | 7/5/11 | 3 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 279,970 | CHF | 233,668 | State Street | 7/5/11 | 2,041 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 1,524,171 | EUR | 1,056,699 | State Street | 7/5/11 | (8,200) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 882,039 | EUR | 608,194 | State Street | 7/5/11 | 67 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 1,359,004 | GBP | 846,431 | State Street | 7/5/11 | 524 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 373,656 | HKD | 2,907,125 | State Street | 7/5/11 | 71 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 90,970 | JPY | 7,337,607 | Brown Brothers | 7/5/11 | (175) |
| Harriman & Co. | ||||||
| USD | 301,680 | JPY | 24,379,418 | State Street | 7/5/11 | (1,152) |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 616,797 | NOK | 3,327,104 | State Street | 7/5/11 | 113 |
| Bank and Trust | ||||||
| Company | ||||||
| USD | 37,123 | HKD | 288,930 | Brown Brothers | 7/6/11 | (6) |
| Harriman & Co | ||||||
| Total | $ (43,100) | |||||
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 21 |
BlackRock Global SmallCap Fund, Inc.
Schedule of Investments (concluded)
• Fair Value Measurements — Various inputs are used in determining the fair value
of investments and derivative financial instruments. These inputs are categorized
in three broad levels for financial statement purposes as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments and
derivative financial instruments.
The categorization of a value determined for investments and derivative financial
instruments is based on the pricing transparency of the investment and derivative
financial instrument and does not necessarily correspond to the Fund’s perceived
risk of investing in those securities. For information about the Fund’s policy regarding
valuation of investments and derivative financial instruments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of June 30, 2011 in determining
the fair valuation of the Fund’s investments and derivative financial instruments:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Investments: | ||||
| Long-Term Investments: | ||||
| Common Stocks: | ||||
| Australia | $ 2,101,542 $ 27,709,378 | — | $ 29,810,920 | |
| Austria | 5,474,222 | 1,875,247 | — | 7,349,469 |
| Belgium | — | 4,387,364 | — | 4,387,364 |
| Bermuda | 11,203,718 | — | — | 11,203,718 |
| Brazil | 14,610,009 | — | — | 14,610,009 |
| Canada | 55,978,073 | — | — | 55,978,073 |
| China | 5,257,464 | 8,339,355 | — | 13,596,819 |
| Denmark | — | 12,708,040 | — | 12,708,040 |
| Finland | 7,204,947 | 5,605,273 | — | 12,810,220 |
| France | 13,552,813 | 22,559,626 | — | 36,112,439 |
| Germany | 2,536,878 | 48,851,201 | — | 51,388,078 |
| Hong Kong | 2,280,705 | 18,821,542 | — | 21,102,246 |
| India | — | 12,670,547 | — | 12,670,547 |
| Ireland | 9,224,379 | 3,375,029 | — | 12,599,408 |
| Israel | 9,944,460 | — | — | 9,944,460 |
| Italy | 5,160,575 | 11,203,473 | — | 16,364,048 |
| Japan | — | 45,639,800 | — | 45,639,800 |
| Malaysia | — | 7,008,821 | — | 7,008,821 |
| Netherlands . | 4,426,936 | 1,663,872 | — | 6,090,808 |
| Norway | — | 1,187,875 | — | 1,187,875 |
| Singapore | 12,528,600 | 13,562,213 | — | 26,090,813 |
| South Korea . | — | 18,360,966 | — | 18,360,966 |
| Spain | 7,341,225 | 7,550,832 | — | 14,892,057 |
| Switzerland | 18,344,153 | 47,547,449 | — | 65,891,602 |
| Taiwan | — | 13,212,513 | — | 13,212,513 |
| Thailand | — | 2,118,957 | — | 2,118,957 |
| United Arab | ||||
| Emirates | 5,660,012 | — | — | 5,660,012 |
| United | ||||
| Kingdom | 6,261,433 | 59,038,244 | — | 65,299,677 |
| United States | 570,345,872 | — | — | 570,345,872 |
| Short-Term | ||||
| Securities: | ||||
| Money Market | ||||
| Funds | 74,139,299 | 11,783,250 | — | 85,922,549 |
| Time | ||||
| Deposits | 1,015,971 | — | — | 1,015,971 |
| Total | $844,593,284 $406,780,867 | — $1,251,374,151 | ||
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Derivative Financial Instruments1 | |||||
| Assets: | |||||
| Foreign currency | |||||
| exchange | |||||
| contracts | — | $ 8,423 | — | $ 8,423 | |
| Liabilities: | |||||
| Foreign currency | |||||
| exchange | |||||
| contracts | — | (51,523) | — | (51,523) | |
| Total | — | $ (43,100) | — | $ (43,100) | |
1 Derivative financial instruments are foreign currency exchange contracts, which
are valued at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
| 22 | ANNUAL REPORT | JUNE | 30, 2011 |
BlackRock International Value Fund
Schedule of Investments June 30, 2011 (Percentages shown are based on Net Assets)
| Common Stocks | Shares | Value |
| Australia — 5.4% | ||
| National Australia Bank Ltd. | 794,446 | $ 21,964,396 |
| Newcrest Mining Ltd. | 373,655 | 15,140,401 |
| Suncorp-Metway Ltd. | 1,677,761 | 14,665,094 |
| 51,769,891 | ||
| Finland — 1.0% | ||
| KCI Konecranes Oyj | 231,675 | 9,415,982 |
| France — 14.1% | ||
| AXA SA | 772,334 | 17,532,093 |
| BNP Paribas SA | 171,602 | 13,232,050 |
| Cie de Saint-Gobain SA | 320,646 | 20,783,637 |
| Lafarge SA | 216,624 | 13,803,173 |
| Legrand Promesses | 400,135 | 16,842,671 |
| Sanofi-Aventis | 306,338 | 24,642,011 |
| Schneider Electric SA | 165,115 | 27,569,533 |
| 134,405,168 | ||
| Germany — 12.1% | ||
| BASF SE | 203,369 | 19,934,493 |
| Bayer AG | 374,452 | 30,074,690 |
| Bilfinger Berger SE | 178,434 | 17,671,427 |
| Continental AG (a) | 158,589 | 16,711,793 |
| Deutsche Bank AG, Registered Shares | 287,021 | 16,940,123 |
| HeidelbergCement AG | 219,918 | 14,065,012 |
| 115,397,538 | ||
| Italy — 1.8% | ||
| Intesa Sanpaolo SpA | 6,376,050 | 16,977,986 |
| Japan — 20.7% | ||
| Hitachi Ltd. | 3,433,000 | 20,374,855 |
| Honda Motor Co., Ltd. | 327,600 | 12,621,419 |
| JX Holdings, Inc. | 2,199,600 | 14,794,600 |
| Mitsubishi Corp. | 748,900 | 18,705,914 |
| Mitsubishi UFJ Financial Group, Inc. | 4,626,100 | 22,544,539 |
| Mitsui Chemicals, Inc. | 2,825,000 | 10,293,887 |
| NSK, Ltd. | 1,577,000 | 15,743,550 |
| Nippon Telegraph & Telephone Corp. | 400,500 | 19,316,844 |
| Nissan Motor Co., Ltd. | 1,972,200 | 20,726,268 |
| Nitto Denko Corp. | 258,300 | 13,124,510 |
| Sumitomo Corp. | 1,254,000 | 17,059,736 |
| TDK Corp. | 221,500 | 12,218,262 |
| 197,524,384 | ||
| Mexico — 1.4% | ||
| America Movil, SA de CV — ADR | 253,756 | 13,672,373 |
| Netherlands — 3.3% | ||
| Koninklijke Ahold NV | 1,031,465 | 13,868,324 |
| Koninklijke KPN NV | 1,219,801 | 17,742,007 |
| 31,610,331 | ||
| South Korea — 2.2% | ||
| LG Display Co. Ltd. | 218,300 | 6,093,108 |
| Samsung Electronics Co., Ltd. | 19,650 | 15,272,552 |
| 21,365,660 | ||
| Spain — 5.1% | ||
| Repsol YPF SA | 737,147 | 25,568,294 |
| Telefonica SA | 933,854 | 22,808,196 |
| 48,376,490 |
| Common Stocks | Shares | Value | ||
| Sweden — 1.5% | ||||
| Assa Abloy AB | 518,610 | $ 13,939,320 | ||
| Switzerland — 4.1% | ||||
| Novartis AG, Registered Shares | 629,613 | 38,587,163 | ||
| Taiwan — 1.9% | ||||
| Taiwan Semiconductor Manufacturing | ||||
| Co., Ltd. — ADR | 1,410,279 | 17,783,618 | ||
| United Kingdom — 20.6% | ||||
| Aviva Plc | 2,465,468 | 17,354,529 | ||
| BHP Billiton Plc | 628,190 | 24,683,958 | ||
| British American Tobacco Plc | 639,940 | 28,062,388 | ||
| Centrica Plc | 3,190,602 | 16,567,117 | ||
| Rio Tinto Plc, Registered Shares | 272,299 | 19,661,551 | ||
| Royal Dutch Shell Plc, Class B | 1,103,557 | 39,381,463 | ||
| Tesco Plc | 3,464,937 | 22,386,890 | ||
| United Business Media Ltd. | 1,383,795 | 12,362,624 | ||
| William Morrison Supermarkets Plc | 3,334,109 | 15,946,923 | ||
| 196,407,443 | ||||
| Total Common Stocks — 95.2% | 907,233,347 | |||
| Participation Notes | Units | |||
| India — 0.8% | ||||
| Morgan Stanley BV (Rolta India Ltd.), due 5/26/14 | 908,731 | 2,625,324 | ||
| UBS AG (Glenmark Pharmaceuticals Ltd.), | ||||
| due 12/18/12 | 764,410 | 5,480,055 | ||
| Total Participation Notes — 0.8% | 8,105,379 | |||
| Total Long-Term Investments | ||||
| (Cost — $786,293,854) — 96.0% | 915,338,726 | |||
| Short-Term Securities | Shares | |||
| Money Market Funds — 3.2% | ||||
| BlackRock Liquidity Funds, TempFund, | ||||
| Institutional Class, 0.08% (b)(c) | 30,230,558 | 30,230,558 | ||
| Par | ||||
| (000) | ||||
| Time Deposits | ||||
| Japan — 0.1% | ||||
| Brown Brothers Harriman & Co., 0.01%, 7/01/11 | JPY | 102,402 | 1,272,002 | |
| United Kingdom — 0.0% | ||||
| Brown Brothers Harriman & Co., 0.10%, 7/01/11 | GBP | 284 | 455,364 | |
| Total Time Deposits — 0.1% | 1,727,366 | |||
| Total Short-Term Securities | ||||
| (Cost — $31,957,924) — 3.3% | 31,957,924 | |||
| Total Investments (Cost — $818,251,778*) — 99.3% | 947,296,650 | |||
| Other Assets Less Liabilities — 0.7% | 6,089,812 | |||
| Net Assets — 100.0% | $ 953,386,462 | |||
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 23 |
BlackRock International Value Fund
Schedule of Investments (concluded)
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2011, as computed for federal income tax purposes, were as follows:
| Aggregate cost | $ 825,925,184 |
| Gross unrealized appreciation | $ 130,525,708 |
| Gross unrealized depreciation | (9,154,242) |
| Net unrealized appreciation | $ 121,371,466 |
(a) Non-income producing security.
(b) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:
| Shares Held | Shares Held | |||
| at June 30, | Net | at June 30, | ||
| Affiliate | 2010 | Activity | 2011 | Income |
| BlackRock Liquidity | ||||
| Funds, TempFund, | ||||
| Institutional Class | 16,699,456 | 13,531,102 | 30,230,558 | $ 30,163 |
(c) Represents the current yield as of report date.
• For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
These definitions may not apply for purposes of this report, which may combine
such industry sub-classifications for reporting ease.
• Foreign currency exchange contracts as of June 30, 2011 were as follows:
| Currency | Currency | Settlement | Unrealized | ||
| Purchased | Sold | Counterparty | Date | Depreciation | |
| USD | 455,321 | GBP 283,725 | Goldman Sachs | ||
| International | 7/01/11 | $ (43) | |||
| USD | 750,515 | JPY 60,754,203 | Goldman Sachs | ||
| International | 7/01/11 | (4,149) | |||
| Total | $ (4,192) | ||||
• Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivative financial instruments. These inputs are categorized in three
broad levels for financial statement purposes as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments and
derivative financial instruments)
The categorization of a value determined for investments and derivative financial
instruments is based on the pricing transparency of the investment and derivative
financial instrument and does not necessarily correspond to the Fund’s perceived
risk of investing in those securities. For information about the Fund’s policy regarding
valuation of investments and derivative financial instruments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of June 30, 2011 in determining
the fair valuation of the Fund’s investments and derivative financial instruments:
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Assets: | |||||
| Investments: | |||||
| Common Stocks: | |||||
| Long-Term | |||||
| Investments: | |||||
| Australia | — $ 51,769,891 | — | $ 51,769,891 | ||
| Finland | — | 9,415,982 | — | 9,415,982 | |
| France | — | 134,405,168 | — | 134,405,168 | |
| Germany | — | 115,397,538 | — | 115,397,538 | |
| Italy | 16,977,986 | — | 16,977,986 | ||
| Japan | — | 197,524,384 | — | 197,524,384 | |
| Mexico | $ 13,672,373 | — | — | 13,672,373 | |
| Netherlands . | 17,742,007 | 13,868,324 | — | 31,610,331 | |
| South Korea . | — | 21,365,660 | — | 21,365,660 | |
| Spain | — | 48,376,490 | — | 48,376,490 | |
| Sweden | — | 13,939,320 | — | 13,939,320 | |
| Switzerland | — | 38,587,163 | — | 38,587,163 | |
| Taiwan | 17,783,618 | — | — | 17,783,618 | |
| United Kingdom | — | 196,407,443 | — | 196,407,443 | |
| Participation Notes: | |||||
| Long-Term | |||||
| Investments: | |||||
| India | — | — | $ 8,105,379 | 8,105,379 | |
| Short-Term | |||||
| Securities: | |||||
| Money Market | |||||
| Funds | 30,230,558 | — | — | 30,230,558 | |
| Time Deposits | — | 1,727,366 | — | 1,727,366 | |
| Total | $ 79,428,556 $859,762,715 | $ 8,105,379 | $947,296,650 | ||
| Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
| Derivative Financial Instruments1 | |||||
| Liabilities: | |||||
| Foreign currency | |||||
| exchange | |||||
| contracts | — | $ (4,192) | — | $ (4,192) | |
1 Derivative financial instruments are foreign currency exchange contracts, which
are valued at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
| 24 | ANNUAL REPORT | JUNE | 30, 2011 |
| Statements of Assets and Liabilities | ||||
| BlackRock | BlackRock | BlackRock | ||
| BlackRock | Focus Value | Global SmallCap | International | |
| June 30, 2011 | EuroFund | Fund, Inc. | Fund, Inc. | Value Fund |
| Assets | ||||
| Investments at value — unaffiliated1,2 | $ 348,990,597 | $ 155,719,388 | $ 1,161,372,156 | $ 917,066,092 |
| Investments at value — affiliated3 | 6,324,977 | 2,408,520 | 90,001,995 | 30,230,558 |
| Cash | — | — | 172 | — |
| Foreign currency at value4 | 84 | — | 1,225,840 | — |
| Unrealized appreciation on foreign currency exchange contracts | 72,208 | — | 8,423 | — |
| Investments sold receivable | 7,155,321 | — | 21,682,969 | — |
| Dividends receivable | 1,494,206 | 196,577 | 2,114,327 | 10,011,291 |
| Capital shares sold receivable | 240,024 | 80,926 | 3,295,259 | 987,158 |
| Securities lending income receivable — affiliated | — | 3,163 | 46,511 | — |
| Prepaid expenses | 21,056 | 22,029 | 42,159 | 47,687 |
| Total assets | 364,298,473 | 158,430,603 | 1,279,789,811 | 958,342,786 |
| Liabilities | ||||
| Collateral on securities loaned at value | — | — | 11,783,250 | — |
| Unrealized depreciation on foreign currency exchange contracts | 67,160 | — | 51,523 | 4,192 |
| Investments purchased payable | 10,820,574 | — | 23,020,377 | — |
| Capital shares redeemed payable | 1,656,852 | 163,694 | 5,074,840 | 3,463,682 |
| Investment advisory fees payable | 212,740 | 94,689 | 833,909 | 574,606 |
| Service and distribution fees payable | 62,207 | 26,730 | 388,826 | 213,880 |
| Other affiliates payable | 1,981 | 809 | 6,293 | 8,743 |
| Bank overdraft — foreign currency at value4 | — | — | — | 8,727 |
| Officer's and Directors’ fees payable | 793 | 449 | 1,562 | — |
| Other accrued expenses payable | 224,011 | 190,503 | 730,475 | 682,494 |
| Total liabilities | 13,046,318 | 476,874 | 41,891,055 | 4,956,324 |
| Net Assets | $351,252,155 | $157,953,729 | $1,237,898,756 | $953,386,462 |
| Net Assets Consist of | ||||
| Paid-in capital | 436,101,733 | 168,144,228 | 1,063,318,627 | 1,107,786,341 |
| Undistributed (distributions in excess of) net investment income | 9,049,324 | 639,850 | 1,059,454 | 17,478,997 |
| Accumulated net realized loss | (127,152,665) | (47,320,323) | (52,491,615) | (302,179,432) |
| Net unrealized appreciation/depreciation | 33,253,763 | 36,489,974 | 226,012,290 | 130,300,556 |
| Net Assets | $ 351,252,155 | $ 157,953,729 | $1,237,898,756 | $ 953,386,462 |
| 1 Securities loaned at value | — | — | $ 10,637,113 | — |
| 2 Investments at cost — unaffiliated | $ 315,851,904 | $ 119,229,414 | $ 925,166,054 | $ 788,021,220 |
| 3 Investments at cost — affiliated | $ 6,324,977 | $ 2,408,520 | $ 100,226,234 | $ 30,230,558 |
| 4 Foreign currency at cost | $ 84 | — | $ 1,209,064 | $ (8,695) |
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 25 |
| Statements of Assets and Liabilities (concluded) | ||||
| BlackRock | BlackRock | BlackRock | ||
| BlackRock | Focus Value | Global SmallCap | International | |
| June 30, 2011 | EuroFund | Fund, Inc. | Fund, Inc. | Value Fund |
| Net Asset Value | ||||
| Institutional: | ||||
| Net assets | $ 114,551,116 | $ 71,579,092 | $ 461,012,277 | $ 487,841,479 |
| Shares outstanding | 8,198,256 | 5,945,797 | 18,883,882 | 20,811,753 |
| Net asset value | $ 13.97 | $ 12.04 | $ 24.41 | $ 23.44 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 50 million | 100 million | Unlimited |
| Investor A: | ||||
| Net assets | $ 210,046,545 | $ 69,926,138 | $ 360,143,896 | $ 244,224,131 |
| Shares outstanding | 15,316,259 | 5,879,034 | 15,065,577 | 10,518,967 |
| Net asset value | $ 13.71 | $ 11.89 | $ 23.91 | $ 23.22 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 100 million | 100 million | Unlimited |
| Investor B: | ||||
| Net assets | $ 2,209,644 | $ 1,594,150 | $ 25,054,014 | $ 21,384,021 |
| Shares outstanding | 195,976 | 149,404 | 1,115,842 | 957,198 |
| Net asset value | $ 11.28 | $ 10.67 | $ 22.45 | $ 22.34 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 100 million | 100 million | Unlimited |
| Investor C: | ||||
| Net assets | $ 22,169,483 | $ 13,771,685 | $ 345,372,384 | $ 159,060,443 |
| Shares outstanding | 2,202,655 | 1,346,579 | 15,822,548 | 7,236,745 |
| Net asset value | $ 10.06 | $ 10.23 | $ 21.83 | $ 21.98 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 50 million | 100 million | Unlimited |
| Class R: | ||||
| Net assets | $ 2,275,367 | $ 1,082,664 | $ 46,316,185 | $ 40,876,388 |
| Shares outstanding | 212,346 | 100,421 | 2,038,647 | 1,790,909 |
| Net asset value | $ 10.72 | $ 10.78 | $ 22.72 | $ 22.82 |
| Par value per share | $ 0.10 | $ 0.10 | $ 0.10 | — |
| Shares authorized | Unlimited | 100 million | 100 million | Unlimited |
See Notes to Financial Statements.
| 26 | ANNUAL REPORT | JUNE | 30, 2011 |
| Statements of Operations | ||||
| BlackRock | BlackRock | BlackRock | ||
| BlackRock | Focus Value | Global SmallCap | International | |
| Year Ended June 30, 2011 | EuroFund | Fund, Inc. | Fund, Inc. | Value Fund |
| Investment Income | ||||
| Dividends — unaffiliated | $ 14,691,463 | $ 2,967,099 | $ 19,651,318 | $ 33,414,160 |
| Foreign taxes withheld | (991,157) | (18,233) | (933,722) | (3,152,601) |
| Dividends — affiliated | 6,073 | 3,551 | 51,227 | 30,163 |
| Interest | 372 | — | 86,690 | 1,186 |
| Securities lending — affiliated | — | 8,992 | 58,636 | — |
| Total income | 13,706,751 | 2,961,409 | 18,914,149 | 30,292,908 |
| Expenses | ||||
| Investment advisory | 2,693,444 | 1,517,563 | 9,751,252 | 7,091,519 |
| Service — Investor A | 537,244 | 168,282 | 813,750 | 591,991 |
| Service and distribution — Investor B | 28,048 | 18,296 | 283,621 | 251,189 |
| Service and distribution — Investor C | 236,311 | 120,024 | 3,393,722 | 1,664,125 |
| Service and distribution — Class R | 12,224 | 4,978 | 233,756 | 233,186 |
| Transfer agent — Institutional | 219,879 | 57,935 | 589,512 | 684,620 |
| Transfer agent — Investor A | 290,921 | 94,527 | 637,798 | 578,072 |
| Transfer agent — Investor B | 25,805 | 6,321 | 101,277 | 154,264 |
| Transfer agent — Investor C | 57,715 | 24,615 | 930,368 | 871,629 |
| Transfer agent — Class R | 12,181 | 5,064 | 175,577 | 166,886 |
| Custodian | 85,696 | 10,332 | 319,044 | 245,984 |
| Accounting services | 85,493 | 27,503 | 279,963 | 237,024 |
| Registration | 72,413 | 74,156 | 95,000 | 79,209 |
| Professional | 68,267 | 65,184 | 83,427 | 99,015 |
| Printing | 33,325 | 32,902 | 95,358 | 56,696 |
| Reorganization costs | — | 122,773 | — | — |
| Officer and Directors | 23,364 | 19,462 | 37,532 | 33,753 |
| Miscellaneous | 36,877 | 27,509 | 57,312 | 51,533 |
| Total expenses | 4,519,207 | 2,397,426 | 17,878,269 | 13,090,695 |
| Less fees waived by advisor | (2,266) | (381,325) | (22,227) | (14,055) |
| Total expenses after fees waived | 4,516,941 | 2,016,101 | 17,856,042 | 13,076,640 |
| Net investment income | 9,189,810 | 945,308 | 1,058,107 | 17,216,268 |
| Realized and Unrealized Gain (Loss) | ||||
| Net realized gain (loss) from: | ||||
| Investments | 40,486,321 | 12,446,960 | 132,475,7991 | 49,820,967 |
| Foreign currency transactions | (110,678) | — | (272,129) | 229,027 |
| 40,375,643 | 12,446,960 | 132,203,670 | 50,049,994 | |
| Net change in unrealized appreciation/depreciation on: | ||||
| Investments | 58,694,445 | 25,635,152 | 180,539,0422 | 204,831,113 |
| Foreign currency transactions | 157,796 | — | 213,317 | 1,450,938 |
| 58,852,241 | 25,635,152 | 180,752,359 | 206,282,051 | |
| Total realized and unrealized gain | 99,227,884 | 38,082,112 | 312,956,029 | 256,332,045 |
| Net Increase in Net Assets Resulting from Operations | $ 108,417,694 | $ 39,027,420 | $ 314,014,136 | $ 273,548,313 |
1 Including a $607,547 foreign capital gains tax.
2 Including a $121,196 change in deferred foreign capital gains tax.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 27 |
| Statements of Changes in Net Assets | |||||
| BlackRock | BlackRock | ||||
| EuroFund | Focus Value Fund, Inc. | ||||
| Year Ended June 30, | Year Ended June 30, | ||||
| Increase (Decrease) in Net Assets: | 2011 | 2010 | 2011 | 2010 | |
| Operations | |||||
| Net investment income | $ 9,189,810 | $ 6,412,256 | $ 945,308 | $ 1,563,377 | |
| Net realized gain | 40,375,643 | 60,105,630 | 12,446,960 | 10,459,130 | |
| Net change in unrealized appreciation/depreciation | 58,852,241 | (55,140,804) | 25,635,152 | 8,437,011 | |
| Net increase in net assets resulting from operations | 108,417,694 | 11,377,082 | 39,027,420 | 20,459,518 | |
| Dividends to Shareholders From | |||||
| Net investment income: | |||||
| Institutional | (1,892,036) | (4,787,749) | (807,749) | (1,098,820) | |
| Investor A | (3,199,961) | (7,712,559) | (643,282) | (639,493) | |
| Investor B | — | (49,605) | — | (3,370) | |
| Investor C | (284,076) | (929,917) | (43,239) | (54,217) | |
| Class R | (35,722) | (96,261) | (5,736) | (4,123) | |
| Decrease in net assets resulting from dividends to shareholders | (5,411,795) | (13,576,091) | (1,500,006) | (1,800,023) | |
| Capital Share Transactions | |||||
| Net decrease in net assets derived from capital share transactions | (69,111,364) | (66,918,607) | (16,379,893) | (28,753,823) | |
| Redemption Fee | |||||
| Redemption fee | 3,757 | 3,932 | — | — | |
| Net Assets | |||||
| Total increase (decrease) in net assets | 33,898,292 | (69,113,684) | 21,147,521 | (10,094,328) | |
| Beginning of year | 317,353,863 | 386,467,547 | 136,806,208 | 146,900,536 | |
| End of year | $ 351,252,155 | $ 317,353,863 | $ 157,953,729 | $ 136,806,208 | |
| Undistributed net investment income | $ 9,049,324 | $ 5,381,987 | $ 639,850 | $ 1,071,775 | |
See Notes to Financial Statements.
| 28 | ANNUAL REPORT | JUNE | 30, 2011 |
| Statements of Changes in Net Assets (concluded) | ||||
| BlackRock Global | BlackRock | |||
| SmallCap Fund, Inc. | International Value Fund | |||
| Year Ended June 30, | Year Ended June 30, | |||
| Increase (Decrease) in Net Assets: | 2011 | 2010 | 2011 | 2010 |
| Operations | ||||
| Net investment income (loss) | $ 1,058,107 | $ (2,327,011) | $ 17,216,268 | $ 7,274,405 |
| Net realized gain | 132,203,670 | 71,128,008 | 50,049,994 | 180,636,031 |
| Net change in unrealized appreciation/depreciation | 180,752,359 | 35,343,593 | 206,282,051 | (159,847,850) |
| Net increase in net assets resulting from operations | 314,014,136 | 104,144,590 | 273,548,313 | 28,062,586 |
| Dividends to Shareholders From | ||||
| Net investment income: | ||||
| Institutional | (3,077,979) | — | (795,932) | (14,158,979) |
| Investor A | (1,672,239) | — | — | (5,714,335) |
| Investor B | — | — | — | (359,168) |
| Investor C | — | — | — | (2,417,426) |
| Class R | (107,738) | — | — | (1,032,961) |
| Decrease in net assets resulting from dividends to shareholders | (4,857,956) | — | (795,932) | (23,682,869) |
| Capital Share Transactions | ||||
| Net increase (decrease) in net assets derived from capital share transactions | (22,505,798) | 14,413,235 | (136,635,735) | (101,613,873) |
| Redemption Fee | ||||
| Redemption fee | 24,045 | 26,871 | 28,686 | 29,624 |
| Proceeds from Regulatory Settlement | ||||
| Proceeds from regulatory settlement | — | — | — | 768,948 |
| Net Assets | ||||
| Total increase (decrease) in net assets | 286,674,427 | 118,584,696 | 136,145,332 | (96,435,584) |
| Beginning of year | 951,224,329 | 832,639,633 | 817,241,130 | 913,676,714 |
| End of year | $ 1,237,898,756 | $ 951,224,329 | $ 953,386,462 | $ 817,241,130 |
| Undistributed (distributions in excess of) net investment income | $ 1,059,454 | $ (44,202) | $ 17,478,997 | $ 829,634 |
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 29 |
| Financial Highlights | BlackRock EuroFund | |||||
| Institutional | ||||||
| Period | ||||||
| November 1, | ||||||
| 2007 to | ||||||
| Year Ended June 30, | June 30, | Year Ended October 31, | ||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |
| Per Share Operating Performance | ||||||
| Net asset value, beginning of period | $ 10.41 | $ 10.65 | $ 18.07 | $ 25.59 | $ 23.02 | $ 17.54 |
| Net investment income1 | 0.36 | 0.21 | 0.33 | 0.43 | 0.46 | 0.55 |
| Net realized and unrealized gain (loss) | 3.41 | (0.05) | (6.63) | (3.61) | 4.56 | 5.32 |
| Net increase (decrease) from investment operations | 3.77 | 0.16 | (6.30) | (3.18) | 5.02 | 5.87 |
| Dividends and distributions from: | ||||||
| Net investment income | (0.21) | (0.40) | (0.40) | (0.55) | (0.72) | (0.39) |
| Net realized gain | — | — | (0.72) | (3.79) | (1.74) | — |
| Total dividends and distributions | (0.21) | (0.40) | (1.12) | (4.34) | (2.46) | (0.39) |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 |
| Net asset value, end of period | $ 13.97 | $ 10.41 | $ 10.65 | $ 18.07 | $ 25.59 | $ 23.02 |
| Total Investment Return3 | ||||||
| Based on net asset value | 36.42%4 | 0.78%4 | (34.12)%4 | (13.97)%5 | 24.46% | 34.03%6 |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.05% | 1.09% | 1.11% | 1.03%7 | 1.01% | 0.99% |
| Total expenses after fees waived | 1.05% | 1.08% | 1.11% | 1.03%7 | 1.01% | 0.99% |
| Net investment income | 2.80% | 1.73% | 2.83% | 3.23%7 | 2.01% | 2.68% |
| Supplemental Data | ||||||
| Net assets, end of period (000) | $ 114,551 | $ 101,632 | $ 133,540 | $ 274,010 | $ 361,175 | $ 330,849 |
| Portfolio turnover | 148% | 161% | 124% | 30% | 63% | 76% |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatoryissue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
| 30 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (continued) | BlackRock EuroFund | ||||||
| Investor A | |||||||
| Period | |||||||
| November 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended October 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 10.22 | $ 10.47 | $ 17.78 | $ 25.24 | $ 22.72 | $ 17.33 | |
| Net investment income1 | 0.33 | 0.18 | 0.30 | 0.40 | 0.44 | 0.50 | |
| Net realized and unrealized gain (loss) | 3.35 | (0.05) | (6.52) | (3.56) | 4.48 | 5.24 | |
| Net increase (decrease) from investment operations | 3.68 | 0.13 | (6.22) | (3.16) | 4.92 | 5.74 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.19) | (0.38) | (0.37) | (0.51) | (0.67) | (0.35) | |
| Net realized gain | — | — | (0.72) | (3.79) | (1.74) | — | |
| Total dividends and distributions | (0.19) | (0.38) | (1.09) | (4.30) | (2.41) | (0.35) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | |
| Net asset value, end of period | $ 13.71 | $ 10.22 | $ 10.47 | $ 17.78 | $ 25.24 | $ 22.72 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 36.15%4 | 0.53%4 | (34.21)%4 | (14.09)%5 | 24.29% | 33.64%6 | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.25% | 1.28% | 1.30% | 1.21%7 | 1.20% | 1.24% | |
| Total expenses after fees waived | 1.25% | 1.28% | 1.30% | 1.21%7 | 1.20% | 1.24% | |
| Net investment income | 2.56% | 1.51% | 2.68% | 3.07%7 | 1.92% | 2.49% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 210,047 | $ 189,788 | $ 219,697 | $ 427,206 | $ 550,341 | $ 453,104 | |
| Portfolio turnover | 148% | 161% | 124% | 30% | 63% | 76% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatoryissue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 31 |
| Financial Highlights (continued) | BlackRock EuroFund | ||||||
| Investor B | |||||||
| Period | |||||||
| November 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended October 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.41 | $ 8.57 | $ 14.70 | $ 21.49 | $ 19.59 | $ 14.99 | |
| Net investment income (loss)1 | 0.07 | (0.01) | 0.11 | 0.19 | 0.17 | 0.30 | |
| Net realized and unrealized gain (loss) | 2.80 | (0.04) | (5.35) | (2.94) | 3.86 | 4.54 | |
| Net increase (decrease) from investment operations | 2.87 | (0.05) | (5.24) | (2.75) | 4.03 | 4.84 | |
| Dividends and distributions from: | |||||||
| Net investment income | — | (0.11) | (0.17) | (0.25) | (0.40) | (0.24) | |
| Net realized gain | — | — | (0.72) | (3.79) | (1.74) | — | |
| Total dividends and distributions | — | (0.11) | (0.89) | (4.04) | (2.14) | (0.24) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | |
| Net asset value, end of period | $ 11.28 | $ 8.41 | $ 8.57 | $ 14.70 | $ 21.49 | $ 19.59 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 34.13%4 | (0.85)%4 | (34.98)%4 | (14.61)%5 | 23.12% | 32.63%6 | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.79% | 2.64% | 2.47% | 2.10%7 | 2.12% | 2.01% | |
| Total expenses after fees waived | 2.79% | 2.64% | 2.47% | 2.10%7 | 2.12% | 2.01% | |
| Net investment income (loss) | 0.63% | (0.05)% | 1.11% | 1.77%7 | 0.98% | 1.73% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 2,210 | $ 2,854 | $ 5,013 | $ 19,943 | $ 42,829 | $ 62,273 | |
| Portfolio turnover | 148% | 161% | 124% | 30% | 63% | 76% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatoryissue relating to an investment, which increased
the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
| 32 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (continued) | BlackRock EuroFund | ||||||
| Investor C | |||||||
| Period | |||||||
| November 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended October 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 7.54 | $ 7.81 | $ 13.67 | $ 20.42 | $ 18.86 | $ 14.47 | |
| Net investment income (loss)1 | 0.16 | 0.06 | 0.15 | 0.22 | 0.21 | 0.29 | |
| Net realized and unrealized gain (loss) | 2.47 | (0.03) | (5.02) | (2.79) | 3.63 | 4.36 | |
| Net increase (decrease) from investment operations | 2.63 | 0.03 | (4.87) | (2.57) | 3.84 | 4.65 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.11) | (0.30) | (0.27) | (0.39) | (0.55) | (0.26) | |
| Net realized gain | — | — | (0.72) | (3.79) | (1.74) | — | |
| Total dividends and distributions | (0.11) | (0.30) | (0.99) | (4.18) | (2.29) | (0.26) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | |
| Net asset value, end of period | $ 10.06 | $ 7.54 | $ 7.81 | $ 13.67 | $ 20.42 | $ 18.86 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 35.01%4 | (0.36)%4 | (34.75)%4 | (14.57)%5 | 23.26% | 32.57%6 | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.11% | 2.13% | 2.15% | 2.01%7 | 2.00% | 2.01% | |
| Total expenses after fees waived | 2.11% | 2.13% | 2.15% | 2.01%7 | 2.00% | 2.01% | |
| Net investment income | 1.66% | 0.64% | 1.73% | 2.21%7 | 1.11% | 1.71% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 22,169 | $ 20,997 | $ 25,504 | $ 56,909 | $ 79,355 | $ 60,160 | |
| Portfolio turnover | 148% | 161% | 124% | 30% | 63% | 76% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatoryissue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 33 |
| Financial Highlights (concluded) | BlackRock EuroFund | ||||||
| Class R | |||||||
| Period | |||||||
| November 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended October 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.02 | $ 8.29 | $ 14.50 | $ 21.45 | $ 19.74 | $ 15.14 | |
| Net investment income (loss)1 | 0.19 | 0.08 | 0.20 | 0.29 | 0.29 | 0.41 | |
| Net realized and unrealized gain (loss) | 2.65 | (0.02) | (5.36) | (2.97) | 3.80 | 4.55 | |
| Net increase (decrease) from investment operations | 2.84 | 0.06 | (5.16) | (2.68) | 4.09 | 4.96 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.14) | (0.33) | (0.33) | (0.48) | (0.65) | (0.36) | |
| Net realized gain | — | — | (0.72) | (3.79) | (1.74) | — | |
| Total dividends and distributions | (0.14) | (0.33) | (1.05) | (4.27) | (2.39) | (0.36) | |
| Redemption fee | 0.002 | 0.002 | 0.002 | 0.002 | 0.01 | 0.002 | |
| Net asset value, end of period | $ 10.72 | $ 8.02 | $ 8.29 | $ 14.50 | $ 21.45 | $ 19.74 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 35.54%4 | (0.05)%4 | (34.73)%4 | (14.39)%5 | 23.60% | 33.36%6 | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.85% | 1.87% | 2.02% | 1.72%7 | 1.71% | 1.49% | |
| Total expenses after fees waived | 1.85% | 1.86% | 2.02% | 1.72%7 | 1.71% | 1.49% | |
| Net investment income | 1.90% | 0.87% | 2.29% | 2.73%7 | 1.48% | 2.30% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 2,275 | $ 2,083 | $ 2,713 | $ 3,840 | $ 4,509 | $ 1,948 | |
| Portfolio turnover | 148% | 161% | 124% | 30% | 63% | 76% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the previous investment advisor in order to resolve a regulatoryissue relating to an investment,
which increased the return by 0.21%.
7 Annualized.
See Notes to Financial Statements.
| 34 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights | BlackRock Focus Value Fund, Inc. | ||||||
| Institutional | |||||||
| Period | |||||||
| August 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended July 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 9.29 | $ 8.31 | $ 10.81 | $ 15.47 | $ 14.84 | $ 14.27 | |
| Net investment income1 | 0.10 | 0.11 | 0.15 | 0.13 | 0.17 | 0.12 | |
| Net realized and unrealized gain (loss) | 2.79 | 0.99 | (2.49) | (2.62) | 2.15 | 0.99 | |
| Net increase (decrease) from investment operations | 2.89 | 1.10 | (2.34) | (2.49) | 2.32 | 1.11 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.14) | (0.12) | (0.16) | (0.16) | (0.18) | (0.06) | |
| Net realized gain | — | — | — | (2.01) | (1.51) | (0.48) | |
| Total dividends and distributions | (0.14) | (0.12) | (0.16) | (2.17) | (1.69) | (0.54) | |
| Net asset value, end of period | $ 12.04 | $ 9.29 | $ 8.31 | $ 10.81 | $ 15.47 | $ 14.84 | |
| Total Investment Return2 | |||||||
| Based on net asset value | 31.21% | 13.16% | (21.37)% | (18.55)%3 | 16.67% | 8.06% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.33% | 1.31% | 1.38% | 1.25%4 | 1.22% | 1.26% | |
| Total expenses after fees waived | 1.08% | 1.06% | 1.13% | 1.00%4 | 0.97% | 1.01% | |
| Net investment income | 0.87% | 1.15% | 1.79% | 1.14%4 | 1.10% | 0.83% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 71,579 | $ 65,787 | $ 76,359 | $ 113,990 | $ 162,915 | $ 158,175 | |
| Portfolio turnover | 26% | 61% | 112% | 87% | 65% | 100% | |
1 Based on average shares outstanding.
2 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 35 |
| Financial Highlights (continued) | BlackRock Focus Value Fund, Inc. | ||||||
| Investor A | |||||||
| Period | |||||||
| August 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended July 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 9.18 | $ 8.22 | $ 10.67 | $ 15.29 | $ 14.68 | $ 14.12 | |
| Net investment income1 | 0.06 | 0.08 | 0.12 | 0.10 | 0.13 | 0.08 | |
| Net realized and unrealized gain (loss) | 2.76 | 0.98 | (2.45) | (2.59) | 2.12 | 0.98 | |
| Net increase (decrease) from investment operations | 2.82 | 1.06 | (2.33) | (2.49) | 2.25 | 1.06 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.11) | (0.10) | (0.12) | (0.12) | (0.13) | (0.02) | |
| Net realized gain | — | — | — | (2.01) | (1.51) | (0.48) | |
| Total dividends and distributions | (0.11) | (0.10) | (0.12) | (2.13) | (1.64) | (0.50) | |
| Net asset value, end of period | $ 11.89 | $ 9.18 | $ 8.22 | $ 10.67 | $ 15.29 | $ 14.68 | |
| Total Investment Return2 | |||||||
| Based on net asset value | 30.80% | 12.79% | (21.61)% | (18.77)%3 | 16.30% | 7.79% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.64% | 1.60% | 1.69% | 1.55%4 | 1.49% | 1.51% | |
| Total expenses after fees waived | 1.39% | 1.35% | 1.44% | 1.30%4 | 1.24% | 1.26% | |
| Net investment income | 0.56% | 0.86% | 1.47% | 0.83%4 | 0.83% | 0.58% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 69,926 | $ 58,125 | $ 55,243 | $ 92,545 | $ 134,585 | $ 126,028 | |
| Portfolio turnover | 26% | 61% | 112% | 87% | 65% | 100% | |
1 Based on average shares outstanding.
2 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
| 36 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (continued) | BlackRock Focus Value Fund, Inc. | ||||||
| Investor B | |||||||
| Period | |||||||
| August 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended July 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.23 | $ 7.37 | $ 9.53 | $ 13.86 | $ 13.37 | $ 12.98 | |
| Net investment income (loss)1 | (0.04) | (0.00)2 | 0.04 | 0.003 | 0.01 | (0.03) | |
| Net realized and unrealized gain (loss) | 2.48 | 0.87 | (2.17) | (2.33) | 1.92 | 0.90 | |
| Net increase (decrease) from investment operations | 2.44 | 0.87 | (2.13) | (2.33) | 1.93 | 0.87 | |
| Dividends and distributions from: | |||||||
| Net investment income | — | (0.01) | (0.03) | — | (0.00)2 | — | |
| Net realized gain | — | — | — | (2.00) | (1.44) | (0.48) | |
| Total dividends and distributions | — | (0.01) | (0.03) | (2.00) | (1.44) | (0.48) | |
| Net asset value, end of period | $ 10.67 | $ 8.23 | $ 7.37 | $ 9.53 | $ 13.86 | $ 13.37 | |
| Total Investment Return4 | |||||||
| Based on net asset value | 29.65% | 11.76% | (22.29)% | (19.43)%5 | 15.37% | 6.97% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.59% | 2.52% | 2.59% | 2.36%6 | 2.28% | 2.28% | |
| Total expenses after fees waived | 2.34% | 2.27% | 2.34% | 2.11%6 | 2.03% | 2.03% | |
| Net investment income (loss) | (0.36)% | (0.04)% | 0.59% | 0.02%6 | 0.07% | (0.21)% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 1,594 | $ 1,967 | $ 4,051 | $ 9,345 | $ 19,000 | $ 26,537 | |
| Portfolio turnover | 26% | 61% | 112% | 87% | 65% | 100% | |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Amount is less than $0.01 per share.
4 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Annualized.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 37 |
| Financial Highlights (continued) | BlackRock Focus Value Fund, Inc. | ||||||
| Investor C | |||||||
| Period | |||||||
| August 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended July 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 7.91 | $ 7.10 | $ 9.21 | $ 13.49 | $ 13.07 | $ 12.71 | |
| Net investment income (loss)1 | (0.02) | 0.002 | 0.05 | 0.01 | 0.01 | (0.03) | |
| Net realized and unrealized gain (loss) | 2.38 | 0.85 | (2.11) | (2.26) | 1.90 | 0.87 | |
| Net increase (decrease) from investment operations | 2.36 | 0.85 | (2.06) | (2.25) | 1.91 | 0.84 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.04) | (0.04) | (0.05) | (0.02) | (0.01) | — | |
| Net realized gain | — | — | — | (2.01) | (1.48) | (0.48) | |
| Total dividends and distributions | (0.04) | (0.04) | (0.05) | (2.03) | (1.49) | (0.48) | |
| Net asset value, end of period | $ 10.23 | $ 7.91 | $ 7.10 | $ 9.21 | $ 13.49 | $ 13.07 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 29.82% | 11.91% | (22.26)% | (19.42)%4 | 15.50% | 6.88% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.46% | 2.43% | 2.51% | 2.33%5 | 2.26% | 2.28% | |
| Total expenses after fees waived | 2.21% | 2.17% | 2.26% | 2.08%5 | 2.01% | 2.03% | |
| Net investment income (loss) | (0.26)% | 0.04% | 0.65% | 0.05%5 | 0.06% | (0.21)% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 13,772 | $ 10,063 | $ 10,539 | $ 16,687 | $ 25,334 | $ 23,819 | |
| Portfolio turnover | 26% | 61% | 112% | 87% | 65% | 100% | |
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements.
| 38 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (concluded) | BlackRock Focus Value Fund, Inc. | ||||||
| Class R | |||||||
| Period | |||||||
| August 1, | |||||||
| 2007 to | |||||||
| Year Ended June 30, | June 30, | Year Ended July 31, | |||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of period | $ 8.34 | $ 7.48 | $ 9.72 | $ 14.15 | $ 13.71 | $ 13.23 | |
| Net investment income (loss)1 | (0.01) | 0.01 | 0.04 | 0.02 | 0.06 | 0.05 | |
| Net realized and unrealized gain (loss) | 2.50 | 0.89 | (2.22) | (2.37) | 1.98 | 0.91 | |
| Net increase (decrease) from investment operations | 2.49 | 0.90 | (2.18) | (2.35) | 2.04 | 0.96 | |
| Dividends and distributions from: | |||||||
| Net investment income | (0.05) | (0.04) | (0.06) | (0.07) | (0.09) | (0.00)2 | |
| Net realized gain | — | — | — | (2.01) | (1.51) | (0.48) | |
| Total dividends and distributions | (0.05) | (0.04) | (0.06) | (2.08) | (1.60) | (0.48) | |
| Net asset value, end of period | $ 10.78 | $ 8.34 | $ 7.48 | $ 9.72 | $ 14.15 | $ 13.71 | |
| Total Investment Return3 | |||||||
| Based on net asset value | 29.97% | 12.04% | (22.27)% | (19.29)%4 | 15.85% | 7.56% | |
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.26% | 2.29% | 2.60% | 2.22%5 | 1.90% | 1.76% | |
| Total expenses after fees waived | 2.01% | 2.04% | 2.35% | 1.97%5 | 1.65% | 1.51% | |
| Net investment income (loss) | (0.05)% | 0.16% | 0.55% | 0.15%5 | 0.43% | 0.34% | |
| Supplemental Data | |||||||
| Net assets, end of period (000) | $ 1,083 | $ 864 | $ 708 | $ 708 | $ 741 | $ 609 | |
| Portfolio turnover | 26% | 61% | 112% | 87% | 65% | 100% | |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Where applicable, total investment returns include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 39 |
| Financial Highlights | BlackRock Global SmallCap Fund, Inc. | |||||
| Institutional | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 18.32 | $ 16.17 | $ 24.45 | $ 29.24 | $ 25.77 | |
| Net investment income1 | 0.13 | 0.06 | 0.11 | 0.12 | 0.11 | |
| Net realized and unrealized gain (loss)2 | 6.13 | 2.09 | (6.59) | (0.30) | 6.37 | |
| Net increase (decrease) from investment operations | 6.26 | 2.15 | (6.48) | (0.18) | 6.48 | |
| Dividends and distributions from: | ||||||
| Net investment income | (0.17) | — | (0.04) | (0.32) | — | |
| Net realized gain | — | — | (1.76) | (4.29) | (3.01) | |
| Total dividends and distributions | (0.17) | — | (1.80) | (4.61) | (3.01) | |
| Net asset value, end of year | $ 24.41 | $ 18.32 | $ 16.17 | $ 24.45 | $ 29.24 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 34.25%4 | 13.30%4 | (27.75)%4 | (1.08)% | 28.15% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.08% | 1.12% | 1.20% | 1.12% | 1.15% | |
| Total expenses after fees waived | 1.08% | 1.12% | 1.20% | 1.12% | 1.15% | |
| Net investment income | 0.58% | 0.31% | 0.65% | 0.46% | 0.42% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 461,012 | $ 326,440 | $ 250,720 | $ 399,802 | $ 411,767 | |
| Portfolio turnover | 82% | 73% | 114% | 97% | 95% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
See Notes to Financial Statements.
| 40 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (continued) | BlackRock Global SmallCap Fund, Inc. | |||||
| Investor A | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 17.95 | $ 15.89 | $ 24.10 | $ 28.85 | $ 25.50 | |
| Net investment income (loss)1 | 0.06 | (0.00)2 | 0.06 | 0.05 | 0.04 | |
| Net realized and unrealized gain (loss)3 | 6.01 | 2.06 | (6.50) | (0.30) | 6.29 | |
| Net increase (decrease) from investment operations | 6.07 | 2.06 | (6.44) | (0.25) | 6.33 | |
| Dividends and distributions from: | ||||||
| Net investment income | (0.11) | — | (0.01) | (0.25) | — | |
| Net realized gain | — | — | (1.76) | (4.25) | (2.98) | |
| Total dividends and distributions | (0.11) | — | (1.77) | (4.50) | (2.98) | |
| Net asset value, end of year | $ 23.91 | $ 17.95 | $ 15.89 | $ 24.10 | $ 28.85 | |
| Total Investment Return4 | ||||||
| Based on net asset value | 33.88%5 | 12.96%5 | (27.99)%5 | (1.36)% | 27.78% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.38% | 1.42% | 1.50% | 1.40% | 1.42% | |
| Total expenses after fees waived | 1.38% | 1.42% | 1.50% | 1.40% | 1.42% | |
| Net investment income (loss) | 0.27% | (0.01)% | 0.36% | 0.19% | 0.15% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 360,144 | $ 264,526 | $ 226,362 | $ 330,282 | $ 334,022 | |
| Portfolio turnover | 82% | 73% | 114% | 97% | 95% | |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Includes a redemption fee, which is less than $0.01 per share.
4 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
5 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 41 |
| Financial Highlights (continued) | BlackRock Global SmallCap Fund, Inc. | |||||
| Investor B | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 16.93 | $ 15.12 | $ 23.13 | $ 27.71 | $ 24.67 | |
| Net investment loss1 | (0.14) | (0.17) | (0.09) | (0.17) | (0.16) | |
| Net realized and unrealized gain (loss)2 | 5.66 | 1.98 | (6.23) | (0.27) | 6.06 | |
| Net increase (decrease) from investment operations | 5.52 | 1.81 | (6.32) | (0.44) | 5.90 | |
| Dividends from net realized gain | — | — | (1.69) | (4.14) | (2.86) | |
| Net asset value, end of year | $ 22.45 | $ 16.93 | $ 15.12 | $ 23.13 | $ 27.71 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 32.60%4 | 11.97%4 | (28.62)%4 | (2.14)% | 26.79% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 2.29% | 2.33% | 2.37% | 2.21% | 2.21% | |
| Total expenses after fees waived | 2.29% | 2.33% | 2.37% | 2.21% | 2.21% | |
| Net investment loss | (0.67)% | (0.96)% | (0.56)% | (0.68)% | (0.66)% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 25,054 | $ 28,247 | $ 40,600 | $ 91,693 | $ 130,954 | |
| Portfolio turnover | 82% | 73% | 114% | 97% | 95% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
See Notes to Financial Statements.
| 42 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (continued) | BlackRock Global SmallCap Fund, Inc. | |||||
| Investor C | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 16.45 | $ 14.68 | $ 22.50 | $ 27.15 | $ 24.25 | |
| Net investment loss1 | (0.11) | (0.15) | (0.08) | (0.16) | (0.16) | |
| Net realized and unrealized gain (loss)2 | 5.49 | 1.92 | (6.05) | (0.28) | 5.94 | |
| Net increase (decrease) from investment operations | 5.38 | 1.77 | (6.13) | (0.44) | 5.78 | |
| Dividends and distributions from: | ||||||
| Net investment income | — | — | — | (0.06) | — | |
| Net realized gain | — | — | (1.69) | (4.15) | (2.88) | |
| Total dividends and distributions | — | — | (1.69) | (4.21) | (2.88) | |
| Net asset value, end of year | $ 21.83 | $ 16.45 | $ 14.68 | $ 22.50 | $ 27.15 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 32.71%4 | 12.06%4 | (28.58)%4 | (2.19)% | 26.79% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 2.21% | 2.27% | 2.35% | 2.21% | 2.21% | |
| Total expenses after fees waived | 2.21% | 2.27% | 2.35% | 2.21% | 2.21% | |
| Net investment loss | (0.57)% | (0.86)% | (0.51)% | (0.64)% | (0.63)% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 345,372 | $ 293,633 | $ 281,387 | $ 470,280 | $ 518,216 | |
| Portfolio turnover | 82% | 73% | 114% | 97% | 95% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 43 |
| Financial Highlights (concluded) | BlackRock Global SmallCap Fund, Inc. | |||||
| Class R | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 17.09 | $ 15.18 | $ 23.18 | $ 27.94 | $ 24.83 | |
| Net investment loss1 | (0.03) | (0.08) | (0.02) | (0.05) | (0.04) | |
| Net realized and unrealized gain (loss)2 | 5.71 | 1.99 | (6.25) | (0.30) | 6.10 | |
| Net increase (decrease) from investment operations | 5.68 | 1.91 | (6.27) | (0.35) | 6.06 | |
| Dividends and distributions from: | ||||||
| Net investment income | (0.05) | — | — | (0.20) | — | |
| Net realized gain | — | — | (1.73) | (4.21) | (2.95) | |
| Total dividends and distributions | (0.05) | — | (1.73) | (4.41) | (2.95) | |
| Net asset value, end of year | $ 22.72 | $ 17.09 | $ 15.18 | $ 23.18 | $ 27.94 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 33.24%4 | 12.58%4 | (28.37)%4 | (1.77)% | 27.42% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.81% | 1.84% | 2.00% | 1.81% | 1.73% | |
| Total expenses after fees waived | 1.81% | 1.84% | 2.00% | 1.81% | 1.73% | |
| Net investment loss | (0.16)% | (0.42)% | (0.13)% | (0.20)% | (0.15)% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 46,316 | $ 38,378 | $ 33,571 | $ 46,275 | $ 33,662 | |
| Portfolio turnover | 82% | 73% | 114% | 97% | 95% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
See Notes to Financial Statements.
| 44 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights | BlackRock International Value Fund | |||||
| Institutional | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 17.36 | $ 17.46 | $ 26.00 | $ 34.48 | $ 30.55 | |
| Net investment income1 | 0.48 | 0.22 | 0.41 | 0.55 | 0.71 | |
| Net realized and unrealized gain (loss)2 | 5.64 | 0.21 | (8.32) | (4.30) | 6.10 | |
| Net increase (decrease) from investment operations | 6.12 | 0.43 | (7.91) | (3.75) | 6.81 | |
| Dividends and distributions from: | ||||||
| Net investment income | (0.04) | (0.55) | (0.40) | (0.68) | (0.90) | |
| Net realized gain | — | — | (0.23) | (4.05) | (1.98) | |
| Total dividends and distributions | (0.04) | (0.55) | (0.63) | (4.73) | (2.88) | |
| Proceeds from regulatory settlement | — | 0.02 | — | — | — | |
| Net asset value, end of year | $ 23.44 | $ 17.36 | $ 17.46 | $ 26.00 | $ 34.48 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 35.25%4 | 2.08%4,5 | (30.81)%4 | (12.23)% | 24.20% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 0.98% | 0.99% | 1.08% | 1.04% | 1.01% | |
| Total expenses after fees waived | 0.98% | 0.99% | 1.08% | 1.04% | 1.01% | |
| Net investment income | 2.23% | 1.15% | 2.24% | 1.86% | 2.27% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 487,841 | $ 403,645 | $ 462,171 | $ 1,007,433 | $ 1,253,724 | |
| Portfolio turnover | 90% | 155% | 187% | 122% | 65% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 1.97%.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 45 |
| Financial Highlights (continued) | BlackRock International Value Fund | |||||
| Investor A | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 17.22 | $ 17.35 | $ 25.89 | $ 34.33 | $ 30.44 | |
| Net investment income1 | 0.41 | 0.15 | 0.36 | 0.46 | 0.62 | |
| Net realized and unrealized gain (loss)2 | 5.59 | 0.19 | (8.30) | (4.28) | 6.08 | |
| Net increase (decrease) from investment operations | 6.00 | 0.34 | (7.94) | (3.82) | 6.70 | |
| Dividends and distributions from: | ||||||
| Net investment income | — | (0.49) | (0.37) | (0.59) | (0.83) | |
| Net realized gain | — | — | (0.23) | (4.03) | (1.98) | |
| Total dividends and distributions | — | (0.49) | (0.60) | (4.62) | (2.81) | |
| Proceeds from regulatory settlement | — | 0.02 | — | — | — | |
| Net asset value, end of year | $ 23.22 | $ 17.22 | $ 17.35 | $ 25.89 | $ 34.33 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 34.84%4 | 1.62%4,5 | (31.06)%4 | (12.47)% | 23.84% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 1.33% | 1.39% | 1.43% | 1.34% | 1.30% | |
| Total expenses after fees waived | 1.33% | 1.39% | 1.43% | 1.34% | 1.30% | |
| Net investment income | 1.90% | 0.76% | 2.04% | 1.55% | 1.98% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 244,224 | $ 200,267 | $ 215,337 | $ 320,764 | $ 390,547 | |
| Portfolio turnover | 90% | 155% | 187% | 122% | 65% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 1.51%.
See Notes to Financial Statements.
| 46 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (continued) | BlackRock International Value Fund | |||||
| Investor B | ||||||
| Year Ended June 30, | ||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||
| Per Share Operating Performance | ||||||
| Net asset value, beginning of year | $ 16.76 | $ 16.84 | $ 25.28 | $ 33.60 | $ 29.88 | |
| Net investment income (loss)1 | 0.13 | (0.06) | 0.13 | 0.14 | 0.34 | |
| Net realized and unrealized gain (loss)2 | 5.45 | 0.17 | (8.12) | (4.16) | 5.96 | |
| Net increase (decrease) from investment operations | 5.58 | 0.11 | (7.99) | (4.02) | 6.30 | |
| Dividends and distributions from: | ||||||
| Net investment income | — | (0.21) | (0.22) | (0.43) | (0.60) | |
| Net realized gain | — | — | (0.23) | (3.87) | (1.98) | |
| Total dividends and distributions | — | (0.21) | (0.45) | (4.30) | (2.58) | |
| Proceeds from regulatory settlement | — | 0.02 | — | — | — | |
| Net asset value, end of year | $ 22.34 | $ 16.76 | $ 16.84 | $ 25.28 | $ 33.60 | |
| Total Investment Return3 | ||||||
| Based on net asset value | 33.29%4 | 0.59%4,5 | (31.91)%4 | (13.31)% | 22.78% | |
| Ratios to Average Net Assets | ||||||
| Total expenses | 2.45% | 2.46% | 2.61% | 2.30% | 2.15% | |
| Total expenses after fees waived | 2.45% | 2.46% | 2.61% | 2.30% | 2.15% | |
| Net investment income (loss) | 0.62% | (0.34)% | 0.74% | 0.47% | 1.11% | |
| Supplemental Data | ||||||
| Net assets, end of year (000) | $ 21,384 | $ 24,944 | $ 31,261 | $ 61,007 | $ 90,447 | |
| Portfolio turnover | 90% | 155% | 187% | 122% | 65% | |
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 0.47%.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 47 |
| Financial Highlights (continued) | BlackRock International Value Fund | ||||||
| Investor C | |||||||
| Year Ended June 30, | |||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | |||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 16.48 | $ 16.60 | $ 24.94 | $ 33.24 | $ 29.59 | ||
| Net investment income (loss)1 | 0.17 | (0.05) | 0.14 | 0.16 | 0.35 | ||
| Net realized and unrealized gain (loss)2 | 5.33 | 0.18 | (8.01) | (4.13) | 5.90 | ||
| Net increase (decrease) from investment operations | 5.50 | 0.13 | (7.87) | (3.97) | 6.25 | ||
| Dividends and distributions from: | |||||||
| Net investment income | — | (0.27) | (0.24) | (0.45) | (0.62) | ||
| Net realized gain | — | — | (0.23) | (3.88) | (1.98) | ||
| Total dividends and distributions | — | (0.27) | (0.47) | (4.33) | (2.60) | ||
| Proceeds from regulatory settlement | — | 0.02 | — | — | — | ||
| Net asset value, end of year | $ 21.98 | $ 16.48 | $ 16.60 | $ 24.94 | $ 33.24 | ||
| Total Investment Return3 | |||||||
| Based on net asset value | 33.37%4 | 0.63%4,5 | (31.89)%4 | (13.32)% | 22.82% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 2.36% | 2.44% | 2.60% | 2.31% | 2.15% | ||
| Total expenses after fees waived | 2.36% | 2.44% | 2.60% | 2.31% | 2.15% | ||
| Net investment income (loss) | 0.84% | (0.28)% | 0.83% | 0.55% | 1.15% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 159,060 | $ 145,996 | $ 159,516 | $ 262,573 | $ 332,940 | ||
| Portfolio turnover | 90% | 155% | 187% | 122% | 65% | ||
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
5 Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 0.50%.
See Notes to Financial Statements.
| 48 | ANNUAL REPORT | JUNE | 30, 2011 |
| Financial Highlights (concluded) | BlackRock International Value Fund | ||||||
| Class R | |||||||
| Year Ended June 30, | |||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | |||
| Per Share Operating Performance | |||||||
| Net asset value, beginning of year | $ 17.00 | $ 17.11 | $ 25.61 | $ 34.06 | $ 30.24 | ||
| Net investment income1 | 0.30 | 0.09 | 0.28 | 0.39 | 0.55 | ||
| Net realized and unrealized gain (loss)2 | 5.52 | 0.193 | (8.22) | (4.27) | 6.02 | ||
| Net increase (decrease) from investment operations | 5.82 | 0.28 | (7.94) | (3.88) | 6.57 | ||
| Dividends and distributions from: | |||||||
| Net investment income | — | (0.41) | (0.33) | (0.57) | (0.77) | ||
| Net realized gain | — | — | (0.23) | (4.00) | (1.98) | ||
| Total dividends and distributions | — | (0.41) | (0.56) | (4.57) | (2.75) | ||
| Proceeds from regulatory settlement | — | 0.02 | — | — | — | ||
| Net asset value, end of year | $ 22.82 | $ 17.00 | $ 17.11 | $ 25.61 | $ 34.06 | ||
| Total Investment Return4 | |||||||
| Based on net asset value | 34.24%5 | 1.35%5,6 | (31.36)%5 | (12.76)% | 23.53% | ||
| Ratios to Average Net Assets | |||||||
| Total expenses | 1.69% | 1.72% | 1.86% | 1.65% | 1.57% | ||
| Total expenses after fees waived | 1.69% | 1.72% | 1.86% | 1.65% | 1.57% | ||
| Net investment income | 1.43% | 0.45% | 1.58% | 1.35% | 1.78% | ||
| Supplemental Data | |||||||
| Net assets, end of year (000) | $ 40,876 | $ 42,390 | $ 45,391 | $ 72,262 | $ 60,258 | ||
| Portfolio turnover | 90% | 155% | 187% | 122% | 65% | ||
1 Based on average shares outstanding.
2 Includes a redemption fee, which is less than $0.01 per share.
3 Includes litigation proceeds, which are less than $0.01 per share.
4 Where applicable, total investment returns include the reinvestment of dividends and distributions.
5 Total return calculation includes redemption fees received by the Fund. The impact to the return is less than 0.01%.
6 Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the total return would have been 1.23%.
See Notes to Financial Statements.
| ANNUAL | REPORT | JUNE | 30, 2011 | 49 |
Notes to Financial Statements
1. Organization and Significant Accounting Policies:
BlackRock EuroFund (“EuroFund”), BlackRock Focus Value Fund, Inc.
(“Focus Value”), BlackRock Global SmallCap Fund, Inc. (“Global
SmallCap”) and BlackRock International Value Fund (“International Value”),
a series of BlackRock International Value Trust (the “Trust”) (collectively
the “Funds”), are registered under the Investment Company Act of 1940,
as amended (the “1940 Act”), as diversified, open-end management
investment companies. The EuroFund and the Trust are organized as
Massachusetts business trusts. Focus Value and Global SmallCap are
organized as Maryland corporations. The Funds’ financial statements are
prepared in conformity with accounting principles generally accepted in
the United States of America (“US GAAP”), which may require management
to make estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from
those estimates. The Boards of Directors and the Boards of Trustees of
the Funds are referred to throughout this report as the “Board of Directors”
or the “Board”. Each Fund offers multiple classes of shares. Institutional
Shares are sold without a sales charge and only to certain eligible
investors. Investor A Shares are generally sold with a front-end sales
charge. Investor B and Investor C Shares may be subject to a contingent
deferred sales charge. Class R Shares are sold without a sales charge
and only to certain retirement and other similar plans. All classes of shares
have identical voting, dividend, liquidation and other rights and the same
terms and conditions, except that Investor A, Investor B, Investor C and
Class R Shares bear certain expenses related to the shareholder servicing
of such shares, and Investor B, Investor C and Class R Shares also bear
certain expenses related to the distribution of such shares. Investor B
Shares automatically convert to Investor A Shares after approximately eight
years. Investor B Shares are only available through exchanges, dividend
reinvestment by existing shareholders or for purchase by certain qualified
employee benefit plans. Each class has exclusive voting rights with respect
to matters relating to its shareholder servicing and distribution expendi-
tures (except that Investor B shareholders may vote on material changes to
the Investor A distribution and service plan).
Reorganizations:
On March 18, 2011, the Board of Directors of Focus Value approved
a plan of reorganization, subject to shareholder approval and certain
other conditions, whereby BlackRock Basic Value Fund, Inc., will acquire
substantially all of the assets and assume certain stated liabilities of
the Focus Value Fund in exchange for newly issued shares of BlackRock
Basic Value Fund, Inc.
On March 18, 2011, the Board of Directors of the Trust approved a plan
of reorganization, whereby BlackRock International Fund, a series of
BlackRock Series, Inc., will acquire substantially all of the assets and
assume certain stated liabilities of International Value in exchange for
newly issued shares of BlackRock International Fund.
The following is a summary of significant accounting policies followed by
the Funds:
Valuation: US GAAP defines fair value as the price the Funds would
receive to sell an asset or pay to transfer a liability in an orderly transaction
between market participants at the measurement date. The Funds fair value
their financial instruments at market value using independent dealers or
pricing services under policies approved by the Board. Equity investments
traded on a recognized securities exchange or the NASDAQ Global Market
System ("NASDAQ") 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. Investments in open-
end registered investment companies are valued at net asset value each
business day. Short-term securities with remaining maturities of 60 days
or less may be valued at amortized cost, which approximates fair value.
The Funds value their investments in BlackRock Liquidity Series, LLC Money
Market Series (the “Money Market Series”) at fair value, which is ordinarily
based upon their pro rata ownership in the underlying fund’s net assets.
The Money Market Series seeks current income consistent with maintaining
liquidity and preserving capital. Although the Money Market Series is not
registered under the 1940 Act, its investments will follow the parameters
of investments by a money market fund that is subject to Rule 2a-7 under
the 1940 Act. The Funds may withdraw up to 25% of their investment daily,
although the manager of the Money Market Series, in its sole discretion,
may permit an investor to withdraw more than 25% on any one day.
Securities and other assets and liabilities denominated in foreign curren-
cies are translated into US dollars using exchange rates determined as of
the close of business on the New York Stock Exchange (“NYSE”). Foreign
currency exchange contracts are valued at the mean between the bid and
ask prices and are determined as of the close of business on the NYSE.
Interpolated values are derived when the settlement date of the contract is
an interim date for which quotations are not available.
In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued in accordance with a policy approved by the Board as reflecting
fair value (“Fair Value Assets”). When determining the price for Fair Value
Assets, the investment advisor and/or the sub-advisor seeks to determine
the price that each Fund might reasonably expect to receive from the cur-
rent sale of that asset in an arm’s-length transaction. Fair value determina-
tions shall be based upon all available factors that the investment advisor
and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.
Generally, trading in foreign instruments is substantially completed
each day at various times prior to the close of business on the NYSE.
Occasionally, events affecting the values of such instruments may occur
| 50 | ANNUAL REPORT | JUNE | 30, 2011 |
Notes to Financial Statements (continued)
between the foreign market close and the close of business on the NYSE
that may not be reflected in the computation of each Fund's net assets.
If events (for example, a company announcement, market volatility or a
natural disaster) occur during such periods that are expected to materially
affect the value of such instruments, those instruments may be Fair Value
Assets and be valued at their fair value, as determined in good faith by
the investment advisor using a pricing service and/or policies approved
by the Board. Each business day, the Funds use a pricing service to assist
with the valuation of certain foreign exchange-traded equity securities
and foreign exchange-traded and over-the-counter (“OTC”) options (the
“Systematic Fair Value Price”). Using current market factors, the Systematic
Fair Value Price is designed to value such foreign securities and foreign
options at fair value as of the close of business on the NYSE, which follows
the close of the local markets.
Foreign Currency Transactions: The Funds' books and records are main-
tained in US dollars. Purchases and sales of investment securities are
recorded at the rates of exchange prevailing on the date the transactions
are entered into. Generally, when the US dollar rises in value against a
foreign currency, the Funds' investments denominated in that currency will
lose value because its currency is worth fewer US dollars; the opposite
effect occurs if the US dollar falls in relative value.
The Funds report realized currency gains (losses) on foreign currency
related transactions as components of net realized gain (loss) for financial
reporting purposes, whereas such components are treated as ordinary
income for federal income tax purposes.
Participation Notes: Certain Funds may invest in participation notes
(“P-Notes”). P-Notes are promissory notes issued by banks or broker-
dealers that are designed to offer the Funds a return measured by the
change in the value of the underlying security or basket of securities (the
“underlying security”) while not holding the actual shares of the underlying
security. P-Notes are typically used to allow the Funds to gain exposure to
securities traded in foreign markets that may be restricted due to country-
specific regulations. When the P-Note matures, the issuer will pay to, or
receive from, the Funds the difference between the value of the underlying
security at the time of the purchase and the underlying security’s value at
maturity of the P-Notes. Income received on P-Notes is recorded by the
Funds as dividend income in the Statements of Operations. An investment
in a P-Note involves additional risks beyond the risks normally associated
with a direct investment in the underlying security. While the holder of a
P-Note is entitled to receive from the bank or broker-dealer any dividends
paid by the underlying security, the holder is not entitled to the same rights
(e.g., voting rights) as a direct owner of the underlying security. P-Notes are
considered general unsecured contractual obligations of the bank or bro-
ker-dealer. The Funds must rely on the creditworthiness of the issuer for its
investment returns on the P-Notes and has no rights against the issuer of
the underlying security. A P-Note may be more volatile and less liquid than
other investments held by the Funds since the P-Note generally is depend-
ent on the liquidity in the local trading market for the underlying security.
Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that the Funds either deliver collateral or segregate assets
in connection with certain investments (e.g., foreign currency exchange
contracts), the Funds will, consistent with SEC rules and/or certain inter-
pretive letters issued by the SEC, segregate collateral or designate on their
books and records cash or liquid securities having a market value at least
equal to the amount that would otherwise be required to be physically
segregated. Furthermore, based on requirements and agreements with
certain exchanges and third party broker-dealers, each party to such trans-
actions has requirements to deliver/deposit securities as collateral for
certain investments.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Dividend income is recorded on the ex-dividend dates. Dividends from
foreign securities where the ex-dividend date may have passed are
subsequently recorded when the Funds are informed of the ex-dividend
date. Under the applicable foreign tax laws, a withholding tax at various
rates may be imposed on capital gains, dividends and interest. Upon
notification from issuers, some of the dividend income received from a
real estate investment trust may be redesignated as a reduction of cost
of the related investment and/or realized gain. Interest income, including
amortization and accretion of premiums and discounts on debt securities,
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 the Funds
are recorded on the ex-dividend dates. The amount and timing of dividends
and distributions are determined in accordance with federal income tax
regulations, which may differ from US GAAP.
Securities Lending: The Funds may lend securities to approved borrowers,
such as banks, brokers and other financial institutions. The borrower
pledges cash, securities issued or guaranteed by the US government or
irrevocable letters of credit issued by a bank as collateral, which will be
maintained at all times in an amount equal to at least 100% of the
current market value of the loaned securities. The market value of the
loaned securities is determined at the close of business of the Funds and
any additional required collateral is delivered to the Funds on the next
business day. Securities lending income, as disclosed in the Statements
of Operations, represents the income earned from the investment of the
cash collateral, net of rebates paid to, or fees paid by, borrowers and less
the fees paid to the securities lending agent. During the term of the loan,
the Funds earn dividend and interest on the securities loaned but do not
receive dividend or interest income on the securities received as collateral.
Loans of securities are terminable at any time and the borrower, after
notice, is required to return borrowed securities within the standard time
period for settlement of securities transactions. In the event that the
| ANNUAL | REPORT | JUNE | 30, 2011 | 51 |
Notes to Financial Statements (continued)
borrower defaults on its obligation to return borrowed securities because
of insolvency or for any other reason, the Funds could experience delays
and costs in gaining access to the collateral. The Funds also could suffer
a loss if the value of an investment purchased with cash collateral falls
below the market value of loaned securities or if the value of an investment
purchased with cash collateral falls below the value of the original cash
collateral received. During the year, the participating Funds accepted only
cash collateral in connection with securities loaned.
Income Taxes: It is each Fund's policy to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no federal income tax provision
is required.
Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Funds’ US federal tax returns remains open for each of the
four periods ended June 30, 2011. The statutes of limitations on each
Fund’s state and local tax returns may remain open for an additional year
depending upon the jurisdiction. Management does not believe there are
any uncertain tax positions that require recognition of a tax liability.
Recent Accounting Standard: In May 2011, the Financial Accounting
Standards Board issued amended guidance to improve disclosure about
fair value measurements which will require the following disclosures for fair
value measurements categorized as Level 3: quantitative information about
unobservable inputs and assumptions used in the fair value measurement,
a description of the valuation policies and procedures and a narrative
description of sensitivity of the fair value measurement to changes in
unobservable inputs and the interrelationships between those unobserv-
able inputs. In addition, the amounts and reasons for all transfers in and
out of Level 1 and Level 2 will be required to be disclosed. The amended
guidance is effective for financial statements for fiscal years beginning
after December 15, 2011, and interim periods within those fiscal years.
Management is evaluating the impact of this guidance on each Fund’s
financial statements and disclosures.
Other: Expenses directly related to a Fund or its classes are charged to
that Fund or class. Other operating expenses shared by several funds are
pro rated among those funds on the basis of relative net assets or other
appropriate methods. Other expenses of the Funds are allocated daily to
each class based on its relative net assets.
The Funds have an arrangement with the custodians whereby fees may be
reduced by credits earned on uninvested cash balances, which, if applica-
ble, are shown as fees paid indirectly in the Statements of Operations. The
custodians impose fees on overdrawn cash balances, which can be offset
by accumulated credits earned or may result in additional custody charges.
2. Derivative Financial Instruments:
The Funds engage in various portfolio investment strategies using derivative
contracts both to increase the returns of the Funds and to economically
hedge, or protect, their exposure to certain risks such as foreign currency
exchange rate risk. These contracts may be transacted on an exchange or
OTC.
Losses may arise if the value of the contract decreases due to an
unfavorable change in the market rates or values of the underlying
instrument or if the counterparty does not perform under the contract.
The Funds' maximum risk of loss from counterparty credit risk on OTC
derivatives is generally the aggregate unrealized gain netted against any
collateral pledged by/posted to the counterparty.
The Funds may mitigate counterparty risk by procuring collateral and
through netting provisions included within an International Swaps and
Derivatives Association, Inc. master agreement ("ISDA Master Agreement")
implemented between a Fund and each of its respective counterparties.
The ISDA Master Agreement allows each Fund to offset with each separate
counterparty certain derivative financial instrument’s payables and/or
receivables with collateral held. The amount of collateral moved to/from
applicable counterparties is generally based upon minimum transfer
amounts of up to $500,000. To the extent amounts due to the Funds from
their counterparties 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 information with respect to
collateral practices. In addition, the Funds manage counterparty risk by
entering into agreements only with counterparties that they believe have
the financial resources to honor their obligations and by monitoring the
financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties to OTC derivatives to
terminate derivative contracts prior to maturity in the event the Funds' net
assets decline by a stated percentage or the Funds fails to meet the terms
of its ISDA Master Agreements, which would cause the Funds to accelerate
payment of any net liability owed to the counterparty.
Foreign Currency Exchange Contracts: The Funds enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio instruments or to obtain exposure to foreign
currencies (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 currencies in which some of the investments held by the
Funds are denominated. The contract is marked-to-market daily and the
change in market value is recorded by the Funds as an unrealized gain or
loss. When the contract is closed, the Funds record a realized gain or loss
equal to the difference between the value at the time it was opened and
the value at the time it was closed. The use of foreign currency exchange
contracts involves the risk that the value of a foreign currency exchange
contract changes unfavorably due to movements in the value of the refer-
enced foreign currencies and the risk that a counterparty to the contract
does not perform its obligations under the agreement.
| 52 | ANNUAL REPORT | JUNE | 30, 2011 |
Notes to Financial Statements (continued)
| Derivative Financial Instruments Categorized by Risk Exposure: | ||||
| Fair Values of Derivative Financial Instruments as of June 30, 2011 | ||||
| Asset Derivatives | ||||
| Statement of Assets | Global | |||
| and Liabilities | SmallCap | International | ||
| Location | EuroFund | Fund | Value Fund | |
| Unrealized appreciation | ||||
| Foreign currency | on foreign currency | |||
| exchange contracts | exchange contracts | $ 72,208 | $ 8,423 | — |
| Liability Derivatives | ||||
| Statement of Assets | Global | |||
| and Liabilities | SmallCap | International | ||
| Location | EuroFund | Fund | Value Fund | |
| Unrealized depreciation | ||||
| Foreign currency | on foreign currency | |||
| exchange contracts | exchange contracts | $ 67,160 | $ 51,523 | $ 4,192 |
| The Effect of Derivative Financial Instruments in the Statements of Operations | |||
| Year Ended June 30, 2011 | |||
| Net Realized Gain (Loss) from | |||
| Global | |||
| SmallCap International | |||
| EuroFund | Fund | Value Fund | |
| Foreign currency | |||
| exchange contracts | $ (148,901) | $ (387,566) | $ 242,756 |
| Net Change in Unrealized Appreciation/Depreciation on | |||
| Global | |||
| SmallCap International | |||
| EuroFund | Fund | Value Fund | |
| Foreign currency | |||
| exchange contracts | $ (24,734) | $ (68,715) | $ 29,498 |
For the year ended June 30, 2011, the average quarterly balances of
outstanding derivative financial instruments were as follows:
| Global | |||
| SmallCap | International | ||
| EuroFund | Fund | Value Fund | |
| Foreign currency exchange contracts: | |||
| Average number of | |||
| contracts purchased | 2 | 13 | 2 |
| Average number of | |||
| contracts sold | 3 | 11 | 1 |
| Average US dollar amount purchased $ 2,469,290 | $ 3,839,682 | $12,544,009 | |
| Average US dollar amount sold | $ 3,853,022 | $ 6,341,750 | $ 6,456,064 |
3. Investment Advisory Agreement and Other Transactions
with Affiliates:
The PNC Financial Services Group, Inc. ("PNC") and Barclays Bank PLC
("Barclays") are the largest stockholders of BlackRock, Inc. ("BlackRock").
Due to the ownership structure, PNC is an affiliate of the Funds for 1940
Act purposes, but Barclays is not.
Each Fund entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect,
wholly owned subsidiary of BlackRock, to provide investment advisory and
administration services. The Manager is responsible for the management of
each Fund’s portfolio and provides the necessary personnel, facilities,
equipment and certain other services necessary to the operations of each
Fund. For such services, each Fund paid the Manager a monthly fee based
on a percentage of each Fund’s average daily net assets at the following
annual rates from July 1, 2010 through May 31, 2011:
| EuroFund | 0.75% |
| Global SmallCap | 0.85% |
| International Value | |
| Portion of Average Daily of Net Assets Rate | |
| Not exceeding $2 billion | 0.75% |
| In excess of $2 billion, but not exceeding $4 billion | 0.70% |
| In excess of $4 billion | 0.65% |
Focus Value paid the Manager a monthly fee at an annual rate of 1.00%
based on average daily net assets from July 1, 2010 to June 30, 2011.
Effective June 1, 2011, each Fund paid the Manager a monthly fee based
on a percentage of each Fund’s average daily net assets at the following
annual rates:
| EuroFund | |
| Average Daily Net Assets | Rate |
| First $1 billion | 0.75% |
| $1 — $3 billion | 0.71% |
| $3 — $5 billion | 0.68% |
| $5 — $10 billion | 0.65% |
| Greater than $10 billion | 0.64% |
| Global SmallCap | |
| Average Daily Net Assets | Rate |
| First $1 billion | 0.85% |
| $1 — $3 billion | 0.80% |
| $3 — $5 billion | 0.77% |
| $5 — $10 billion | 0.74% |
| Greater than $10 billion | 0.72% |
The Manager contractually agreed to waive 0.25% of Focus Value’s invest-
ment advisory fees until November 1, 2011. The contractual waiver may
be terminated upon 90 day’s notice by a majority of the independent
directors of the Fund or by a vote of a majority of the outstanding voting
securities of the Fund. For the year ended June 30, 2011, the Manager
waived $379,387, which is included in fees waived by advisor in the
Statements of Operations.
The Manager voluntarily agreed to waive its investment advisory fees by
the amount of investment advisory fees each Fund pays to the Manager
indirectly through its investment in affiliated money market funds, however
the Manager does not waive its investment advisory fees by the amount
of investment advisory fees paid through each Fund’s investment in other
affiliated investment companies, if any. These amounts are shown as, or
included in, fees waived by advisor in the Statements of Operations. For
the year ended June 30, 2011, the amounts waived were as follows:
| EuroFund | $ 2,266 |
| Focus Value | $ 1,938 |
| Global SmallCap | $ 22,227 |
| International Value | $ 14,055 |
The Manager, on behalf of EuroFund, entered into a sub-advisory agree-
ment with BlackRock Investment Management, LLC (“BIM”), and BlackRock
International Ltd, (“BIL”), both affiliates of the Manager. The Manager pays
BIM and BIL for services they provide, a monthly fee that is a percentage
of the investment advisory fees paid by the Fund to the Manager.
| ANNUAL | REPORT | JUNE | 30, 2011 | 53 |
Notes to Financial Statements (continued)
The Manager, on behalf of Focus Value and Global Small Cap, entered into
a sub-advisory agreement with BIM. The Manager pays BIM for services it
provides, a monthly fee that is a percentage of the investment advisory
fees paid by each Fund to the Manager.
The Manager, on behalf of International Value, entered into a sub-advisory
agreement with BIL. The Manager pays BIL for services it provides, a
monthly fee that is a percentage of the investment advisory fees paid by
the Fund to the Manager.
For the year ended June 30, 2011, each Fund reimbursed the Manager
for certain accounting services, which are included in accounting services
in the Statements of Operations. The reimbursements were as follows:
| EuroFund | $ 5,117 |
| Focus Value | $ 2,129 |
| Global SmallCap | $ 16,564 |
| International Value | $ 17,001 |
The Funds received an exemptive order from the SEC permitting them,
among other things, to pay an affiliated securities lending agent a fee
based on a share of the income derived from the securities lending
activities and has retained BIM as the securities lending agent. BIM may,
on behalf of the Funds, invest cash collateral received by the Funds
for such loans, among other things, in a private investment company
managed by the Manager or in registered money market funds advised
by the Manager or its affiliates. The market value of securities on loan
and the value of the related collateral, if applicable, are shown in the
Statements of Assets and Liabilities as securities loaned at value and
collateral on securities loaned at value, respectively. The cash collateral
invested by BIM is disclosed in the Schedules of Investments. The share of
income earned by the Funds on such investments is shown as securities
lending — affiliated in the Statements of Operations. For the year ended
June 30, 2011, BIM received securities lending agent fees related to
securities lending activities as follows:
| Focus Value | $ 2,576 |
| Global SmallCap | $ 21,163 |
The Funds entered into a Distribution Agreement and Distribution and
Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the
Manager. Pursuant to the Distribution and Service Plan and in accordance
with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing
service and distribution fees. The fees are accrued daily and paid monthly
at annual rates based upon the average daily net assets of the shares of
each Fund as follows:
| Service | Distribution | |
| Fee | Fee | |
| Investor A | 0.25% | — |
| Investor B | 0.25% | 0.75% |
| Investor C | 0.25% | 0.75% |
| Class R | 0.25% | 0.25% |
Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide
shareholder servicing and distribution services to each Fund. The ongoing
service and/or distribution fee compensates BRIL and each broker-dealer
for providing shareholder servicing and/or distribution related services to
Investor A, Investor B, Investor C and Class R shareholders.
For the year ended June 30, 2011, affiliates earned underwriting discounts,
direct commissions and dealer concessions on sales of the Funds'
Investor A Shares as follows:
| Investor A | |
| EuroFund | $ 1,196 |
| Focus Value | $ 3,558 |
| Global SmallCap | $ 50,204 |
| International Value | $ 14,605 |
For the year ended June 30, 2011, affiliates received the following
contingent deferred sales charges relating to transactions in Investor B
and Investor C Shares:
| Investor B | Investor C | |
| EuroFund | $ 4,726 | $ 2,181 |
| Focus Value | $ 1,034 | $ 1,248 |
| Global SmallCap | $19,982 | $31,027 |
| International Value | $ 7,317 | $ 8,056 |
Furthermore, affiliates received contingent deferred sale charges relating to
transactions subject to front-end sales charge waivers on Investor A Shares
as follows:
| Investor A | |
| EuroFund | $ 2,021 |
| Global SmallCap | $ 1,375 |
| International Value | $ 43 |
The Manager maintains a call center, which is responsible for providing cer-
tain shareholder services to the Funds, such as responding to shareholder
inquiries and processing transactions based upon instructions from share-
holders with respect to the subscription and redemption of Fund shares.
For the year ended June 30, 2011, the Funds reimbursed the Manager the
following amounts for costs incurred in running the call center, which are
included in transfer agent — class specific in the Statements of Operations:
| Focus | Global | International | ||
| EuroFund | Value | SmallCap | Value | |
| Institutional | $3,317 | $ 979 | $2,531 | $5,130 |
| Investor A | $4,457 | $1,019 | $6,621 | $3,165 |
| Investor B | $ 339 | $ 64 | $ 824 | $ 507 |
| Investor C | $ 633 | $ 206 | $6,971 | $2,553 |
| Class R | $ 37 | $ 8 | $ 556 | $ 408 |
Certain officers and/or directors 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, 2011, were as follows:
| Purchases | Sales | |
| EuroFund | $ 520,254,851 | $ 581,397,182 |
| Focus Value | $ 38,176,750 | $ 56,208,207 |
| Global SmallCap | $ 906,046,598 | $ 948,505,044 |
| International Value | $ 817,105,437 | $ 945,007,051 |
| 54 | ANNUAL REPORT | JUNE | 30, 2011 |
Notes to Financial Statements (continued)
5. Income Tax Information:
Reclassifications: US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax report-
ing. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of June 30, 2011 attributable
to foreign currency transactions, the sale of stock of passive foreign investment companies and the characterization of expenses were reclassified to the
following accounts:
| Focus | Global | International | ||
| EuroFund | Value | SmallCap | Value | |
| Paid-in capital | — | $ (122,773) | — | — |
| Undistributed net investment income | $ (110,678) | 122,773 | $ 4,903,505 | $ 229,027 |
| Accumulated net realized loss | 110,678 | — | (4,903,505) | (229,027) |
The tax character of distributions paid during fiscal year ended June 30, 2011 and fiscal year ended June 30, 2010 was as follows:
| Global | International | ||||
| EuroFund | Focus Value | SmallCap | Value | ||
| Ordinary income | 6/30/2011 | $ 5,411,795 | $ 1,500,006 | $ 4,857,956 | $ 795,932 |
| 6/30/2010 | 13,576,091 | 1,800,023 | — | 23,682,869 | |
| Total | 6/30/2011 | $ 5,411,795 | $ 1,500,006 | $ 4,857,956 | $ 795,932 |
| 6/30/2010 | $ 13,576,091 | $ 1,800,023 | — | $ 23,682,869 |
As of June 30, 2011, the tax components of accumulated earnings (losses) were as follows:
| Global | International | |||
| EuroFund | Focus Value | SmallCap | Value | |
| Undistributed ordinary income | $ 9,054,371 | $ 639,850 | $ 9,274,183 | $ 17,474,804 |
| Capital loss carryforwards | (124,732,056) | (45,877,072) | (47,283,515) | (294,506,026) |
| Net unrealized gains* | 30,828,107 | 35,046,723 | 212,589,461 | 122,631,343 |
| Total | $ (84,849,578) | $ (10,190,499) | $ 174,580,129 | $ (154,399,879) |
* The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales and straddles, the realization for tax
purposes of unrealized gains/losses on certain foreign currency contracts, the timing and recognition of partnership income and the realization for tax purposes of unrealized gain
on investments in passive foreign investment companies.
As of June 30, 2011, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:
| Global | International | |||
| Expires June 30, | EuroFund | Focus Value | SmallCap | Value |
| 2017 | $ 38,781,995 | $ 2,651,122 | $ — | $ 175,005,873 |
| 2018 | 85,950,061 | 43,225,950 | 47,283,515 | 119,500,153 |
| Total | $ 124,732,056 | $ 45,877,072 | $ 47,283,515 | $ 294,506,026 |
Under the recently enacted Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds after June 30, 2011 will not be
subject to expiration. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years.
6. Borrowings:
The Funds, along with certain other funds managed by the Manager and
its affiliates, are a party to a $500 million credit agreement with a group
of lenders, which expires in November 2011. The Funds may borrow under
the credit agreement to fund shareholder redemptions. Effective November
2009, the credit agreement had the following terms: 0.02% upfront fee
on the aggregate commitment amount which was allocated to each Fund
based on its net assets as of October 31, 2009, a commitment fee of
0.10% per annum based on each Fund's pro rata share of the unused
portion of the credit agreement and interest at a rate equal to the higher
of (a) the one-month LIBOR plus 1.25% per annum and (b) the Fed
Funds rate plus 1.25% per annum on amounts borrowed. In addition, the
Funds paid administration and arrangement fees which were allocated to
the Funds based on their net assets as of October 31, 2009. Effective
November 2010, the credit agreement was renewed until November 2011
with the following terms: a commitment fee of 0.08% per annum based on
each Fund’s pro rata share of the unused portion of the credit agreement
and interest at a rate equal to the higher of (a) the one-month LIBOR plus
1.00% per annum and (b) the Fed Funds rate plus 1.00% per annum on
amounts borrowed. In addition, the Funds paid administration and arrange-
ment fees which were allocated to the Funds based on their net assets as
of October 31, 2010. The Funds did not borrow under the credit agreement
during the year ended June 30, 2011.
| ANNUAL | REPORT | JUNE | 30, 2011 | 55 |
Notes to Financial Statements (continued)
7. Concentration, Market and Credit Risk:
In the normal course of business, the Funds invest in securities and
enter into transactions where risks exist due to fluctuations in the market
(market risk) or failure of the issuer of a security to meet all its obligations
(issuer credit risk). The value of securities held by the 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 issuer credit risk, the Funds may be exposed to counter-
party credit risk, or the risk that an entity with which the Funds have
unsettled or open transactions may fail to or be unable to perform on its
commitments. The Funds manage counterparty credit risk by entering into
transactions only with counterparties that they believe have the financial
resources to honor their obligations and by monitoring the financial stability
of those counterparties. Financial assets, which potentially expose the
Funds to market, issuer and counterparty credit risks, consist principally of
financial instruments and receivables due from counterparties. The extent
of the Funds' exposure to market, issuer and counterparty credit risks with
respect to these financial assets is generally approximated by their value
recorded in the Funds' Statements of Assets and Liabilities, less any
collateral held by the Funds.
EuroFund, Global SmallCap and International Value
The Funds invest a substantial amount of their assets in issuers located in
a single country or a limited number of countries. When the Funds concen-
trate their investments in this manner, they assume the risk that economic,
political and social conditions in those countries may have a significant
impact on their investment performance. Please see the Schedules of
Investments for concentrations in specific countries.
As of June 30, 2011, the Funds had the following industry classifications
as a percentage of long-term investments:
| Global International | |||
| Industry | EuroFund SmallCap | Value | |
| Commercial Banks | 9% | 3% | 8% |
| Pharmaceuticals | 9 | 1 | 10 |
| Chemicals | 9 | 5 | 5 |
| Oil, Gas and Consumable Fuels | 7 | 5 | 9 |
| Metals & Mining | 6 | 3 | 6 |
| Energy Equipment & Services | 5 | 2 | — |
| Food & Staples Retailing | 5 | — | 6 |
| Electrical Equipment | 5 | — | 5 |
| Insurance | 4 | 4 | 5 |
| Diversified Telecommunication Services | 3 | — | 7 |
| Software | 2 | 7 | — |
| Machinery | 1 | 7 | 3 |
| Other* | 35 | 63 | 36 |
* All other industries held were each less than 5% of long-term investments.
8. Capital Share Transactions:
Transactions in capital shares for each class were as follows:
| Year Ended | Year Ended | |||
| June 30, 2011 | June 30, 2010 | |||
| EuroFund | Shares | Amount | Shares | Amount |
| Institutional | ||||
| Shares sold | 635,951 | $ 8,391,505 | 864,251 | $ 10,721,971 |
| Shares issued to shareholders in reinvestment of dividends | 124,253 | 1,606,600 | 314,699 | 4,091,816 |
| Total issued | 760,204 | 9,998,105 | 1,178,950 | 14,813,787 |
| Shares redeemed | (2,327,524) | (30,057,905) | (3,950,409) | (45,897,216) |
| Net decrease | (1,567,320) | $(20,059,800) | (2,771,459) | $(31,083,429) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 755,888 | $ 9,662,178 | 1,230,158 | $ 15,151,813 |
| Shares issued to shareholders in reinvestment of dividends | 214,075 | 2,718,959 | 502,630 | 6,424,367 |
| Total issued | 969,963 | 12,381,137 | 1,732,788 | 21,576,180 |
| Shares redeemed | (4,226,727) | (53,901,924) | (4,149,446) | (50,094,831) |
| Net decrease | (3,256,764) | $(41,520,787) | (2,416,658) | $(28,518,651) |
| Investor B | ||||
| Shares sold | 17,655 | $ 184,504 | 39,404 | $ 398,064 |
| Shares issued to shareholders in reinvestment of dividends | — | — | 3,894 | 41,240 |
| Total issued | 17,655 | 184,504 | 43,298 | 439,304 |
| Shares redeemed and automatic conversion of shares | (161,181) | (1,710,898) | (289,078) | (2,927,261) |
| Net decrease | (143,526) | $ (1,526,394) | (245,780) | $ (2,487,957) |
| 56 | ANNUAL REPORT | JUNE | 30, 2011 |
Notes to Financial Statements (continued)
| Year Ended | Year Ended | |||
| June 30, 2011 | June 30, 2010 | |||
| EuroFund (concluded) | Shares | Amount | Shares | Amount |
| Investor C | ||||
| Shares sold | 188,792 | $ 1,786,905 | 282,943 | $ 2,546,749 |
| Shares issued to shareholders in reinvestment of dividends | 26,764 | 250,812 | 87,606 | 829,683 |
| Total issued | 215,556 | 2,037,717 | 370,549 | 3,376,432 |
| Shares redeemed | (797,295) | (7,553,611) | (852,938) | (7,554,574) |
| Net decrease | (581,739) | $ (5,515,894) | (482,389) | $ (4,178,142) |
| Class R | ||||
| Shares sold | 79,321 | $ 798,996 | 122,331 | $ 1,186,904 |
| Shares issued to shareholders in reinvestment of dividends | 3,586 | 35,720 | 9,535 | 96,018 |
| Total issued | 82,907 | 834,716 | 131,866 | 1,282,922 |
| Shares redeemed | (130,096) | (1,323,205) | (199,381) | (1,933,350) |
| Net decrease | (47,189) | $ (488,489) | (67,515) | $ (650,428) |
| Focus Value | ||||
| Institutional | ||||
| Shares sold | 402,673 | $ 4,806,851 | 573,048 | $ 5,573,629 |
| Shares issued to shareholders in reinvestment of dividends | 61,591 | 679,326 | 98,151 | 966,840 |
| Total issued | 464,264 | 5,486,177 | 671,199 | 6,540,469 |
| Shares redeemed | (1,602,357) | (17,024,678) | (2,778,849) | (26,874,826) |
| Net decrease | (1,138,093) | $(11,538,501) | (2,107,650) | $(20,334,357) |
| Investor A | ||||
| Shares sold and automatic conversion of shares | 555,911 | $ 6,373,493 | 647,308 | $ 6,326,110 |
| Shares issued to shareholders in reinvestment of dividends | 52,822 | 576,795 | 58,383 | 569,259 |
| Total issued | 608,733 | 6,950,288 | 705,691 | 6,895,369 |
| Shares redeemed | (1,060,829) | (11,751,495) | (1,096,909) | (10,759,700) |
| Net decrease | (452,096) | $ (4,801,207) | (391,218) | $(3,864,331) |
| Investor B | ||||
| Shares sold | 8,247 | $ 83,497 | 17,245 | $ 146,385 |
| Shares issued to shareholders in reinvestment of dividends | — | — | 319 | 2,800 |
| Total issued | 8,247 | 83,497 | 17,564 | 149,185 |
| Shares redeemed and automatic conversion of shares | (97,785) | (955,152) | (328,306) | (2,902,015) |
| Net decrease | (89,538) | $ (871,655) | (310,742) | $ (2,752,830) |
| Investor C | ||||
| Shares sold | 339,658 | $ 3,404,799 | 226,077 | $ 1,876,927 |
| Shares issued to shareholders in reinvestment of dividends | 3,905 | 36,820 | 5,501 | 46,430 |
| Total issued | 343,563 | 3,441,619 | 231,578 | 1,923,357 |
| Shares redeemed | (269,094) | (2,585,590) | (443,651) | (3,807,264) |
| Net increase (decrease) | 74,469 | $ 856,029 | (212,073) | $ (1,883,907) |
| Class R | ||||
| Shares sold | 53,817 | $ 550,297 | 28,000 | $ 248,492 |
| Shares issued to shareholders in reinvestment of dividends | 578 | 5,735 | 463 | 4,122 |
| Total issued | 54,395 | 556,032 | 28,463 | 252,614 |
| Shares redeemed | (57,550) | (580,591) | (19,565) | (171,012) |
| Net increase (decrease) | (3,155) | $ (24,559) | 8,898 | $ 81,602 |
| ANNUAL | REPORT | JUNE | 30, 2011 | 57 |
Notes to Financial Statements (continued)
| Year Ended | Year Ended | ||||
| June 30, 2011 | June 30, 2010 | ||||
| Global SmallCap | Shares | Amount | Shares | Amount | |
| Institutional | |||||
| Shares sold | 4,938,908 | $ 112,932,545 | 6,136,279 | $ 118,722,072 | |
| Shares issued to shareholders in reinvestment of dividends | 117,365 | 2,686,457 | — | — | |
| Total issued. | 5,056,273 | 115,619,002 | 6,136,279 | 118,722,072 | |
| Shares redeemed | (3,986,507) | (89,466,372) | (3,831,606) | (73,495,863) | |
| Net increase | 1,069,766 | $ 26,152,630 | 2,304,673 | $ 45,226,209 | |
| Investor A | |||||
| Shares sold and automatic conversion of shares | 3,528,534 | $ 78,962,695 | 3,978,681 | $ 75,186,517 | |
| Shares issued to shareholders in reinvestment of dividends | 68,162 | 1,530,241 | — | — | |
| Total issued | 3,596,696 | 80,492,936 | 3,978,681 | 75,186,517 | |
| Shares redeemed | (3,264,394) | (72,032,675) | (3,493,869) | (65,870,679) | |
| Net increase | 332,302 | $ 8,460,261 | 484,812 | $ 9,315,838 | |
| Investor B | |||||
| Shares sold | 55,552 | $ 1,139,377 | 129,206 | $ 2,273,237 | |
| Shares redeemed and automatic conversion of shares | (608,046) | (12,505,060) | (1,146,748) | (20,494,205) | |
| Net decrease | (552,494) | $ (11,365,683) | (1,017,542) | $ (18,220,968) | |
| Investor C | |||||
| Shares sold | 2,173,174 | $ 43,983,202 | 3,180,506 | $ 55,171,854 | |
| Shares redeemed | (4,204,450) | (85,067,157) | (4,499,745) | (77,966,157) | |
| Net decrease | (2,031,276) | $ (41,083,955) | (1,319,239) | $ (22,794,303) | |
| Class R | |||||
| Shares sold | 949,113 | $ 19,922,226 | 960,385 | $ 17,330,556 | |
| Shares issued to shareholders in reinvestment of dividends | 5,028 | 107,553 | — | — | |
| Total issued | 954,141 | 20,029,779 | 960,385 | 17,330,556 | |
| Shares redeemed | (1,161,469) | (24,698,830) | (925,449) | (16,464,097) | |
| Net increase (decrease) | (207,328) | $ (4,669,051) | 34,936 | $ 886,459 | |
| International Value | |||||
| Institutional | |||||
| Shares sold | 3,566,538 | $ 77,610,218 | 4,216,370 | $ 83,023,378 | |
| Shares issued to shareholders in reinvestment of dividends | 35,037 | 761,440 | 660,817 | 13,562,794 | |
| Total issued | 3,601,575 | 78,371,658 | 4,877,187 | 96,586,172 | |
| Shares redeemed | (6,042,335) | (130,555,134) | (8,093,784) | (157,966,063) | |
| Net decrease | (2,440,760) | $ (52,183,476) | (3,216,597) | $ (61,379,891) | |
| Investor A | |||||
| Shares sold and automatic conversion of shares | 2,511,624 | $ 51,839,300 | 2,013,939 | $ 39,367,834 | |
| Shares issued to shareholders in reinvestment of dividends | — | — | 267,115 | 5,451,912 | |
| Total issued | 2,511,624 | 51,839,300 | 2,281,054 | 44,819,746 | |
| Shares redeemed | (3,619,283) | (76,751,012) | (3,067,038) | (60,639,619) | |
| Net decrease | (1,107,659) | $ (24,911,712) | (785,984) | $ (15,819,873) | |
| 58 | ANNUAL REPORT | JUNE | 30, 2011 |
Notes to Financial Statements (concluded)
| Year Ended | Year Ended | |||||
| June 30, 2011 | June 30, 2010 | |||||
| International Value (concluded) | Shares | Amount | Shares | Amount | ||
| Investor B | ||||||
| Shares sold | 218,828 | $ 4,497,255 | 415,953 | $ 7,992,241 | ||
| Shares issued to shareholders in reinvestment of dividends | — | — | 17,376 | 347,017 | ||
| Total issued | 218,828 | 4,497,255 | 433,329 | 8,339,258 | ||
| Shares redeemed and automatic conversion of shares | (749,832) | (15,482,986) | (801,265) | (15,419,130) | ||
| Net decrease | (531,004) | $ (10,985,731) | (367,936) | $ (7,079,872) | ||
| Investor C | ||||||
| Shares sold | 1,558,412 | $ 31,652,919 | 2,248,152 | $ 42,381,360 | ||
| Shares issued to shareholders in reinvestment of dividends | — | — | 116,442 | 2,285,844 | ||
| Total issued | 1,558,412 | 31,652,919 | 2,364,594 | 44,667,204 | ||
| Shares redeemed | (3,182,437) | (64,930,436) | (3,112,800) | (58,867,895) | ||
| Net decrease | (1,624,025) | $ (33,277,517) | (748,206) | $ (14,200,691) | ||
| Class R | ||||||
| Shares sold | 701,372 | $ 14,809,199 | 962,520 | $ 18,827,640 | ||
| Shares issued to shareholders in reinvestment of dividends | — | — | 51,204 | 1,032,783 | ||
| Total issued | 701,372 | 14,809,199 | 1,013,724 | 19,860,423 | ||
| Shares redeemed | (1,404,687) | (30,086,498) | (1,172,605) | (22,993,969) | ||
| Net decrease | (703,315) | $ (15,277,299) | (158,881) | $ (3,133,546) | ||
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 the Funds for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid-in capital. Effective April 1, 2011, the
redemption fees were terminated and are no longer charged by the Funds.
9. Subsequent Events:
Management’s evaluation of the impact of all subsequent events on the
Funds’ financial statements was completed through the date the financial
statements were issued and the following items were noted:
At a shareholder meeting on July 7, 2011, shareholders of the International
Value Fund approved the plan of reorganization discussed in Note 1. The
reorganization took place on August 15, 2011. In connection with the
merger, BlackRock International Fund acquired substantially all of the
assets and assumed certain stated liabilities of International Value Fund,
with a net asset value of $641,401,982, in exchange for the following
newly issued shares of BlackRock International Fund:
| Institutional | 30,552,476 |
| Investor A | 7,680,422 |
| Investor B | 1,498,588 |
| Investor C | 10,547,230 |
| Class R | 2,819,735 |
On August 8, 2011, International Value transferred securities and cash to
shareholders in connection with a redemption-in-kind transaction in the
amount of $102,620,475.
At a shareholder meeting on August 25, 2011, shareholders of the Focus
Value Fund approved the plan of reorganization discussed in Note 1.
| ANNUAL | REPORT | JUNE | 30, 2011 | 59 |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors/Trustees of
BlackRock EuroFund, BlackRock Focus Value Fund, Inc.
BlackRock Global SmallCap Fund, Inc., and BlackRock
International Value Fund:
We have audited the accompanying statements of assets and liabilities of
BlackRock EuroFund, BlackRock Focus Value Fund, Inc., BlackRock Global
SmallCap Fund, Inc., and BlackRock International Value Fund, a series of
BlackRock International Value Trust, (collectively, the “Funds”), including the
schedules of investments, as of June 30, 2011, 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 the respective periods presented. These financial statements
and financial highlights are the responsibility of the Funds’ management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with the standards of Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of
material misstatement. The Funds are not required to have, nor were we
engaged to perform, audits of their internal controls over financial reporting
as a basis for designing audit procedures that are appropriate in the cir-
cumstances, but not for the purpose of expressing an opinion on the effec-
tiveness 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 significant
estimates made by management, as well as evaluating the overall financial
statement presentation. Our procedures included confirmation of securities
owned as of June 30, 2011, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of the
BlackRock EuroFund, BlackRock Focus Value Fund, Inc., BlackRock Global
SmallCap Fund, Inc., and BlackRock International Value Fund of BlackRock
International Value Trust, as of June 30, 2011, the results of their opera-
tions for the year then ended, the changes in their net assets for each of
the two years in the period then ended, and the financial highlights for the
respective periods presented, in conformity with accounting principles
generally accepted in the United States of America.
As discussed in Note 9 of the Notes to Financial Statements, on July 7,
2011 and August 25, 2011, the shareholders of BlackRock International
Value Fund and BlackRock Focus Value Fund, Inc., respectively, approved
the plans of reorganization discussed in Note 1 of the Notes to Financial
Statements and the BlackRock International Value Fund merger took place,
as described in Note 9, on August 15, 2011.
Deloitte & Touche LLP
Boston, Massachusetts
August 25, 2011
Important Tax Information (Unaudited)
The following information is provided with respect to the ordinary income distributions paid during the fiscal year ended June30, 2011:
| Global | International | ||||
| Payable Date | EuroFund | Focus Value | SmallCap | Value | |
| Qualified Dividend Income for Individuals | 12/03/10 | — | 100% | — | — |
| 12/15/10 | 100%1 | — | 100% | 100%1 | |
| Dividends Qualifying for the Dividend Received Deduction for Corporations | 12/03/10 | — | 100% | — | — |
| 12/15/10 | — | — | 77.58% | — | |
| Foreign Source Income | 12/15/10 | †100%1 | — | — | 100%1 |
| Foreign Taxes Paid Per Share | 12/15/10 | $ 0.046616 | — | — | $ 0.099926 |
1 Expressed as a percentage of the cash distribution grossed up for foreign taxes.
The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in
taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your
tax advisor regarding the appropriate treatment of foreign taxes paid.
| 60 | ANNUAL REPORT | JUNE | 30, 2011 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
The Board of Trustees of BlackRock EuroFund (the “EuroFund”), the Board
of Directors of BlackRock Focus Value Fund, Inc. (the “Focus Value Fund”),
the Board of Directors of BlackRock Global SmallCap Fund, Inc. (the
“Global SmallCap Fund”) and the Board of Trustees of BlackRock
International Value Fund (the “International Value Fund;” along with the
EuroFund, the Focus Value Fund, and the Global SmallCap Fund, each a
“Fund” and collectively, the “Funds”), a series of BlackRock International
Value Trust (the “International Value Trust,” along with the EuroFund, the
Focus Value Fund, and the Global SmallCap Fund, each a “Trust”), (collec-
tively, the “Board,” and the members of which are referred to as “Board
Members”) met on April 12, 2011 and May 10 — 11, 2011 to consider
the approval of the investment advisory agreement between each Trust
(on behalf of the International Value Fund for the International Value
Trust) (collectively, the “Advisory Agreements”) and BlackRock Advisors,
LLC (the “Manager”), each Fund’s investment advisor. The Board also
considered the approval of the sub-advisory agreements (collectively,
the “Sub-Advisory Agreements”) between the Manager and each of (a)
BlackRock Investment Management, LLC, and (b) BlackRock International
Limited (collectively, the “Sub-Advisors”), with respect to the Funds, as
applicable. The Manager and the Sub-Advisors are referred to herein as
“BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements
are referred to herein as the “Agreements.”
Activities and Composition of the Board
The Board consists of thirteen individuals, ten of whom are not “interested
persons” of any Trust as defined in the Investment Company Act of 1940,
as amended (the “1940 Act”) (the “Independent Board Members”). The
Board Members are responsible for the oversight of the operations of the
Funds and perform the various duties imposed on the directors of invest-
ment companies by the 1940 Act. The Independent Board Members have
retained independent legal counsel to assist them in connection with their
duties. The Chairman of the Board is an Independent Board Member. The
Board has established five standing committees: an Audit Committee, a
Governance and Nominating Committee, a Compliance Committee, a
Performance Oversight Committee and an Executive Committee, each of
which is composed of Independent Board Members (except for the
Performance Oversight Committee and the Executive Committee, each of
which also has one interested Board Member) and is chaired by
Independent Board Members. The Board also established an ad hoc com-
mittee, the Joint Product Pricing Committee, which consisted of
Independent Board Members and directors/trustees of the boards of cer-
tain other BlackRock-managed funds, who were not “interested persons” of
their respective funds.
The Agreements
Pursuant to the 1940 Act, the Board is required to consider the continua-
tion of the Agreements on an annual basis. In connection with this process,
the Board assessed, among other things, the nature, scope and quality of
the services provided to each Fund by BlackRock, its personnel and its
affiliates, including investment management, administrative and share-
holder services, oversight of fund accounting and custody, marketing
services, risk oversight, compliance program and assistance in meeting
applicable legal and regulatory requirements.
The Board, acting directly and through its committees, considers at each of
its meetings, and from time to time as appropriate, factors that are relevant
to its annual consideration of the renewal of the Agreements, including the
services and support provided by BlackRock to each Fund and its share-
holders. Among the matters the Board considered were: (a) investment per-
formance for one-, three- and five-year periods, as applicable, against peer
funds, and applicable benchmarks, if any, as well as senior management’s
and portfolio managers’ analysis of the reasons for any over performance
or underperformance against its peers and/or benchmark, as applicable;
(b) fees, including advisory, administration, if applicable, and other
amounts paid to BlackRock and its affiliates by each Fund for services,
such as transfer agency, marketing and distribution, call center and fund
accounting; (c) Fund operating expenses and how BlackRock allocates
expenses to each Fund; (d) the resources devoted to, risk oversight of, and
compliance reports relating to, implementation of each Fund’s investment
objective, policies and restrictions; (e) each Fund’s compliance with its
Code of Ethics and other compliance policies and procedures; (f) the
nature, cost and character of non-investment management services pro-
vided by BlackRock and its affiliates; (g) BlackRock’s and other service
providers’ internal controls and risk and compliance oversight mechanisms;
(h) BlackRock’s implementation of the proxy voting policies approved by
the Board; (i) the use of brokerage commissions and execution quality of
portfolio transactions; (j) BlackRock’s implementation of each Fund’s valu-
ation and liquidity procedures; (k) an analysis of contractual and actual
management fees for products with similar investment objectives across
the open-end fund, exchange traded fund (“ETF”), closed-end fund and
institutional account product channels, as applicable; (l) BlackRock’s com-
pensation methodology for its investment professionals and the incentives
it creates; and (m) periodic updates on BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the April 12, 2011 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in a process with BlackRock to review periodically
the nature and scope of the information provided to better assist its delib-
erations. The materials provided in connection with the April meeting
included (a) information independently compiled and prepared by Lipper,
Inc. (“Lipper”) on Fund fees and expenses and the investment performance
of each Fund as compared with a peer group of funds as determined by
Lipper, and in the case of the Focus Value Fund, a customized peer group
selected by BlackRock (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 manage-
ment fees (a combination of the advisory fee and the administration fee, if
any) charged to other clients, such as institutional clients, ETFs and closed-
end funds, under similar investment mandates, as well as the performance
of such other clients, as applicable; (d) the impact of economies of scale;
| ANNUAL | REPORT | JUNE | 30, 2011 | 61 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
(e) a summary of aggregate amounts paid by each Fund to BlackRock;
(f) sales and redemption data regarding each Fund’s shares; and (g) if
applicable, a comparison of management fees to similar BlackRock
open-end funds, as classified by Lipper.
At an in-person meeting held on April 12, 2011, the Board reviewed mate-
rials relating to its consideration of the Agreements. As a result of the dis-
cussions that occurred during the April 12, 2011 meeting, and as a
culmination of the Board’s year-long deliberative process, the Board pre-
sented BlackRock with questions and requests for additional information.
BlackRock responded to these requests with additional written information
in advance of the May 10 — 11, 2011 Board meeting.
At an in-person meeting held on May 10 — 11, 2011, the Board, including
the Independent Board Members, unanimously approved the continuation
of the Advisory Agreements between the Manager and each Trust (on behalf
of the International Value Fund for the International Value Trust), and the
Sub-Advisory Agreements between the Manager and the Sub-Advisors with
respect to each Fund, as applicable, each for a one-year term ending June
30, 2012. In approving the continuation of the Agreements, the Board con-
sidered: (a) the nature, extent and quality of the services provided by
BlackRock; (b) the investment performance of each Fund and BlackRock;
(c) the advisory fee and the cost of the services and profits to be realized
by BlackRock and its affiliates from their relationship with each Fund;
(d) economies of scale; (e) fall-out benefits to BlackRock as a result of
its relationship with each Fund; and (f) other factors deemed relevant by
the Board Members.
The Board also considered other matters it deemed important to the
approval process, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valuation
and pricing of Fund portfolio holdings, direct and indirect benefits to
BlackRock and its affiliates and significant shareholders from their relation-
ship with each Fund and advice from independent legal counsel with
respect to the review process and materials submitted for the Board’s
review. The Board noted the willingness of BlackRock personnel to engage
in open, candid discussions with the Board. The Board did not identify any
particular information as controlling, and each Board Member may have
attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock: The
Board, including the Independent Board Members, reviewed the nature,
extent and quality of services provided by BlackRock, including the invest-
ment advisory services and the resulting performance of each Fund.
Throughout the year, the Board compared Fund performance to the per-
formance of a comparable group of mutual funds and/or the performance
of a 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 pro-
vided by each Fund’s portfolio management team discussing Fund perform-
ance and the Fund’s investment objective, strategies and outlook.
The Board considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and each Fund’s
portfolio management team, investments by portfolio managers in the
funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s
use of technology, BlackRock’s commitment to compliance, BlackRock’s
credit analysis capabilities, BlackRock’s risk analysis capabilities and
BlackRock’s approach to training and retaining portfolio managers and
other research, advisory and management personnel. The Board engaged in
a review of BlackRock’s compensation structure with respect to each
Fund’s portfolio management team and BlackRock’s ability to attract and
retain high-quality talent and create performance incentives.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to each
Fund. BlackRock and its affiliates and significant shareholders provide each
Fund with certain administrative, transfer agency, shareholder and other
services (in addition to any such services provided to each Fund by third
parties) and officers and other personnel as are necessary for the opera-
tions of the Fund. In addition to investment advisory services, BlackRock
and its affiliates provide each Fund with other services, including (i)
preparing disclosure documents, such as the prospectus, the statement of
additional information and periodic shareholder reports; (ii) assisting with
daily accounting and pricing; (iii) overseeing and coordinating the activities
of other service providers; (iv) organizing Board meetings and preparing the
materials for such Board meetings; (v) providing legal and compliance sup-
port; and (vi) performing other administrative functions necessary for the
operation of the Fund, such as tax reporting, fulfilling regulatory filing
requirements and call center services. The Board reviewed the structure
and duties of BlackRock’s fund administration, accounting, legal and com-
pliance departments and considered BlackRock’s policies and procedures
for assuring compliance with applicable laws and regulations.
B. The Investment Performance of each Fund and BlackRock: The Board,
including the Independent Board Members, also reviewed and considered
the performance history of each Fund. In preparation for the April 12, 2011
meeting, the Board worked with BlackRock and Lipper to develop a tem-
plate for, and was provided with, reports independently prepared by Lipper,
which included a comprehensive analysis of each Fund’s performance. The
Board also reviewed a narrative and statistical analysis of the Lipper data
that was prepared by BlackRock, which analyzed various factors that affect
Lipper’s rankings. In connection with its review, the Board received and
reviewed information regarding the investment performance of each Fund
as compared to funds in the Fund’s applicable Lipper category, and for the
Focus Value Fund, a customized peer group selected by BlackRock. The
Board was provided with a description of the methodology used by Lipper
to select peer funds. The Board and the Board’s Performance Oversight
Committee regularly review, and meet with Fund management to discuss,
the performance of each Fund throughout the year.
The Board noted that the EuroFund ranked in the fourth, third and third
quartiles against its Lipper Performance Universe for the one-, three- and
| 62 | ANNUAL REPORT | JUNE | 30, 2011 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
five-year periods reported, respectively. The Board and BlackRock reviewed
and discussed the reasons for the EuroFund’s underperformance during
these periods compared with its Peers. The Board was informed that,
among other things, the EuroFund’s fundamental value orientation has hin-
dered the EuroFund’s progress relative to Peers over the short- and long-
term. The EuroFund had been historically run as a value style product but is
now a fully flexible portfolio under a new portfolio management team.
The Board and BlackRock discussed BlackRock’s strategy for improving the
EuroFund’s performance and BlackRock’s commitment to providing the
resources necessary to assist the EuroFund’s portfolio managers and to
improve the EuroFund’s performance.
The Board noted that the Focus Value Fund ranked in the second quartile
against its Customized Lipper Peer Group for each of the one-, three- and
five-year periods reported.
The Board noted that the Global SmallCap Fund ranked in the fourth, sec-
ond and second quartiles against its Lipper Performance Universe for the
one-, three- and five-year periods reported, respectively.
The Board noted that the International Value Fund ranked in the second
quartile against its Lipper Performance Universe for each of the one-, three-
and five-year periods reported.
The Board noted that BlackRock has made changes to the organization of
the overall equity group management structure designed to result in a
strengthened leadership team.
C. Consideration of the Advisory/Management Fees and the Cost of the
Services and Profits to be Realized by BlackRock and its Affiliates from
their Relationship with each Fund: The Board, including the Independent
Board Members, reviewed each Fund’s contractual management fee ratio
compared with the other funds in its Lipper category. It also compared
each Fund’s total expense ratio, as well as actual management fee ratio, to
those of other funds in its Lipper category. The Board considered the serv-
ices provided and the fees charged by BlackRock to other types of clients
with similar investment mandates, including separately managed institu-
tional accounts.
The Board received and reviewed statements relating to BlackRock’s finan-
cial condition and profitability with respect to the services it provided each
Fund. The Board was also provided with a profitability analysis that detailed
the revenues earned and the expenses incurred by BlackRock for services
provided to each Fund. The Board reviewed BlackRock’s profitability with
respect to each Fund and other funds the Board currently oversees for the
year ended December 31, 2010 compared to available aggregate prof-
itability data provided for the years ended December 31, 2009 and
December 31, 2008. The Board reviewed BlackRock’s profitability with
respect to other fund complexes managed by the Manager and/or its affili-
ates. The Board reviewed BlackRock’s assumptions and methodology of
allocating expenses in the profitability analysis, noting the inherent limita-
tions in allocating costs among various advisory products. The Board recog-
nized that profitability may be affected by numerous factors including,
among other things, fee waivers and expense reimbursements by the
Manager, the types of funds managed, expense allocations and business
mix, and the difficulty of comparing profitability as a result of those factors.
The Board noted that, in general, individual fund or product line profitability
of other advisors is not publicly available. The Board considered
BlackRock’s operating margin, in general, compared to the operating mar-
gin for leading investment management firms whose operations include
advising open-end funds, among other product types. That data indicates
that operating margins for BlackRock, in general and with respect to its reg-
istered funds, are generally consistent with margins earned by similarly sit-
uated publicly traded competitors. In addition, the Board considered,
among other things, certain third party data comparing BlackRock’s operat-
ing margin with that of other publicly-traded asset management firms. That
third party data indicates that larger asset bases do not, in themselves,
translate to higher profit margins.
In addition, the Board considered the cost of the services provided to each
Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the
management and distribution of each Fund and the other funds advised by
BlackRock and its affiliates. As part of its analysis, the Board reviewed
BlackRock’s methodology in allocating its costs to the management of
each Fund. The Board also considered whether BlackRock has the financial
resources necessary to attract and retain high quality investment manage-
ment personnel to perform its obligations under the Agreements and to
continue to provide the high quality of services that is expected by the
Board.
The Board noted that the EuroFund’s contractual management fee ratio (a
combination of the advisory fee and the administration fee, if any) was
lower than or equal to the median contractual management fee ratio paid
by the EuroFund’s Peers, in each case before taking into account any
expense reimbursements or fee waivers. The Board also noted that effective
June 1, 2011, the EuroFund has an advisory fee arrangement that includes
breakpoints that adjust the fee ratio downward as the size of the EuroFund
increases above certain contractually specified levels.
The Board noted that the Focus Value Fund’s contractual management fee
ratio (a combination of the advisory fee and the administration fee, if any)
was above the median contractual management fee ratio paid by the
Focus Value Fund’s Peers, in each case before taking into account any
expense reimbursements or fee waivers. The Board also noted, however,
that the Focus Value Fund’s actual management fee ratio, after giving effect
to any expense reimbursements or fee waivers by BlackRock, was lower
than or equal to the median actual management fee ratio paid by the
Focus Value Fund’s Peers, after giving effect to any expense reimburse-
ments or fee waivers. The Board further noted that effective June 1, 2011,
the Fund has an advisory fee arrangement that includes breakpoints that
adjust the fee ratio downward as the size of the Focus Value Fund
| ANNUAL | REPORT | JUNE | 30, 2011 | 63 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)
increases above certain contractually specified levels. Additionally, the
Board noted that BlackRock has contractually agreed to waive or reimburse
management fees for the Focus Value Fund.
The Board noted that the Global SmallCap Fund’s contractual management
fee ratio (a combination of the advisory fee and the administration fee, if
any) was lower than or equal to the median contractual management fee
ratio paid by the Global SmallCap Fund’s Peers, in each case before taking
into account any expense reimbursements or fee waivers. The Board also
noted that effective June 1, 2011, the Global SmallCap Fund has an advi-
sory fee arrangement that includes breakpoints that adjust the fee ratio
downward as the size of the Global SmallCap Fund increases above certain
contractually specified levels.
The Board noted that the International Value Fund’s contractual manage-
ment fee ratio (a combination of the advisory fee and the administration
fee, if any) was lower than or equal to the median contractual management
fee ratio paid by the International Value Fund’s Peers, in each case before
taking into account any expense reimbursements or fee waivers. The Board
also noted that the International Value Fund has an advisory fee arrange-
ment that includes breakpoints that adjust the fee ratio downward as the
size of the International Value Fund increases above certain contractually
specified levels.
D. Economies of Scale: The Board, including the Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of each Fund increase. The Board also considered
the extent to which each Fund benefits from such economies and whether
there should be changes in the advisory fee rate or structure in order to
enable each Fund to participate in these economies of scale, for example
through the use of breakpoints, and in the case of the International Value
Fund, revised breakpoints in the advisory fee based upon the asset level of
each Fund.
E. Other Factors Deemed Relevant by the Board Members: The Board,
including the Independent Board Members, also took into account other
ancillary or “fall-out” benefits that BlackRock or its affiliates and significant
shareholders may derive from their respective relationships with each
Fund, both tangible and intangible, such as BlackRock’s ability to leverage
its investment professionals who manage other portfolios and risk manage-
ment personnel, an increase in BlackRock’s profile in the investment
advisory community, and the engagement of BlackRock’s affiliates and
significant shareholders as service providers to the Fund, including for
administrative, transfer agency, distribution and securities lending services.
The Board also considered BlackRock’s overall operations and its efforts
to expand the scale of, and improve the quality of, its operations. The
Board also noted that BlackRock may use and benefit from third party
research obtained by soft dollars generated by certain registered fund
transactions to assist in managing all or a number of its other client
accounts. The Board further noted that BlackRock’s funds may invest in
affiliated ETFs without any offset against the management fees payable by
the funds to BlackRock.
In connection with its consideration of the Agreements, the Board also
received information regarding BlackRock’s brokerage and soft dollar prac-
tices. The Board received reports from BlackRock which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.
The Board noted the competitive nature of the open-end fund marketplace,
and that shareholders are able to redeem their Fund shares if they believe
that the Fund’s fees and expenses are too high or if they are dissatisfied
with the performance of the Fund.
Conclusion
The Board, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreements between the
Manager and each Trust (on behalf of the International Value Fund for the
International Value Trust) for a one-year term ending June 30, 2012 and
the Sub-Advisory Agreements between the Manager and the Sub-Advisors,
with respect to each Fund, as applicable, for a one-year term ending June
30, 2012. As part of its approval, the Board considered the detailed review
of BlackRock’s fee structure, as it applies to each Fund, conducted by the
ad hoc Joint Product Pricing Committee. Based upon its evaluation of all of
the aforementioned factors in their totality, the Board, including the
Independent Board Members, was satisfied that the terms of the
Agreements were fair and reasonable and in the best interest of each Fund
and its shareholders. In arriving at its decision to approve the Agreements,
the Board did not identify any single factor or group of factors as all-impor-
tant or controlling, but considered all factors together, and different Board
Members may have attributed different weights to the various factors con-
sidered. The Independent Board Members were also assisted by the advice
of independent legal counsel in making this determination. The contractual
fee arrangements for each Fund reflect the results of several years of review
by the Board Members and predecessor Board Members, and discussions
between such Board Members (and predecessor Board Members) and
BlackRock. As a result, the Board Members’ conclusions may be based in
part on their consideration of these arrangements in prior years.
| 64 | ANNUAL REPORT | JUNE | 30, 2011 |
| Officers and Directors | |||||
| Number of BlackRock- | |||||
| Advised Registered | |||||
| Length | Investment Companies | ||||
| Position(s) | of Time | (“RICs”) Consisting of | |||
| Name, Address | Held with | Served as a | Investment Portfolios | Public | |
| and Year of Birth | Funds | Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
| Independent Directors | |||||
| Robert M. Hernandez | Chair of | Since | Director, Vice Chairman and Chief Financial Officer of USX | 34 RICs consisting of | ACE Limited |
| 55 East 52nd Street | the Board | 2007 | Corporation (energy and steel business) from 1991 to 2001. | 97 Portfolios | (insurance company); |
| New York, NY 10055 | and Director | Eastman Chemical | |||
| 1944 | Company (chemicals); | ||||
| RTI International | |||||
| Metals, Inc. (metals); | |||||
| TYCO Electronics | |||||
| (electronics) | |||||
| Fred G. Weiss | Vice Chair | Since | Managing Director, FGW Associates (consulting and investment | 34 RICs consisting of | Watson |
| 55 East 52nd Street | of the Board | 2007 | company) since 1997; Director and Treasurer, Michael J. Fox | 97 Portfolios | Pharmaceuticals, Inc. |
| New York, NY 10055 | and Director | Foundation for Parkinson’s Research since 2000; Director, BTG | |||
| 1941 | International Plc (medical technology commercialization company) | ||||
| from 2001 to 2007. | |||||
| James H. Bodurtha | Director | Since | Director, The China Business Group, Inc. (consulting firm) since | 34RICs consisting of | None |
| 55 East 52nd Street | 2002 | 1996 and Executive Vice President thereof from 1996 to 2003; | 97 Portfolios | ||
| New York, NY 10055 | Chairman of the Board, Berkshire Holding Corporation since 1980. | ||||
| 1944 | |||||
| Bruce R. Bond | Director | Since | Trustee and Member of the Governance Committee, State Street | 34 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Research Mutual Funds from 1997 to 2005; Board Member | 97 Portfolios | ||
| New York, NY 10055 | of Governance, Audit and Finance Committee, Avaya Inc. | ||||
| 1946 | (computer equipment) from 2003 to 2007. | ||||
| Donald W. Burton | Director | Since | Managing General Partner, The Burton Partnership, LP (an | 34 RICs consisting of | Knology, Inc. (tele- |
| 55 East 52nd Street | 2007 | investment partnership) since 1979; Managing General Partner, | 97 Portfolios | communications); | |
| New York, NY 10055 | The South Atlantic Venture Funds since 1983; Director, Lifestyle | Capital Southwest | |||
| 1944 | Family Fitness (fitness industry) since 2006; Director, IDology, Inc. | (financial) | |||
| (technology solutions) since 2006; Member of the Investment | |||||
| Advisory Council of the Florida State Board of Administration | |||||
| from 2001 to 2007. | |||||
| Honorable Stuart E. | Director | Since | Partner and Head of International Practice, Covington and | 34 RICs consisting of | Alcatel-Lucent (tele- |
| Eizenstat | 2007 | Burling LLP (law firm) since 2001; International Advisory Board | 97 Portfolios | communications); | |
| 55 East 52nd Street | Member, The Coca-Cola Company since 2002; Advisory Board | Global Specialty | |||
| New York, NY 10055 | Member, Veracity Worldwide, LLC (risk management) since 2007; | Metallurgical (metal- | |||
| 1943 | Member of the Board of Directors, Chicago Climate Exchange | lurgical industry); | |||
| (environment) since 2006; Member of the International Advisory | UPS Corporation | ||||
| Board GML (energy) since 2003; Advisory Board Member, BT | (delivery service) | ||||
| Americas (telecommunications) from 2004to 2010. | |||||
| Kenneth A. Froot | Director | Since | Professor, Harvard University since 1992. | 34 RICs consisting of | None |
| 55 East 52nd Street | 2005 | 97 Portfolios | |||
| New York, NY 10055 | |||||
| 1957 | |||||
| John F. O’Brien | Director | Since | Chairman and Director, Woods Hole Oceanographic Institute | 34 RICs consisting of | Cabot Corporation |
| 55 East 52nd Street | 2007 | since 2009 and Trustee thereof from 2003 to 2009; Director, | 97 Portfolios | (chemicals); LKQ | |
| New York, NY 10055 | Allmerica Financial Corporation from 1995 to 2003; Director, | Corporation (auto | |||
| 1943 | ABIOMED from 1989 to 2006; Director, Ameresco,Inc. | parts manufacturing); | |||
| (energy solutions company) from 2006 to 2007; Vice Chairman | TJX Companies, Inc. | ||||
| and Director, Boston Lyric Opera from 2002 to 2007. | (retailer) | ||||
| Roberta Cooper Ramo | Director | Since | Shareholder, Modrall, Sperling, Roehl, Harris & Sisk, P.A. (law | 34 RICs consisting of | None |
| 55 East 52nd Street | 2002 | firm) since 1993; Chairman of the Board, Cooper’s Inc., (retail) | 97 Portfolios | ||
| New York, NY 10055 | since 2000; Director, ECMC Group (service provider to | ||||
| 1942 | students, schools and lenders) since 2001; President, The | ||||
| American Law Institute (non-profit) since 2008; President, | |||||
| American Bar Association from 1995 to 1996. | |||||
| ANNUAL | REPORT | JUNE | 30, 2011 | 65 |
| Officers and Directors (continued) | |||||
| Number of BlackRock- | |||||
| Advised Registered | |||||
| Length | Investment Companies | ||||
| Position(s) | of Time | (“RICs”) Consisting of | |||
| Name, Address | Held with | Served as | Investment Portfolios | Public | |
| and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
| Independent Directors1 (concluded) | |||||
| David H. Walsh | Director | Since | Director, National Museum of Wildlife Art since 2007; Trustee, | 34 RICs consisting of | None |
| 55 East 52nd Street | 2007 | University of Wyoming Foundation since 2008; Director, | 97 Portfolios | ||
| New York, NY 10055 | Ruckelshaus Institute and Haub School of Natural Resources at | ||||
| 1941 | the University of Wyoming from 2006 to 2008; Director, The | ||||
| American Museum of Fly Fishing since 1997; Director, The | |||||
| National Audubon Society from 1998 to 2005. | |||||
| 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. Followingthe combination of Merrill | |||||
| Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund | |||||
| boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain Directors as joining a Fund’s | |||||
| board in 2007, each Director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha, 1995; | |||||
| Bruce R. Bond, 2005; Donald W. Burton, 2002; Honorable Stuart E. Eizenstat, 2001; Kenneth A. Froot, 2005; Robert M. Hernandez,1996; John F. O’Brien, | |||||
| 2004; Roberta Cooper Ramo, 2000; David H. Walsh, 2003; and Fred G. Weiss, 1998. | |||||
| Interested Directors3 | |||||
| Richard S. Davis | Director | Since | Managing Director, BlackRock, Inc. since 2005; Chief Executive | 165 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Officer, State Street Research & Management Company from | 291 Portfolios | ||
| New York, NY 10055 | 2000 to 2005; Chairman of the Board of Trustees, State Street | ||||
| 1945 | Research Mutual Funds from 2000 to 2005. | ||||
| Laurence D. Fink | Director | Since | Chairman and Chief Executive Officer of BlackRock, Inc. since its | 34 RICs consisting of | None |
| 55 East 52nd Street | 2007 | formation in 1998 and of BlackRock, Inc.’s predecessor entities | 97Portfolios | ||
| New York, NY 10055 | since 1988 and Chairman of the Executive and Management | ||||
| 1952 | Committees; Formerly Managing Director, The First Boston Corp- | ||||
| oration, Member of its Management Committee, Co-head of its | |||||
| Taxable Fixed Income Division and Head of its Mortgage and Real | |||||
| Estate Products Group; Chairman of the Board of several of | |||||
| BlackRock’s alternative investment vehicles; Director of several of | |||||
| BlackRock’s offshore funds; Member of the Board of Trustees of | |||||
| New York University, Chair of the Financial Affairs Committee and | |||||
| a member of the Executive Committee, the Ad Hoc Committee on | |||||
| Board Governance, and the Committee onTrustees; 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 | 165 RICs consisting of | None |
| 55 East 52nd Street | 2007 | Director, BlackRock, Inc. from 1989 to 2007; Chief | 291 Portfolios | ||
| New York, NY 10055 | Administrative Officer, BlackRock Advisors, LLC from 1998 to | ||||
| 1947 | 2007; President of BlackRock Funds and BlackRock Bond | ||||
| Allocation Target Shares from 2005 to 2007 and Treasurer of | |||||
| certain closed-end funds in the BlackRock fund complex from | |||||
| 1989 to 2006. | |||||
3 Messrs. Davis and Fink are both “interested persons,” as defined in the 1940 Act, of the Funds based on their positions with BlackRock, Inc. and its affiliates.
Mr. Gabbay is an "interested person" of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock,
Inc. and The PNC Financial Services Group, Inc. securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which
they turn 72.
| 66 | ANNUAL REPORT | JUNE | 30, 2011 |
| Officers and Directors (concluded) | |||
| Position(s) | |||
| Name, Address | Held with | Length of | |
| and Year of Birth | Funds | Time Served | Principal Occupation(s) During Past 5 Years |
| Officers1 | |||
| John M. Perlowski | President and | Since | Managing Director of BlackRock, Inc. since 2009; Global Head of BlackRock Fund Administration since 2009; |
| 55 East 52nd Street | Chief | 2011 | Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, |
| New York, NY 10055 | Executive | L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President | |
| 1964 | Officer | thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family | |
| Resource Network (charitable foundation) since 2009. | |||
| Brendan Kyne | Vice | Since | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product |
| 55 East 52nd Street | President | 2009 | Development and Management for BlackRock's U.S. Retail Group since 2009, Co-head thereof from 2007 to |
| New York, NY 10055 | 2009; Vice President of BlackRock, Inc. from 2005 to 2008. | ||
| 1977 | |||
| Neal Andrews | Chief | Since | Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund |
| 55 East 52nd Street | Financial | 2007 | Accounting and Administration at PNC Global Investment Servicing (U.S.)Inc. from 1992 to 2006. |
| New York, NY 10055 | Officer | ||
| 1966 | |||
| Jay Fife | Treasurer | Since | Managing Director of BlackRock, Inc. since 2007; Director of BlackRock, Inc. in 2006; Assistant Treasurer of the MLIM |
| 55 East 52nd Street | 2007 | and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund Services Group from | |
| New York, NY 10055 | 2001 to 2006. | ||
| 1970 | |||
| Brian Kindelan | Chief | Since | Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of |
| 55 East 52nd Street | Compliance | 2007 | BlackRock, Inc. since 2005. |
| New York, NY 10055 | Officer and | ||
| 1959 | Anti-Money | ||
| Laundering Officer | |||
| Ira P. Shapiro | Secretary | Since | Managing Director of BlackRock, Inc. since 2009; Managing Director and Associate General Counsel of Barclays Global |
| 55 East 52nd Street | 2010 | Investors from 2008 to 2009 and Principal thereof from 2004 to 2008. | |
| New York, NY 10055 | |||
| 1963 | |||
| 1 Officers of the Funds serve at the pleasure of the Board. | |||
| Further information about the Series’ Officers and Trustees is available in the Funds’ Statement of Additional Information, which can be obtained without | |||
| charge by calling (800) 441-7762. | |||
| Investment Advisor | Custodian | Accounting Agent | Legal Counsel | Address of the Funds |
| BlackRock Advisors, LLC | Brown Brothers | State Street Bank | Willkie Farr & Gallagher LLP | 100 Bellevue Parkway |
| Wilmington, DE 19809 | Harriman & Co.4 | and Trust Company | New York, NY 10019 | Wilmington, DE 19809 |
| Boston, MA 02101 | Boston, MA 02116 | |||
| Sub-Advisors | Independent Registered | |||
| BlackRock Investment | JPMorgan Chase | Distributor | Public Accounting Firm | |
| Management, LLC2 | Bank, N.A.5 | BlackRock Investments, LLC | Deloitte & Touche LLP | |
| Princeton, NJ 08540 | Brooklyn, NY 11245 | New York, NY 10022 | Boston, MA 02116 | |
| BlackRock | Transfer Agent | |||
| International Limited3 | BNY Mellon Investment | |||
| Edinburgh, EH3 8JB, | Servicing (US) Inc. | |||
| United Kingdom | Wilmington, DE 19809 |
2 For all Funds except International Value.
3 For EuroFund and International Value.
4 For all Funds except Focus Value.
5 For Focus Value.
| ANNUAL | REPORT | JUNE | 30, 2011 | 67 |
Additional Information
General Information
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available
on the Funds’ website or shareholders can sign up for e-mail notifications
of quarterly statements, annual and semi-annual reports and prospectuses
by enrolling in the Funds’ electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or
Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at
http://www.blackrock.com/edelivery
2) Click on the applicable link and follow the steps to sign up
3) Log into your account
Householding
The Funds will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called “householding” and is intended to reduce expenses
and eliminate duplicate mailings of shareholder documents. Mailings of
your shareholder documents may be householded indefinitely unless you
instruct us otherwise. If you do not want the mailing of these documents
to be combined with those for other members of your household, please
call (800) 441-7762.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule 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 how to access documents on the SEC’s
website without charge may be obtained by calling (800) SEC-0330. The
Funds’ Forms N-Q may also be obtained upon request and without charge
by calling (800) 441-7762.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
(1) without charge, upon request, by calling (800) 441-7762; (2) at
http://www.blackrock.com; and (3) on the SEC’s website at
http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolios during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
http://www.blackrock.com or by calling (800) 441-7762 and (2) on
the SEC’s website at http://www.sec.gov.
| 68 | ANNUAL REPORT | JUNE | 30, 2011 |
Additional Information (concluded)
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business
day to get information about your account balances, recent transactions
and share prices. You can also reach us on the Web at
http://www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to
have $50 or more automatically deducted from their checking or savings
account and invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as
long as their account balance is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and
former fund investors and individual clients (collectively, “Clients”) and
to safeguarding their non-public personal information. The following infor-
mation is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with
those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a con-
sumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access to
non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are designed
to protect the non-public personal information of its Clients, including pro-
cedures relating to the proper storage and disposal of such information.
| ANNUAL | REPORT | JUNE | 30, 2011 | 69 |
| 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 ACWI ex-US Index Fund | BlackRock Global Opportunities Portfolio | BlackRock Natural Resources Trust | ||||
| BlackRock All-Cap Energy & Resources Portfolio | BlackRock Global SmallCap Fund | BlackRock Pacific Fund | ||||
| BlackRock Asset Allocation Portfolio† | BlackRock Health Sciences Opportunities Portfolio | BlackRock Russell 1000 Index Fund | ||||
| BlackRock Balanced Capital Fund† | BlackRock Healthcare Fund | BlackRock Science & Technology | ||||
| BlackRock Basic Value Fund | BlackRock Index Equity Portfolio | Opportunities Portfolio | ||||
| BlackRock Capital Appreciation Fund | BlackRock India Fund | BlackRock Small Cap Growth Equity Portfolio | ||||
| BlackRock China Fund | BlackRock International Fund | BlackRock Small Cap Growth Fund II | ||||
| BlackRock Energy & Resources Portfolio | BlackRock International Index Fund | BlackRock Small Cap Index Fund | ||||
| BlackRock Equity Dividend Fund | BlackRock International Opportunities Portfolio | BlackRock Small/Mid-Cap Growth Portfolio | ||||
| BlackRock EuroFund | BlackRock Large Cap Core Fund | BlackRock S&P 500 Index Fund | ||||
| BlackRock Focus Growth Fund | BlackRock Large Cap Core Plus Fund | BlackRock S&P 500 Stock Fund | ||||
| BlackRock Focus Value Fund | BlackRock Large Cap Growth Fund | BlackRock U.S. Opportunities Portfolio | ||||
| BlackRock Global Allocation Fund† | BlackRock Large Cap Value Fund | BlackRock Utilities and Telecommunications Fund | ||||
| BlackRock Global Dividend Income Portfolio | BlackRock Latin America Fund | BlackRock Value Opportunities Fund | ||||
| BlackRock Global Dynamic Equity Fund | BlackRock Mid-Cap Growth Equity Portfolio | BlackRock World Gold Fund | ||||
| BlackRock Global Emerging Markets Fund | BlackRock Mid-Cap Value Equity Portfolio | |||||
| BlackRock Global Growth Fund | BlackRock Mid Cap Value Opportunities Fund | |||||
| Fixed Income Funds | ||||||
| BlackRock Bond Index Fund | BlackRock Income Portfolio† | BlackRock Strategic Income | ||||
| BlackRock Core Bond Fund | BlackRock Inflation Protected Bond Portfolio | Opportunities Portfolio | ||||
| BlackRock Emerging Market Debt Portfolio | BlackRock International Bond Portfolio | BlackRock Total Return Fund | ||||
| BlackRock Floating Rate Income Portfolio | BlackRock Long Duration Bond Portfolio | BlackRock US Government Bond Fund | ||||
| BlackRock GNMA Portfolio | BlackRock Low Duration Bond Portfolio | BlackRock World Income Fund | ||||
| BlackRock High Income Fund | BlackRock Multi-Sector Bond Portfolio | US Mortgage Portfolio | ||||
| BlackRock High Yield Bond Portfolio | ||||||
| Municipal Bond Funds | ||||||
| BlackRock California Municipal Bond Fund | 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 | BlackRock New York Municipal Bond Fund | |||||
| Target Risk & Target Date Funds† | ||||||
| BlackRock Prepared Portfolios | BlackRock Lifecycle Prepared Portfolios | LifePath Portfolios | LifePath Index Portfolios | |||
| Conservative Prepared Portfolio | 2015 | 2035 | Retirement | 2040 | Retirement | 2040 |
| Moderate Prepared Portfolio | 2020 | 2040 | 2020 | 2045 | 2020 | 2045 |
| Growth Prepared Portfolio | 2025 | 2045 | 2025 | 2050 | 2025 | 2050 |
| Aggressive Growth Prepared Portfolio | 2030 | 2050 | 2030 | 2055 | 2030 | 2055 |
| 2035 | 2035 | |||||
† Mixed asset fund.
BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives,risks, charges and
expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at
www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.
| 70 | ANNUAL REPORT | JUNE | 30, 2011 |
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 returns 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 liquidity 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, principal accounting officer or controller, 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 trustees (the “board of
trustees”), 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
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 of a
person 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 trustees in the absence of such
designation or identification.
Item 4 – Principal Accountant Fees and Services
The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the
last two fiscal years for the services rendered to the Fund:
| (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 | $34,700 | $33,700 | $0 | $0 | $13,350 | $6,100 | $0 | $0 |
| EuroFund | ||||||||
The following table presents fees billed by D&T that were required to be approved by the
registrant’s audit committee (the “Committee”) for services that relate directly to the
operations or financial reporting of the Fund and that are rendered on behalf of BlackRock
Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled
by, or under common control with BlackRock (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another investment
adviser) that provide ongoing services to the Fund (“Fund Service Providers”):
| Current Fiscal Year End | Previous Fiscal Year End | |
| (b) Audit-Related Fees1 | $0 | $0 |
| (c) Tax Fees2 | $0 | $0 |
| (d) All Other Fees3 | $3,030,000 | $2,950,000 |
The nature of the services includes 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 includes tax compliance, tax advice and tax planning.
3 The nature of the services includes a review of compliance procedures and attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
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 Investment Adviser and Fund 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
operations or financial reporting of the registrant will only be deemed pre-approved
provided that any individual project does not exceed $10,000 attributable to the registrant or
$50,000 per project. For this purpose, multiple projects will be aggregated to determine if
they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to the Committee Chairman the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) The aggregate non-audit fees paid to the accountant for services rendered by the
accountant to the registrant, the Investment Adviser and the Fund Service Providers were:
| Current Fiscal Year | Previous Fiscal Year | |
| Entity Name | End | End |
| BlackRock EuroFund | $13,350 | $16,877 |
Additionally, SAS No. 70 fees for the current and previous fiscal years of $3,030,000 and
$2,950,000, respectively, were billed by D&T to the Investment Adviser.
(h) The Committee has considered and determined that the provision of non-audit services
that were rendered to the Investment Adviser, and the Fund Service Providers 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.
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 – 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 15d-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/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock EuroFund
Date: September 2, 2011
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/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock EuroFund
Date: September 2, 2011
By: /S/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock EuroFund
Date: September 2, 2011