BlackRock 20/80 Target Allocation Fund, Investor A (BACPX) N-CSRS/A Certified semi-annual shareholder report (management investment company) (amended)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS/A

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-05742

Name of Fund:	BlackRock Funds
	All-Cap Global Resources Portfolio Asset Allocation Portfolio Aurora Portfolio Capital Appreciation Portfolio Exchange Portfolio Global Opportunities Portfolio Global Resources Portfolio Global Science & Technology Opportunities Portfolio Health Sciences Opportunities Portfolio International Opportunities Portfolio Mid-Cap Value Equity Portfolio Mid-Cap Growth Equity Portfolio Money Market Portfolio Municipal Money Market Portfolio New Jersey Municipal Money Market Portfolio North Carolina Municipal Money Market Portfolio Ohio Municipal Money Market Portfolio Pennsylvania Municipal Money Market Portfolio Small Cap Core Equity Portfolio Small Cap Growth Equity Portfolio Small Cap Value Equity Portfolio Small/Mid-Cap Growth Portfolio U.S. Opportunities Portfolio U.S. Treasury Money Market Portfolio Virginia Municipal Money Market Portfolio
Fund Address:	100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Funds, 800

Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 09/30/2008

Date of reporting period: 10/01/2007 – 03/31/2008

Item 1 – Report to Stockholders

EQUITIES    FIXED INCOME    REAL ESTATE    LIQUIDITY    ALTERNATIVES    BLACKROCK SOLUTIONS

BlackRock
Equity Portfolios
SEMI-ANNUAL REPORT    |	MARCH 31, 2008 (UNAUDITED)

Capital Appreciation

Mid-Cap Value Equity

Mid-Cap Growth Equity

Aurora

Small/Mid-Cap Growth

Small Cap Value Equity

Small Cap Core Equity

Small Cap Growth Equity

Global Science & Technology Opportunities

Global Resources

All-Cap Global Resources

Health Sciences Opportunities

U.S. Opportunities

Global Opportunities

International Opportunities

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents

	Page
A Letter to Shareholders	3
Semi-Annual Report:
Portfolio Summaries:
Capital Appreciation	4
Mid-Cap Value Equity	6
Mid-Cap Growth Equity	8
Aurora	10
Small/Mid-Cap Growth	12
Small Cap Value Equity	14
Small Cap Core Equity	16
Small Cap Growth Equity	18
Global Science & Technology Opportunities	20
Global Resources	22
All-Cap Global Resources	24
Health Sciences Opportunities	26
U.S. Opportunities	28
Global Opportunities	30
International Opportunities	32
About Portfolios’ Performance	34
Disclosure of Expenses	35
Financial Statements:
Schedules of Investments	36
Statements of Assets and Liabilities	75
Statements of Operations	82
Statements of Changes in Net Assets	86
Financial Highlights	92
Notes to Financial Statements	130
Officers and Trustees	148
Additional Information	149
Mutual Fund Family	151

2 SEMI-ANNUAL REPORT MARCH 31, 2008

A Letter to Shareholders

Dear Shareholder

Financial markets endured severe bouts of volatility during the reporting period, particularly as the calendar turned to 2008. It was then that fears of an economic recession swelled and credit market strains intensified, producing calamity in the financial system and, ultimately, the demise of major Wall Street firm Bear Stearns.

The Federal Reserve Board (the “Fed”), after cutting the target federal funds rate 100 basis points (1%) between September 2007 and year-end, stepped up its efforts to support the ailing financial sector in the first three months of 2008. The central bank cut interest rates 125 basis points in January alone, and followed with another 75-basis-point cut on March 18, bringing the target rate to 2.25%. In an unprecedented move, the Fed also extended its financing operations directly to broker/dealers and assisted JPMorgan in its buyout of ill-fated Bear Stearns.

Against this backdrop, investor anxiety has been acute and equity markets have struggled. The S&P 500 Index of U.S. stocks was down in March, marking the fifth consecutive month of negative returns. International markets outperformed the U.S. for much of 2007, but that trend changed in more recent months as investors grew increasingly reluctant to take on the risks of foreign investing.

In fixed income markets, an ongoing investor flight to quality continued to drive Treasury yields lower and their prices higher. The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in five years), fell to 4.04% by year-end and to 3.45% by March 31. Investors largely shunned bonds associated with the housing and credit markets, and the riskier high yield sector landed in negative territory year-to-date. Meanwhile, the municipal bond market has struggled with concerns around the creditworthiness of monoline bond insurers and the failure of auctions for auction rate securities, driving yields higher and prices lower across the curve. At period-end, municipal bonds were trading at higher yields than their Treasury counterparts, a very unusual occurrence by historical standards.

Overall, the major benchmark indexes posted mixed results for the current reporting period, generally reflecting heightened investor risk aversion:

Total Returns as of March 31, 2008	6-month		12-month
U.S. equities (S&P 500 Index)	(12.46	)%	(5.08	)%
Small cap U.S. equities (Russell 2000 Index)	(14.02	)%	(13.00	)%
International equities (MSCI Europe, Australasia, Far East Index)	(10.50	)%	(2.70	)%
Fixed income (Lehman Brothers U.S. Aggregate Index)	5.23	%	7.67	%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)	0.75	%	1.90	%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)	(4.01	)%	(3.47	)%

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

3

Portfolio Summary (Unaudited) Capital Appreciation Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results outperformed that of the benchmark Russell 1000 Growth Index for the six-month period.

What factors influenced performance?

• Stock selection accounted for the majority of the Portfolio’s relative outperformance over the period. Selection gains were most advantageous in the healthcare sector, where the Portfolio held top performers across many sub-sectors. Pharmaceutical giant Abbott Laboratories and biotechnology firms Gilead Sciences Inc. and Celgene Corp. were the most notable contributors.

• Strength among the Portfolio’s energy holdings, namely, EOG Resources Inc. and CONSOL Energy, Inc., also enhanced results. Shares of both companies surged higher during the period, driving the Portfolio’s 30% gain in the sector.

• Additionally, favorable stock selection in materials and consumer staples boosted relative performance. Relative strength in the materials sector was attributable to long-time Portfolio holding, Monsanto, as the agricultural biotechnology company has benefited from strong global demand for its seed and trait products. Within consumer staples, our emphasis on multinational, stable growth companies has had a positive impact. Wal-Mart was the top individual contributor in this group.

• In contrast, negative stock selection in information technology and consumer discretionary limited the Portfolio’s relative gains over the past six months. Semiconductor holdings PMC-Sierra Inc. and Broadcom Corp. hindered results in information technology, while gaming operator Las Vegas Sands Corp. and footwear manufacturer Crocs Inc. accounted for much of the underperformance in the consumer discretionary sector.

Describe recent Portfolio activity.

• During the period, we increased the Portfolio’s weighting in consumer staples and energy, while we reduced the allocation to financials and industrials.

Describe Portfolio positioning at period-end.

• Throughout the six-month period, we continued to emphasize a number of the large, steady growth companies in our universe, with a focus on stocks that have non-cyclical growth potential, as we believe these firms are best suited to weather a slowdown in global growth.

• Sector weights continued to be driven by our bottom-up stock selection decisions. At period-end, the Portfolio’s largest overweights versus the benchmark Russell 1000 Growth Index were in healthcare and consumer staples, while it was relatively underexposed to the struggling consumer discretionary and financials sectors.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Apple Computer, Inc.	4	%
The Coca-Cola Co.	4
Wal-Mart Stores, Inc.	4
QUALCOMM, Inc.	3
Adobe Systems, Inc.	3
Microsoft Corp.	3
Philip Morris International, Inc.	3
Google, Inc. - Class A	3
Honeywell International, Inc.	3
Monsanto Co.	3
Ten Largest Industries	Percent of Long-Term Investments
Computer Software & Services	13	%
Pharmaceuticals	9
Manufacturing	9
Telecommunications	7
Retail Merchandising	7
Oil & Gas	7
Computer & Office Equipment	6
Medical Instruments & Supplies	5
Beverages & Bottling	5
Food & Agriculture	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

4 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Capital Appreciation Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† Under normal market conditions, the Portfolio invests at least 80% of total assets in common and preferred stock and securities convertible into common and preferred stock of mid- and large-size companies.

†† An index composed of those Russell 1000^® securities with greater-than-average growth orientation, generally having higher price-to-book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(8.84	)%	5.06	%	—		11.46	%	—		3.77	%	—
Investor A	(9.05	)%	4.52	%	(0.99	)%	11.04	%	9.86	%	3.38	%	2.83	%
Investor B	(9.42	)%	3.71	%	(0.79	)%	10.22	%	9.94	%	2.72	%	2.72	%
Investor C	(9.34	)%	3.92	%	2.92	%	10.29	%	10.29	%	2.65	%	2.65	%
Russell 1000® Growth Index.	(10.87	)%	(0.75	)%	—		9.96	%	—		1.28	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	911.59	$	3.35	$	1,000.00	$	1,021.46	$	3.54
Investor A	$	1,000.00	$	909.46	$	5.73	$	1,000.00	$	1,018.93	$	6.07
Investor B	$	1,000.00	$	905.76	$	9.92	$	1,000.00	$	1,014.46	$	10.54
Investor C	$	1,000.00	$	906.59	$	8.95	$	1,000.00	$	1,015.49	$	9.51

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.70% for Institutional, 1.20% for Investor A, 2.08% for Investor B and 1.88% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 5

Portfolio Summary (Unaudited) Mid-Cap Value Equity Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• The Portfolio outperformed the benchmark Russell Midcap Value Index for the six-month period ended March 31, 2008.

What factors influenced performance?

• Portfolio performance benefited from favorable stock selection in utilities, where Equitable Resources (gas utilities), Entergy Corp. (electric utilities) and Constellation Energy (independent power producers) added value. In energy, exploration & production companies performed particularly well, especially EOG Resources, Southwestern Energy, CONSOL Energy, Inc. and Massey Energy. In industrials, armored car and home security provider Brink’s was a standout performer.

• Stock selection and an underweight in financials also added value, with key contributions from People’s United Financial in thrift & mortgage finance; good stock selection and an underweight in commercial banks, particularly Cullen/Frost Bankers; stock selection in real estate investment trusts (REITs); and an underweight in insurance.

• Although an underweight and stock selection among media names added value in the consumer discretionary sector, these gains were overshadowed by disappointing performance from select specialty retailers and apparel manufacturers, specifically Borders Group and Jones Apparel Group.

• Other detractors included stock selection in information technology, healthcare and consumer staples. Stocks that disappointed included Electronics for Imaging, a producer of printing and imaging products, managed care provider Coventry Healthcare and Constellation Brands and Pilgrim’s Pride within consumer staples.

Describe recent Portfolio activity.

• During the six months, we increased the Portfolio’s exposure to materials, healthcare and consumer staples. In materials, we established a position in chemicals company Hercules. In healthcare, we added to equipment & supply manufacturers (Cooper Cos.) and healthcare providers (with new positions in Laboratory Corp. of America and DaVita). In consumer staples, we added to tobacco and personal products (with a new position in Estee Lauder) and beverage producers (Constellation Brands).

• We reduced exposure to consumer discretionary, industrials and financials. In consumer discretionary, we trimmed specialty retailers (with the sale of Office Depot and Borders Group) and apparel manufacturers. In industrials, we trimmed construction & engineering, electric equipment and aerospace & defense, and in financials, we reduced exposure to REITs and commercial banks.

Describe Portfolio positioning at period-end.

• The Portfolio ended the period overweight in healthcare (particularly healthcare providers and equipment & supply manufacturers) and consumer staples (notably tobacco, food & staples retailers). Underweights at period-end included financials (particularly REITs and insurance) and consumer discretionary (primarily household durables and media).

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Safeway, Inc.	2	%
The Brink’s Co.	2
Grant Prideco, Inc.	2
Simon Property Group, Inc. (REIT)	2
The Cooper Cos., Inc.	2
Del Monte Foods Co.	2
People’s United Financial, Inc.	2
Newfield Exploration Co.	2
HCC Insurance Holdings, Inc.	2
Edison International	2
Ten Largest Industries	Percent of Long-Term Investments
Energy & Utilities	13	%
Insurance	8
Oil & Gas	8
Retail Merchandising	8
Banks	7
Finance	6
Medical & Medical Services	5
Manufacturing	5
Chemicals	4
Real Estate	3

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

6 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Mid-Cap Value Equity Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† The Portfolio normally invests at least 80% of its net assets in equity securities issued by U.S. mid-capitalization value companies.

†† An index that consists of the bottom 800 securities of the Russell 1000^® Index with less-than-average growth orientation as ranked by total market capitalization. Securities in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth values.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(12.21	)%	(9.24	)%	—		18.28	%	—		8.69	%	—
Service	(12.38	)%	(9.50	)%	—		17.94	%	—		8.38	%	—
Investor A	(12.37	)%	(9.53	)%	(14.27	)%	17.94	%	16.68	%	8.38	%	7.80	%
Investor B	(12.65	)%	(10.14	)%	(13.67	)%	17.10	%	16.88	%	7.68	%	7.68	%
Investor C	(12.65	)%	(10.22	)%	(11.00	)%	17.09	%	17.09	%	7.60	%	7.60	%
Russell Midcap® Value Index	(14.09	)%	(14.12	)%	—		16.77	%	—		8.16	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	877.88	$	4.41	$	1,000.00	$	1,020.24	$	4.76
Service	$	1,000.00	$	876.18	$	5.84	$	1,000.00	$	1,018.69	$	6.31
Investor A	$	1,000.00	$	876.30	$	5.86	$	1,000.00	$	1,018.67	$	6.33
Investor B	$	1,000.00	$	873.52	$	9.37	$	1,000.00	$	1,014.88	$	10.12
Investor C	$	1,000.00	$	873.49	$	9.37	$	1,000.00	$	1,014.87	$	10.13

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.94% for Institutional, 1.25% for Service, 1.25% for Investor A, 2.00% for Investor B and 2.00% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 7

Portfolio Summary (Unaudited) Mid-Cap Growth Equity Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• The Portfolio posted strong relative returns amid a challenging investment backdrop, outperforming the benchmark Russell Mid Cap Growth Index for the six-month period.

What factors influenced performance?

• The majority of the Portfolio’s outperformance of the benchmark is attributed to strong stock selection in the energy and materials sectors.

• Within energy, exploration & production names were the most significant industry contributors. Coal companies Massey Energy and CONSOL Energy, Inc. posted outsized gains, as prices for coal increased on rising foreign demand. Additionally, oil and natural gas company EOG Resources advanced more than 60% during the period on increased production possibilities.

• Within the materials sector, chemicals company Agrium continued to post strong financial results on increasing demand for its fertilizer products. Industrials companies Joy Global and IHS Incorporated also posted double-digit returns, bolstering Portfolio performance.

• These positives were offset by weak stock selection in the information technology and financials sectors. In technology, the communications equipment industry was the most significant industry detractor. Foundry Networks and Juniper Networks accounted for much of the underperformance, as worries over decreased corporate spending pressured the stocks. Within financials, larger holding CME Group was down almost 20% for the period on news of a possible industry reorganization.

Describe recent Portfolio activity.

• We made no major changes to the Portfolio’s composition during the six-month period. We selectively trimmed and added holdings throughout the Portfolio. Among stocks added were Broadcom, Intuit and DeVry Incorporated. Notable eliminations were JCPenney, Lam Research and Precision Castparts.

Describe Portfolio positioning at period-end.

• As of March 31, 2008, the Portfolio’s most significant overweight was in the information technology sector, where we maintain a diverse group of holdings. The most significant underweight at period-end was in the financials sector.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Thermo Electron Corp.	3	%
Pediatrix Medical Group, Inc.	3
GameStop Corp.	3
Ametek, Inc.	3
Bare Escentuals, Inc.	2
IHS, Inc.	2
Celanese Corp. - Series A	2
Amphenol Corp.	2
Adobe Systems, Inc.	2
CME Group, Inc.	2
Ten Largest Industries	Percent of Long-Term Investments
Computer Software & Services	11	%
Oil & Gas	10
Medical & Medical Services	6
Electronics	6
Retail Merchandising	5
Business Services	5
Telecommunications	5
Finance	4
Entertainment & Leisure	4
Metal & Mining	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

8 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Mid-Cap Growth Equity Portfolio

Total Return on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† The Portfolio normally invests at least 80% of its net assets in equity securities issued by U.S. mid-capitalization growth companies which the portfolio management team believes have above-average earnings growth potential.

†† An index that consists of the bottom 800 securities of the Russell 1000^® Index with greater-than-average growth orientation as ranked by total market capitalization. Securities in this index generally have higher price-to-book and price-to-earnings ratios, lower dividend yields and higher forecasted growth values.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(10.45	)%	1.68	%	—		14.04	%	—		7.26	%	—
Service	(10.68	)%	1.50	%	—		13.66	%	—		6.94	%	—
Investor A	(10.76	)%	1.08	%	(4.19	)%	13.48	%	12.27	%	6.74	%	6.17	%
Investor B	(11.04	)%	0.40	%	(4.10	)%	12.65	%	12.40	%	6.13	%	6.13	%
Investor C	(11.04	)%	0.40	%	(0.60	)%	12.65	%	12.65	%	5.97	%	5.97	%
R	(10.68	)%	1.17	%	—		13.45	%	—		6.70	%	—
Russell Midcap® Growth Index	(10.05	)%	(4.55	)%	—		15.20	%	—		5.16	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	895.48	$	5.07	$	1,000.00	$	1,019.59	$	5.41
Service	$	1,000.00	$	893.18	$	6.81	$	1,000.00	$	1,017.71	$	7.29
Investor A	$	1,000.00	$	892.43	$	7.33	$	1,000.00	$	1,017.16	$	7.84
Investor B	$	1,000.00	$	889.57	$	11.00	$	1,000.00	$	1,013.21	$	11.79
Investor C	$	1,000.00	$	889.57	$	10.67	$	1,000.00	$	1,013.57	$	11.43
R	$	1,000.00	$	893.22	$	7.32	$	1,000.00	$	1,017.17	$	7.83

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.07% for Institutional, 1.44% for Service, 1.55% for Investor A, 2.33% for Investor B, 2.26% for Investor C and 1.55% for R), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 9

Portfolio Summary (Unaudited) Aurora Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results lagged that of the benchmark Russell 2500 Value Index for the six-month period ended March 31, 2008.

What factors influenced performance?

• Stock selection in information technology (IT) and financials detracted from the Portfolio’s relative results. Within IT, key laggards included Tessera Technologies, RF Micro Devices, Trident Microsystems and PMC-Sierra (all semiconductor names), and Electronics for Imaging, a producer of printing and imaging products. Within financials, we saw disappointing results from holdings in capital markets (notably, Piper Jaffray and Affiliated Managers Group), insurance and real estate investment trusts (particularly Boardwalk Real Estate Investment Trust).

• In a challenging market for consumer-related stocks, an overweight position and stock selection in consumer discretionary also detracted from performance. Key laggards were Scientific Games, Pinnacle Entertainment, Penn National Gaming and Morgans Hotel Group (all in hotels, restaurants & leisure), as well as multiline retailer Saks.

• Bright spots during the period included stock selection in industrials and healthcare. Within industrials, top performers were Brink’s and Copart (both in commercial services), marine shipper Kirby Corp. and construction & engineering firm Chicago Bridge & Iron. Healthcare provider Kindred Healthcare performed well, as did Axcan Pharma, which was taken private by TPG Capital, and biotechnology company Dyax Corp.

• Stock selection and an overweight position in consumer staples also proved advantageous. Key contributors included food & staples retailers BJ’s Wholesale Club and Ruddick Corp., operator of the Harris Teeter supermarket chain.

Describe recent Portfolio activity.

• Over the past six months, we increased the Portfolio’s exposure to utilities, primarily electric utilities with a new position in ITC Holdings, and to consumer discretionary. In the latter sector, we established positions in restaurant operators Jack in the Box and CBRL Group. We also added Phillips-Van Heusen and Jarden Corp., while trimming exposure to specialty retailers.

• Meanwhile, we reduced exposure to industrials, financials and IT. In industrials, we trimmed construction & engineering with the sale of Chicago Bridge & Iron and URS Corp., and aerospace & defense. In financials, we trimmed commercial banks with the sale of Colonial Bancgroup and Wintrust Financial, select REITs and insurance names. In IT, we sold select underperforming semiconductor-related names including RF Micro Devices, Trident Microsystems and Tessera Technologies, and also exited our position in Electronics for Imaging.

Describe Portfolio positioning at period-end.

• The Portfolio ended the period overweight most notably in consumer discretionary, industrials, consumer staples and healthcare, and underweight primarily in financials, utilities and materials.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
The Brink’s Co.	4	%
Hain Celestial Group, Inc.	3
Magellan Health Services, Inc.	3
Boardwalk Real Estate Investment Trust (REIT)	3
LKQ Corp.	2
Copart, Inc.	2
Scientific Games Corp. - Class A	2
Affiliated Managers Group, Inc.	2
BJ’s Wholesale Club, Inc.	2
Ruddick Corp.	2
Ten Largest Industries	Percent of Long-Term Investments
Retail Merchandising	13	%
Entertainment & Leisure	9
Manufacturing	9
Medical & Medical Services	7
Oil & Gas	6
Banks	6
Business Services	5
Food & Agriculture	5
Computer Software & Services	5
Aerospace	3

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

10 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Aurora Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† Under normal market conditions, the Portfolio invests at least 80% of its total assets in small- and mid-capitalization common and preferred stocks and securities convertible into common and preferred stocks.

†† An index composed of the Russell 2500^(TM) companies with lower price-to-book ratios and lower forecasted growth values.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(15.36	)%	(14.06	)%	—		14.17	%	—		9.08	%	—
Investor A	(15.50	)%	(14.34	)%	(18.83	)%	13.79	%	12.57	%	8.70	%	8.11	%
Investor B	(15.83	)%	(15.02	)%	(17.94	)%	12.94	%	12.77	%	8.00	%	8.00	%
Investor C	(15.86	)%	(15.01	)%	(15.66	)%	12.96	%	12.96	%	7.90	%	7.90	%
R	(15.59	)%	(14.52	)%	—		13.53	%	—		8.45	%	—
Russell 2500TM Value Index	(14.88	)%	(16.54	)%	—		15.56	%	—		7.86	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	846.36	$	4.85	$	1,000.00	$	1,019.68	$	5.32
Investor A	$	1,000.00	$	845.03	$	6.64	$	1,000.00	$	1,017.71	$	7.29
Investor B	$	1,000.00	$	841.68	$	10.08	$	1,000.00	$	1,013.92	$	11.08
Investor C	$	1,000.00	$	841.38	$	10.07	$	1,000.00	$	1,013.93	$	11.07
R	$	1,000.00	$	844.07	$	7.21	$	1,000.00	$	1,017.09	$	7.91

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.05% for Institutional, 1.44% for Investor A, 2.19% for Investor B, 2.19% for Investor C and 1.56% for R), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 11

Portfolio Summary (Unaudited) Small/Mid-Cap Growth Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• The Portfolio outperformed the benchmark Russell 2500 Growth Index for the six-month period.

What factors influenced performance?

• Strong stock selection in information technology and energy accounted for the majority of the Portfolio’s outperformance of the benchmark.

• Within information technology, Internet software & services was the best performing industry. Services names ExlServices and Forrester Research were lifted after posting strong financial results during the period. Top holding SkilSoft continued to execute in a tough environment, and gained more than 16% over the six months.

• Within the energy sector, exploration & production was the most significant industry contributor. Coal companies Massey Energy and CONSOL Energy, Inc. posted outsized gains for the period, as prices for coal increased on rising foreign demand. Additionally, newer holding Delta Petroleum was up more than 60% on increased production opportunities.

• Negative stock selection in healthcare and consumer discretionary hindered the Portfolio’s relative returns. Medical devices and equipment was the worst-performing industry within the healthcare sector. Our position in Cutera Incorporated fell after the company reported weaker demand for its end product of cosmetic lasers. Elsewhere in healthcare, pharmaceutical company Medicis Pharmaceutical was down more than 35% on worries over a generic filing for its top-selling acne drug. Within consumer discretionary, holdings Life Time Fitness and Scientific Games both registered sharp declines for the period.

Describe recent Portfolio activity.

• We significantly increased our underweight in the consumer discretionary sector, eliminating a variety of names, including Dick’s Sporting Goods, Life Time Fitness and Ruth’s Chris Steak House, Inc.

• Conversely, we increased the Portfolio’s weighting in information technology, adding positions in ComScore, Tivo and Intuit.

Describe Portfolio positioning at period-end.

• As of March 31, 2008, the Portfolio’s most significant overweight was in the information technology sector, where we maintain a diverse group of holdings. The most significant underweight at period-end was in the consumer discretionary sector.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
SkillSoft Plc - ADR	4	%
ExlService Holdings, Inc.	3
Pediatrix Medical Group, Inc.	2
IHS, Inc.	2
CKX, Inc.	2
SonicWALL, Inc.	2
Sykes Enterprises, Inc.	2
Shire Plc - ADR	2
Delta Petroleum Corp.	2
Quanex Corp.	2
Ten Largest Industries	Percent of Long-Term Investments
Computer Software & Services	17	%
Business Services	9
Oil & Gas	8
Medical & Medical Services	7
Medical Instruments & Supplies	6
Pharmaceuticals	6
Finance	5
Manufacturing	5
Entertainment & Leisure	4
Electronics	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

12 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Small/Mid-Cap Growth Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† Under normal market conditions, the Portfolio invests at least 80% of total assets in small-capitalization and mid-capitalization companies.

†† An index composed of the Russell 2500^(TM) companies with higher price-to-book ratios and higher forecasted growth values.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(11.85	)%	(2.02	)%	—		14.63	%	—		4.95	%	—
Investor A	(11.96	)%	(2.20	)%	(7.34	)%	14.31	%	13.09	%	4.64	%	4.08	%
Investor B	(12.29	)%	(3.04	)%	(6.60	)%	13.46	%	13.22	%	4.00	%	4.00	%
Investor C	(12.32	)%	(3.09	)%	(3.88	)%	13.44	%	13.44	%	3.91	%	3.91	%
R	(12.04	)%	(2.50	)%	—		13.97	%	—		4.33	%	—
Russell 2500TM Growth Index	(11.38	)%	(6.25	)%	—		15.46	%	—		4.27	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	881.54	$	5.17	$	1,000.00	$	1,019.43	$	5.57
Investor A	$	1,000.00	$	880.39	$	6.33	$	1,000.00	$	1,018.18	$	6.82
Investor B	$	1,000.00	$	877.09	$	9.85	$	1,000.00	$	1,014.37	$	10.63
Investor C	$	1,000.00	$	876.84	$	9.85	$	1,000.00	$	1,014.37	$	10.63
R	$	1,000.00	$	879.64	$	7.47	$	1,000.00	$	1,016.96	$	8.04

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.10% for Institutional, 1.35% for Investor A, 2.10% Investor B, 2.10% for Investor C and 1.59% for R), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 13

Portfolio Summary (Unaudited) Small Cap Value Equity Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio returns underperformed that of the benchmark Russell 2000 Value Index for the six-month period ended March 31, 2008.

What factors influenced performance?

• In terms of performance detractors, the positive impact of an underweight in information technology was overshadowed by poor stock selection. Stocks that disappointed included semiconductor names RF Micro Devices, Trident Microsystems, PNC-Sierra and Cirrus Logic; software companies Lawson Software and Guidance Software; and Electronics for Imaging, a producer of printing and imaging products.

• Stock selection in materials and financials also hindered the Portfolio’s relative results. Chemicals company H.B. Fuller detracted, as did stock selection and an underweight in metals & mining stocks, which outperformed on spiking commodity prices. In financials, key detractors were commercial banks Boston Private Financial, Sterling Financial and First Midwest Bancorp, and capital markets names Piper Jaffray and TradeStation Group.

• Contributing to the Portfolio’s relative results was favorable stock selection in the industrials, healthcare and energy sectors, in addition to stock selection and an overweight position in consumer staples.

• Within industrials, top performers included armored car and home security provider Brink’s and global human resources consulting firm Watson Wyatt Worldwide. Marine shipper Kirby Corp. and aerospace & defense firm Orbital Sciences also added value in the sector. In healthcare, healthcare provider Kindred Healthcare contributed to Portfolio returns, as did pharmaceuticals company Axcan Pharma, which was taken private by TPG Capital.

• Top stocks in energy included W-H Energy Services, Oil States International and Lufkin Industries within the equipment & services subsector, and Delta Petroleum and Swift Energy within exploration & production. In consumer staples, food and staples retailers BJ’s Wholesale Club and Ruddick Corp., operator of the Harris Teeter supermarket chain, provided positive attribution.

Describe recent Portfolio activity.

• During the six-month period, we increased exposure to utilities, primarily electric utilities, and consumer discretionary. In the latter sector, we established positions in Jack in the Box, WMS Industries and Scientific Games in the hotels, restaurants & gaming category, while also increasing our position in LeapFrog Enterprises. Meanwhile, we trimmed exposure to specialty retailers and apparel manufacturers.

• We reduced exposure to financials and information technology. Notable sales included Sterling Financial, Cathay General Bancorp, Umpqua Holdings and Boston Private Financial (all commercial banks), and LaSalle Hotel Properties and Capital Trust (two real estate investment trusts). Within IT, we sold Electronics for Imaging as well as underperforming semiconductor names RF Micro Devices, Trident Microsystems, Tessera Technologies and Cirrus Logic.

Describe Portfolio positioning at period-end.

• The Portfolio ended the period overweight most notably in consumer discretionary, consumer staples, industrials and healthcare, and underweight primarily in financials and information technology.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
The Brink’s Co.	4	%
Ruddick Corp.	4
Magellan Health Services, Inc.	3
LKQ Corp.	3
Texas Industries, Inc.	2
BJ’s Wholesale Club, Inc.	2
Hain Celestial Group, Inc.	2
SkillSoft Plc - ADR	2
Piper Jaffray Cos., Inc.	2
Silgan Holdings, Inc.	2
Ten Largest Industries	Percent of Long-Term Investments
Retail Merchandising	10	%
Entertainment & Leisure	10
Medical & Medical Services	9
Banks	8
Oil & Gas	7
Business Services	6
Manufacturing	6
Computer Software & Services	5
Insurance	4
Real Estate	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

14 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Small Cap Value Equity Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† The Portfolio normally invests at least 80% of its net assets in equity securities issued by U.S. small capitalization value companies (market capitalizations under $2 billion).

†† An index that contains those securities with less-than-average growth orientations, generally having lower price-to-book and price-to-earnings ratios.

The Portfolio is closed to new investors. Existing shareholders may make additional investments in current accounts. In addition, new accounts may be opened by (i) any investor if the tax ID number for the new account will be the same as that for a current account and (ii) 401(k), 403(b), 457 and other similar group retirement plan programs or certain discretionary wrap fee programs that have current accounts.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
BlackRock	(13.46	)%	(14.11	)%	—		14.53	%	—		5.44	%	—
Institutional	(13.43	)%	(13.94	)%	—		14.69	%	—		5.58	%	—
Service	(13.55	)%	(14.07	)%	—		14.34	%	—		5.27	%	—
Investor A	(13.60	)%	(14.27	)%	(18.78	)%	14.25	%	13.03	%	5.15	%	4.59	%
Investor B	(13.95	)%	(14.75	)%	(17.89	)%	13.42	%	13.26	%	4.50	%	4.50	%
Investor C	(13.88	)%	(14.87	)%	(15.56	)%	13.37	%	13.37	%	4.35	%	4.35	%
Russell 2000® Value Index	(13.05	)%	(16.88	)%	—		15.45	%	—		7.46	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During Period*
BlackRock	$	1,000.00	$	865.43	$	5.13	$	1,000.00	$	1,019.43	$	5.57
Institutional	$	1,000.00	$	865.74	$	4.18	$	1,000.00	$	1,020.46	$	4.54
Service	$	1,000.00	$	864.46	$	5.88	$	1,000.00	$	1,018.61	$	6.39
Investor A	$	1,000.00	$	864.00	$	6.13	$	1,000.00	$	1,018.34	$	6.66
Investor B	$	1,000.00	$	860.54	$	10.12	$	1,000.00	$	1,013.99	$	11.01
Investor C	$	1,000.00	$	861.20	$	10.08	$	1,000.00	$	1,014.04	$	10.96

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.10% for BlackRock, 0.90% for Institutional, 1.26% for Service, 1.32% for Investor A, 2.18% for Investor B and 2.17% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 15

Portfolio Summary (Unaudited) Small Cap Core Equity Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results lagged that of the benchmark Russell 2000 Index for the six-month period ended March 31, 2008.

What factors influenced performance?

• Stock selection and an underweight position in financials detracted from Portfolio performance, primarily within the commercial bank, insurance and capital markets categories. Key laggards included Evercore Partners and Piper Jaffray. Stock selection in industrials also hindered fund performance (led by tool manufacturer Hardinge Inc. and auto parts producer Accuride Corp.), as did stock picks in consumer staples.

• In a challenging market environment for consumer-related stocks, an underweight in consumer discretionary added value. However, these gains were overshadowed by disappointing stock selection, particularly among hotels, restaurants & leisure names, including Pinnacle Entertainment and Morgans Hotel Group, and select specialty retailers.

• Bright spots during the period included stock selection in healthcare, information technology and telecommunication services. Within healthcare, key contributors included Icon PLC and Kendle International, providers of clinical research and drug development services, healthcare provider Amedisys, biotechnology firm Dyax Corp. and Axcan Pharma, a pharmaceuticals company that was taken private by TPG Capital. In information technology, top performers included Skillsoft PLC, a provider of Web-based education and training; EMS Technologies, a communications equipment company; and Forrester Research in IT services. In telecommunications, Iowa Telecommunications Services was a standout.

Describe recent Portfolio activity.

• During the six-month period, we increased the Portfolio’s exposure to consumer discretionary, energy and information technology. Within consumer discretionary, we added new positions in specialty retailers AnnTaylor Stores, Coldwater Creek and Christopher & Banks, and household durables company Jarden. In energy, we added to existing holdings in equipment & services and established a position in Penn Virginia Corp. In information technology, we added to our software exposure and established positions in Benchmark Electronics and TTM Technologies (both in electronics equipment).

• Meanwhile, we reduced exposure to healthcare. We sold equipment & supply manufacturer DJO (upon a takeover), Kendle International and Axcan Pharma (upon the aforementioned private equity takeout).

Describe Portfolio positioning at period-end.

• The Portfolio ended the period modestly overweight in healthcare (primarily healthcare providers and healthcare technology) and consumer staples (particularly personal products). Notable underweights included financials (thrift & mortgage finance, real estate investment trusts and insurance) and materials (metals & mining and chemicals).

Performance Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
SkillSoft Plc - ADR	3	%
Actuant Corp. - Class A	2
Copart, Inc.	2
Chart Industries, Inc.	2
EMS Technologies, Inc.	2
First Mercury Financial Corp.	2
Blackboard, Inc.	2
Elizabeth Arden, Inc.	2
Gramercy Capital Corp. (REIT)	2
Orient-Express Hotels Ltd. - Class A	2
Ten Largest Industries	Percent of Long-Term Investments
Computer Software & Services	15	%
Manufacturing	10
Retail Merchandising	8
Oil & Gas	8
Banks	8
Real Estate	5
Business Services	4
Medical Instruments & Supplies	4
Entertainment & Leisure	4
Medical & Medical Services	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

16 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Small Cap Core Equity Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

** Commencement of operations.

† The Portfolio normally invests at least 80% of its net assets in the equity securities of U.S. small capitalization companies (market capitalizations under $2 billion).

†† An index that measures the performance of the 2000 smallest companies in the Russell 3000^®

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				From Inception**
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(15.95	)%	(12.61	)%	—		16.95	%	—		10.59	%	—
Service	(16.06	)%	(12.87	)%	—		16.74	%	—		10.44	%	—
Investor A	(16.13	)%	(13.01	)%	(17.56	)%	16.51	%	15.28	%	10.27	%	9.32	%
Investor B	(16.48	)%	(13.70	)%	(17.30	)%	15.72	%	15.50	%	9.67	%	9.67	%
Investor C	(16.45	)%	(13.63	)%	(14.43	)%	15.76	%	15.76	%	9.69	%	9.69	%
Russell 2000® Index	(14.02	)%	(13.00	)%	—		14.90	%	—		6.94	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

** The Portfolio commenced operations on 1/2/02.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	840.51	$	5.94	$	1,000.00	$	1,018.46	$	6.54
Service	$	1,000.00	$	839.43	$	7.16	$	1,000.00	$	1,017.12	$	7.88
Investor A	$	1,000.00	$	838.66	$	8.05	$	1,000.00	$	1,016.14	$	8.86
Investor B	$	1,000.00	$	835.20	$	11.51	$	1,000.00	$	1,012.30	$	12.70
Investor C	$	1,000.00	$	835.53	$	11.37	$	1,000.00	$	1,012.45	$	12.55

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.29% for Institutional, 1.56% for Service, 1.75% for Investor A, 2.51% for Investor B and 2.48% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 17

Portfolio Summary (Unaudited) Small Cap Growth Equity Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Against a challenging investment backdrop, the Portfolio posted strong relative performance, outpacing the return of the benchmark Russell 2000 Growth Index.

What factors influenced performance?

• Strong stock selection in information technology (IT) and industrials accounted for the majority of the Portfolio’s outperformance of the benchmark. IT software & services was an important contributor. Top holding SkilSoft continued to execute in a tough environment, gaining 16% during the period. Likewise, IT services was a top industry contributor, led by strong performance from ExlService and Forrester Research.

• Stock selection in industrials also boosted fund returns, as commercial services names IHS Incorporated, Watson Wyatt Worldwide and Clean Harbors all posted double-digit gains for the period. Machinery holding Bucyrus International was the largest overall contributor to the Portfolio.

• Coal company Massey Energy also added significant value, as increased coal spot prices and rising foreign demand lifted the stock.

• Stock selection in consumer discretionary and consumer staples detracted from relative returns. In consumer discretionary, the hotels and leisure industry accounted for most of the weakness. Scientific Games and Ameristar Casinos both posted significant declines for the six-month period. Within consumer staples, our holding in Green Mountain Coffee was down more than 20% on worries of decreased consumer spending and rising costs of coffee beans.

Describe recent Portfolio activity.

• During the period, we significantly increased our underweight position in the consumer discretionary sector, eliminating a variety of names, including Vail Resorts, Life Time Fitness and Pinnacle Entertainment.

• We increased our weighting in the healthcare sector, adding positions in LifeCell, Martek Biosciences and ArthroCare.

Describe Portfolio positioning at period-end.

• As of March 31, 2008, the Portfolio’s most significant overweight was in the information technology sector, with a diverse group of holdings. The most significant underweight was in the consumer discretionary sector.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
SkillSoft Plc - ADR	4	%
IHS, Inc.	3
Sykes Enterprises, Inc.	3
Pediatrix Medical Group, Inc.	3
ExlService Holdings, Inc.	3
Wright Medical Group, Inc.	2
Atwood Oceanics, Inc.	2
Forrester Research, Inc.	2
Quanex Corp.	2
Orient-Express Hotels Ltd. - Class A	2
Ten Largest Industries	Percent of Long-Term Investments
Computer Software & Services	20	%
Business Services	10
Medical Instruments & Supplies	10
Medical & Medical Services	9
Oil & Gas	8
Manufacturing	7
Entertainment & Leisure	4
Semiconductors & Related Devices	4
Finance	3
Aerospace	3

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

18 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Small Cap Growth Equity Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† The Portfolio normally invests at least 80% of its net assets in equity securities issued by U.S. small capitalization growth companies which the portfolio management team believes offer superior prospects for growth.

†† An index that contains those securities with greater-than-average growth orientations, generally having higher price-to-book and price-to-earnings ratios.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(8.31	)%	0.09	%	—		18.77	%	—		4.68	%	—
Service	(8.46	)%	(0.15	)%	—		18.46	%	—		4.39	%	—
Investor A	(8.47	)%	(0.20	)%	(5.45	)%	18.38	%	17.11	%	4.26	%	3.70	%
Investor B	(8.94	)%	(0.95	)%	(5.40	)%	17.40	%	17.19	%	3.65	%	3.65	%
Investor C	(8.89	)%	(1.17	)%	(2.15	)%	17.41	%	17.41	%	3.46	%	3.46	%
Russell 2000® Growth Index	(14.66	)%	(8.95	)%	—		14.24	%	—		1.75	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	916.91	$	3.79	$	1,000.00	$	1,020.99	$	4.01
Service	$	1,000.00	$	915.41	$	5.29	$	1,000.00	$	1,019.41	$	5.59
Investor A	$	1,000.00	$	915.35	$	5.40	$	1,000.00	$	1,019.29	$	5.71
Investor B	$	1,000.00	$	910.58	$	10.27	$	1,000.00	$	1,014.11	$	10.89
Investor C	$	1,000.00	$	911.10	$	9.86	$	1,000.00	$	1,014.56	$	10.44

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.79% for Institutional, 1.11% for Service, 1.13% for Investor A, 2.15% for Investor B and 2.06% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 19

Portfolio Summary (Unaudited) Global Science & Technology Opportunities Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Returns for the Portfolio’s Institutional and Investor A shares were generally in line with that of the benchmark NYSE ARCA Tech 100 Index for the six-month period, while Service, Investor B and Investor C shares lagged the benchmark return.

What factors influenced performance?

• Portfolio underperformance during the reporting period was the result of negative stock selection effects, while sector allocation contributed positively to results.

• Stock selection within information technology was the biggest detractor from performance. In particular, results were weak within semiconductors and technology hardware & equipment. Within healthcare, stock selection in the life sciences tools & services hindered relative results.

• From an individual stock point of view, the Portfolio’s lack of exposure to Genzyme Corp. and Genentech Inc. proved most unfavorable, as these biotechnology stocks performed strongly in a declining market, which hurt relative comparisons. A position in Google Inc. also detracted from results during the period, as company shares declined more than 20%.

• Conversely, an underweight relative to the benchmark in information technology and an allocation to telecommunication services, which is not a component of the benchmark, contributed positively. Within information technology, relative positioning also was a positive contributor. Underweight positions in semiconductors & semiconductor equipment and data processing & outsourced services and an overweight in Internet software & services supported relative results during the period.

• Elsewhere, an overweight in healthcare equipment contributed to alpha generation. Additionally, we benefited from our stock positioning within the software & services and capital goods industry groups.

• The stocks contributing most significantly to outperformance included global pharmaceutical company Pharmion and business intelligence software developer Business Objects. Despite a weak overall market environment, these companies experienced strong gains during the period.

Describe recent Portfolio activity.

• Portfolio positioning shifted in some areas during the quarter consistent with our investment process. Specifically, we added to Portfolio holdings in healthcare equipment, systems software and computer hardware. In contrast, the Portfolio’s exposure to biotechnology, capital goods, application software and internet software & services declined over the period.

Describe Portfolio positioning at period-end.

• At the end of the reporting period, the Portfolio was most overweight relative to the benchmark in healthcare equipment and home entertainment software and had an allocation to telecommunication services, which is not included in the benchmark. Underweighted sectors included biotechnology and life science tools & services, application software and aerospace & defense.

• Geographically, approximately 20% of the Portfolio’s net assets was allocated to non-U.S. companies.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Apple Computer, Inc.	5	%
International Business Machines Corp.	3
Microsoft Corp.	2
DST Systems, Inc.	2
Hewlett-Packard Co.	2
Lockheed Martin Corp.	2
Gilead Sciences, Inc.	2
Oracle Corp.	2
Intel Corp.	2
Becton, Dickinson & Co.	2
Ten Largest Industries	Percent of Long-Term Investments
Computer Software & Services	30	%
Computer & Office Equipment	13
Telecommunications	12
Semiconductors & Related Devices	11
Medical Instruments & Supplies	10
Pharmaceuticals	7
Electronics	4
Aerospace	4
Medical & Medical Services	2
Manufacturing	2

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

20 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Global Science & Technology Opportunities Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

** Commencement of operations.

† The Portfolio will invest primarily in equity securities of U.S. and non-U.S. companies in all capitalization ranges selected for their rapid and sustainable growth potential from the development, advancement and use of science and/or technology.

†† A price-weighted index comprised of not more than 100 individual stocks listed on the NYSE, AMEX or NASDAQ. The index is modeled to represent a broad spectrum of companies engaged principally in manufacturing products and/or providing services within technology fields.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				From Inception**
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(14.06	)%	1.44	%	—		16.22	%	—		(3.17	)%	—
Service	(14.27	)%	0.93	%	—		15.83	%	—		(3.47	)%	—
Investor A	(14.19	)%	1.08	%	(4.21	)%	15.75	%	14.51	%	(3.59	)%	(4.24	)%
Investor B	(14.65	)%	0.14	%	(4.36	)%	14.84	%	14.61	%	(4.34	)%	(4.34	)%
Investor C	(14.67	)%	0.00	%	(1.00	)%	14.80	%	14.80	%	(4.36	)%	(4.36	)%
NYSE Arca Tech 100 IndexSM	(14.15	)%	(4.26	)%	—		13.45	%	—		(2.11	)%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

** The Portfolio commenced operations on 5/15/00.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	859.36	$	6.28	$	1,000.00	$	1,018.17	$	6.83
Service	$	1,000.00	$	857.30	$	8.04	$	1,000.00	$	1,016.24	$	8.76
Investor A	$	1,000.00	$	858.12	$	8.13	$	1,000.00	$	1,016.14	$	8.86
Investor B	$	1,000.00	$	853.51	$	12.25	$	1,000.00	$	1,011.61	$	13.39
Investor C	$	1,000.00	$	853.33	$	12.00	$	1,000.00	$	1,011.89	$	13.11

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.35% for Institutional, 1.73% for Service, 1.75% for Investor A, 2.64% for Investor B and 2.59% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 21

Portfolio Summary (Unaudited) Global Resources Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• The Portfolio produced strong absolute and relative returns, outperforming the broad-market S&P 500 Index and the Lipper Natural Resources Funds Index, its sector benchmark, for the six-month period.

What factors influenced performance?

• Amid significant market tumult, the natural resources sector remained among the strongest areas of the market, as rising prices continued to boost share prices in commodity-related segments.

• The Portfolio’s large emphasis on U.S. coal producers proved to be the leading driver of returns, as holdings in the segment rose 35% during the period. With China increasingly relying on coal imports to meet its rising power needs, global coal markets have become correspondingly tight. For the first time in many years, U.S. producers, which had been struggling with weak domestic pricing, participated in global markets and benefited from higher metallurgical and steam coal prices.

• Elsewhere within the Portfolio, complete avoidance of lagging integrated oil and refining stocks also aided relative returns.

• In contrast, the Portfolio’s exploration & production holdings, despite performing well overall, marginally detracted from relative return comparisons, as they could not keep pace with their Index counterparts. Normal winter temperatures in North America contributed to strong demand for natural gas, causing storage levels to fall below historic averages and natural gas prices to rise to their highest levels in over two years. The stronger pricing environment has been favorable for smaller exploration and production companies, most of which have some exposure to gas.

• The Portfolio’s equipment & service and drilling holdings performed in line with the broader sector, but were detractors in that they limited the fund’s relative returns.

Describe recent Portfolio activity.

• Portfolio activity was fairly limited during the period. We have significantly reduced exposure to the offshore drilling segment, feeling that many of these stocks now reflect full valuations. Proceeds from these sales have been redeployed into select natural gas-related exploration and production stocks.

Describe Portfolio positioning at period-end.

• Despite increased market volatility and concerns surrounding the U.S. economy, our long-term outlook for the energy sector remains largely unchanged. Across the energy commodity spectrum, strong demand trends and significant long-term supply constraints make higher prices inevitable. We continue to believe that commodity prices will remain at elevated levels and that related equities offer good value in nearly all instances, as the stocks continue to trade at steep discounts relative to longer-term price considerations.

• At period-end, Portfolio positioning remains largely unchanged, as we continue to emphasize coal producers, exploration & production and oil service stocks.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
CONSOL Energy, Inc.	8	%
Massey Energy Co.	6
Arch Coal, Inc.	6
Plains Exploration & Production Co.	5
Newfield Exploration Co.	5
Peabody Energy Corp.	4
Southwestern Energy Co.	4
Delta Petroleum Corp.	4
Penn Virginia Corp.	4
Transocean, Inc.	3
Industries	Percent of Long-Term Investments
Oil & Gas	63	%
Metal & Mining	32
Energy & Utilities	4
Transportation	1

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

22 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Global Resources Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† Under normal market conditions, the Portfolio invests at least 80% of its total assets in securities of global energy and natural resources companies and companies in associated businesses, as well as utilities (such as gas, water, cable, electrical and telecommunications utilities).

†† This unmanaged Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues) representing about 75% of NYSE market capitalization and 30% of NYSE issues. S&P 500 is a trademark of the McGraw-Hill Companies.

††† An equally weighted index of typically the 30 largest mutual funds within its respective investment objective.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	15.54	%	30.48	%	—		39.73	%	—		19.61	%	—
Investor A	15.41	%	30.19	%	23.35	%	39.35	%	37.85	%	19.21	%	18.57	%
Investor B	14.96	%	29.18	%	24.68	%	38.37	%	38.26	%	18.48	%	18.48	%
Investor C	14.99	%	29.22	%	28.22	%	38.36	%	38.36	%	18.39	%	18.39	%
S&P 500® Index	(12.46	)%	(5.08	)%	—		11.32	%	—		3.50	%	—
Lipper Natural Resources Funds Index	2.73	%	26.91	%	—		31.45	%	—		14.93	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,155.43	$	5.55	$	1,000.00	$	1,019.78	$	5.22
Investor A	$	1,000.00	$	1,154.14	$	6.84	$	1,000.00	$	1,018.57	$	6.43
Investor B	$	1,000.00	$	1,149.57	$	10.95	$	1,000.00	$	1,014.68	$	10.32
Investor C	$	1,000.00	$	1,149.90	$	10.75	$	1,000.00	$	1,014.88	$	10.12

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.03% for Institutional, 1.27% for Investor A, 2.04% Investor B and 2.00% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 23

Portfolio Summary (Unaudited) All-Cap Global Resources Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results outperformed those of the broad-market S&P 500 Index and the Lipper Natural Resources Funds Index, its sector benchmark, for the six-month period.

What factors influenced performance?

• The Portfolio performed well, as commodity-related segments benefited from rising prices across the commodity spectrum. Strong global demand has persisted despite concerns of a slowdown in the U.S. economy.

• The Portfolio’s emphasis on energy producers in a rising price environment produced favorable returns, as share prices of exploration & production, integrated oil & gas and coal producers moved higher. Significant exposure to oil & gas producers was particularly beneficial. On a relative basis, avoidance of refining stocks also proved advantageous, as the group posted significant declines on falling refining margins over the period.

• While moves in crude oil prices garnered most of the attention in the first few months of the year, higher natural gas prices had the biggest positive impact on the Portfolio’s performance. Normal winter temperatures in North America contributed to strong demand for natural gas, causing storage levels to fall below historic averages and prices to rise to their highest levels in over two years. Although natural gas prices still trade at a discount relative to crude oil based on Btu equivalency, the stronger pricing environment has been favorable for natural gas producers. Port-folio holdings such as EOG Resources, Southwestern Energy Company and Range Resources Corporation generated returns in excess of 20% during the period.

• The Portfolio’s metals & mining and equipment & service holdings were the only detractors from performance.

Describe recent Portfolio activity.

• Portfolio activity was fairly limited during the period. On the margin, we reduced exposure to select offshore drilling and oil service holdings based on valuation. We increased exposure to exploration & production holdings.

Describe Portfolio positioning at period-end.

• Despite increased market volatility and concerns surrounding the U.S. economy, our long-term outlook for the energy sector remains largely unchanged. Across the energy commodity spectrum, strong demand trends and significant long-term supply constraints make higher prices inevitable. We continue to believe that commodity prices will remain at elevated levels and that related equities offer good value in nearly all instances, as the stocks continue to trade at steep discounts relative to longer-term price considerations.

• At period-end, Portfolio positioning remains largely unchanged. We continue to favor coal producers, exploration & production and metals & mining stocks.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
CONSOL Energy, Inc.	4	%
Potash Corp. of Saskatchewan, Inc.	4
EOG Resources, Inc.	3
Schlumberger Ltd.	3
Hess Corp.	3
Goldcorp, Inc.	3
Weatherford International Ltd.	3
Helmerich & Payne, Inc.	2
Core Laboratories NV	2
Range Resources Corp.	2
Industries	Percent of Long-Term Investments
Oil & Gas	70	%
Metal & Mining	23
Energy & Utilities	4
Food & Agriculture	3

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

24 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) All-Cap Global Resources Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

** Commencement of operations.

† Under normal market conditions, the Portfolio invests at least 80% of its total assets in securities of global energy and natural resources companies and companies in associated businesses, as well as utilities (such as gas, water, cable, electrical and telecommunications utilities).

†† This unmanaged Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues) representing about 75% of NYSE market capitalization and 30% of NYSE issues. S&P 500 is a trademark of the McGraw-Hill Companies.

††† An equally weighted index of typically the 30 largest mutual funds within its respective investment objective.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				From Inception**
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	9.95	%	36.99	%	—		28.54	%	—
Service	9.69	%	36.42	%	—		28.00	%	—
Investor A	9.73	%	36.49	%	29.36	%	28.00	%	25.82	%
Investor B	9.32	%	35.53	%	31.03	%	27.08	%	26.50	%
Investor C	9.33	%	35.50	%	34.50	%	27.13	%	27.13	%
S&P 500® Index	(12.46	)%	(5.08	)%	—		5.11	%	—
Lipper Natural Resources Funds Index	2.73	%	26.91	%	—		26.57	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

** The Portfolio commenced operations on 2/16/05.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,099.46	$	4.69	$	1,000.00	$	1,020.47	$	4.53
Service	$	1,000.00	$	1,096.90	$	6.68	$	1,000.00	$	1,018.55	$	6.45
Investor A	$	1,000.00	$	1,097.31	$	6.56	$	1,000.00	$	1,018.67	$	6.33
Investor B	$	1,000.00	$	1,093.15	$	10.67	$	1,000.00	$	1,014.67	$	10.33
Investor C	$	1,000.00	$	1,093.25	$	10.55	$	1,000.00	$	1,014.79	$	10.21

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.89% for Institutional, 1.27% for Service, 1.25% Investor A, 2.04% for Investor B and 2.02% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 25

Portfolio Summary (Unaudited) Health Sciences Opportunities Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results outperformed those of the broad-market S&P 500 Index and its sector benchmarks, the Russell 3000 Health Care Index and the Lipper Health/Biotechnology Funds Index, for the six-month period.

What factors influenced performance?

• The Portfolio’s outperformance during the reporting period was the result of positive stock selection and, to a lesser extent, sector allocation effects. Strong positioning within biotechnology and an overweight in the sub-sector relative to the Russell 3000 Health Care Index were the most significant contributors. The Portfolio also benefited from an underweight in the managed care sub-sector, as industry bellwethers Wellpoint and Humana lowered 2008 guidance. An overweight in healthcare equipment aided relative comparisons, as well. Given the political climate and headline risk associated with the pharmaceutical and managed care industries, this group attracted investors due to its more stable growth characteristics.

• The stocks contributing most significantly to outperformance included global pharmaceutical company Pharmion and biotechnology names BioMarin Pharmaceutical Inc. and Gilead Sciences Inc. Meaningful positions in these companies contributed strongly to results as their shares appreciated in the face of a declining market.

• Conversely, stock selection within life science tools & services hampered relative results as the Portfolio underperformed within this area. Additionally, an overweight in the healthcare supplies sub-sector and an underweight in healthcare services detracted during the period.

• A position in Johnson & Johnson was beneficial on an absolute basis, as the stock held up well during the period, however due to its large weighting in the Russell 3000 Health Care Index, it detracted from relative performance. Waters Corp., an analytical instrument manufacturer, also hurt comparisons.

Describe recent Portfolio activity.

• Portfolio positioning shifted in some areas during the quarter consistent with our investment process. Specifically, we added to the healthcare equipment sub-sector and covered some of our underweight in healthcare services. In contrast, we eliminated exposure to healthcare facilities and reduced our overweight positions in healthcare supplies, biotechnology and life science tools & services.

Describe Portfolio positioning at period-end.

• At the end of the reporting period, the Portfolio’s largest overweight position relative to the Russell 3000 Health Care Index was in healthcare equipment, while it maintained a more modest overweight in both biotechnology and life science tools & services. The Portfolio was significantly underweight relative to the benchmark in pharmaceuticals, given that sub-sector’s substantial weighting in the index, and also maintained underweight positions in managed care, healthcare distributors and healthcare services.

• Geographically, approximately 10% of the Portfolio’s net assets was allocated to non-U.S. companies.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Becton, Dickinson & Co.	8	%
Gilead Sciences, Inc.	7
Roche Holding AG	5
Stryker Corp.	5
Medtronic, Inc.	5
Baxter International, Inc.	5
Johnson & Johnson	4
Alexion Pharmaceuticals, Inc.	4
Bristol-Myers Squibb Co.	4
CVS Caremark Corp.	3
Industries	Percent of Long-Term Investments
Pharmaceuticals	43	%
Medical Instruments & Supplies	40
Medical & Medical Services	12
Retail Merchandising	3
Insurance	1
Manufacturing	1

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

26 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Health Sciences Opportunities Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

** Commencement of operations.

† Under normal market conditions, the Portfolio invests at least 80% of total assets in securities of companies in health sciences and related industries.

†† This unmanaged Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues) representing about 75% of NYSE market capitalization and 30% of NYSE issues. S&P 500 is a trademark of the McGraw-Hill Companies.

††† An equally weighted index of typically the 30 largest mutual funds within its respective investment objective.

†††† The Russell 3000^® Health Care Index is an unmanaged index representative of companies involved in medical services or health care in the Russell 3000^® Index, which is comprised of the 3,000 largest U.S. companies as determined by total market capitalization.

Effective July 2, 2007, the Portfolio is closed to new investors. Existing shareholders may make additional investments in current accounts. In addition, new accounts may be opened by (i) any investor if the taxpayer identification number for the new account will be the same as that for a current account and (ii) 401(k), 403(b), 457 and other similar group retirement plan programs or certain discretionary wrap fee programs that have current accounts.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				From Inception**
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(5.13	)%	6.38	%	—		21.38	%	—		16.49	%	—
Service	(5.24	)%	6.09	%	—		21.07	%	—		16.19	%	—
Investor A	(5.28	)%	6.05	%	0.49	%	21.00	%	19.70	%	16.15	%	15.40	%
Investor B	(5.69	)%	5.17	%	0.67	%	20.08	%	19.89	%	15.34	%	15.34	%
Investor C	(5.65	)%	5.26	%	4.26	%	20.15	%	20.15	%	15.35	%	15.35	%
S&P 500® Index	(12.46	)%	(5.08	)%	—		11.32	%	—		0.70	%	—
Lipper Health/Biotechnology Funds Index	(11.49	)%	(4.13	)%	—		10.46	%	—		6.45	%	—
Russell 3000® Health Care Index	(10.86	)%	(4.91	)%	—		6.09	%	—		2.98	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

** The Portfolio commenced operations on 12/21/99.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	948.74	$	4.80	$	1,000.00	$	1,020.01	$	4.99
Service	$	1,000.00	$	947.56	$	6.30	$	1,000.00	$	1,018.45	$	6.55
Investor A	$	1,000.00	$	947.19	$	6.35	$	1,000.00	$	1,018.40	$	6.60
Investor B	$	1,000.00	$	943.13	$	10.40	$	1,000.00	$	1,014.17	$	10.83
Investor C	$	1,000.00	$	943.53	$	9.92	$	1,000.00	$	1,014.67	$	10.33

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.99% for Institutional, 1.29% for Service, 1.30% for Investor A, 2.14% for Investor B and 2.04% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 27

Portfolio Summary (Unaudited) U.S. Opportunities Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results outperformed those of the benchmark S&P/Citigroup Extended Market Index (EMI) – U.S. for the six-month period.

What factors influenced performance?

• Portfolio outperformance during the reporting period was mainly the result of positive stock selection. Sector allocation effects contributed positively, as well.

• Strong stock selection within healthcare, industrials and materials had the greatest influence on relative results. Stock selection effects were also positive within telecommunication services, consumer staples and energy. Individual stocks that contributed most significantly to outperformance included fertilizer stock Mosaic Co. and coal miner CONSOL Energy, Inc. These companies experienced strong gains during the quarter and were among the Portfolio’s largest positions.

• Sector allocation effects also contributed to outperformance in the quarter. In a challenging market for consumer-related stocks, the Portfolio’s underweight in the consumer discretionary sector benefited results. Overweight positions in energy, materials and consumer staples also aided comparative returns.

• Conversely, stock selection within information technology proved most disadvantageous for the period. Weaker results within consumer discretionary and financials also detracted somewhat from performance. From an individual stock point of view, the Portfolio’s overweight positions in Life Time Fitness Inc. and VeriFone Holdings Inc. provided the greatest negative effect, as these companies’ shares underperformed, hampering relative results.

• The Portfolio’s underweight in the healthcare and utilities sectors and overweight in telecommunication services modestly hurt relative comparisons, as well.

Describe recent Portfolio activity.

• Sector weights shifted in some areas during the quarter consistent with our investment process. Specifically, we added to holdings in the energy, financials and materials sectors, while the Portfolio’s exposure to industrials and information technology declined over the period.

Describe Portfolio positioning at period-end.

• At the end of the reporting period, the Portfolio was overweight relative to the benchmark in the consumer staples, energy, materials and telecommunication services sectors. Underweighted sectors included consumer discretionary, financials, healthcare, industrials and information technology.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Ishares Dow Jones U.S. Real Estate Index Fund	2	%
United Therapeutics Corp.	2
FTI Consulting, Inc.	2
CONSOL Energy, Inc.	2
Atwood Oceanics, Inc.	1
Petrohawk Energy Corp.	1
Chesapeake Energy Corp.	1
Newfield Exploration Co.	1
Becton, Dickinson & Co.	1
priceline.com, Inc.	1
Ten Largest Industries	Percent of Long-Term Investments
Oil & Gas	14	%
Computer Software & Services	8
Banks	6
Metal & Mining	6
Energy & Utilities	5
Finance	5
Medical Instruments & Supplies	4
Manufacturing	4
Telecommunications	4
Chemicals	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

28 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) U.S. Opportunities Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

** Commencement of operations.

† The Portfolio normally invests at least 80% of its net assets in equity securities issued by U.S. emerging capitalization companies with relatively attractive earnings growth potential and valuation.

†† An unmanaged index comprised of smaller-capitalization U.S. stocks representing the bottom 20% of available market capital, with a minimum market capitalization of at least $100 million.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				From Inception**
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(7.26	)%	4.18	%	—		21.83	%	—		18.38	%	—
Service	(7.41	)%	3.78	%	—		21.38	%	—		17.99	%	—
Investor A	(7.48	)%	3.69	%	(1.76	)%	21.30	%	20.01	%	17.87	%	17.23	%
Investor B	(7.83	)%	2.89	%	(1.61	)%	20.41	%	20.22	%	17.18	%	17.18	%
Investor C	(7.81	)%	2.96	%	1.96	%	20.42	%	20.42	%	17.01	%	17.01	%
S&P/Citigroup Extended Market Index U.S.	(13.00	)%	(9.09	)%	—		16.18	%	—		7.09	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

** The Portfolio commenced operations on 5/1/98.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	927.41	$	4.82	$	1,000.00	$	1,019.94	$	5.06
Service	$	1,000.00	$	925.89	$	6.60	$	1,000.00	$	1,018.06	$	6.94
Investor A	$	1,000.00	$	925.23	$	6.95	$	1,000.00	$	1,017.69	$	7.31
Investor B	$	1,000.00	$	921.67	$	10.81	$	1,000.00	$	1,013.61	$	11.39
Investor C	$	1,000.00	$	921.95	$	10.54	$	1,000.00	$	1,013.89	$	11.11

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.00% for Institutional, 1.37% for Service, 1.44% for Investor A, 2.25% for Investor B and 2.19% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 29

Portfolio Summary (Unaudited) Global Opportunities Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results outperformed those of the benchmark S&P/Citigroup Global Broad Market Index for the six-month period.

What factors influenced performance?

• Portfolio outperformance during the reporting period was a result of positive stock selection and sector allocation effects, which each contributed equally. Strong stock selection within materials had the greatest influence on relative results. On the whole, stock selection effects were positive across seven of ten economic sectors.

• The stocks contributing most significantly to outperformance included Taiwan Fertilizer Co. Ltd., Yara International ASA and Syngenta AG, as shares of these three agricultural chemical companies experienced strong gains during the period. The portfolio also benefited from positions in Barrick Gold Corp. and Kinross Gold Corp. We continue to favor the agricultural chemical and gold industries.

• The Portfolio’s underweight to financials and consumer discretionary also was positive for relative returns, as those sectors underperformed the market. Overweight positions in the consumer staples and materials sectors proved advantageous, as well.

• In contrast, stock selection within information technology was the primary detractor from relative results for the period. Weaker results within consumer staples and utilities also hampered performance. From an individual stock point of view, the Portfolio’s overweight positions in Konica Minolta Holdings Inc. and Sumitomo Corp. proved most unfavorable, as both companies’ shares underperformed over the period.

Describe recent Portfolio activity.

• Sector and regional weights shifted in some areas during the period consistent with our investment process. Specifically, we added exposure to the financials and consumer discretionary sectors, though the Portfolio remains underweight in both areas. We also increased Portfolio exposure to the energy and healthcare sectors. Conversely, exposure to industrials, information technology and materials declined over the period.

• Regionally, our relative overweight to North America increased during the period and we added exposure within emerging markets, resulting in a narrower underweight versus the benchmark. Our weightings to Western Europe and Asia declined.

Describe Portfolio positioning at period-end.

• At the end of the reporting period, the Portfolio was overweight relative to the benchmark in the consumer staples, energy, and healthcare sectors. The Portfolio was underweight in consumer discretionary, financials, information technology, materials and utilities.

• By region, the Portfolio was overweight North America and underweight Western Europe, Asia, and emerging markets.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
KBW Bank Corp.	2	%
Gilead Sciences, Inc.	2
Taiwan Fertilizer Co. Ltd.	1
Colgate-Palmolive Co.	1
Ishares Dow Jones U.S. Real Estate Index Fund	1
Nestle SA	1
Medtronic, Inc.	1
Becton, Dickinson & Co.	1
Exxon Mobil Corp.	1
The Procter & Gamble Co.	1
Ten Largest Countries	Percent of Long-Term Investments
United States	63	%
Japan	5
United Kingdom	3
Hong Kong	3
France	3
Germany	3
Switzerland	3
Brazil	3
Taiwan	3
Canada	2

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

30 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) Global Opportunities Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

** Commencement of operations.

† The Portfolio will invest, under normal market conditions, at least 40% of its total assets in issuers located outside of the U.S. The Portfolio may invest up to 25% of its total assets in stocks of issuers in emerging market countries. The Portfolio may also invest up to 25% of its total assets in global fixed income securities including emerging market debt.

†† The all-encompassing S&P/Citigroup Global index is known as the Broad Market Index (BMI). The BMI measures the performance of the entire universe of investable securities greater than USD 100 million. The BMI is segmented into two size components: the Primary Market Index (PMI), and the Extended Market Index (EMI). The PMI defines the large-cap universe, representing the top 80% of BMI market capitalization for each listed country. The EMI defines the small-cap universe for each country, representing the remaining 20%.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				From Inception**
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(7.78	)%	6.55	%	—		10.34	%	—
Investor A	(7.90	)%	6.27	%	0.67	%	10.06	%	7.37	%
Investor B	(8.35	)%	5.52	%	1.02	%	9.28	%	7.81	%
Investor C	(8.27	)%	5.53	%	4.53	%	9.32	%	9.32	%
S&P/Citigroup Global Broad Market Index	(11.00	)%	(1.17	)%	—		7.76	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

** The Portfolio commenced operations on 1/31/06.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	922.23	$	6.19	$	1,000.00	$	1,018.48	$	6.52
Investor A	$	1,000.00	$	920.98	$	7.58	$	1,000.00	$	1,017.01	$	7.99
Investor B	$	1,000.00	$	916.53	$	11.46	$	1,000.00	$	1,012.90	$	12.10
Investor C	$	1,000.00	$	917.34	$	11.18	$	1,000.00	$	1,013.19	$	11.81

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.29% for Institutional, 1.58% for Investor A, 2.39% for Investor B and 2.33% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366. See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 31

Portfolio Summary (Unaudited) International Opportunities Portfolio

Portfolio Management Commentary

How did the Portfolio perform?

• For the six-month period, Portfolio results outperformed both those of its former benchmark, the S&P/Citigroup Extended Market Index Global ex-U.S., and those of the S&P/Citigroup Broad Market Index Global ex-U.S., its benchmark effective March 3, 2008.

What factors influenced performance?

• Portfolio outperformance during the reporting period was a result of positive stock selection and sector allocation effects. Strong stock selection within materials had the greatest influence on relative results. Stock selection effects also were positive within consumer staples, energy, financials and information technology.

• The stocks contributing most significantly to outperformance included Taiwan Fertilizer Co. Ltd, Yara International ASA, and Nihon Nohyaku Co. Ltd. These three agricultural chemical stocks experienced strong gains during the period. The Portfolio also benefited from a position in Barrick Gold Corp. We continue to favor the agricultural chemical and gold industries.

• Sector allocation effects were positive for seven of ten economic sectors. Specifically, the Portfolio’s underweight in consumer discretionary and information technology and overweight positions in energy, materials and utilities contributed positively.

• In contrast, stock selection within utilities was the biggest detractor from relative performance. Weaker results within consumer discretionary and industrials and an underweight in healthcare also impaired performance.

• From an individual stock point of view, the Portfolio’s overweight positions in JSW Steel Ltd. and Korea Investment Holdings Co. proved most unfavorable, as these companies’ shares underperformed, hampering comparative results.

Describe recent Portfolio activity.

• Sector and regional weights shifted in some areas during the quarter consistent with our investment process. Specifically, we added to the Portfolio’s consumer staples and healthcare holdings. In contrast, exposure to consumer discretionary, energy, telecommunication services and utilities declined over the period.

• Regionally, we reduced the Portfolio’s exposure to Japan and emerging markets and we increased exposure to Western Europe.

Describe Portfolio positioning at period-end.

• At the end of the reporting period, the Portfolio maintained overweight positions in consumer staples, energy, industrials and materials. Underweighted sectors relative to the benchmark included consumer discretionary, financials, information technology, telecommunication services and utilities.

• Geographically, the Portfolio was underweight Asia and Western Europe and overweight emerging markets, primarily in Asia.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Kinross Gold Corp.	2	%
Kurita Water Industries Ltd.	2
Taiwan Fertilizer Co. Ltd.	2
Yara International ASA	1
Unibanco SA - ADR	1
Oil Search Ltd.	1
United Internet AG	1
Casino Guichard-Perrachon SA	1
Hannover Rueckversicherung AG	1
Nihon Nohyaku Co. Ltd.	1
Ten Largest Countries	Percent of Long-Term Investments
United Kingdom	14	%
Japan	14
Germany	7
Canada	6
France	5
Norway	5
Taiwan	5
Switzerland	5
Brazil	4
Hong Kong	3

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

32 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (concluded) International Opportunities Portfolio

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† The Portfolio under normal market conditions, invests at least 80% of its net assets in equity securities issued by international companies of any market capitalization.

†† The S&P/Citigroup Broad Market Index (BMI) Global Ex-U.S. is an available market capitalization weighted equity index made up of 52 global developed and emerging markets, not including the U.S. The BMI is segmented into two size components: the Primary Market Index (PMI), and the Extended Market Index (EMI). The PMI defines the large-cap universe, representing the top 80% of BMI market capitalization for each listed country. The EMI defines the small-cap universe for each country, representing the remaining 20%.

††† An unmanaged index comprised of smaller-capitalization stocks of both developed and emerging market countries. Index stocks represent the bottom 20% of available market capital for each individual country, with a minimum market capitalization of at least the local equivalent of US $100 million.

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(7.71	)%	5.84	%	—		30.44	%	—		20.09	%	—
Service	(7.85	)%	5.48	%	—		30.06	%	—		19.72	%	—
Investor A	(7.86	)%	5.48	%	(0.06	)%	29.98	%	28.58	%	19.57	%	18.92	%
Investor B	(8.22	)%	4.67	%	0.77	%	28.99	%	28.85	%	18.88	%	18.88	%
Investor C	(8.21	)%	4.70	%	3.83	%	29.02	%	29.02	%	18.71	%	18.71	%
S&P/Citigroup Broad Market Index Global Ex-U.S.	(9.67	)%	1.95	%	—		24.78	%	—		8.33	%	—
S&P/Citigroup Extended Market Index Global Ex-U.S.	(11.24	)%	(6.38	)%	—		26.78	%	—		9.97	%	—

* Assuming maximum sales charges. See “About Portfolios’ Performance” on page 34 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	922.88	$	6.00	$	1,000.00	$	1,018.68	$	6.32
Service	$	1,000.00	$	921.50	$	7.52	$	1,000.00	$	1,017.08	$	7.92
Investor A	$	1,000.00	$	921.39	$	7.50	$	1,000.00	$	1,017.09	$	7.91
Investor B	$	1,000.00	$	917.80	$	11.32	$	1,000.00	$	1,013.05	$	11.95
Investor C	$	1,000.00	$	917.95	$	11.13	$	1,000.00	$	1,013.25	$	11.75

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (1.25% for Institutional, 1.56% for Service, 1.56% for Investor A, 2.36% for Investor B and 2.32% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 35 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT MARCH 31, 2008 33

About Portfolios’ Performance

• BlackRock and Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees, except the BlackRock class of Small Cap Value Equity which is subject to a service fee of 0.25% per year (but no distribution fee), and are available only to eligible investors.

• Service Shares are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee).

• 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, these 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 automatic share conversions.) All returns for periods greater than eight years reflect this conversion.

• Investor C Shares are subject to a 1.00% contingent deferred sales charge if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year.

• R Shares are not subject to any 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. R Shares are available only to certain retirement plans.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance 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 Portfolio distributions or the redemption of Portfolio shares. The Portfolios may charge a 2% redemption fee for sales or exchanges of shares within 30 days of purchase or exchange. Performance data does not reflect this potential fee. Figures shown in the performance tables on the previous pages assume reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

The performance information on the previous pages includes information for each class of each Portfolio since the commencement of operations of such Portfolio, rather than the date such class was introduced. Performance information for each class introduced after the commencement of operations of a Portfolio is therefore based on the performance history of a predecessor class adjusted to reflect the class specific fees applicable to each class at the time of the launch of such share class. This information may be considered when assessing a Portfolio’s performance, but does not represent the actual performance of this share class.

Performance for the Capital Appreciation, Mid-Cap Value Equity, Aurora, Small/Mid-Cap Growth, Global Resources and Health Sciences Opportunities Portfolios for the periods prior to January 31, 2005 is based on performance of certain former State Street Research mutual funds that reorganized with the Portfolios on that date.

Performance information is restated to reflect the current maximum front-end sales charge (in the case of Investor A Shares) or the maximum contingent deferred sales charge (in the case of Investor B and Investor C Shares), and assumes the reinvestment of dividends and distributions. The performance information also reflects fee waivers and reimbursements that subsidize and reduce the total operating expenses of each Portfolio. The Portfolios’ returns would have been lower if there were no such waivers and reimbursements. BlackRock Advisors, LLC is under no obligation to waive or continue waiving its fees after February 1, 2009. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

The performance shown in the line graphs is that of Institutional Shares and Investor A Shares of the Portfolios. The actual performance of Investor B, Investor C, Service and R Shares is lower than the performance of Institutional Shares because Investor B, Investor C, Service and R Shares have higher expenses than Institutional Shares. Excluding the effects of sales charges, the actual performance of Investor B, Investor C and R Shares is lower than the performance of Investor A Shares because Investor B, Investor C and R Shares have higher expenses than Investor A Shares. Purchasers of Investor A Shares generally pay a front-end sales charge, while purchasers of Investor B and Investor C Shares may pay a contingent deferred sales charge (depending on how long they hold their shares) when they sell their shares.

34 SEMI-ANNUAL REPORT MARCH 31, 2008

Disclosure of Expenses

As a shareholder of a Portfolio, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption/exchange fees, where applicable; and (2) ongoing costs, including advisory fees, distribution (12b-1) and service fees, where applicable, and other Portfolio expenses. These Expense Examples on the previous pages are intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Examples on the previous pages are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008. The information under “Actual” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period”, to estimate the expenses incurred on your account during this period.

The information under “Hypothetical” provides information about hypothetical account values and hypothetical expenses based on a Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

SEMI-ANNUAL REPORT MARCH 31, 2008 35

	Capital Appreciation Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 98.3%
Aerospace — 1.3%
Northrop Grumman Corp.	41,500	$	3,229,115
Banks — 0.8%
JPMorgan Chase & Co.	45,300		1,945,635
Beverages & Bottling — 4.7%
The Coca-Cola Co.	150,000		9,130,500
PepsiCo, Inc.	34,400		2,483,680
			11,614,180
Business Services — 0.5%
Fluor Corp.	9,200		1,298,672
Computer & Office Equipment — 6.1%
Apple Computer, Inc.(a)	67,750		9,722,125
Cisco Systems, Inc.(a)	224,308		5,403,580
			15,125,705
Computer Software & Services — 12.6%
Activision, Inc.(a)	91,300		2,493,403
Adobe Systems, Inc.(a)	222,094		7,904,325
Google, Inc. - Class A(a)	14,894		6,560,360
International Game Technology	27,500		1,105,775
Microsoft Corp.	246,762		7,003,106
Salesforce.com, Inc.(a)	71,230		4,122,080
Sun Microsystems, Inc.(a)	113,000		1,754,890
			30,943,939
Energy & Utilities — 1.3%
Exelon Corp.	39,500		3,210,165
Entertainment & Leisure — 0.9%
Las Vegas Sands Corp.(a)(b)	29,422		2,166,636
Finance — 1.2%
The Goldman Sachs Group, Inc.	8,900		1,471,971
NYSE Euronext, Inc.	24,400		1,505,724
			2,977,695
Food & Agriculture — 3.5%
Monsanto Co.	54,840		6,114,660
Potash Corp. of Saskatchewan, Inc.	16,520		2,564,069
			8,678,729
Machinery & Heavy Equipment — 2.2%
Deere & Co.	11,600		933,104
Joy Global, Inc.	68,700		4,476,492
			5,409,596
Manufacturing — 8.6%
Corning, Inc.	147,793		3,552,944
Crocs, Inc.(a)(b)	70,100		1,224,647
Danaher Corp.(b)	67,500		5,132,025
Common Stocks (Continued)
Manufacturing (Continued)
Foster Wheeler Ltd.(a)	16,360		926,303
General Electric Co.	102,491		3,793,192
Honeywell International, Inc.	114,740		6,473,631
			21,102,742
Measuring & Controlling Devices — 2.2%
Thermo Electron Corp.(a)(b)	97,000		5,513,480
Medical & Medical Services — 2.7%
Henry Schein, Inc.(a)(b)	46,700		2,680,580
Medco Health Solutions, Inc.(a)	91,122		3,990,232
			6,670,812
Medical Instruments & Supplies — 4.9%
C.R. Bard, Inc.	17,400		1,677,360
Hologic, Inc.(a)(b)	99,200		5,515,520
Johnson & Johnson	76,600		4,969,042
			12,161,922
Metal & Mining — 3.4%
CONSOL Energy, Inc.	85,166		5,892,636
Freeport-McMoRan Copper & Gold, Inc. - Class B	24,537		2,360,950
			8,253,586
Oil & Gas — 6.4%
EOG Resources, Inc.	43,720		5,246,400
Petroleo Brasileiro SA - ADR	27,700		2,828,447
Schlumberger Ltd.	55,500		4,828,500
Transocean, Inc.(a)	21,805		2,948,036
			15,851,383
Pharmaceuticals — 9.3%
Abbott Laboratories	93,600		5,162,040
Celgene Corp.(a)	52,900		3,242,241
Elan Corp. Plc - ADR(a)	205,900		4,295,074
Genentech, Inc.(a)	34,000		2,760,120
Gilead Sciences, Inc.(a)	96,200		4,957,186
Merck & Co., Inc.	63,046		2,392,596
			22,809,257
Restaurants — 1.0%
McDonald’s Corp.	44,300		2,470,611
Retail Merchandising — 6.8%
Amazon.com, Inc.(a)	39,322		2,803,659
Kohl’s Corp.(a)	69,340		2,973,993
Nordstrom, Inc.(b)	64,267		2,095,104
Wal-Mart Stores, Inc.	170,386		8,975,934
			16,848,690
Security Brokers & Dealers — 1.7%
Janus Capital Group, Inc.	181,983		4,234,744

Portfolios Abbreviations

To simplify the listings of Portfolios holdings in the Schedules of Investments, the names of many of the securities have been abbreviated according to the list on the right.

ADR AUD CAD CHF CZK DKK EUR GBP HKD American Depository Receipts Australian Dollar Canadian Dollar Swiss Francs Czechoslovakian Krone Danish Krone Euro British Pound Hong Kong Dollar JPY LLC LP NOK PLN REIT SEK SGD ZAR Japanese Yen Limited Liability Company Limited Partnership Norwegian Krone Polish Zloty Real Estate Investment Trust Swedish Krona Singapore Dollar South African Rand

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT MARCH 31, 2008

	Capital Appreciation Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Semiconductors & Related Devices — 1.7%
Broadcom Corp. - Class A(a)	79,500	$	1,531,965
PMC-Sierra, Inc.(a)	449,400		2,561,580
			4,093,545
Soaps & Cosmetics — 3.3%
Avon Products, Inc.	85,500		3,380,670
The Procter & Gamble Co.	69,400		4,862,858
			8,243,528
Telecommunications — 7.0%
American Tower Corp. - Class A(a)	94,214		3,694,131
AT&T, Inc.	109,083		4,177,879
QUALCOMM, Inc.	193,221		7,922,061
Research In Motion Ltd.(a)	12,120		1,360,227
			17,154,298
Tobacco — 3.0%
Altria Group, Inc.	23,238		515,884
Philip Morris International, Inc.(a)	133,616		6,758,297
			7,274,181
Transportation — 1.2%
Expeditors International of Washington, Inc.(b)	64,528		2,915,375
TOTAL COMMON STOCKS
(Cost $212,858,618)			242,198,221
Short Term Investments — 9.2%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	19,404,950		19,404,950
Galileo Money Market Fund, 2.56%(e)	3,332,417		3,332,417
TOTAL SHORT TERM INVESTMENTS
(Cost $22,737,367)			22,737,367
TOTAL INVESTMENTS IN SECURITIES — 107.5%
(Cost $235,595,985*)			264,935,588
LIABILITIES IN EXCESS OF OTHER ASSETS — (7.5)%			(18,492,128	)
NET ASSETS — 100.0%		$	246,443,460

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	236,683,015
Gross unrealized appreciation	$	39,526,045
Gross unrealized depreciation		(11,273,472	)
Net unrealized appreciation	$	28,252,573

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	19,404,950	$	55,514

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the Securities Exchange Commission (“SEC”). This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 37

	Mid-Cap Value Equity Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 96.2%
Banks — 6.8%
The Bank of New York Mellon Corp.	275,300	$	11,488,269
Cullen/Frost Bankers, Inc.	174,635		9,262,641
First Midwest Bancorp, Inc.(a)	346,013		9,608,781
People’s United Financial, Inc.	876,520		15,172,561
Wintrust Financial Corp.	246,400		8,611,680
Zions Bancorporation(a)	195,100		8,886,805
			63,030,737
Beverages & Bottling — 1.2%
Constellation Brands, Inc.(a)(b)	636,300		11,243,421
Broadcasting — 1.3%
Belo Corp.	1,107,326		11,704,436
Business Services — 2.5%
The Brink’s Co.	257,400		17,292,132
W.W. Grainger, Inc.(a)	74,292		5,675,166
			22,967,298
Chemicals — 4.2%
Ashland, Inc.	292,800		13,849,440
Celanese Corp. - Series A	325,300		12,702,965
Hercules, Inc.(a)	667,200		12,203,088
			38,755,493
Computer & Office Equipment — 0.6%
Electronics for Imaging, Inc.(b)	384,800		5,741,216
Phase Metrics, Inc.(b)(c)	108,409		2,168
			5,743,384
Computer Software & Services — 1.5%
Tech Data Corp.(b)	247,800		8,127,840
Teradata Corp.(b)	270,900		5,976,054
			14,103,894
Construction — 0.5%
Toll Brothers, Inc.(b)	182,700		4,289,796
Containers — 2.5%
Owens-Illinois, Inc.(b)	122,200		6,895,746
Pactiv Corp.(b)	417,500		10,942,675
Smurfit-Stone Container Corp.(b)	687,700		5,295,290
			23,133,711
Electronics — 2.2%
Agilent Technologies, Inc.(b)	396,600		11,830,578
Intersil Corp. - Class A	317,500		8,150,225
			19,980,803
Energy & Utilities — 12.4%
Constellation Energy Group, Inc.	136,600		12,057,682
Edison International	302,300		14,818,746
Entergy Corp.	110,000		11,998,800
Equitable Resources, Inc.	231,500		13,635,350
Integrys Energy Group, Inc.	243,500		11,356,840
NRG Energy, Inc.(b)	317,000		12,359,830
PPL Corp.(a)	312,300		14,340,816
Questar Corp.	187,000		10,576,720
Wisconsin Energy Corp.	312,000		13,724,880
			114,869,664
Entertainment & Leisure — 1.1%
Pinnacle Entertainment, Inc.(b)	757,300		9,693,440
Finance — 5.3%
Affiliated Managers Group, Inc.(b)	85,100		7,721,974
Astoria Financial Corp.	322,100		8,748,236
Capital One Financial Corp.(a)	102,300		5,035,206
Freedom Pay, Inc.(c)	43,051		430
Invesco Ltd.	527,600		12,852,336
TD Ameritrade Holding Corp.(b)	888,700		14,672,437
			49,030,619
Food & Agriculture — 2.6%
Dean Foods Co.(a)(b)	457,600		9,193,184
Del Monte Foods Co.	1,600,917		15,256,739
			24,449,923
Insurance — 8.0%
Assurant, Inc.	212,000		12,902,320
AXIS Capital Holdings Ltd.	310,400		10,547,392
Endurance Specialty Holdings Ltd.(a)	317,819		11,632,175
HCC Insurance Holdings, Inc.	655,500		14,873,295
Lincoln National Corp.	218,300		11,351,600
W.R. Berkley Corp.	457,900		12,679,251
			73,986,033
Machinery & Heavy Equipment — 1.3%
Albany International Corp. - Class A	337,700		12,204,478
Manufacturing — 4.5%
Dover Corp.	325,500		13,599,390
Eaton Corp.	120,500		9,600,235
General Cable Corp.(a)(b)	80,800		4,772,856
Jones Apparel Group, Inc.(a)	495,100		6,644,242
Textron, Inc.	132,200		7,326,524
			41,943,247
Medical & Medical Services — 4.9%
Coventry Health Care, Inc.(b)	156,000		6,294,600
Covidien Ltd.	250,000		11,062,500
Davita, Inc.(b)	137,900		6,586,104
Laboratory Corp. of America Holdings(a)(b)	148,300		10,926,744
Quest Diagnostics, Inc.(a)	221,900		10,045,413
			44,915,361
Medical Instruments & Supplies — 2.4%
The Cooper Cos., Inc.,(a)	453,500		15,614,005
Hillenbrand Industries, Inc.	134,466		6,427,475
			22,041,480
Metal & Mining — 1.3%
CONSOL Energy, Inc.	66,200		4,580,378
Reliance Steel & Aluminum Co.(a)	124,000		7,422,640
			12,003,018
Motor Vehicles — 0.9%
Ford Motor Co.(a)(b)	1,505,314		8,610,396
Oil & Gas — 7.7%
EOG Resources, Inc.	111,200		13,344,000
Grant Prideco, Inc.(b)	348,100		17,133,482
Newfield Exploration Co.(b)	281,600		14,882,560
Noble Corp.	249,500		12,392,665
Southwestern Energy Co.(b)	386,600		13,024,554
			70,777,261

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT MARCH 31, 2008

	Mid-Cap Value Equity Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares		Value
Common Stocks (Continued)
Publishing & Printing — 1.4%
R.R. Donnelley & Sons Co.	422,000		$	12,790,820
Railroad & Shipping — 0.8%
Norfolk Southern Corp.	139,300			7,566,776
Real Estate — 3.3%
Boston Properties, Inc. (REIT)(a)	153,600			14,141,952
Simon Property Group, Inc. (REIT)	171,900			15,971,229
				30,113,181
Restaurants — 0.8%
Brinker International, Inc.	411,800			7,638,890
Retail Merchandising — 7.5%
Advance Auto Parts, Inc.	262,700			8,944,935
Limited Brands, Inc.	746,100			12,758,310
Longs Drug Stores Corp.(a)	218,800			9,290,248
Macy’s, Inc.	364,000			8,393,840
Safeway, Inc.	674,000			19,781,900
The Talbots, Inc.(a)	934,974			10,079,020
				69,248,253
Security Brokers & Dealers — 0.7%
Piper Jaffray Cos., Inc.(b)	177,900			6,041,484
Semiconductors & Related Devices — 1.1%
Micron Technology, Inc.(b)	1,747,700			10,433,769
Soaps & Cosmetics — 0.5%
Estee Lauder Cos., Inc.	91,000			4,172,350
Telecommunications — 1.8%
Amdocs Ltd.(b)	326,214			9,251,429
Anixter International, Inc.(a)(b)	122,175			7,824,087
				17,075,516
Tobacco — 2.6%
Loews Corp.-Carolina Group(a)	152,000			11,027,600
UST, Inc.(a)	244,500			13,330,140
				24,357,740
TOTAL COMMON STOCKS
(Cost $859,434,633)				888,916,672
Short Term Investments — 21.1%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(d)(e)(f)	166,446,750			166,446,750
Galileo Money Market Fund, 2.56%(f)	29,077,071			29,077,071
TOTAL SHORT TERM INVESTMENTS
(Cost $195,523,821)				195,523,821
TOTAL INVESTMENTS BEFORE OUTSTANDING OPTIONS WRITTEN — 117.3%
(Cost $1,054,958,454*)				1,084,440,493
	Contracts
Call Options Written — 0.0%
Drinker International, Inc., Strike Price $20, Expires 4/19/08	(500	)		(15,000	)
Frost Bankers, Inc., Strike Price $55, Expires 4/19/08	(200	)		(15,000	)
Simon Property Group, Inc., Strike Price $100, Expires 4/19/08	(300	)		(22,500	)
TOTAL CALL OPTIONS WRITTEN
(Premiums received $50,960)				(52,500	)
TOTAL INVESTMENTS NET OF OUTSTANDING OPTIONS WRITTEN — 117.3%
(Cost $1,054,907,494*)				1,084,387,993
LIABILITIES IN EXCESS OF OTHER ASSETS — (17.3)%				(159,994,219	)
NET ASSETS — 100.0%			$	924,393,774

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	1,082,505,492
Gross unrealized appreciation	$	74,920,687
Gross unrealized depreciation		(72,985,686	)
Net unrealized appreciation	$	1,935,001

(a) Security, or a portion of security, is on loan.

(b) Non-income producing security.

(c) Security is fair valued by the Board of Trustees.

(d) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	166,446,750	$	654,618

(e) Security purchased with the cash proceeds from securities loans.

(f) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 39

	Mid-Cap Growth Equity Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 95.1%
Aerospace — 2.5%
BE Aerospace, Inc.(a)	119,500	$	4,176,525
Goodrich Corp.	64,800		3,726,648
			7,903,173
Banks — 1.8%
Fidelity National Information Services, Inc.	146,600		5,591,324
Broadcasting — 1.1%
CKX, Inc.(a)	353,000		3,360,560
Business Services — 4.7%
DeVry, Inc.	110,414		4,619,722
Genpact Ltd.(a)(b)	232,400		2,846,900
Iron Mountain, Inc.(a)(b)	229,200		6,060,048
Strayer Education, Inc.	9,500		1,448,750
			14,975,420
Chemicals — 3.7%
Agrium, Inc.	84,900		5,273,139
Celanese Corp. - Series A	167,400		6,536,970
			11,810,109
Computer & Office Equipment — 1.2%
Intuit, Inc.(a)	142,300		3,843,523
Computer Software & Services — 10.8%
ACI Worldwide, Inc.(a)	140,400		2,796,768
Adobe Systems, Inc.(a)	180,600		6,427,554
Foundry Networks, Inc.(a)(b)	259,400		3,003,852
IHS, Inc.(a)	111,900		7,196,289
International Game Technology	76,900		3,092,149
Jack Henry & Associates, Inc.	145,500		3,589,485
Juniper Networks, Inc.(a)	111,800		2,795,000
MICROS Systems, Inc.(a)	155,300		5,227,398
			34,128,495
Electronics — 5.6%
Ametek, Inc.	174,300		7,653,513
Amphenol Corp.	174,100		6,485,225
Intersil Corp. - Class A	131,700		3,380,739
			17,519,477
Energy & Utilities — 1.2%
Quanta Services, Inc.(a)(b)	158,100		3,663,177
Entertainment & Leisure — 4.3%
DreamWorks Animation SKG, Inc. - Class A(a)	191,400		4,934,292
Orient-Express Hotels Ltd. - Class A	62,300		2,688,868
Scientific Games Corp. - Class A(a)	280,100		5,912,911
			13,536,071
Finance — 4.3%
Affiliated Managers Group, Inc.(a)	23,500		2,132,390
AllianceBernstein Holding LP	42,300		2,680,974
CME Group, Inc.	13,500		6,332,850
Invesco Ltd.	79,500		1,936,620
Riskmetrics Group, Inc.(a)	25,600		495,360
			13,578,194
Food & Agriculture — 1.0%
Panera Bread Co. - Class A(a)(b)	77,400		3,242,286
Machinery & Heavy Equipment — 1.9%
Joy Global, Inc.	91,700		5,975,172
Manufacturing — 3.4%
IDEX Corp.(b)	159,400		4,891,986
Quanex Corp.	111,889		5,789,137
			10,681,123
Measuring & Controlling Devices — 2.9%
Thermo Electron Corp.(a)	160,000		9,094,400
Medical & Medical Services — 5.6%
Magellan Health Services, Inc.(a)	94,500		3,750,705
Medco Health Solutions, Inc.(a)	133,400		5,841,586
Pediatrix Medical Group, Inc.(a)	121,700		8,202,580
			17,794,871
Medical Instruments & Supplies — 2.8%
Hologic, Inc.(a)	87,900		4,887,240
Martek Biosciences Corp.(a)(b)	129,300		3,952,701
			8,839,941
Metal & Mining — 4.2%
Century Aluminum Co.(a)	36,900		2,444,256
CONSOL Energy, Inc.	78,400		5,424,496
Massey Energy Co.	151,000		5,511,500
			13,380,252
Miscellaneous Services — 1.9%
TeleTech Holdings, Inc.(a)	259,200		5,821,632
Motor Vehicles — 2.0%
Oshkosh Truck Corp.(b)	173,100		6,280,068
Oil & Gas — 9.9%
Acergy SA - ADR	197,600		4,218,760
Chesapeake Energy Corp.	109,000		5,030,350
EOG Resources, Inc.	13,800		1,656,000
National-Oilwell, Inc.(a)	68,500		3,999,030
Newfield Exploration Co.(a)	65,505		3,461,939
Noble Corp.	92,300		4,584,541
Plains Exploration & Production Co.(a)	75,100		3,990,814
Superior Energy Services, Inc.(a)	108,800		4,310,656
			31,252,090
Personal Services — 0.2%
MSCI, Inc.(a)	25,100		746,725
Pharmaceuticals — 3.9%
Endo Pharmaceuticals Holdings, Inc.(a)	118,600		2,839,284
Forest Laboratories, Inc.(a)	47,100		1,884,471
Medicis Pharmaceutical Corp.	137,100		2,699,499
Shire Plc - ADR	85,056		4,929,846
			12,353,100
Real Estate — 0.1%
FX Real Estate and Entertainment, Inc.(a)	70,600		415,128
FX Real Estate and Entertainment, Inc., Rights expire 4/11/08(a)	35,300		2,824
			417,952
Retail Merchandising — 5.0%
GameStop Corp.(a)(b)	149,300		7,720,303
TJX Cos., Inc.(b)	169,600		5,608,672
Urban Outfitters, Inc.(a)	76,500		2,398,275
			15,727,250

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT MARCH 31, 2008

	Mid-Cap Growth Equity Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares		Value
Common Stocks (Continued)
Semiconductors & Related Devices — 2.2%
Broadcom Corp. - Class A(a)		182,200	$	3,510,994
PMC-Sierra, Inc.(a)		598,600		3,412,020
				6,923,014
Soaps & Cosmetics — 2.3%
Bare Escentuals, Inc.(a)(b)		313,700		7,346,854
Telecommunications — 4.6%
Amdocs Ltd.(a)		197,600		5,603,936
American Tower Corp. - Class A(a)		62,600		2,454,546
Harris Corp.		129,781		6,298,272
				14,356,754
TOTAL COMMON STOCKS
(Cost $261,158,104)				300,143,007
	Par/Shares (000)
Short Term Investments — 17.3%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	$	39,892		39,892,100
Federal Home Loan Bank, Discount Notes,
1.50%, 4/01/08(f)		4,800		4,800,000
Galileo Money Market Fund, 2.56%(e)		10,015		10,014,848
TOTAL SHORT TERM INVESTMENTS
(Cost $54,706,948)				54,706,948
TOTAL INVESTMENTS IN SECURITIES — 112.4%
(Cost $315,865,052*)				354,849,955
LIABILITIES IN EXCESS OF OTHER ASSETS — (12.4)%				(39,071,867	)
NET ASSETS — 100.0%			$	315,778,088

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	317,338,954
Gross unrealized appreciation	$	62,513,099
Gross unrealized depreciation		(25,002,098	)
Net unrealized appreciation	$	37,511,001

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	39,892,100	$	100,419

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

(f) The rate shown is the effective yield at the time of purchase.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 41

	Aurora Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 98.9%
Canada — 2.5%
Real Estate — 2.5%
Boardwalk Real Estate Investment Trust (REIT)	685,144	$	25,364,579
Ireland — 0.9%
Computer Software & Services — 0.9%
SkillSoft Plc - ADR(a)	850,431		8,904,012
United States — 95.5%
Aerospace — 3.3%
DRS Technologies, Inc.	224,200		13,066,376
Orbital Sciences Corp.(a)	463,377		11,167,386
Teledyne Technologies, Inc.(a)	193,000		9,071,000
			33,304,762
Banks — 5.7%
Cullen/Frost Bankers, Inc.(b)	171,800		9,112,272
First Midwest Bancorp, Inc.	384,200		10,669,234
People’s United Financial, Inc.(b)	699,500		12,108,345
Sterling Bancshares, Inc.	1,226,511		12,191,519
United Bankshares, Inc.	260,372		6,938,914
Zions Bancorporation(b)	156,400		7,124,020
			58,144,304
Business Services — 4.8%
The Brink’s Co.	579,451		38,927,518
Corrections Corp. of America(a)	370,900		10,207,168
			49,134,686
Chemicals — 0.5%
Celanese Corp. - Series A	128,400		5,014,020
Computer Software & Services — 3.6%
priceline.com, Inc.(a)(b)	85,400		10,321,444
Sybase, Inc.(a)(b)	584,522		15,372,929
Tech Data Corp.(a)	171,700		5,631,760
Teradata Corp.(a)	243,000		5,360,580
			36,686,713
Construction — 2.6%
Perini Corp.(a)	210,300		7,619,169
Texas Industries, Inc.(b)	318,400		19,139,024
			26,758,193
Containers — 2.4%
Crown Holdings, Inc.(a)	333,800		8,398,408
Pactiv Corp.(a)	395,200		10,358,192
Silgan Holdings, Inc.	108,400		5,379,892
			24,136,492
Electronics — 0.6%
Intersil Corp. - Class A	255,400		6,556,118
Energy & Utilities — 2.9%
Integrys Energy Group, Inc.	155,055		7,231,765
ITC Holdings Corp.(b)	220,658		11,487,456
Vectren Corp.	389,000		10,436,870
			29,156,091
Entertainment & Leisure — 9.2%
Morgans Hotel Group Co.(a)(b)	1,013,593		15,021,448
Orient-Express Hotels Ltd. - Class A	341,800		14,752,088
Penn National Gaming, Inc.(a)	228,900		10,009,797
Pinnacle Entertainment, Inc.(a)(b)	1,195,334		15,300,275
Scientific Games Corp. - Class A(a)(b)	1,123,454		23,716,114
Vail Resorts, Inc.(a)	110,200		5,321,558
WMS Industries, Inc.(a)(b)	277,300		9,974,481
			94,095,761
Finance — 2.3%
Affiliated Managers Group, Inc.(a)(b)	259,800		23,574,252
Food & Agriculture — 4.5%
Fresh Del Monte Produce, Inc.(a)	189,728		6,906,099
Hain Celestial Group, Inc.(a)(b)	917,208		27,057,636
McCormick & Co., Inc.(b)	323,900		11,974,583
			45,938,318
Insurance — 3.2%
Aspen Insurance Holdings Ltd.	238,600		6,294,268
Endurance Specialty Holdings Ltd.(b)	305,511		11,181,703
The Hanover Insurance Group, Inc.	200,000		8,228,000
Platinum Underwriters Holdings Ltd.	210,477		6,832,083
			32,536,054
Machinery & Heavy Equipment — 2.8%
Albany International Corp. - Class A	213,000		7,697,820
Astec Industries, Inc.(a)	171,200		6,635,712
Lufkin Industries, Inc.	218,374		13,936,629
			28,270,161
Manufacturing — 8.4%
Actuant Corp. - Class A	218,300		6,594,843
Chattem, Inc.(a)(b)	207,359		13,756,196
Elizabeth Arden, Inc.(a)	556,400		11,100,180
Fuller (H.B.) Co.	56,100		1,145,001
General Cable Corp.(a)(b)	241,600		14,271,312
Hexel Corp.(a)(b)	494,500		9,449,895
Lennox International, Inc.	219,300		7,888,221
Phillips-Van Heusen Corp.	272,700		10,340,784
Watson Wyatt Worldwide, Inc.(b)	192,597		10,929,880
			85,476,312
Medical & Medical Services — 6.7%
Community Health Systems, Inc.(a)(b)	90,200		3,028,014
Davita, Inc.(a)	310,600		14,834,256
The GEO Group, Inc.(a)	275,800		7,843,752
Kindred Healthcare, Inc.(a)	734,975		16,073,903
Magellan Health Services, Inc.(a)	665,100		26,397,819
			68,177,744
Medical Instruments & Supplies — 2.9%
The Cooper Cos., Inc.,	257,200		8,855,396
DENTSPLY International, Inc.(b)	533,600		20,596,960
			29,452,356
Motor Vehicles — 2.4%
LKQ Corp.(a)(b)	1,093,900		24,579,933
Oil & Gas — 5.7%
Oceaneering International, Inc.(a)	158,800		10,004,400
Petrohawk Energy Corp.(a)(b)	603,700		12,176,629
Pride International, Inc.(a)	307,700		10,754,115
Southwest Gas Corp.(b)	449,436		12,566,230
Swift Energy Co.(a)	114,200		5,137,858

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT MARCH 31, 2008

	Aurora Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Oil & Gas (Continued)
W-H Energy Services, Inc.(a)	114,300	$	7,869,555
			58,508,787
Pharmaceuticals — 0.8%
Dyax Corp.(a)	1,721,200		8,106,852
Real Estate — 0.6%
Alexandria Real Estate Equities, Inc. (REIT)(b)	63,600		5,896,992
Restaurants — 1.5%
CBRL Group, Inc.(b)	186,700		6,678,259
Jack-in-the-Box, Inc.(a)	324,400		8,716,628
			15,394,887
Retail Merchandising — 12.3%
AnnTaylor Stores Corp.(a)	384,900		9,306,882
BJ’s Wholesale Club, Inc.(a)(b)	651,200		23,241,328
The Children’s Place Retail Stores, Inc.(a)	344,300		8,456,008
Copart, Inc.(a)	617,200		23,922,672
Jarden Corp.(a)(b)	368,500		8,011,190
Ruddick Corp.	618,300		22,790,538
Saks, Inc.(a)	739,318		9,219,296
Sally Beauty Holdings, Inc.(a)(b)	1,123,200		7,750,080
The Talbots, Inc.(b)	1,230,903		13,269,134
			125,967,128
Security Brokers & Dealers — 2.0%
Piper Jaffray Cos., Inc.(a)(b)	608,100		20,651,076
Telecommunications — 2.7%
Amdocs Ltd.(a)	717,000		20,334,120
Polycom, Inc.(a)	341,300		7,692,902
			28,027,022
Transportation — 1.1%
Kirby Corp.(a)	191,300		10,904,100
Total United States			974,449,114
TOTAL COMMON STOCKS
(Cost $1,030,610,734)			1,008,717,705
Short Term Investments — 29.5%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	293,234,300		293,234,300
Galileo Money Market Fund, 2.56%(e)	7,943,076		7,943,076
TOTAL SHORT TERM INVESTMENTS
(Cost $301,177,376)			301,177,376
TOTAL INVESTMENTS IN SECURITIES — 128.4%
(Cost $1,331,788,110*)			1,309,895,081
LIABILITIES IN EXCESS OF OTHER ASSETS — (28.4)%			(289,852,175	)
NET ASSETS — 100.0%		$	1,020,042,906

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	1,340,806,539
Gross unrealized appreciation	$	94,620,847
Gross unrealized depreciation		(125,532,305	)
Net unrealized depreciation	$	(30,911,458	)

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	293,234,300	$	1,019,520

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 43

	Small/Mid-Cap Growth Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 97.9%
Aerospace — 2.7%
Argon ST, Inc.(a)	140,300	$	2,386,503
BE Aerospace, Inc.(a)	113,200		3,956,340
			6,342,843
Banks — 3.0%
Fidelity National Information Services, Inc.	88,948		3,392,477
Signature Bank(a)	67,400		1,718,700
UMB Financial Corp.	44,700		1,841,640
			6,952,817
Beverages & Bottling — 0.9%
Green Mountain Coffee Roasters, Inc.(a)(b)	62,700		1,984,455
Broadcasting — 2.1%
CKX, Inc.(a)	508,300		4,839,016
Business Services — 8.9%
The Advisory Board Co.(a)	61,500		3,378,810
DeVry, Inc.	52,740		2,206,642
ExlService Holdings, Inc.(a)	285,108		6,546,080
Forrester Research, Inc.(a)	127,051		3,377,015
Gartner, Inc. - Class A(a)	32,500		628,550
Net1 UEPS Technologies, Inc.(a)	109,500		2,469,225
Strayer Education, Inc.(b)	12,800		1,952,000
			20,558,322
Chemicals — 1.5%
Celanese Corp. - Series A	91,700		3,580,885
Computer & Office Equipment — 1.2%
Intuit, Inc.(a)	101,900		2,752,319
Computer Software & Services — 16.5%
ACI Worldwide, Inc.(a)	121,224		2,414,782
Blackboard, Inc.(a)	63,600		2,119,788
comScore, Inc.(a)	118,800		2,383,128
Foundry Networks, Inc.(a)	127,600		1,477,608
IHS, Inc.(a)	75,908		4,881,643
International Game Technology	42,800		1,720,988
Jack Henry & Associates, Inc.	103,446		2,552,013
MICROS Systems, Inc.(a)	77,400		2,605,284
SkillSoft Plc - ADR(a)	807,500		8,454,525
SonicWALL, Inc.(a)	577,900		4,721,443
Sykes Enterprises, Inc.(a)	265,384		4,668,105
			37,999,307
Electronics — 3.5%
Ametek, Inc.	79,800		3,504,018
Intersil Corp. - Class A	78,900		2,025,363
TiVo, Inc.(a)	278,000		2,435,280
			7,964,661
Energy & Utilities — 1.0%
Airgas, Inc.	52,978		2,408,910
Entertainment & Leisure — 4.0%
DreamWorks Animation SKG, Inc. - Class A(a)	106,732		2,751,551
Orient-Express Hotels Ltd. - Class A	59,500		2,568,020
Scientific Games Corp. - Class A(a)	185,800		3,922,238
			9,241,809
Finance — 5.0%
Affiliated Managers Group, Inc.(a)	21,400		1,941,836
CME Group, Inc.	5,390		2,528,449
Invesco Ltd.	116,700		2,842,812
Riskmetrics Group, Inc.(a)	18,700		361,845
Wright Express Corp.(a)	122,818		3,774,197
			11,449,139
Machinery & Heavy Equipment — 1.5%
Joy Global, Inc.	53,200		3,466,512
Manufacturing — 4.8%
IDEX Corp.	93,892		2,881,545
Ladish Co., Inc.(a)	60,900		2,192,400
Quanex Corp.	82,800		4,284,072
Smith & Wesson Holding Corp.(a)(b)	331,100		1,662,122
			11,020,139
Medical & Medical Services — 7.0%
Arthrocare Corp.(a)(b)	69,700		2,324,495
Lifecell Corp.(a)	71,116		2,989,005
Magellan Health Services, Inc.(a)	79,800		3,167,262
MedCath Corp.(a)	139,400		2,537,080
Pediatrix Medical Group, Inc.(a)	77,500		5,223,500
			16,241,342
Medical Instruments & Supplies — 5.9%
Hologic, Inc.(a)	72,600		4,036,560
SonoSite, Inc.(a)	108,978		3,098,244
Wright Medical Group, Inc.(a)	156,748		3,783,897
Zoll Medical Corp.(a)	102,742		2,731,910
			13,650,611
Metal & Mining — 3.0%
CONSOL Energy, Inc.	50,100		3,466,419
Massey Energy Co.	92,400		3,372,600
			6,839,019
Miscellaneous Services — 1.5%
TeleTech Holdings, Inc.(a)	158,340		3,556,316
Motor Vehicles — 1.3%
Oshkosh Truck Corp.	84,600		3,069,288
Oil & Gas — 7.5%
Delta Petroleum Corp.(a)(b)	196,018		4,418,246
Newfield Exploration Co.(a)	46,300		2,446,955
Noble Corp.	66,900		3,322,923
Plains Exploration & Production Co.(a)	68,700		3,650,718
Superior Energy Services, Inc.(a)	87,900		3,482,598
			17,321,440
Pharmaceuticals — 5.4%
Endo Pharmaceuticals Holdings, Inc.(a)	123,300		2,951,802
Forest Laboratories, Inc.(a)	69,578		2,783,816
Medicis Pharmaceutical Corp.	115,600		2,276,164
Shire Plc - ADR	76,876		4,455,733
			12,467,515
Publishing & Printing — 0.5%
Dolan Media Co.(a)	54,400		1,093,984
Real Estate — 0.3%
FX Real Estate and Entertainment, Inc.(a)(b)	99,660		586,001

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT MARCH 31, 2008

	Small/Mid-Cap Growth Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Real Estate (Continued)
FX Real Estate and Entertainment, Inc., Rights expire 4/11/08(a)	50,830	$	4,066
			590,067
Retail Merchandising — 2.2%
Deckers Outdoor Corp.(a)	11,000		1,186,020
GameStop Corp.(a)	75,366		3,897,176
			5,083,196
Semiconductors & Related Devices — 2.5%
Microsemi Corp.(a)	111,500		2,542,200
Standard Microsystems Corp.(a)	112,600		3,285,668
			5,827,868
Telecommunications — 2.7%
Amdocs Ltd.(a)	113,375		3,215,315
Harris Corp.	60,900		2,955,477
			6,170,792
Waste Management — 1.5%
Clean Harbors, Inc.(a)	52,800		3,432,000
TOTAL COMMON STOCKS
(Cost $200,478,519)			225,904,572
Short Term Investments — 7.0%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	9,367,400		9,367,400
Galileo Money Market Fund, 2.56%(e)	6,722,036		6,722,036
TOTAL SHORT TERM INVESTMENTS
(Cost $16,089,436)			16,089,436
TOTAL INVESTMENTS IN SECURITIES — 104.9%
(Cost $216,567,955*)			241,994,008
LIABILITIES IN EXCESS OF OTHER ASSETS — (4.9)%			(11,379,859	)
NET ASSETS — 100.0%		$	230,614,149

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	217,993,270
Gross unrealized appreciation	$	39,235,904
Gross unrealized depreciation		(15,235,166	)
Net unrealized appreciation	$	24,000,738

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	9,367,400	$	55,996

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 45

	Small Cap Value Equity Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 97.5%
Aerospace — 2.9%
Orbital Sciences Corp.(a)	40,900	$	985,690
Teledyne Technologies, Inc.(a)	10,500		493,500
			1,479,190
Banks — 7.3%
First Midwest Bancorp, Inc.	25,873		718,493
First Niagara Financial Group, Inc.	62,100		843,939
KBW, Inc.(a)(b)	26,400		582,120
Sterling Bancshares, Inc.	55,228		548,966
United Bankshares, Inc.	22,956		611,778
Wintrust Financial Corp.	12,922		451,624
			3,756,920
Business Services — 6.2%
The Brink’s Co.	32,400		2,176,632
Forrester Research, Inc.(a)	17,000		451,860
Hiedrick & Struggles International, Inc.	16,300		530,239
Viad Corp.	1,251		45,049
			3,203,780
Chemicals — 1.8%
Sensient Technologies Corp.	32,000		943,680
Computer Software & Services — 4.9%
Epicor Software Corp.(a)	30,900		346,080
Guidance Software, Inc.(a)	19,715		176,449
Lawson Software, Inc.(a)	80,500		606,165
SkillSoft Plc - ADR(a)	105,600		1,105,632
Tech Data Corp.(a)	8,400		275,520
			2,509,846
Construction — 3.0%
Perini Corp.(a)	10,777		390,451
Texas Industries, Inc.	19,700		1,184,167
			1,574,618
Containers — 2.0%
Silgan Holdings, Inc.	21,100		1,047,193
Energy & Utilities — 3.4%
Cleco Corp.	18,900		419,202
ITC Holdings Corp.	14,200		739,252
UIL Holdings Corp.	20,700		623,691
			1,782,145
Entertainment & Leisure — 9.7%
Leapfrog Enterprises, Inc.(a)(b)	57,993		408,851
Morgans Hotel Group Co.(a)	49,704		736,613
Orient-Express Hotels Ltd. - Class A	22,600		975,416
Pinnacle Entertainment, Inc.(a)	59,400		760,320
Scientific Games Corp. - Class A(a)	32,801		692,429
Vail Resorts, Inc.(a)(b)	19,822		957,204
WMS Industries, Inc.(a)	13,900		499,983
			5,030,816
Finance — 0.5%
Jefferies Group, Inc.	15,946		257,209
Food & Agriculture — 2.2%
Hain Celestial Group, Inc.(a)	38,200		1,126,900
Insurance — 4.1%
Aspen Insurance Holdings Ltd.	4,800		126,624
Endurance Specialty Holdings Ltd.	9,985		365,451
IPC Holdings Ltd.	35,900		1,005,200
Navigators Group, Inc.(a)	3,462		188,333
Platinum Underwriters Holdings Ltd.	13,289		431,361
			2,116,969
Machinery & Heavy Equipment — 2.9%
Albany International Corp. - Class A	12,100		437,294
Astec Industries, Inc.(a)	8,100		313,956
H&E Equipment Services, Inc.(a)	18,890		237,447
Lufkin Industries, Inc.	7,700		491,414
			1,480,111
Manufacturing — 5.9%
Actuant Corp. - Class A	19,900		601,179
Chart Industries, Inc.(a)	15,300		517,752
Elizabeth Arden, Inc.(a)	35,096		700,165
Fuller (H.B.) Co.	2,800		57,148
The Warnaco Group, Inc.(a)	11,000		433,840
Watson Wyatt Worldwide, Inc.	13,300		754,775
			3,064,859
Medical & Medical Services — 9.2%
Amedisys, Inc.(a)	23,300		916,622
Amsurg Corp.(a)	23,472		555,817
The GEO Group, Inc.(a)	30,100		856,044
Kindred Healthcare, Inc.(a)	38,829		849,190
Magellan Health Services, Inc.(a)	39,166		1,554,499
			4,732,172
Medical Instruments & Supplies — 2.0%
The Cooper Cos., Inc.,	19,600		674,828
Orthofix International NV(a)	6,400		254,528
Symmetry Medical, Inc.(a)	6,100		101,260
			1,030,616
Motor Vehicles — 2.8%
LKQ Corp.(a)	64,700		1,453,809
Oil & Gas — 6.7%
Cal Dive International, Inc.(a)	27,200		282,336
Delta Petroleum Corp.(a)	22,100		498,134
North American Energy Partners, Inc.(a)	34,100		523,094
Oil States International, Inc.(a)	10,500		470,505
Southwest Gas Corp.	21,412		598,680
Swift Energy Co.(a)	14,100		634,359
W-H Energy Services, Inc.(a)	6,600		454,410
			3,461,518
Real Estate — 3.8%
Arbor Realty Trust, Inc. (REIT)(b)	49,622		748,300
Gramercy Capital Corp. (REIT)(b)	49,318		1,032,226
Redwood Trust, Inc. (REIT)(b)	5,413		196,762
			1,977,288
Restaurants — 1.0%
Jack-in-the-Box, Inc.(a)	19,800		532,026
Retail Merchandising — 10.2%
AnnTaylor Stores Corp.(a)	20,300		490,854

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT MARCH 31, 2008

	Small Cap Value Equity Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Retail Merchandising (Continued)
BJ’s Wholesale Club, Inc.(a)	32,200	$	1,149,218
The Children’s Place Retail Stores, Inc.(a)	14,600		358,576
Longs Drug Stores Corp.	12,100		513,766
Ruddick Corp.	47,300		1,743,478
Sally Beauty Holdings, Inc.(a)	36,484		251,739
The Talbots, Inc.(b)	68,551		738,980
			5,246,611
Security Brokers & Dealers — 2.2%
Piper Jaffray Cos., Inc.(a)	31,152		1,057,922
TradeStation Group, Inc.(a)	10,400		88,608
			1,146,530
Telecommunications — 0.8%
Polycom, Inc.(a)	17,500		394,450
Transportation — 1.4%
Kirby Corp.(a)	12,900		735,300
Waste Management — 0.6%
Waste Connections, Inc.(a)	10,050		308,937
TOTAL COMMON STOCKS
(Cost $50,143,336)			50,393,493
Short Term Investments — 9.8%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	3,913,950		3,913,950
Galileo Money Market Fund, 2.56%(e)	1,146,436		1,146,436
TOTAL SHORT TERM INVESTMENTS
(Cost $5,060,386)			5,060,386
TOTAL INVESTMENTS IN SECURITIES — 107.3%
(Cost $55,203,722*)			55,453,879
LIABILITIES IN EXCESS OF OTHER ASSETS — (7.3)%			(3,759,083	)
NET ASSETS — 100.0%		$	51,694,796

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	55,561,596
Gross unrealized appreciation	$	4,519,580
Gross unrealized depreciation		(4,627,297	)
Net unrealized depreciation	$	(107,717	)

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	3,913,950	$	52,794

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 47

	Small Cap Core Equity Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 97.4%
Aerospace — 2.9%
AAR Corp.(a)	56,550	$	1,542,119
Orbital Sciences Corp.(a)	55,850		1,345,985
			2,888,104
Banks — 7.3%
CoBiz, Inc.(b)	66,800		869,736
Columbia Banking System, Inc.	21,760		486,989
First State Bancorporation	40,400		540,956
KBW, Inc.(a)(b)	42,700		941,535
Prosperity Bancshares, Inc.	29,600		848,336
Sterling Bancshares, Inc.	75,550		750,967
Umpqua Holdings Corp.(b)	58,700		910,437
Westamerica Bancorp(b)	14,400		757,440
Wintrust Financial Corp.	34,000		1,188,300
			7,294,696
Business Services — 4.2%
Forrester Research, Inc.(a)	36,950		982,131
Hiedrick & Struggles International, Inc.	15,200		494,456
HMS Holdings Corp.(a)	48,145		1,374,540
Martha Stewart Living Omnimedia, Inc.(a)(b)	108,700		807,641
Net1 UEPS Technologies, Inc.(a)	25,350		571,642
			4,230,410
Chemicals — 1.2%
Hercules, Inc.	31,700		579,793
Minerals Technologies, Inc.	10,500		659,400
			1,239,193
Computer Software & Services — 14.3%
Aladdin Knowledge Systems Ltd.(a)	68,900		1,311,167
Blackboard, Inc.(a)	52,400		1,746,492
CACI International, Inc.(a)	18,650		849,507
DemandTec, Inc.(a)	62,800		640,560
Guidance Software, Inc.(a)	113,535		1,016,138
Lawson Software, Inc.(a)	126,350		951,416
Phase Forward, Inc.(a)	82,100		1,402,268
PROS Holdings, Inc.(a)	68,600		860,930
Quality Systems, Inc.(b)	32,700		976,749
SkillSoft Plc - ADR(a)	303,208		3,174,588
The TriZetto Group, Inc.(a)	87,268		1,456,503
			14,386,318
Containers — 1.4%
Silgan Holdings, Inc.	27,750		1,377,232
Electronics — 2.9%
Benchmark Electronics, Inc.(a)	59,500		1,068,025
Brady Corp.	32,600		1,089,818
RF Micro Devices, Inc.(a)	78,600		209,076
TTM Technologies, Inc.(a)	50,600		572,792
			2,939,711
Energy & Utilities — 2.9%
El Paso Electric Co.(a)	60,100		1,284,337
UIL Holdings Corp.	52,600		1,584,838
			2,869,175
Entertainment & Leisure — 3.7%
Morgans Hotel Group Co.(a)(b)	58,950		873,639
Orient-Express Hotels Ltd. - Class A	39,035		1,684,751
Pinnacle Entertainment, Inc.(a)	91,500		1,171,200
			3,729,590
Finance — 1.2%
Evercore Partners, Inc.	70,700		1,254,925
Food & Agriculture — 1.0%
Diamond Foods, Inc.	54,500		988,630
Insurance — 2.3%
First Mercury Financial Corp.(a)	101,300		1,763,633
Platinum Underwriters Holdings Ltd.	17,279		560,876
			2,324,509
Machinery & Heavy Equipment — 1.7%
Altra Holdings, Inc.(a)	71,400		960,330
H&E Equipment Services, Inc.(a)	60,000		754,200
			1,714,530
Manufacturing — 9.3%
Actuant Corp. - Class A	71,900		2,172,099
AptarGroup, Inc.	6,800		264,724
Chart Industries, Inc.(a)(b)	55,600		1,881,504
Chattem, Inc.(a)(b)	22,582		1,498,090
Elizabeth Arden, Inc.(a)	87,000		1,735,650
Fuller (H.B.) Co.	44,000		898,040
Hexel Corp.(a)	47,800		913,458
			9,363,565
Medical & Medical Services — 3.7%
Amedisys, Inc.(a)	42,500		1,671,950
Pediatrix Medical Group, Inc.(a)	19,250		1,297,450
Sun Healthcare Group, Inc.(a)	56,900		747,666
			3,717,066
Medical Instruments & Supplies — 4.2%
ev3, Inc.(a)(b)	89,750		730,565
Hologic, Inc.(a)	9,450		525,420
MWI Veterinary Supply, Inc.(a)	25,281		891,408
Orthofix International NV(a)	16,000		636,320
Symmetry Medical, Inc.(a)	86,000		1,427,600
			4,211,313
Oil & Gas — 7.6%
Allis-Chalmers Energy, Inc.(a)(b)	48,900		674,331
Cal Dive International, Inc.(a)	46,500		482,670
Goodrich Petroleum Corp.(a)(b)	44,850		1,349,088
Hercules Offshore, Inc.(a)(b)	42,350		1,063,832
ION Geophysical Corp.(a)	96,200		1,327,560
Mariner Energy, Inc.(a)	27,900		753,579
Oil States International, Inc.(a)	30,700		1,375,667
Penn Virginia Corp.	14,100		621,669
			7,648,396
Pharmaceuticals — 2.4%
Dyax Corp.(a)	282,321		1,329,732
ICON Plc - ADR(a)	16,000		1,038,240
			2,367,972
Real Estate — 5.2%
Arbor Realty Trust, Inc. (REIT)(b)	64,541		973,278
BioMed Realty Trust, Inc. (REIT)(b)	48,400		1,156,276
California Coastal Communities, Inc.(a)(b)	13,552		65,592
Corporate Office Properties Trust (REIT)	33,000		1,109,130
Gramercy Capital Corp. (REIT)(b)	82,800		1,733,004
Redwood Trust, Inc. (REIT)(b)	6,000		218,100
			5,255,380

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT MARCH 31, 2008

	Small Cap Core Equity Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Restaurants — 1.3%
Carrols Restaurant Group, Inc.(a)	77,467	$	691,780
Sonic Corp.(a)	27,300		601,692
			1,293,472
Retail Merchandising — 7.7%
AnnTaylor Stores Corp.(a)	53,600		1,296,048
The Children’s Place Retail Stores, Inc.(a)	37,300		916,088
Christopher & Banks Corp.	41,400		413,586
Coldwater Creek, Inc.(a)(b)	84,400		426,220
Copart, Inc.(a)	52,600		2,038,776
Golfsmith International Holdings, Inc.(a)	50,500		106,555
Jarden Corp.(a)	56,200		1,221,788
Jos. A. Bank Clothiers, Inc.(a)(b)	25,100		514,550
Sally Beauty Holdings, Inc.(a)	122,450		844,905
			7,778,516
Security Brokers & Dealers — 0.8%
Piper Jaffray Cos., Inc.(a)	22,250		755,610
Semiconductors & Related Devices — 1.0%
Ultra Clean Holdings, Inc.(a)	103,034		1,009,733
Telecommunications — 3.6%
EMS Technologies, Inc.(a)	68,300		1,853,662
Iowa Telecommunications Services, Inc.	59,400		1,053,162
iPCS, Inc.	31,080		725,718
			3,632,542
Textiles — 1.7%
Carter’s, Inc.(a)	62,800		1,014,220
Kenneth Cole Productions, Inc.	39,000		660,660
			1,674,880
Transportation — 0.9%
Knight Transportation, Inc.(b)	36,200		595,852
Vitran Corp., Inc.(a)	20,397		291,065
			886,917
Waste Management — 1.0%
Clean Harbors, Inc.(a)	15,400		1,001,000
TOTAL COMMON STOCKS
(Cost $100,410,215)			97,833,385
Short Term Investments — 18.8%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	17,951,200		17,951,200
Galileo Money Market Fund, 2.56%(e)	970,842		970,842
TOTAL SHORT TERM INVESTMENTS
(Cost $18,922,042)			18,922,042
TOTAL INVESTMENTS IN SECURITIES — 116.2%
(Cost $119,332,257*)			116,755,427
LIABILITIES IN EXCESS OF OTHER ASSETS — (16.2)%			(16,238,695	)
NET ASSETS — 100.0%		$	100,516,732

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	120,094,983
Gross unrealized appreciation	$	9,126,851
Gross unrealized depreciation		(12,466,407	)
Net unrealized depreciation	$	(3,339,556	)

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	17,951,200	$	84,721

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 49

	Small Cap Growth Equity Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 92.8%
Aerospace — 2.8%
Argon ST, Inc.(a)	549,700	$	9,350,397
BE Aerospace, Inc.(a)	461,660		16,135,017
			25,485,414
Banks — 1.5%
Signature Bank(a)(b)	223,800		5,706,900
UMB Financial Corp.(b)	181,500		7,477,800
			13,184,700
Beverages & Bottling — 0.9%
Green Mountain Coffee Roasters, Inc.(a)(b)	246,800		7,811,220
Broadcasting — 2.1%
CKX, Inc.(a)	1,561,800		14,868,336
Outdoor Channel Holdings, Inc.(a)(b)	493,326		3,625,946
			18,494,282
Business Services — 9.6%
The Advisory Board Co.(a)(b)	246,700		13,553,698
American Public Education, Inc.(a)	26,500		804,805
CommVault Systems, Inc.(a)	347,336		4,306,966
DeVry, Inc.(b)	239,881		10,036,621
Diamond Management & Technology Consultants, Inc.	1,209,196		7,799,314
ExlService Holdings, Inc.(a)	956,563		21,962,687
Forrester Research, Inc.(a)	707,800		18,813,324
Gartner, Inc. - Class A(a)	287,650		5,563,151
Healthcare Services Group, Inc.(b)	159,362		3,289,242
			86,129,808
Chemicals — 1.2%
Agrium, Inc.	179,700		11,161,167
Computer Software & Services — 18.6%
ACI Worldwide, Inc.(a)(b)	105,700		2,105,544
Aladdin Knowledge Systems Ltd.(a)	446,000		8,487,380
Blackboard, Inc.(a)	328,252		10,940,639
comScore, Inc.(a)	325,500		6,529,530
DemandTec, Inc.(a)(b)	690,200		7,040,040
Foundry Networks, Inc.(a)	457,000		5,292,060
Greenfield Online, Inc.(a)	575,961		6,830,898
i2 Technologies, Inc.(a)(b)	804,800		9,062,048
IHS, Inc.(a)	352,545		22,672,169
Jack Henry & Associates, Inc.(b)	576,600		14,224,722
Move, Inc.(a)	1,543,000		4,752,440
SkillSoft Plc - ADR(a)	2,943,230		30,815,618
SonicWALL, Inc.(a)	1,881,000		15,367,770
Sykes Enterprises, Inc.(a)	1,281,900		22,548,621
			166,669,479
Electronics — 1.7%
TiVo, Inc.(a)(b)	1,720,300		15,069,828
Energy & Utilities — 1.1%
Airgas, Inc.	210,800		9,585,076
Entertainment & Leisure — 4.2%
Ameristar Casinos, Inc.	400,200		7,303,650
Orient-Express Hotels Ltd. - Class A	410,900		17,734,444
Scientific Games Corp. - Class A(a)	282,300		5,959,353
World Wrestling Entertainment, Inc.	353,200		6,573,052
			37,570,499
Finance — 2.9%
Affiliated Managers Group, Inc.(a)(b)	97,100		8,810,854
Riskmetrics Group, Inc.(a)	71,700		1,387,395
Wright Express Corp.(a)	524,900		16,130,177
			26,328,426
Machinery & Heavy Equipment — 1.4%
Bucyrus International, Inc. - Class A(b)	126,400		12,848,560
Manufacturing — 6.3%
Kaydon Corp.(b)	200,300		8,795,173
Ladish Co., Inc.(a)	157,500		5,670,000
Quanex Corp.(b)	350,000		18,109,000
RBC Bearings, Inc.(a)	225,100		8,357,963
Smith & Wesson Holding Corp.(a)(b)	410,186		2,059,134
The Warnaco Group, Inc.(a)	166,653		6,572,794
Watson Wyatt Worldwide, Inc.	117,300		6,656,775
			56,220,839
Medical & Medical Services — 8.0%
Arthrocare Corp.(a)	213,600		7,123,560
Lifecell Corp.(a)(b)	209,000		8,784,270
Magellan Health Services, Inc.(a)	348,600		13,835,934
MedCath Corp.(a)	456,000		8,299,200
Pediatrix Medical Group, Inc.(a)	332,900		22,437,460
Qiagen NV(a)(b)	333,560		6,938,048
Santarus, Inc.(a)	1,451,700		3,730,869
			71,149,341
Medical Instruments & Supplies — 9.2%
Align Technology, Inc.(a)	91,759		1,019,443
Bruker BioSciences Corp.(a)	694,200		10,683,738
Hologic, Inc.(a)(b)	160,350		8,915,460
Home Diagnostics, Inc.(a)	174,100		1,211,736
Martek Biosciences Corp.(a)(b)	339,600		10,381,572
SonoSite, Inc.(a)(b)	457,600		13,009,568
Wright Medical Group, Inc.(a)(b)	816,581		19,712,265
Zoll Medical Corp.(a)	655,000		17,416,450
			82,350,232
Metal & Mining — 1.8%
Massey Energy Co.	432,500		15,786,250
Oil & Gas — 7.1%
Atwood Oceanics, Inc.(a)(b)	205,900		18,885,148
Comstock Resources, Inc.(a)	311,800		12,565,540
Dawson Geophysical Co.(a)	120,892		8,160,210
Delta Petroleum Corp.(a)(b)	432,300		9,744,042
Oceaneering International, Inc.(a)	116,100		7,314,300
Superior Energy Services, Inc.(a)	168,600		6,679,932
			63,349,172
Personal Services — 0.2%
MSCI, Inc.(a)	66,100		1,966,475
Pharmaceuticals — 1.2%
Medicis Pharmaceutical Corp.	565,900		11,142,571
Publishing & Printing — 1.2%
Dolan Media Co.(a)	550,579		11,072,144
Real Estate — 0.2%
FX Real Estate and Entertainment, Inc.(a)	312,360		1,836,677

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT MARCH 31, 2008

	Small Cap Growth Equity Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Real Estate (Continued)
FX Real Estate and Entertainment, Inc., Rights expire 4/11/08(a)	156,180	$	12,494
			1,849,171
Retail Merchandising — 0.4%
Deckers Outdoor Corp.(a)	33,100		3,568,842
Security Brokers & Dealers — 1.8%
Waddell & Reed Financial, Inc.	497,400		15,981,462
Semiconductors & Related Devices — 3.3%
Microsemi Corp.(a)(b)	505,500		11,525,400
O2Micro International Ltd. - ADR(a)	271,800		2,101,014
Semtech Corp.(a)	276,300		3,959,379
Standard Microsystems Corp.(a)	409,700		11,955,046
			29,540,839
Telecommunications — 2.2%
EMS Technologies, Inc.(a)	472,845		12,833,013
Neutral Tandem, Inc.(a)	239,000		4,304,390
Occam Networks, Inc.(a)	420,300		2,286,432
			19,423,835
Waste Management — 1.9%
Clean Harbors, Inc.(a)	256,400		16,666,000
TOTAL COMMON STOCKS
(Cost $747,322,855)			830,405,632
Short Term Investments — 26.1%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	171,307,500		171,307,500
Galileo Money Market Fund, 2.56%(e)	61,986,621		61,986,621
TOTAL SHORT TERM INVESTMENTS
(Cost $233,294,121)			233,294,121
TOTAL INVESTMENTS IN SECURITIES — 118.9%
(Cost $980,616,976*)			1,063,699,753
LIABILITIES IN EXCESS OF OTHER ASSETS — (18.9)%			(168,767,392	)
NET ASSETS — 100.0%		$	894,932,361

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	988,572,345
Gross unrealized appreciation	$	142,259,445
Gross unrealized depreciation		(67,132,037	)
Net unrealized appreciation	$	75,127,408

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	171,307,500	$	598,702

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 51

	Global Science & Technology Opportunities Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 94.9%
Bermuda — 0.4%
Electronics — 0.4%
Tyco Electronics Ltd.	4,700	$	161,304
Canada — 0.5%
Computer Software & Services — 0.5%
Open Text Corp.(a)	6,700		209,777
China — 1.0%
Computer Software & Services — 1.0%
Baidu.Com(a)	700		167,741
Sina Corp.(a)	7,300		257,325
			425,066
Finland — 0.6%
Telecommunications — 0.6%
Nokia Corp. - ADR	8,000		254,640
France — 0.6%
Entertainment & Leisure — 0.6%
Ubisoft Entertainment	3,000		258,458
Germany — 1.1%
Computer Software & Services — 0.9%
SAP AG - ADR	7,100		351,947
Semiconductors & Related Devices — 0.2%
Infineon Technologies AG - ADR(a)	13,400		94,068
Total Germany			446,015
Hong Kong — 1.2%
Semiconductors & Related Devices — 0.7%
ASM Pacific Technology Ltd.	39,000		281,376
Telecommunications — 0.5%
China Mobile Ltd.	14,500		215,749
Total Hong Kong			497,125
India — 0.9%
Telecommunications — 0.9%
Bharti Tele-Ventures Ltd.	19,600		403,652
Indonesia — 0.5%
Telecommunications — 0.5%
PT Telekomunikasi Indonesia	186,800		195,830
Japan — 3.7%
Computer Software & Services — 0.6%
Nintendo Co. Ltd.	500		257,825
Energy & Utilities — 1.6%
Kurita Water Industries Ltd.	18,200		670,084
Machinery & Heavy Equipment — 0.3%
Disco Corp.	2,800		120,506
Manufacturing — 0.6%
Konica Corp.	19,200		260,803
Metal & Mining — 0.6%
Sumitomo Metal Mining Co. Ltd.	12,200		227,036
Total Japan			1,536,254
Mexico — 0.7%
Telecommunications — 0.7%
America Movil SA - ADR	4,700		299,343
South Korea — 0.4%
Electronics — 0.4%
Samsung Electronics Co. Ltd.	300		188,721
Switzerland — 0.9%
Pharmaceuticals — 0.9%
Roche Holding AG	1,600		301,118
Roche Holding AG - ADR	800		75,587
			376,705
Taiwan — 2.6%
Computer & Office Equipment — 1.2%
Asustek Computer, Inc.	86,200		252,532
High Tech Computer Corp.	10,200		229,319
			481,851
Computer Software & Services — 0.4%
Inventec Co. Ltd.	267,900		164,023
Semiconductors & Related Devices — 1.0%
Av Tech Corp.	15,759		80,923
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR	22,403		230,079
Vanguard International Semiconductor Corp.	170,858		122,606
			433,608
Total Taiwan			1,079,482
United Kingdom — 0.7%
Aerospace — 0.7%
Meggitt Plc	51,100		279,652
United States — 79.1%
Aerospace — 3.2%
Lockheed Martin Corp.	7,800		774,540
Raytheon Co.	8,700		562,107
			1,336,647
Broadcasting — 0.6%
Liberty Global, Inc.(a)	7,900		269,232
Computer & Office Equipment — 11.0%
Apple Computer, Inc.(a)	12,300		1,765,050
Cisco Systems, Inc.(a)	25,100		604,659
Dell, Inc.(a)	10,600		211,152
Hewlett-Packard Co.	19,900		908,634
International Business Machines Corp.	9,500		1,093,830
			4,583,325
Computer Software & Services — 25.0%
Adobe Systems, Inc.(a)	9,600		341,664
Ariba, Inc.(a)	9,700		93,702
Automatic Data Processing, Inc.	5,100		216,189
BMC Software, Inc.(a)	10,800		351,216
CA, Inc.	8,400		189,000
Citrix Systems, Inc.(a)	14,700		431,151
Computer Sciences Corp.(a)	7,500		305,925
DST Systems, Inc.(a)	14,100		926,934
eBay, Inc.(a)	7,800		232,752
Electronic Arts, Inc.(a)	7,200		359,424
EMC Corp.(a)	22,000		315,480
Foundry Networks, Inc.(a)	20,000		231,600
Google, Inc. - Class A(a)	1,000		440,470
Ingram Micro, Inc. - Class A(a)	9,000		142,470
Juniper Networks, Inc.(a)	22,800		570,000
McAfee, Inc.(a)	12,500		413,625
Microsoft Corp.	32,900		933,702
Oracle Corp.(a)	36,000		704,160
priceline.com, Inc.(a)	3,500		423,010

See Notes to Financial Statements.

52 SEMI-ANNUAL REPORT MARCH 31, 2008

	Global Science & Technology Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Computer Software & Services (Continued)
Progress Software Corp.(a)	6,400	$	191,488
Salesforce.Com, Inc.(a)	6,800		393,516
Seagate Technology, Inc.	17,300		362,262
Sun Microsystems, Inc.(a)	19,025		295,459
Sybase, Inc.(a)	15,800		415,540
Symantec Corp.(a)	8,700		144,594
Synopsys, Inc.(a)	7,700		174,867
VeriSign, Inc.(a)	12,300		408,852
Yahoo!, Inc.(a)	15,100		436,843
			10,445,895
Electronics — 3.1%
Agilent Technologies, Inc.(a)	6,800		202,844
Amphenol Corp.	6,100		227,225
Flextronics International Ltd.(a)	19,900		186,861
Intel Corp.	32,500		688,350
			1,305,280
Manufacturing — 1.3%
Corning, Inc.	22,000		528,880
Measuring & Controlling Devices — 0.6%
KLA-Tencor Corp.	7,300		270,830
Medical & Medical Services — 2.3%
Baxter International, Inc.	5,600		323,792
Covance, Inc.(a)	3,000		248,910
Integra LifeSciences Holdings Corp.(a)	4,500		195,615
Millipore Corp.(a)	2,600		175,266
			943,583
Medical Instruments & Supplies — 9.5%
Alcon, Inc.	1,600		227,600
Becton, Dickinson & Co.	7,900		678,215
C.R. Bard, Inc.	3,400		327,760
Charles River Laboratories International, Inc.(a)	4,400		259,336
China Medical Technologies, Inc. - ADR	2,800		115,052
Cyberonics, Inc.(a)	7,500		108,750
Johnson & Johnson	2,200		142,714
Medtronic, Inc.	13,400		648,158
SenoRx, Inc.(a)	6,400		41,280
St. Jude Medical, Inc.(a)	7,800		336,882
Stryker Corp.	5,000		325,250
Varian Medical Systems, Inc.(a)	7,500		351,300
Waters Corp.(a)	1,066		59,376
Zimmer Holdings, Inc.(a)	4,200		327,012
			3,948,685
Pharmaceuticals — 6.0%
Alexion Pharmaceuticals, Inc.(a)	3,900		231,270
Applera Corp. - Celera Genomics Group(a)	11,700		171,990
Bristol-Myers Squibb Co.	9,400		200,220
Celgene Corp.(a)	2,928		179,457
Gilead Sciences, Inc.(a)	15,000		772,950
Merck & Co., Inc.	9,700		368,115
Teva Pharmaceutical Industries Ltd. - ADR	6,900		318,711
United Therapeutics Corp.(a)	3,000		260,100
			2,502,813
Retail Merchandising — 0.6%
CVS Caremark Corp.	5,900		239,009
Semiconductors & Related Devices — 8.2%
Altera Corp.	9,600		176,928
Analog Devices, Inc.	7,200		212,544
Applied Materials, Inc.	21,400		417,514
Broadcom Corp. - Class A(a)	10,200		196,554
Cavium Networks, Inc.(a)	5,400		88,560
Kulicke & Soffa Industries, Inc.(a)	22,100		105,638
Lam Research Corp.(a)	4,800		183,456
Linear Technology Corp.	6,800		208,692
Marvell Technology Group Ltd.(a)	17,000		184,960
Maxim Integrated Products, Inc.	10,500		214,095
MEMC Electronic Materials, Inc.(a)	3,600		255,240
Microchip Technology, Inc.	7,000		229,110
Netlogic Microsystems, Inc.(a)	4,500		108,630
NVIDIA Corp.(a)	8,700		172,173
Texas Instruments, Inc.	11,000		310,970
Xilinx, Inc.	14,700		349,125
			3,414,189
Telecommunications — 7.7%
American Tower Corp. - Class A(a)	5,900		231,339
AT&T, Inc.	9,700		371,510
Atheros Communications, Inc.(a)	8,700		181,308
Ciena Corp.(a)	6,700		206,561
Harris Corp.	7,900		383,387
Harris Stratex Networks, Inc.(a)	10,700		107,321
JDS Uniphase Corp.(a)	13,200		176,748
Motorola, Inc.	14,100		131,130
QUALCOMM, Inc.	15,400		631,400
Research In Motion Ltd.(a)	2,600		291,798
Syniverse Holdings, Inc.(a)	14,900		248,234
Verizon Communications, Inc.	7,300		266,085
			3,226,821
Total United States			33,015,189
TOTAL COMMON STOCKS
(Cost $37,496,664)			39,627,213
Short Term Investments — 2.4%
Galileo Money Market Fund, 2.56%(b)
(Cost $994,214)(b)	994,214		994,214
TOTAL INVESTMENTS IN SECURITIES — 97.3%
(Cost $38,490,878*)			40,621,427
OTHER ASSETS IN EXCESS OF LIABILITIES — 2.7%			1,111,725
NET ASSETS — 100.0%		$	41,733,152

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 53

	Global Science & Technology Opportunities Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	39,075,749
Gross unrealized appreciation	$	3,760,143
Gross unrealized depreciation		(2,214,465	)
Net unrealized appreciation	$	1,545,678

(a) Non-income producing security.

(b) Represents current yield as of report date.

• Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	—	$	3,547

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased		Settlement Date	Unrealized Appreciation (Depreciation)
AUD	15,000	04/23/08	$	616
JPY	47,488,000	04/23/08		23,532
EUR	181,000	04/23/08		724
GBP	5,000	04/23/08		(162	)
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $761,504)			$	24,710

• Forward foreign exchange contracts sold as of March 31, 2008 were as follows:

Foreign Currency Sold		Settlement Date	Unrealized Appreciation (Depreciation)
JPY	6,287,000	04/01/08	$	152
JPY	185,477,468	04/23/08		(116,436	)
HKD	2,507,000	04/23/08		(420	)
EUR	556,500	04/23/08		(62,119	)
CHF	303,000	04/23/08		(28,547	)
GBP	97,000	04/23/08		(1,452	)
Total Net Unrealized Depreciation on Forward Foreign Exchange Contracts (USD Commitment - $3,415,334)			$	(208,822	)

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

54 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited)	Global Resources Portfolio
	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 96.9%
Canada — 22.2%
Banks — 0.0%
Quest Capital Corp.	61,000	$	120,045
Energy & Utilities — 0.4%
Epsilon Energy, Inc.(a)	332,500		660,821
MGM Energy Corp.(b)	15,084		11,756
Tanganyika Oil Co. Ltd.	232,700		4,112,103
			4,784,680
Metal & Mining — 5.9%
Alexco Resource Corp.(b)	593,683		2,487,054
Aurora Energy Resources, Inc.(b)	246,000		1,294,169
Baja Mining Corp.(b)	3,654,800		4,842,445
Corriente Resources, Inc. - Class A(b)	982,800		4,548,005
Crosshair Exploration & Mining Corp.(b)	352,800		309,338
Denison Mines Corp.(b)	218,500		1,379,395
Erdene Gold, Inc. (acquired 04/12/07, cost $959,233)(c)(d)	1,100,000		985,922
European Goldfields Ltd.(b)	561,400		2,931,564
Frontier Pacific Mining Corp.(b)	3,024,300		1,915,140
Gold Reserve, Inc.(b)(e)	123,948		571,400
Goldcorp, Inc.	4,600		178,766
Golden Star Resources Ltd.(b)(e)	789,408		2,753,257
MAG Silver Corp.(b)	964,000		12,237,245
Minefinders Corp. Ltd.(b)(e)	250,000		3,070,000
Nevsun Resources Ltd. (acquired 01/20/05, cost $4,883,732)(b)(c)(f)	1,554,800		2,681,081
Northern Star Mining Corp.(b)	1,133,500		1,214,721
NovaGold Resources, Inc.(b)(e)	371,843		2,866,910
Polymet Mining Corp.(b)	2,250,000		7,189,829
Q2 Gold Resources, Inc.(d)	327,600		0
Romarco Minerals, Inc.(b)	223,000		34,761
Rusoro Mining Ltd.(b)	11,764		17,191
Selkirk Metals Corp.(b)	792,500		416,923
Southwestern Resources Corp.(b)	1,066,900		530,098
Sunridge Gold Corp.(b)	3,325,559		3,725,844
Triex Minerals Corp.(b)	156,050		253,888
Triex Minerals Corp. (acquired 12/23/05, cost $671,761)(c)	312,100		507,776
Uranium One, Inc.(b)	500,365		1,647,653
Virginia Mines, Inc.(b)	216,350		1,403,762
West Timmins Mining, Inc.(b)	2,160,128		1,431,036
X-Cal Resources Ltd.(b)	1,755,500		239,437
			63,664,610
Motor Vehicles — 0.3%
Westport Innovations, Inc.(b)(f)	959,500		2,851,064
Oil & Gas — 15.6%
Accrete Energy, Inc.(b)	13,690		64,152
Alberta Clipper Energy, Inc.(b)	95,415		223,095
Bayou Bend Petroleum Ltd.(b)	2,237,500		1,177,115
Baytex Energy Trust	421,948		9,364,290
Bow Valley Energy Ltd.(b)	634,600		3,115,967
Canadian Superior Energy, Inc.(b)	2,953,362		9,184,956
Canext Energy Ltd.(b)	207,829		151,855
Cinch Energy Corp.(b)	901,980		1,098,422
Compton Petroleum Corp.(b)	1,267,329		14,112,300
Cork Exploration, Inc.(b)	89,600		301,154
Crescent Point Energy Trust	102,001		2,844,044
Crew Energy, Inc.(b)	727,137		9,492,558
Daylight Resources Trust	346,361		3,026,799
Delphi Energy Corp.(b)	831,300		1,708,844
Ember Resources, Inc.(b)	274,224		376,692
Endev Energy, Inc.(b)	1,538,300		1,243,888
Fairborne Energy Ltd.	259,558		1,744,800
First Calgary Petroleums Ltd.(b)	740,786		2,085,705
Galleon Energy, Inc. - Class A(b)	1,750,482		25,239,548
Gastar Exploration Ltd.(b)	1,055,300		1,371,890
Heritage Oil Corp.(b)	252,300		12,678,293
Highpine Oil & Gas Ltd.(b)	323,650		3,058,508
HSE Integrated Ltd.(b)	28,238		24,759
Iteration Energy Ltd.(b)	226,745		1,329,828
Leader Energy Services Ltd.(b)	454,104		35,392
Lynden Ventures Ltd.(b)	200,400		156,189
Masters Energy, Inc.(b)	27,741		83,241
Midnight Oil Exploration Ltd.(b)	1,127,700		1,340,342
Niko Resources Ltd. (acquired 01/20/05, cost $689,948)(c)	39,000		3,163,086
Oilexco, Inc.(b)	673,075		8,806,466
Open Range Energy Corp.(b)	48,061		192,441
Pacific Rodera Energy, Inc.(b)	990,200		482,342
Pacific Rubiales Energy Corp.(b)	4,073,700		5,913,404
Pan Orient Energy Corp.(b)	198,600		2,238,591
Paramount Resources Ltd. - Class A(b)	377,100		5,613,608
Pengrowth Energy Trust	21,699		415,821
Penn West Energy Trust	90,263		2,532,587
Petro Andina Resources Inc.(a)(b)	49,500		581,105
Petrolifera Petroleum Ltd.(b)	392,415		3,478,958
ProspEx Resources Ltd.(b)	1,504,120		5,099,457
Tag Oil Ltd. (acquired 09/22/05, cost $218,247)(c)	198,000		16,396
Technicoil Corp.(b)	1,300,900		937,860
Trafalgar Energy Ltd.(b)	21,717		76,378
TransCanada Corp.	40,700		1,568,206
Trilogy Energy Trust	152,791		1,481,096
TriStar Oil & Gas Ltd.(b)	806,837		11,366,226
True Energy Trust	188,332		671,533
Tusk Energy Corp. (acquired 10/11/05 through 01/05/07, cost $8,250,724)(c)	2,248,186		3,723,432
Vero Energy, Inc.(b)	91,642		682,996
West Energy Ltd.(b)	291,835		966,671
WesternZagros Resources Ltd.(b)	76,800		182,563
			166,825,849
Transportation — 0.0%
Railpower Technologies Corp.(b)	360,600		119,445
Total Canada			238,365,693
Greece — 0.4%
Transportation — 0.4%
Navios Maritime Holdings, Inc.	418,700		3,885,536
Norway — 1.1%
Oil & Gas — 0.5%
Sevan Marine ASA	425,800		5,435,015
Transportation — 0.6%
Stolt-Nielsen SA (acquired 01/20/05 through 07/24/07, cost $3,997,892)(c)	296,100		6,163,481
Total Norway			11,598,496
United Kingdom — 1.3%
Energy & Utilities — 0.0%
ITM Power Plc	525,200		648,852
Oil & Gas — 1.3%
Archipelago Resources Plc (acquired 5/13/05, cost $1,453,189)(c)	2,247,400		1,338,083
Gulfsands Petroleum Plc	563,300		1,799,895

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 55

	Global Resources Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
United Kingdom (Continued)
Oil & Gas (Continued)
Tullow Oil Plc	544,198	$	7,133,642
Venture Production Plc	289,729		3,588,047
			13,859,667
Total United Kingdom			14,508,519
United States — 71.9%
Energy & Utilities — 3.2%
Calpine Corp.(b)	874,200		16,102,764
Dynegy, Inc - Class A(b)	1,560		12,309
Equitable Resources, Inc.(e)	256,500		15,107,850
Evergreen Energy, Inc.(b)(e)	393,400		605,836
Longview Energy Co. (acquired 01/20/05, cost $1,281,000)(c)(d)	85,400		1,708,000
Ocean Power Technologies, Inc.(b)	63,900		780,858
			34,317,617
Metal & Mining — 24.9%
Arch Coal, Inc.(e)	1,324,400		57,611,400
CONSOL Energy, Inc.	1,128,000		78,046,320
Foundation Coal Holdings, Inc.(e)	72,000		3,623,760
James River Coal Co.(b)(e)	131,100		2,296,872
Kinross Gold Corp.	111,175		2,458,079
Massey Energy Co.	1,663,040		60,700,960
Patriot Coal Corp.(b)	88,673		4,164,971
Peabody Energy Corp.(e)	895,436		45,667,236
United States Steel Corp.	96,800		12,281,016
			266,850,614
Oil & Gas — 43.8%
American Oil & Gas, Inc.(b)(e)	224,088		732,768
Approach Resources, Inc.(b)(e)	93,700		1,469,216
Aventine Renewable Energy Holdings, Inc.(b)(e)	436,000		2,267,200
Baker Hughes, Inc.	46,200		3,164,700
BJ Services Co.	618,100		17,622,031
Bois d’Arc Energy, Inc.(b)(e)	165,300		3,552,297
Brigham Exploration Co.(b)	129,204		784,268
Callon Petroleum Co.(b)	92,200		1,667,898
CanArgo Energy Corp.(b)	5,184,600		1,812,018
Clayton Williams Energy, Inc.(b)	267,021		14,015,932
Complete Production Services, Inc.(b)	34,400		789,136
Delta Petroleum Corp.(b)(e)	1,762,497		39,726,682
Denbury Resources, Inc.(b)(e)	595,200		16,992,960
Diamond Offshore Drilling, Inc.(e)	94,223		10,967,557
ENSCO International, Inc.	94,100		5,892,542
EXCO Resources, Inc.(b)(e)	712,800		13,186,800
Gasco Energy, Inc.(b)(e)	927,600		2,263,344
Goodrich Petroleum Corp.(b)(e)	163,300		4,912,064
Grant Prideco, Inc.(b)	96,200		4,734,964
Halliburton Co.	390,726		15,367,254
Hercules Offshore, Inc.(b)(e)	68,900		1,730,768
Marathon Oil Corp.	6,447		293,983
Matador Resources Co. (acquired 01/20/05 through 04/19/06, cost $2,957,155)(c)(d)(f)	171,131		5,133,930
McMoRan Exploration Co.(b)(e)	110,900		1,917,461
Newfield Exploration Co.(b)(e)	959,310		50,699,534
Parallel Petroleum Corp.(b)	107,032		2,094,616
Particle Drilling Technologies, Inc.(e)	675,200		669,832
Penn Virginia Corp.	896,200		39,513,458
Petrohawk Energy Corp.(b)	306,600		6,184,122
Pioneer Natural Resources Co.(e)	209,200		10,275,904
Plains Exploration & Production Co.(b)	1,005,525		53,433,599
Range Resources Corp.	200,000		12,690,000
Schlumberger Ltd.	210,136		18,281,832
Southwestern Energy Co.(b)	1,248,600		42,065,334
Transocean, Inc.(b)	203,982		27,578,366
Treasure Island Royalty Trust(b)	366,922		128,423
TXCO Resources, Inc.(b)(e)	179,600		2,223,448
Verasun Energy Corp.(b)(e)	383,900		2,821,665
Warren Resources, Inc.(b)	222,282		2,638,487
Weatherford International Ltd.(b)	377,198		27,335,539
			469,631,932
Waste Management — 0.0%
Republic Resources, Inc.(b)	28,750		158
Total United States			770,800,321
TOTAL COMMON STOCKS
(Cost $614,584,312)			1,039,158,565
Warrants — 0.0%
Nevsun Resources Ltd. (issued/exercisable 12/18/03, 1 share for 1 warrant, expiring 12/18/08, strike price 10.00 CAD) (acquired 1/20/05, cost $2)(c)	250,000		29,227
Point North Energy Ltd. (issued/exercisable 7/24/03, 1 share for 1 warrant, expiring 7/23/08, strike price 5.00 CAD) (acquired 7/24/03, cost $74)(c)(d)(f)	147,124		14
TOTAL WARRANTS
(Cost $76)			29,241
Short Term Investments — 16.1%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(g)(h)(i)	140,075,000		140,075,000
Galileo Money Market Fund, 2.56%(i)	32,527,349		32,527,349
TOTAL SHORT TERM INVESTMENTS
(Cost $172,602,349)			172,602,349
TOTAL INVESTMENTS IN SECURITIES — 113.0%
(Cost $787,186,737*)			1,211,790,155
LIABILITIES IN EXCESS OF OTHER ASSETS — (13.0)%			(139,873,060	)
NET ASSETS — 100.0%		$	1,071,917,095

See Notes to Financial Statements.

56 SEMI-ANNUAL REPORT MARCH 31, 2008

	Global Resources Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	787,186,777
Gross unrealized appreciation	$	480,431,544
Gross unrealized depreciation		(55,828,166	)
Net unrealized appreciation	$	424,603,378

(a) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

(b) Non-income producing security.

(c) Restricted security as to resale. As of report date the Portfolio held 2.4% of its net assets, with a current market value of $25,450,428 and an original cost of $25,362,957 in these securities.

(d) Security is fair valued by the Board of Trustees.

(e) Security, or a portion of security, is on loan.

(f) Illiquid security.

(g) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	140,075,000	$	567,197

(h) Security purchased with the cash proceeds from securities loans.

(i) Represents current yield as of report date.

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased	Settlement Date	Unrealized Appreciation (Depreciation)
CAD 265,500	04/02/08	$	—
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $258,593)		$	—

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 57

	All-Cap Global Resources Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 90.2%
Australia — 1.9%
Metal & Mining — 1.9%
BHP Billiton Ltd. - ADR(a)	280,290	$	18,457,097
Zinifex Ltd.	820,000		7,479,000
			25,936,097
Bermuda — 1.0%
Oil & Gas — 1.0%
Seadrill Ltd.	528,800		14,174,438
Brazil — 1.6%
Oil & Gas — 1.6%
Petroleo Brasileiro SA - ADR	215,300		21,984,283
Canada — 8.3%
Metal & Mining — 3.1%
Eldorado Gold Corp.(b)	1,378,500		9,508,286
NovaGold Resources, Inc.(a)(b)	710,100		5,474,871
Teck Cominco Ltd.	647,460		26,549,360
			41,532,517
Oil & Gas — 5.2%
Canadian Natural Resources Ltd.	202,860		13,847,224
Compton Petroleum Corp.(b)	774,280		8,621,969
Crescent Point Energy Trust	663,900		18,511,197
Galleon Energy, Inc. - Class A(b)	821,574		11,845,969
Heritage Oil Corp.(b)	57,900		2,909,525
Nexen, Inc.	358,114		10,627,066
Trican Well Service Ltd.	51,400		1,076,123
TriStar Oil & Gas Ltd.(b)	270,854		3,815,626
			71,254,699
Total Canada			112,787,216
China — 0.4%
Oil & Gas — 0.4%
Petrochina Co. Ltd. - ADR	39,300		4,924,683
France — 2.0%
Oil & Gas — 2.0%
Compagnie Gernerale de Geophysique (CGG Veritas) - ADR(b)	308,904		15,293,837
Total SA - ADR	153,160		11,335,372
			26,629,209
Netherlands — 2.1%
Oil & Gas — 2.1%
Core Laboratories NV(b)	238,140		28,410,102
Norway — 1.4%
Oil & Gas — 1.4%
Statoil ASA	439,952		13,183,830
Statoil ASA - ADR	185,480		5,540,287
			18,724,117
United Kingdom — 3.4%
Oil & Gas — 3.4%
BG Group Plc - ADR	177,080		20,536,269
Cairn Energy Plc	451,398		25,388,731
			45,925,000
United States — 68.1%
Energy & Utilities — 3.7%
Equitable Resources, Inc.	297,800		17,540,420
NRG Energy, Inc.(b)	361,400		14,090,986
Questar Corp.	318,520		18,015,491
			49,646,897
Food & Agriculture — 3.1%
Potash Corp. of Saskatchewan, Inc.	272,100		42,232,641
Metal & Mining — 15.3%
Agnico-Eagle Mines Ltd.	155,500		10,528,905
Arch Coal, Inc.	390,400		16,982,400
Cameco Corp.	90,000		2,964,600
CONSOL Energy, Inc.	636,100		44,011,759
Goldcorp, Inc.	807,602		31,294,578
Massey Energy Co.	740,729		27,036,608
Newmont Mining Corp.	272,900		12,362,370
Patriot Coal Corp.(b)	38,858		1,825,160
Peabody Energy Corp.	479,080		24,433,080
Silver Standard Resources, Inc.(a)(b)	800,990		24,294,027
Silver Wheaton Corp.(a)(b)	700,274		10,875,255
			206,608,742
Oil & Gas — 46.0%
Apache Corp.(a)	225,600		27,256,992
Bill Barrett Corp.(a)(b)	212,600		10,045,350
Cameron International Corp.(a)(b)	257,600		10,726,464
Chesapeake Energy Corp.(a)	412,730		19,047,489
ConocoPhillips	104,300		7,948,703
Denbury Resources, Inc.(a)(b)	287,700		8,213,835
Devon Energy Corp.	234,800		24,496,684
EnCana Corp.	327,500		24,808,125
ENSCO International, Inc.	185,678		11,627,156
EOG Resources, Inc.(a)	310,770		37,292,400
Exterran Holdings, Inc.(a)(b)	198,280		12,796,991
FMC Technologies, Inc.(a)(b)	409,200		23,279,388
Forest Oil Corp.(b)	342,900		16,788,384
Helix Energy Solutions Group, Inc.(b)	351,600		11,075,400
Helmerich & Payne, Inc.(a)	618,300		28,979,721
Hess Corp.(a)	368,440		32,489,039
Hugoton Royalty Trust	1		28
Marathon Oil Corp.	346,100		15,782,160
Murphy Oil Corp.	161,400		13,257,396
Newfield Exploration Co.(b)	334,900		17,699,465
Noble Corp.	194,300		9,650,881
Noble Energy, Inc.	15,610		1,136,408
Occidental Petroleum Corp.	314,950		23,044,892
Plains Exploration & Production Co.(b)	281,700		14,969,538
Pride International, Inc.(b)	209,600		7,325,520
Quicksilver Resources, Inc.(a)(b)	570,800		20,851,324
Range Resources Corp.(a)	438,500		27,822,825
Schlumberger Ltd.	376,000		32,712,000
Smith International, Inc.(a)	243,300		15,627,159
Southwestern Energy Co.(b)	416,040		14,016,388
Suncor Energy, Inc.	100,630		9,695,701
TXCO Resources, Inc.(a)(b)	279,500		3,460,210
Unit Corp.(b)	435,000		24,642,750
Warren Resources, Inc.(b)	385,625		4,577,369
Weatherford International Ltd.(b)	428,780		31,073,687
Whiting Petroleum Corp.(b)	25,100		1,622,715

See Notes to Financial Statements.

58 SEMI-ANNUAL REPORT MARCH 31, 2008

	All-Cap Global Resources Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Oil & Gas (Continued)
XTO Energy, Inc.	415,791	$	25,720,831
			621,561,368
Total United States			920,049,648
TOTAL COMMON STOCKS
(Cost $860,039,252)			1,219,544,793
Short Term Investments — 26.7%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	245,015,300		245,015,300
Galileo Money Market Fund, 2.56%(e)	115,115,638		115,115,638
TOTAL SHORT TERM INVESTMENTS
(Cost $360,130,938)			360,130,938
TOTAL INVESTMENTS IN SECURITIES — 116.9%
(Cost $1,220,170,190*)			1,579,675,731
LIABILITIES IN EXCESS OF OTHER ASSETS — (16.9)%			(228,327,109	)
NET ASSETS — 100.0%		$	1,351,348,622

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	1,222,658,486
Gross unrealized appreciation	$	384,456,524
Gross unrealized depreciation		(27,439,279	)
Net unrealized appreciation	$	357,017,245

(a) Security, or a portion of security, is on loan.

(b) Non-income producing security.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	245,015,300	$	429,673

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased	Settlement Date	Unrealized Appreciation (Depreciation)
CAD 329,500	04/02/08	$	—
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $320,928)		$	—

• Forward foreign exchange contracts sold as of March 31, 2008 were as follows:

Foreign Currency Sold	Settlement Date	Unrealized Depreciation
NOK 682,000	04/01/08	$	(156	)
Total Net Unrealized Depreciation on Forward Foreign Exchange Contracts (USD Commitment - $133,770)		$	(156	)

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 59

	Health Sciences Opportunities Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares		Value
Common Stocks — 83.9%
Germany — 0.7%
Medical Instruments & Supplies — 0.7%
Fresenius Medical Care AG & Co.	161,700		$	8,130,824
Switzerland — 4.2%
Pharmaceuticals — 4.2%
Roche Holding AG	269,600			50,738,334
United States — 79.0%
Computer Software & Services — 0.1%
Medassets, Inc.(a)	123,900			1,836,198
Insurance — 1.0%
Aetna, Inc.	279,900			11,780,991
Manufacturing — 0.6%
Varian, Inc.(a)(b)	118,800			6,880,896
Medical & Medical Services — 10.2%
Amgen, Inc.(a)	299,600			12,517,288
Baxter International, Inc.	790,900			45,729,838
Bioform Medical, Inc.(a)	79,600			366,160
Covance, Inc.(a)	210,800			17,490,076
Integra LifeSciences Holdings Corp.(a)(b)	564,100			24,521,427
Medco Health Solutions, Inc.(a)	135,400			5,929,166
Millipore Corp.(a)	219,200			14,776,272
				121,330,227
Medical Instruments & Supplies — 32.9%
Alcon, Inc.	143,000			20,341,750
Alphatec Holdings, Inc.(a)	419,700			2,106,894
Becton, Dickinson & Co.	966,900			83,008,365
C.R. Bard, Inc.(b)	158,000			15,231,200
Cepheid, Inc.(a)(b)	457,900			11,168,181
Charles River Laboratories International, Inc.(a)	445,900			26,281,346
China Medical Technologies, Inc. - ADR(b)	309,100			12,700,919
Cyberonics, Inc.(a)(b)	676,100			9,803,450
Halozyme Therapeutics, Inc.(a)(b)	254,600			1,619,256
Johnson & Johnson	618,800			40,141,556
Medtronic, Inc.	1,025,100			49,584,087
SenoRx, Inc.(a)	264,900			1,708,605
St. Jude Medical, Inc.(a)(b)	543,300			23,465,127
Stryker Corp.(b)	771,600			50,192,580
Varian Medical Systems, Inc.(a)(b)	629,900			29,504,516
Waters Corp.(a)	62,293			3,469,720
Zimmer Holdings, Inc.(a)	158,500			12,340,810
				392,668,362
Pharmaceuticals — 31.5%
Abbott Laboratories	464,000			25,589,600
Alexion Pharmaceuticals, Inc.(a)	669,400			39,695,420
Applera Corp. - Celera Genomics Group(a)	659,100			9,688,770
Aryx Therapeutics, Inc.(a)	122,000			963,800
Auxilium Pharmaceuticals, Inc.(a)	582,500			15,576,050
BioMarin Pharmaceutical, Inc.(a)(b)	410,579			14,522,179
Bristol-Myers Squibb Co.	1,707,300			36,365,490
Celgene Corp.(a)	332,337			20,368,935
Gilead Sciences, Inc.(a)(b)	1,444,400			74,429,932
InterMune, Inc.(a)(b)	326,881			4,765,925
Kosan Biosciences, Inc.(a)	602,587			946,062
Merck & Co., Inc.	763,800			28,986,210
Nanosphere, Inc.(a)(b)	79,600			689,336
Novartis AG - ADR	142,700			7,310,521
Onyx Pharmaceuticals, Inc.(a)	273,200			7,930,996
Pfizer, Inc.	942,559			19,727,760
Poniard Pharmaceuticals, Inc.(a)(b)	401,100			1,343,685
Rigel Pharmaceuticals, Inc.(a)	196,400			3,664,824
Teva Pharmaceutical Industries Ltd. - ADR	622,300			28,744,037
United Therapeutics Corp.(a)	332,300			28,810,410
Wyeth	126,802			5,295,251
				375,415,193
Retail Merchandising — 2.7%
CVS Caremark Corp.(b)	787,500			31,901,625
Total United States				941,813,492
TOTAL COMMON STOCKS
(Cost $914,350,747)				1,000,682,650
Short Term Investments — 29.2%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	203,079,300			203,079,300
Galileo Money Market Fund, 2.56%(e)	145,829,161			145,829,161
TOTAL SHORT TERM INVESTMENTS
(Cost $348,908,461)				348,908,461
TOTAL INVESTMENTS BEFORE OUTSTANDING OPTION WRITTEN — 113.1%
(Cost $1,263,259,208(a))				1,349,591,111
	Contracts
Put Option Written — 0.0%
Alexion Pharmaceuticals, Inc., Strike Price $55, Expires 4/19/08
(Premiums received $181,998)	(1,000	)		(122,500	)
TOTAL INVESTMENTS NET OF OUTSTANDING OPTION WRITTEN — 113.1%
(Cost $1,263,077,210*)				1,349,468,611
LIABILITIES IN EXCESS OF OTHER ASSETS — (13.1)%				(156,708,147	)
NET ASSETS — 100.0%			$	1,192,760,464

See Notes to Financial Statements.

60 SEMI-ANNUAL REPORT MARCH 31, 2008

	Health Sciences Opportunities Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	1,271,158,499
Gross unrealized appreciation	$	108,890,130
Gross unrealized depreciation		(30,457,518	)
Net unrealized appreciation	$	78,432,612

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	203,079,300	$	337,971

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased	Settlement Date	Unrealized Appreciation
EUR 2,137,000	04/23/08	$	8,551
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $3,362,582)		$	8,551

• Forward foreign exchange contracts sold as of March 31, 2008 were as follows:

Foreign Currency Sold	Settlement Date	Unrealized Depreciation
EUR 9,760,500	04/23/08	$	(1,074,534	)
CHF 51,830,000	04/23/08		(4,825,774	)
Total Net Unrealized Depreciation on Forward Foreign Exchange Contracts (USD Commitment - $61,693,919)		$	(5,900,308	)

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 61

	U.S. Opportunities Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

		Shares	Value
Common Stocks — 91.3%
Aerospace — 2.1%
Alliant Techsystems, Inc.(a)(b)		44,600	$	4,617,438
Curtiss-Wright Corp.		115,800		4,803,384
Orbital Sciences Corp.(a)		221,100		5,328,510
				14,749,332
Banks — 5.1%
Associated Banc-Corp		76,700		2,042,521
Commerce Bancshares, Inc.		82,900		3,484,287
Greenhill & Co., Inc.(b)		39,800		2,768,488
Hudson City Bancorp, Inc.		286,500		5,065,320
KBW Bank Corp.(b)		110,000		4,281,200
National Penn Bancshares, Inc.		212,900		3,872,651
New York Community Bancorp, Inc.(b)		234,000		4,263,480
Northern Trust Corp.		44,300		2,944,621
Old National Bancorp		190,600		3,430,800
UMB Financial Corp.		81,400		3,353,680
				35,507,048
Beverages & Bottling — 0.9%
Molson Coors Brewing Co. - Class B(b)		117,900		6,198,003
Broadcasting — 0.3%
Sinclair Broadcast Group, Inc. - Class A(b)		226,800		2,020,788
Business Services — 2.7%
The Dun & Bradstreet Corp.		63,600		5,175,768
FTI Consulting, Inc.(a)		144,000		10,229,760
Hewitt Associates, Inc. - Class A(a)		79,200		3,149,784
				18,555,312
Chemicals — 3.7%
Celanese Corp. - Series A		146,700		5,728,635
CF Industries Holdings, Inc.		42,400		4,393,488
Church & Dwight Co., Inc.		76,800		4,165,632
The Lubrizol Corp.		121,000		6,716,710
Terra Industries, Inc.(a)		73,000		2,593,690
UAP Holding Corp.		55,300		2,120,202
				25,718,357
	��
Computer & Office Equipment — 0.7%
Western Digital Corp.(a)		169,000		4,569,760
Computer Software & Services — 7.7%
BMC Software, Inc.(a)		85,800		2,790,216
Citrix Systems, Inc.(a)		95,200		2,792,216
DST Systems, Inc.(a)(b)		102,000		6,705,480
Foundry Networks, Inc.(a)		169,200		1,959,336
Ingram Micro, Inc. - Class A(a)		155,300		2,458,399
McAfee, Inc.(a)		118,700		3,927,783
priceline.com, Inc.(a)(b)		63,100		7,626,266
Quest Software, Inc.(a)		290,100		3,791,607
Salesforce.Com, Inc.(a)(b)		114,200		6,608,754
Sapient Corp.(a)		369,500		2,571,720
Seagate Technology, Inc.		202,100		4,231,974
Sybase, Inc.(a)		99,400		2,614,220
VeriSign, Inc.(a)(b)		162,800		5,411,472
				53,489,443
Containers — 0.9%
Owens-Illinois, Inc.(a)		107,200		6,049,296
Electronics — 1.7%
Amphenol Corp.		106,000		3,948,500
Flextronics International Ltd.(a)		341,800		3,209,502
GrafTech International Ltd.(a)(b)		298,500		4,838,685
				11,996,687
Energy & Utilities — 4.9%
Airgas, Inc.		106,700		4,851,649
DPL, Inc.(b)		145,000		3,717,800
Edison International		102,000		5,000,040
MDU Resources Group, Inc.		6,300		154,665
Mirant Corp.(a)		153,300		5,578,587
PPL Corp.		80,600		3,701,152
Questar Corp.		118,800		6,719,328
Sempra Energy		71,000		3,782,880
				33,506,101
Entertainment & Leisure — 2.2%
Ameristar Casinos, Inc.		143,100		2,611,575
Gaylord Entertainment Co.(a)(b)		75,400		2,283,866
Morgans Hotel Group Co.(a)(b)		152,800		2,264,496
Penn National Gaming, Inc.(a)		53,400		2,335,182
WMS Industries, Inc.(a)		156,500		5,629,305
				15,124,424
Finance — 1.4%
Invesco Ltd.		237,500		5,785,500
Investment Technology Group, Inc.(a)(b)		91,400		4,220,852
				10,006,352
Food & Agriculture — 1.8%
CNH Global N.V.		61,000		3,173,830
Flowers Foods, Inc.		135,500		3,353,625
The Mosaic Co.(a)		57,500		5,899,500
				12,426,955
Insurance — 2.9%
Assurant, Inc.		97,100		5,909,506
AXIS Capital Holdings Ltd.		162,700		5,528,546
Reinsurance Group of America, Inc.		96,000		5,226,240
Solera Holdings, Inc.(a)		127,300		3,101,028
				19,765,320
Machinery & Heavy Equipment — 2.6%
AGCO Corp.(a)		87,000		5,209,560
Columbus Mckinnon Corp.(a)		182,900		5,666,242
Flowserve Corp.		48,000		5,010,240
Wabtec Corp.		52,800		1,988,448
				17,874,490
Manufacturing — 4.1%
Energizer Holdings, Inc.(a)		55,600		5,030,688
Greif, Inc.		90,000		6,113,700
Guess?, Inc.(b)		124,200		5,026,374
VF Corp.		61,200		4,743,612
Watson Wyatt Worldwide, Inc.		130,900		7,428,575
				28,342,949
Medical & Medical Services — 2.3%
Covance, Inc.(a)		79,800		6,621,006
Integra LifeSciences Holdings Corp.(a)(b)		84,300		3,664,521
Millipore Corp.(a)		79,400		5,352,354
				15,637,881

See Notes to Financial Statements.

62 SEMI-ANNUAL REPORT MARCH 31, 2008

	U.S. Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Medical Instruments & Supplies — 4.2%
Becton, Dickinson & Co.	89,000	$	7,640,650
C.R. Bard, Inc.	43,500		4,193,400
Charles River Laboratories International, Inc.(a)	86,900		5,121,886
St. Jude Medical, Inc.(a)	110,300		4,763,857
Varian Medical Systems, Inc.(a)	131,400		6,154,776
Waters Corp.(a)	17,696		985,667
			28,860,236
Metal & Mining — 5.2%
Arch Coal, Inc.	118,900		5,172,150
CONSOL Energy, Inc.	142,900		9,887,251
Kinross Gold Corp.	314,500		6,953,595
Pan American Silver Corp.(a)	57,800		2,217,786
Schnitzer Steel Industries, Inc. - Class A	91,000		6,462,820
Silver Wheaton Corp.(a)(b)	131,200		2,037,536
Yamana Gold, Inc.	224,300		3,279,266
			36,010,404
Motor Vehicles — 0.4%
TRW Automotive Holdings Corp.(a)	121,100		2,830,107
Oil & Gas — 12.9%
AGL Resources, Inc.	159,200		5,463,744
Atwood Oceanics, Inc.(a)	97,800		8,970,216
Bill Barrett Corp.(a)	70,800		3,345,300
Chesapeake Energy Corp.	169,400		7,817,810
CVR Energy, Inc.(a)(b)	191,200		4,403,336
Diamond Offshore Drilling, Inc.(b)	59,500		6,925,800
Forest Oil Corp.(a)	59,200		2,898,432
ION Geophysical Corp.(a)	349,200		4,818,960
Layne Christensen Co.(a)	109,900		3,848,698
Newfield Exploration Co.(a)	146,400		7,737,240
Noble Energy, Inc.	92,400		6,726,720
Petrohawk Energy Corp.(a)(b)	411,800		8,306,006
Petroleum Development Corp.(a)	48,000		3,324,960
South Jersey Industries, Inc.	148,500		5,213,835
Suburban Propane Partners LP	79,300		3,079,219
Willbros Group, Inc.(a)(b)	200,800		6,144,480
			89,024,756
Pharmaceuticals — 3.5%
Alexion Pharmaceuticals, Inc.(a)	66,600		3,949,380
Celgene Corp.(a)	31,545		1,933,393
Herbalife Ltd.	132,200		6,279,500
United Therapeutics Corp.(a)	136,100		11,799,870
			23,962,143
Real Estate — 2.1%
Avalonbay Communities, Inc. (REIT)	27,700		2,673,604
Boston Properties, Inc. (REIT)(b)	41,800		3,848,526
The Macerich Co. (REIT)(b)	55,800		3,921,066
Taubman Centers, Inc. (REIT)	79,000		4,115,900
			14,559,096
Restaurants — 1.1%
Darling International, Inc.(a)	289,800		3,752,910
Jack-in-the-Box, Inc.(a)	142,700		3,834,349
			7,587,259
Retail Merchandising — 2.8%
Abercrombie & Fitch Co. - Class A	89,700		6,560,658
Asbury Automative Group, Inc.	154,000		2,119,040
Brown Shoe Co., Inc.	68,800		1,036,816
Jarden Corp.(a)	159,900		3,476,226
Nordstrom, Inc.	99,500		3,243,700
Saks, Inc.(a)	225,400		2,810,738
			19,247,178
Security Brokers & Dealers — 0.7%
Waddell & Reed Financial, Inc.	158,000		5,076,540
Semiconductors & Related Devices — 2.4%
Cavium Networks, Inc.(a)(b)	29,400		482,160
Hittite Microwave Corp.(a)	113,500		4,247,170
MEMC Electronic Materials, Inc.(a)	65,200		4,622,680
Microsemi Corp.(a)	206,200		4,701,360
NVIDIA Corp.(a)	129,650		2,565,774
			16,619,144
Telecommunications — 4.0%
American Tower Corp. - Class A(a)	93,700		3,673,977
Atheros Communications, Inc.(a)(b)	142,000		2,959,280
Ciena Corp.(a)	72,600		2,238,258
Cincinnati Bell, Inc.(a)	655,300		2,791,578
Harris Corp.	116,300		5,644,039
JDS Uniphase Corp.(a)(b)	174,400		2,335,216
SBA Communications Corp.(a)(b)	138,000		4,116,540
Syniverse Holdings, Inc.(a)	224,100		3,733,506
			27,492,394
Tires & Rubber — 1.0%
The Goodyear Tire & Rubber Co.(a)	271,600		7,007,280
Tobacco — 1.5%
Loews Corp.-Carolina Group	47,600		3,453,380
UST, Inc.(b)	125,700		6,853,164
			10,306,544
Waste Management — 1.5%
Metalico, Inc.(a)(b)	428,368		4,202,290
Republic Services, Inc.	206,700		6,043,908
			10,246,198
TOTAL COMMON STOCKS
(Cost $599,741,767)			630,367,777
Exchange-Traded Funds — 3.7%
iShares Dow Jones U.S. Real Estate Index Fund(b)	228,600		14,881,860
KBW Regional Banking ETF	123,200		4,326,784
SPDR S&P Homebuilders ETF(b)	54,000		1,176,120
SPDR S&P Retail ETF(b)	53,300		1,702,935
Vanguard Consumer Discretionary ETF	64,400		3,158,820
TOTAL EXCHANGE-TRADED FUNDS
(Cost $24,543,322)			25,246,519

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 63

	U.S. Opportunities Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

	Shares	Value
Short Term Investments — 20.3%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	101,483,650	$	101,483,650
Galileo Money Market Fund, 2.56%(e)	38,596,882		38,596,882
TOTAL SHORT TERM INVESTMENTS
(Cost $140,080,532)			140,080,532
TOTAL INVESTMENTS IN SECURITIES — 115.3%
(Cost $764,365,621*)			795,694,828
LIABILITIES IN EXCESS OF OTHER ASSETS — (15.3)%			(105,500,004	)
NET ASSETS — 100.0%		$	690,194,824

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	767,009,965
Gross unrealized appreciation	$	52,775,740
Gross unrealized depreciation		(24,090,877	)
Net unrealized appreciation	$	28,684,863

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	101,483,650	$	183,497

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

64 SEMI-ANNUAL REPORT MARCH 31, 2008

	Global Opportunities Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 90.3%
Australia — 0.8%
Oil & Gas — 0.8%
Oil Search Ltd.	200,000	$	882,828
Belgium — 0.7%
Telecommunications — 0.7%
Belgacom SA	16,500		730,688
Bermuda — 0.5%
Oil & Gas — 0.5%
Seadrill Ltd.	20,800		557,542
Brazil — 2.5%
Banks — 0.8%
Banco Industrial e Comercial SA	52,000		245,968
Unibanco SA - ADR	5,700		664,848
			910,816
Energy & Utilities — 0.4%
Companhia Energetica de Minas Gerais- CEMIG - ADR	22,200		400,488
Manufacturing — 0.5%
Aracruz Celulose SA	8,000		546,080
Real Estate — 0.3%
PDG Realty SA Empreendimentos e Participacoes	30,400		356,893
Telecommunications — 0.5%
Bovespa Holding SA	13,900		188,138
GVT Holding SA(a)	19,300		362,748
			550,886
Total Brazil			2,765,163
Canada — 2.1%
Metal & Mining — 1.4%
Barrick Gold Corp.	10,000		434,500
Kinross Gold Corp.	36,400		812,081
Silver Wheaton Corp.(a)	18,000		279,540
			1,526,121
Oil & Gas — 0.7%
Encana Corp.	9,800		746,612
Total Canada			2,272,733
Chile — 0.2%
Banks — 0.2%
Banco Santander Chile SA - ADR	3,700		193,362
China — 0.5%
Computer Software & Services — 0.5%
Sina Corp.(a)	13,900		489,975
Finland — 0.4%
Manufacturing — 0.4%
Wartsila Oyj - Series B	6,100		411,700
France — 3.0%
Banks — 0.2%
BNP Paribas SA	2,400		242,080
Beverages & Bottling — 0.6%
LVMH Moet Hennessy Louis Vuitton SA	6,200		690,074
Entertainment & Leisure — 0.3%
Vivendi Universal SA	8,100		316,501
Insurance — 0.3%
AXA	10,000		362,956
Manufacturing — 0.3%
Compagnie Generale des Etablissements Michelin - Class B	3,600		375,795
Oil & Gas — 0.8%
Total SA	11,000		816,912
Telecommunications — 0.5%
France Telecom SA	15,700		527,952
Total France			3,332,270
Germany — 2.8%
Manufacturing — 0.7%
Adidas-Salomon AG	10,800		717,999
Medical Instruments & Supplies — 0.5%
Fresenius Medical Care AG & Co.	10,500		527,976
Oil & Gas — 0.5%
Linde AG	4,200		593,388
Security Brokers & Dealers — 0.4%
Deutsche Boerse AG	3,000		483,241
Soaps & Cosmetics — 0.7%
Henkel KGaA	17,000		785,842
Total Germany			3,108,446
Greece — 0.4%
Banks — 0.4%
National Bank of Greece SA	8,500		448,477
Hong Kong — 3.1%
Energy & Utilities — 0.3%
Guangdong Investment Ltd.	706,000		351,065
Entertainment & Leisure — 0.6%
The Hongkong & Shanghai Hotels Ltd.	364,500		598,551
Real Estate — 1.3%
Kerry Properties Ltd.	80,900		487,521
New World Development Co. Ltd.	130,900		317,215
Sun Hung Kai Properties Ltd.	41,000		639,551
			1,444,287
Retail Merchandising — 0.5%
Esprit Holdings Ltd.	45,300		543,648
Telecommunications — 0.4%
China Mobile Ltd.	29,700		441,914
Total Hong Kong			3,379,465
Indonesia — 0.8%
Banks — 0.4%
PT Bank Mandiri	1,327,000		454,106
Motor Vehicles — 0.4%
PT Astra International Tbk	170,100		448,118
Total Indonesia			902,224
Italy — 0.5%
Telecommunications — 0.5%
Enel SpA	54,000		572,899
Japan — 5.0%
Computer Software & Services — 0.8%
Nintendo Co. Ltd.	1,700		876,605

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 65

	Global Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Japan (Continued)
Electronics — 1.1%
Fanuc Ltd.	6,000	$	570,626
NGK Insulators Ltd.	27,300		483,118
Star Micronics Co. Ltd.	14,400		198,347
			1,252,091
Energy & Utilities — 1.2%
Air Water, Inc.	40,100		383,380
Kurita Water Industries Ltd.	24,800		913,082
			1,296,462
Machinery & Heavy Equipment — 0.5%
Daikin Industries Ltd.	12,000		516,453
Manufacturing — 0.7%
Daihatsu Motor Co., Ltd.	27,000		324,227
Mitsubishi Electric Corp.	53,000		458,327
			782,554
Metal & Mining — 0.4%
Sumitomo Metal Mining Co. Ltd.	22,000		409,410
Retail Merchandising — 0.3%
Itochu Corp.	40,300		397,825
Total Japan			5,531,400
Malaysia — 1.0%
Banks — 0.4%
Alliance Financial Group, Inc.	444,700		372,611
Telecommunications — 0.6%
Telekom Malaysia Bhd	210,000		695,951
Total Malaysia			1,068,562
Netherlands — 1.4%
Beverages & Bottling — 0.6%
Heineken Holding NV	13,800		693,911
Food & Agriculture — 0.8%
Unilever NV	25,200		846,219
Total Netherlands			1,540,130
Norway — 0.9%
Banks — 0.4%
DNB NOR ASA	29,300		444,763
Chemicals — 0.5%
Yara International ASA	10,000		578,319
Total Norway			1,023,082
Russia — 0.7%
Oil & Gas — 0.7%
Gazprom, Inc.-ADR	15,000		765,000
Singapore — 0.8%
Air Transportation — 0.3%
Singapore Airlines Ltd.	30,000		340,005
Banks — 0.5%
United Overseas Bank Ltd.	39,400		547,870
Total Singapore			887,875
South Korea — 0.6%
Electronics — 0.4%
Samsung Electronics Co. Ltd.	600		377,442
Security Brokers & Dealers — 0.2%
Korea Investment Holdings Co. Ltd.(a)	5,500		258,242
Total South Korea			635,684
Spain — 0.4%
Banks — 0.4%
Banco Bilbao Vizcaya Argentaria SA	10,500		231,248
Banco Santander Spain SA - ADR	11,800		235,102
			466,350
Switzerland — 2.6%
Banks — 0.5%
Julius Baer Holding Ltd.	7,300		538,073
Chemicals — 0.6%
Syngenta AG	2,300		673,950
Food & Agriculture — 1.0%
Nestle SA	2,300		1,149,305
Pharmaceuticals — 0.5%
Roche Holding AG	2,900		545,776
Total Switzerland			2,907,104
Taiwan — 2.3%
Chemicals — 1.3%
Taiwan Fertilizer Co. Ltd.	334,500		1,458,920
Computer & Office Equipment — 0.4%
Asustek Computer, Inc.	163,000		477,526
Telecommunications — 0.6%
Taiwan Mobile Co. Ltd.	330,619		636,654
Total Taiwan			2,573,100
Thailand — 0.4%
Banks — 0.4%
Bangkok Bank Public Co. Ltd.	103,300		456,049
United Kingdom — 3.1%
Banks — 0.4%
Barclays Plc	12,900		115,977
HSBC Finance Corp.	13,700		225,673
Royal Bank of Scotland Group Plc	17,200		115,123
			456,773
Beverages & Bottling — 0.4%
Diageo Plc	21,900		441,590
Energy & Utilities — 0.5%
International Power Plc	69,300		547,391
Finance — 0.4%
ICAP Plc	41,000		462,996
Oil & Gas — 0.5%
BP Plc	55,000		558,874
Telecommunications — 0.5%
Vodafone Group Plc	175,000		524,094
Transportation — 0.4%
Arriva Plc	28,500		388,017
Total United Kingdom			3,379,735

See Notes to Financial Statements.

66 SEMI-ANNUAL REPORT MARCH 31, 2008

	Global Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
United States — 52.8%
Aerospace — 1.0%
Alliant Techsystems, Inc.(a)	4,900	$	507,297
Goodrich Corp.	10,600		609,606
			1,116,903
Banks — 5.7%
Bank of America Corp.	14,000		530,740
BB&T Corp.	14,900		477,694
Citigroup, Inc.	31,400		672,588
Hudson City Bancorp, Inc.	33,500		592,280
JPMorgan Chase & Co.	12,000		515,400
KBW Bank Corp.	61,000		2,374,120
Old National Bancorp	25,800		464,400
U.S. Bancorp	8,000		258,880
Wells Fargo & Co.	12,000		349,200
			6,235,302
Beverages & Bottling — 1.5%
Molson Coors Brewing Co. - Class B	14,600		767,522
PepsiCo, Inc.	12,500		902,500
			1,670,022
Broadcasting — 0.5%
Liberty Global, Inc.(a)	15,200		518,016
Business Services — 0.6%
FTI Consulting, Inc.(a)	9,000		639,360
Chemicals — 1.1%
The Lubrizol Corp.	11,800		655,018
UAP Holding Corp.	15,000		575,100
			1,230,118
Computer & Office Equipment — 1.2%
Cisco Systems, Inc.(a)	22,100		532,389
Hewlett-Packard Co.	16,200		739,692
			1,272,081
Computer Software & Services — 2.0%
DST Systems, Inc.(a)	8,500		558,790
EMC Corp.(a)	26,100		374,274
Microsoft Corp.	23,400		664,092
Oracle Corp.(a)	30,100		588,756
			2,185,912
Electronics — 1.0%
Flextronics International Ltd.(a)	49,500		464,805
Intel Corp.	28,400		601,512
			1,066,317
Energy & Utilities — 1.6%
American Electric Power Co., Inc.	13,000		541,190
FPL Group, Inc.	6,100		382,714
PPL Corp.	10,000		459,200
Public Service Enterprise Group, Inc.	10,000		401,900
			1,785,004
Finance — 0.5%
State Street Corp.	6,500		513,500
Food & Agriculture — 2.8%
Archer-Daniels-Midland Co.	12,000		493,920
Bunge Ltd.	6,000		521,280
CNH Global N.V.	8,000		416,240
H.J. Heinz Co.	15,300		718,641
Kellogg Co.	17,500		919,800
			3,069,881
Insurance — 1.7%
ACE Ltd.	8,000		440,480
AON Corp.	11,000		442,200
Reinsurance Group of America, Inc.	11,800		642,392
Travelers Companies, Inc.	8,300		397,155
			1,922,227
Machinery & Heavy Equipment — 1.8%
AGCO Corp.(a)	11,400		682,632
Caterpillar, Inc.	10,000		782,900
Flowserve Corp.	4,900		511,462
			1,976,994
Manufacturing — 2.6%
Corning, Inc.	30,000		721,200
General Electric Co.	19,000		703,190
NIKE, Inc., Class B	12,800		870,400
Reynolds American, Inc.	10,300		608,009
			2,902,799
Medical & Medical Services — 0.7%
Baxter International, Inc.	12,700		734,314
Medical Instruments & Supplies — 5.7%
Alcon, Inc.	3,800		540,550
Becton, Dickinson & Co.	11,700		1,004,445
C.R. Bard, Inc.	5,800		559,120
Johnson & Johnson	10,500		681,135
Medtronic, Inc.	22,000		1,064,140
St. Jude Medical, Inc.(a)	11,300		488,047
Stryker Corp.	8,700		565,935
Varian Medical Systems, Inc.(a)	11,100		519,924
Zimmer Holdings, Inc.(a)	11,000		856,460
			6,279,756
Metal & Mining — 2.3%
Arch Coal, Inc.	12,900		561,150
Pan American Silver Corp.(a)	13,400		514,158
Peabody Energy Corp.	12,000		612,000
Schnitzer Steel Industries, Inc. - Class A	12,400		880,648
			2,567,956
Oil & Gas — 8.9%
Anadarko Petroleum Corp.	13,000		819,390
Chesapeake Energy Corp.	20,500		946,075
Chevron Corp.	6,000		512,160
Diamond Offshore Drilling, Inc.	5,700		663,480
Exxon Mobil Corp.	11,600		981,128
Forest Oil Corp.(a)	13,900		680,544
Murphy Oil Corp.	6,000		492,840
Newfield Exploration Co.(a)	13,000		687,050
Occidental Petroleum Corp.	9,000		658,530
Petrohawk Energy Corp.(a)	48,400		976,228
Petroleum Development Corp.(a)	7,100		491,817
Transocean, Inc.(a)	2,868		387,754
Ultra Petroleum Corp.(a)	12,300		953,250

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 67

	Global Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Oil & Gas (Continued)
XTO Energy, Inc.	9,750	$	603,135
			9,853,381
Pharmaceuticals — 3.6%
Bristol-Myers Squibb Co.	36,800		783,840
Gilead Sciences, Inc.(a)	31,600		1,628,348
Merck & Co., Inc.	19,600		743,820
Teva Pharmaceutical Industries Ltd. - ADR	16,800		775,992
			3,932,000
Railroad & Shipping — 0.5%
Union Pacific Corp.	4,400		551,672
Restaurants — 1.1%
Darling International, Inc.(a)	41,100		532,245
Yum! Brands, Inc.	18,600		692,106
			1,224,351
Retail Merchandising — 0.6%
CVS Caremark Corp.	17,400		704,874
Soaps & Cosmetics — 2.2%
Colgate-Palmolive Co.	18,300		1,425,753
The Procter & Gamble Co.	14,000		980,980
			2,406,733
Telecommunications — 0.7%
QUALCOMM, Inc.	12,600		516,600
Vodafone Group Plc - ADR	9,000		265,590
			782,190
Tobacco — 0.9%
Altria Group, Inc.	5,700		126,540
Philip Morris International, Inc.(a)	5,700		288,306
UST, Inc.	11,600		632,432
			1,047,278
Total United States			58,188,941
TOTAL COMMON STOCKS
(Cost $94,675,499)			99,470,784
Exchange-Traded Funds — 2.0%
iShares Dow Jones U.S. Consumer Services Sector Index Fund	16,000		920,640
iShares Dow Jones U.S. Real Estate Index Fund	19,100		1,243,410
TOTAL EXCHANGE-TRADED FUNDS
(Cost $2,143,781)			2,164,050
Short Term Investments — 3.4%
Galileo Money Market Fund, 2.56%(b)
(Cost $3,720,827)(b)	3,720,827		3,720,827
TOTAL INVESTMENTS IN SECURITIES — 95.6%
(Cost $100,540,107*)			105,355,661
OTHER ASSETS IN EXCESS OF LIABILITIES — 4.4%			4,843,624
NET ASSETS — 100.0%		$	110,199,285

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	101,174,590
Gross unrealized appreciation	$	8,650,727
Gross unrealized depreciation		(4,469,656	)
Net unrealized appreciation	$	4,181,071

(a) Non-income producing security.

(b) Represents current yield as of report date.

See Notes to Financial Statements.

68 SEMI-ANNUAL REPORT MARCH 31, 2008

	Global Opportunities Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased		Settlement Date	Unrealized Appreciation (Depreciation)
SGD	213,000	04/01/08	$	198
AUD	3,498,000	04/23/08		143,529
CAD	5,706,000	04/23/08		(1,946	)
DKK	4,926,000	04/23/08		72,044
NOK	2,994,000	04/23/08		26,191
JPY	559,332,000	04/23/08		283,891
SEK	7,942,000	04/23/08		88,248
HKD	5,292,000	04/23/08		1,071
EUR	4,518,000	04/23/08		426,881
CHF	1,026,000	04/23/08		91,129
GBP	3,265,000	04/23/08		14,309
ZAR	2,463,000	04/23/08		(39,578	)
PLN	1,000,000	04/23/08		46,557
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $32,388,010)			$	1,152,524

• Forward foreign exchange contracts sold as of March 31, 2008 were as follows:

Foreign Currency Sold		Settlement Date	Unrealized Appreciation (Depreciation)
CAD	1,136,000	04/01/08	$	9,932
NOK	886,000	04/01/08		(292	)
JPY	46,088,000	04/01/08		1,116
AUD	909,000	04/23/08		16,645
CAD	4,009,000	04/23/08		76,111
DKK	2,500,000	04/23/08		(1,035	)
NOK	8,487,000	04/23/08		(85,991	)
JPY	73,266,000	04/23/08		(15,945	)
HKD	5,521,000	04/23/08		(950	)
EUR	700,000	04/23/08		—
CHF	2,295,000	04/23/08		(69,952	)
GBP	654,000	04/23/08		4,239
Total Net Unrealized Depreciation on Forward Foreign Exchange Contracts (USD Commitment - $14,758,906)			$	(66,122	)

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 69

	International Opportunities Portfolio
Schedule of Investments March 31, 2008 (Unaudited)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 89.0%
Australia — 2.4%
Finance — 0.6%
Macquarie Airports Management Ltd.	2,863,600	$	8,453,061
Metal & Mining — 0.7%
Lihir Gold Ltd.	2,993,300		9,820,732
Oil & Gas — 1.1%
Oil Search Ltd.	3,461,900		15,281,318
Total Australia			33,555,111
Belgium — 1.5%
Banks — 0.7%
Dexia SA	170,500		4,858,662
KBC Groep NV	37,700		4,888,899
			9,747,561
Metal & Mining — 0.8%
Umicore	222,580		11,582,130
Total Belgium			21,329,691
Bermuda — 0.6%
Oil & Gas — 0.6%
Seadrill Ltd.	330,200		8,850,982
Brazil — 3.2%
Banks — 1.4%
Banco Industrial e Comercial SA	793,000		3,751,012
Unibanco SA - ADR	135,900		15,851,376
			19,602,388
Energy & Utilities — 0.6%
Companhia Energetica de Minas Gerais- CEMIG - ADR	443,200		7,995,328
Paper & Forest Products — 0.5%
Votorantim Celulose ADR	226,500		6,457,515
Real Estate — 0.4%
Mrv Engenharia(a)	326,900		5,812,549
Telecommunications — 0.3%
GVT Holding SA(a)	267,800		5,033,364
Total Brazil			44,901,144
Canada — 5.0%
Banks — 0.2%
Royal Bank of Canada	56,800		2,653,378
Metal & Mining — 2.8%
Kinross Gold Corp.	1,040,100		23,204,530
Silver Wheaton Corp.(a)(b)	227,900		3,539,287
Yamana Gold, Inc.	846,400		12,418,320
			39,162,137
Oil & Gas — 2.0%
Canadian Natural Resources Ltd.	115,000		7,872,814
Encana Corp.	147,000		11,199,182
Suncor Energy, Inc.	86,000		8,312,202
			27,384,198
Total Canada			69,199,713
Chile — 0.3%
Banks — 0.3%
Banco Santander Chile SA - ADR	79,100		4,133,766
Czech Republic — 0.3%
Banks — 0.3%
Komercni Banka A.S.	15,000		3,584,790
Denmark — 1.0%
Insurance — 0.5%
Trygvesta AS	86,400		7,591,142
Retail Merchandising — 0.5%
FLSmidth & Co. A/S	69,800		6,908,477
Total Denmark			14,499,619
Finland — 0.4%
Telecommunications — 0.4%
Elisa Oyj	204,800		5,115,069
France — 4.3%
Banks — 0.7%
BNP Paribas SA	55,900		5,638,451
Societe Generale	47,500		4,650,937
			10,289,388
Entertainment & Leisure — 0.6%
Ubisoft Entertainment	97,500		8,399,891
Food & Agriculture — 1.1%
Casino Guichard-Perrachon SA	123,800		14,842,475
Insurance — 0.6%
AXA	214,400		7,781,778
Manufacturing — 0.7%
Compagnie Generale des Etablissements Michelin - Class B	95,600		9,979,432
Oil & Gas — 0.6%
Total SA	121,000		8,986,028
Total France			60,278,992
Germany — 6.6%
Chemicals — 0.5%
SGL Carbon AG	120,600		7,615,920
Computer Software & Services — 1.1%
United Internet AG	704,700		15,164,050
Durable Goods — 0.7%
Gerry Weber International AG	289,200		10,341,454
Insurance — 1.0%
Hannover Rueckversicherung AG	276,200		14,398,453
Manufacturing — 1.2%
Adidas-Salomon AG	131,400		8,735,659
K+S AG	24,000		7,855,007
			16,590,666
Medical & Medical Services — 0.3%
Rhoen Klinikum AG	149,800		4,439,062
Medical Instruments & Supplies — 0.7%
Fresenius Medical Care AG & Co.	179,300		9,015,811
Miscellaneous Services — 0.6%
GEA Group AG	247,500		8,322,808
Security Brokers & Dealers — 0.2%
Deutsche Boerse AG	17,600		2,835,017

See Notes to Financial Statements.

70 SEMI-ANNUAL REPORT MARCH 31, 2008

	International Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

		Shares	Value
Common Stocks (Continued)
Germany (Continued)
Waste Management — 0.3%
Zhongde Waste Technology AG		85,694	$	3,458,011
Total Germany				92,181,252
Greece — 0.4%
Banks — 0.4%
National Bank of Greece SA		98,000		5,170,679
Hong Kong — 3.0%
Chemicals — 0.5%
Huabao International Holdings Ltd.		9,079,200		7,466,207
Construction — 0.4%
Shenzhen Expressway Co. Ltd.		6,745,300		5,156,924
Finance — 0.4%
Rexcapital Financial Holdings Ltd.(a)		49,810,300		5,568,150
Metal & Mining — 0.4%
Yanzhou Coal Mining Co. Ltd.		4,261,700		6,034,440
Real Estate — 1.3%
New World Development Co. Ltd.		2,810,000		6,809,583
Wheelock & Co. Ltd.		4,002,900		11,212,533
				18,022,116
Total Hong Kong				42,247,837
India — 2.0%
Beverages & Bottling — 0.4%
United Spirits Ltd.		137,900		5,162,313
Construction — 0.2%
Ambuja Cements Ltd.		1,064,500		3,211,808
Metal & Mining — 0.6%
JSW Steel Ltd.		407,300		8,317,570
Telecommunications — 0.8%
Bharti Tele-Ventures Ltd.		568,557		11,709,128
Total India				28,400,819
Indonesia — 1.9%
Banks — 0.6%
PT Bank Mandiri		22,481,700		7,693,358
Metal & Mining — 0.9%
PT Bumi Resources Tbk		19,672,700		13,250,488
Motor Vehicles — 0.4%
PT Astra International Tbk		2,309,300		6,083,707
Total Indonesia				27,027,553
Italy — 2.2%
Banks — 0.4%
Intesa Sanpaolo SpA		749,100		4,931,635
Construction — 0.3%
Astaldi SpA		635,300		4,894,561
Energy & Utilities — 1.5%
AEM SpA		3,465,000		12,732,334
Terna Rete Elettrica Nazionale SpA		2,040,900		8,707,681
				21,440,015
Total Italy				31,266,211
Japan — 12.7%
Banks — 2.0%
Bank of Kyoto Ltd.		827,100		10,056,633
The Chiba Bank Ltd.		1,578,000		10,717,356
The Iyo Bank Ltd.		712,700		7,607,472
				28,381,461
Chemicals — 1.6%
Dainippon Ink and Chemicals, Inc.		1,091,700		3,395,135
Nihon Nohyaku Co. Ltd.		1,541,400		14,210,941
Nippon Carbon Co. Ltd.		996,300		4,727,627
				22,333,703
Durable Goods — 0.5%
ASICS Corp.		632,000		7,265,971
Electronics — 1.8%
Hosiden Corp.		656,500		13,066,774
NGK Insulators Ltd.		332,700		5,887,668
Star Micronics Co. Ltd.		417,900		5,756,187
				24,710,629
Energy & Utilities — 2.1%
Air Water, Inc.		919,200		8,788,098
Kurita Water Industries Ltd.		569,000		20,949,338
				29,737,436
Finance — 0.3%
Shinko Securities Co. Ltd.(a)		1,157,400		3,367,235
Machinery & Heavy Equipment — 0.4%
Miura Co. Ltd.		217,700		4,924,895
Manufacturing — 1.2%
Taiyo Nippon Sanso Corp.		996,700		7,979,199
Uni-Charm Corp.		126,200		9,229,515
				17,208,714
Medical Instruments & Supplies — 0.4%
Nihon Kohden Corp.		222,100		5,080,136
Metal & Mining — 0.4%	��
Yamato Kogyo Co. Ltd.		120,900		4,875,782
Pharmaceuticals — 0.2%
Towa Pharmaceuticals Co., Ltd.		77,200		3,276,043
Photographic Equipment — 0.3%
Tamron Co. Ltd.		194,000		4,758,527
Retail Merchandising — 0.6%
Tsuruha Holdings, Inc.		187,200		8,094,222
Transportation — 0.9%
Hino Motors Ltd.		1,097,800		7,246,713
Kintetsu World Express, Inc.		216,100		5,029,615
				12,276,328
Total Japan				176,291,082
Kazakhstan — 0.6%
Oil & Gas — 0.6%
Kamunaigaz Exploration Production, Inc.		328,400		8,226,420
Luxembourg — 0.9%
Electronics — 0.5%
Arcelormittal		81,000		6,634,376

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 71

	International Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Luxembourg (Continued)
Telecommunications — 0.4%
SES SA	282,300	$	5,958,780
Total Luxembourg			12,593,156
Malaysia — 0.7%
Entertainment & Leisure — 0.7%
Tanjong Plc	1,881,200		9,880,932
Mexico — 1.4%
Beverages & Bottling — 0.6%
Fomento Economico Mexicano, S.A.B. de C.V.	200,000		8,356,000
Telecommunications — 0.8%
America Movil SA - ADR	170,900		10,884,621
Total Mexico			19,240,621
Morocco — 1.4%
Construction — 0.8%
IJM Corp. Bhd	5,579,800		10,641,482
Food & Agriculture — 0.6%
Kuala Lumpur Kepong Bhd	1,814,850		9,191,987
Total Morocco			19,833,469
Netherlands — 2.5%
Beverages & Bottling — 0.7%
Heineken NV	183,000		10,629,087
Construction — 0.7%
Koninklijke Boskalis Westminster NV	167,300		9,635,313
Food & Agriculture — 0.8%
Nutreco Holding NV	150,100		11,540,503
Medical & Medical Services — 0.3%
Qiagen NV	178,500		3,691,685
Total Netherlands			35,496,588
Norway — 4.4%
Banks — 0.5%
DNB NOR ASA	360,100		5,466,186
Sparebanken Rogaland	193,600		2,005,434
			7,471,620
Chemicals — 1.3%
Yara International ASA	310,100		17,933,655
Oil & Gas — 1.8%
Fred Olsen Energy ASA	208,500		11,832,749
Prosafe ASA	806,000		12,662,131
			24,494,880
Transportation — 0.8%
Songa Offshore ASA	854,600		11,411,784
Total Norway			61,311,939
Philippines — 0.6%
Telecommunications — 0.6%
Philippine Long Distance Telephone Co. - ADR(b)	115,500		7,676,130
Singapore — 0.7%
Real Estate — 0.5%
CapitaCommercial Trust Management Ltd.	4,530,000		7,306,186
Retail Merchandising — 0.2%
Hongguo International Holdings Ltd.	7,903,357		2,957,048
Total Singapore			10,263,234
South Africa — 0.5%
Oil & Gas — 0.5%
Sasol Ltd. - ADR	139,000		6,726,210
South Korea — 1.0%
Banks — 0.4%
Pusan Bank	480,200		6,012,500
Security Brokers & Dealers — 0.6%
Korea Investment Holdings Co. Ltd.(a)	163,900		7,695,613
Total South Korea			13,708,113
Spain — 1.4%
Banks — 1.4%
Banco Bilbao Vizcaya Argentaria SA	254,500		5,605,019
Banco Popular Espanol SA	264,400		4,800,366
Banco Santander Spain SA - ADR	421,600		8,399,918
			18,805,303
Sweden — 1.2%
Banks — 0.4%
Nordea Bank AB	321,000		5,202,470
Soaps & Cosmetics — 0.8%
Oriflame Cosmetics SA	163,054		10,825,720
Total Sweden			16,028,190
Switzerland — 4.0%
Chemicals — 0.9%
Lonza Group AG	93,600		12,412,768
Food & Agriculture — 1.4%
Barry Callebaut AG	10,445		9,045,111
Nestle SA	22,100		11,043,324
			20,088,435
Insurance — 0.6%
Swiss Life Holding	29,300		8,142,987
Machinery & Heavy Equipment — 0.5%
Meyer Burger Technology AG	23,800		7,309,435
Retail Merchandising — 0.6%
Compagnie Financiere Richemont AG	145,800		8,177,485
Total Switzerland			56,131,110
Taiwan — 4.2%
Chemicals — 2.0%
Polaris Securities Co., Ltd.(a)	9,732,100		6,951,615
Taiwan Fertilizer Co. Ltd.	4,646,800		20,266,989
			27,218,604
Computer Software & Services — 0.2%
Geovision, Inc.	491,000		3,450,633
Finance — 0.6%
Yuanta Financial Holding Co.(a)	9,172,000		8,604,552
Semiconductors & Related Devices — 0.3%
Av Tech Corp.	69,359		356,161
Vanguard International Semiconductor Corp.	5,297,938		3,801,743
			4,157,904
Telecommunications — 0.4%
Chunghwa Telecom Co. Ltd.	2,200,000		5,786,139

See Notes to Financial Statements.

72 SEMI-ANNUAL REPORT MARCH 31, 2008

	International Opportunities Portfolio
Schedule of Investments (continued)	(Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks (Continued)
Taiwan (Continued)
Transportation — 0.7%
U-Ming Marine Transport Corp.	3,113,224	$	9,397,213
Total Taiwan			58,615,045
Thailand — 1.8%
Banks — 1.0%
Siam Commercial Bank Public Co. Ltd.	4,924,700		14,155,482
Metal & Mining — 0.8%
Banpu Public Co. Ltd.	791,700		10,460,448
Total Thailand			24,615,930
United Kingdom — 13.0%
Aerospace — 1.4%
Cobham Plc	2,249,500		8,928,891
Meggitt Plc	1,838,000		10,058,716
			18,987,607
Banks — 1.0%
Barclays Plc	233,600		2,100,161
HSBC Finance Corp.	331,300		5,457,340
Royal Bank of Scotland Group Plc	311,900		2,087,608
Standard Chartered Plc	139,100		4,753,810
			14,398,919
Business Services — 2.3%
Aegis Group Plc	4,531,000		9,388,011
De La Rue Plc	646,233		11,369,716
Intertek Group Plc	529,700		10,849,037
			31,606,764
Energy & Utilities — 0.8%
International Power Plc	1,456,400		11,503,904
Entertainment & Leisure — 0.6%
IG Group Holdings Plc	505,700		3,284,385
InterContinental Hotels Group Plc	313,304		4,725,645
			8,010,030
Finance — 0.4%
ICAP Plc	421,100		4,755,312
Food & Agriculture — 0.6%
Britvic Plc	1,386,600		8,771,683
Insurance — 1.1%
Hiscox Ltd.	1,627,900		7,729,674
Prudential Plc	540,000		7,132,197
			14,861,871
Machinery & Heavy Equipment — 0.9%
VT Group Plc	443,400		5,781,527
The Weir Group Plc	472,200		7,131,685
			12,913,212
Measuring & Controlling Devices — 0.7%
Rotork Plc	471,312		10,092,795
Oil & Gas — 0.6%
Wellstream Holdings Plc	319,600		8,340,922
Publishing & Printing — 0.4%
United Business Media Plc	517,200		5,532,594
Tobacco — 0.5%
Imperial Tobacco Group Plc	145,100		6,675,171
Transportation — 1.3%
Arriva Plc	732,100		9,967,266
National Express Group Plc	423,700		8,450,960
			18,418,226
Waste Management — 0.4%
Northumbrian Water Group Plc	813,800		5,640,734
Total United Kingdom			180,509,744
United States — 0.9%
Metal & Mining — 0.5%
Pan American Silver Corp.(a)	162,600		6,238,962
Oil & Gas — 0.4%
Novatek Oao - ADR	75,000		6,052,500
Total United States			12,291,462
TOTAL COMMON STOCKS
(Cost $1,052,606,712)			1,239,987,906
Preferred Stock — 0.3%
Insurance — 0.3%
ING Groep NV
(Cost $4,208,192)	115,000		4,306,531
Exchange-Traded Fund — 0.5%
Lyxor ETF DJ Stoxx 600 Banks
(Cost $6,524,259)	125,000		6,857,723
Short Term Investments — 6.6%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%, (b)(c)(d)(e)	6,434,800		6,434,800
Galileo Money Market Fund, 2.56%(e)	86,301,767		86,301,767
TOTAL SHORT TERM INVESTMENTS
(Cost $92,736,567)			92,736,567
TOTAL INVESTMENTS IN SECURITIES — 96.4%
(Cost $1,156,075,730*)			1,343,888,727
OTHER ASSETS IN EXCESS OF LIABILITIES — 3.6%			50,007,737
NET ASSETS — 100.0%		$	1,393,896,464

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 73

	International Opportunities Portfolio
Schedule of Investments (concluded)	(Percentages shown are based on Net Assets)

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	1,157,141,553
Gross unrealized appreciation	$	245,837,162
Gross unrealized depreciation		(59,089,988	)
Net unrealized appreciation	$	186,747,174

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	6,434,800	$	8,365

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased		Settlement Date	Unrealized Appreciation (Depreciation)
JPY	234,455,000	4/01/08	$	5,490
AUD	51,108,000	4/23/08		1,474,364
CAD	77,443,000	4/23/08		89,679
DKK	27,790,000	4/23/08		406,438
NOK	180,331,000	4/23/08		1,381,683
JPY	14,583,614,000	4/23/08		5,723,079
SEK	100,559,000	4/23/08		1,011,316
HKD	77,914,000	4/23/08		11,904
SGD	8,207,000	4/23/08		44,275
EUR	115,442,100	4/23/08		12,084,277
CHF	61,684,000	4/23/08		5,811,506
GBP	17,989,000	4/23/08		(9,414	)
ZAR	86,232,000	4/23/08		(1,385,660	)
PLN	53,974,000	4/23/08		2,512,882
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $630,438,120)			$	29,161,819

• Forward foreign exchange contracts sold as of March 31, 2008 were as follows:

Foreign Currency Sold		Settlement Date	Unrealized Appreciation (Depreciation)
AUD	1,497,000	4/01/08	$	4,489
CAD	2,766,000	4/01/08		26,515
NOK	37,633,000	4/01/08		(10,506	)
JPY	6,167,000	4/01/08		149
SEK	15,391,000	4/01/08		(6,804	)
AUD	12,731,000	4/23/08		91,247
CAD	69,257,000	4/23/08		1,339,387
DKK	33,326,000	4/23/08		(192,655	)
NOK	477,630,000	4/23/08		(5,846,241	)
JPY	11,316,338,630	4/23/08		(6,803,354	)
SEK	23,670,000	4/23/08		(129,693	)
HKD	42,113,000	4/23/08		(7,247	)
EUR	73,312,000	4/23/08		(2,855,781	)
CHF	62,204,000	4/23/08		(1,415,136	)
GBP	14,749,500	4/23/08		74,469
CZK	59,090,200	4/23/08		(77,379	)
Total Net Unrealized Depreciation on Forward Foreign Exchange Contracts (USD Commitment - $512,309,011)			$	(15,808,540	)

• Cash of $3,800,000 pledged as collateral in connection with open financial futures contracts.

Financial futures contracts purchased as of March 31, 2008 were as follows:

Contracts	Issue	Expiration Date	Notional Amount		Unrealized Appreciation
700	MSCI Taiwan Index	June 2008	$	71,855,000	$	4,109,045
Total Net Unrealized Appreciation					$	4,109,045

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

74 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Assets and Liabilities

March 31, 2008 (Unaudited)	Capital Appreciation Portfolio			Mid-Cap Value Equity Portfolio			Mid-Cap Growth Equity Portfolio			Aurora Portfolio			Small/Mid-Cap Growth Portfolio
Assets
Investments at value - unaffiliated1	$	245,530,638		$	917,993,743		$	314,957,855		$	1,016,660,781		$	232,626,608
Investments at value - affiliated2,3		19,404,950			166,446,750			39,892,100			293,234,300			9,367,400
Foreign currency at value4		—			—			—			728			—
Dividends and reclaims receivable		282,965			1,096,022			118,497			559,148			72,927
Interest receivable		—			—			195			—			—
Interest receivable - affiliated		—			771			—			—			—
Securities lending income receivable		7,153			102,488			22,450			143,985			9,624
Investments sold receivable		3,619,145			11,913,051			1,502,697			66,385,135			829,999
Receivable from advisor		1,471			139,875			2,972			62,133			28,033
Capital shares sold receivable		138,773			1,250,395			95,751			698,069			225,786
Prepaid expenses		44,709			104,984			59,661			111,836			51,923
Total assets		269,029,804			1,099,048,079			356,652,178			1,377,856,115			243,212,300
Liabilities
Investments purchased payable		2,521,527			4,226,733			—			58,729,486			2,309,006
Options written at value5		—			52,500			—			—			—
Collateral received at value - securities loans		19,404,950			166,446,750			39,892,100			293,234,300			9,367,400
Transfer agent fees payable		196,297			444,130			408,685			1,245,455			250,418
Capital shares redeemed payable		187,985			2,229,549			162,074			2,960,311			365,166
Investment advisory fees payable		109,163			611,698			221,855			732,777			145,217
Service and distribution fees payable		34,838			148,998			31,852			247,837			22,193
Administration fees payable		19,031			54,100			26,909			60,985			14,491
Custodian fees payable		10,602			37,854			6,399			23,167			9,689
Officer and Trustees fees payable		4,130			26,721			7,864			39,457			4,537
Foreign taxes payable		—			—			3,816			—			—
Other accrued expenses payable		97,821			375,272			112,536			539,434			110,034
Total liabilities		22,586,344			174,654,305			40,874,090			357,813,209			12,598,151
Net Assets
Net Assets	$	246,443,460		$	924,393,774		$	315,778,088		$	1,020,042,906		$	230,614,149
Net Assets Consist of
Paid-in capital	$	272,303,648		$	955,925,748		$	427,485,432		$	1,103,180,458		$	213,054,408
Undistributed (distributions in excess of) net investment income (loss)		(108,547	)		1,754,390			(1,597,633	)		(4,069,935	)		(849,699	)
Accumulated net realized loss		(55,091,244	)		(62,766,863	)		(149,094,614	)		(57,173,425	)		(7,016,613	)
Net unrealized appreciation/depreciation		29,339,603			29,480,499			38,984,903			(21,894,192	)		25,426,053
Net Assets	$	246,443,460		$	924,393,774		$	315,778,088		$	1,020,042,906		$	230,614,149
1        Investments at cost - unaffiliated	$	216,191,035		$	888,511,704		$	275,972,952		$	1,038,553,810		$	207,200,555
2        Investments at cost - affiliated		19,404,950			166,446,750			39,892,100			293,234,300			9,367,400
3        Market value of securities loans		19,061,344			162,608,465			39,175,574			289,635,683			9,138,456
4        Cost of foreign currency		—			—			—			727			—
5        Premiums received - written options		—			50,960			—			—			—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 75

Statements of Assets and Liabilities (continued)

March 31, 2008 (Unaudited)	Capital Appreciation Portfolio		Mid-Cap Value Equity Portfolio		Mid-Cap Growth Equity Portfolio		Aurora Portfolio		Small/Mid-Cap Growth Portfolio
Institutional
Net Assets	$	72,265,207	$	129,199,204	$	31,487,751	$	116,537,842	$	19,786,280
Shares outstanding, unlimited number of shares authorized, $0.001 par value		4,352,898		11,735,713		2,606,919		5,538,332		1,469,394
Net Asset Value	$	16.60	$	11.01	$	12.08	$	21.04	$	13.47
Service
Net Assets	$	—	$	2,702,673	$	606,046	$	—	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		—		249,230		52,509		—		—
Net Asset Value	$	—	$	10.84	$	11.54	$	—	$	—
Investor A
Net Assets	$	130,797,053	$	566,483,265	$	235,781,959	$	600,766,819	$	179,756,512
Shares outstanding, unlimited number of shares authorized, $0.001 par value		8,188,321		52,849,029		21,049,684		31,084,503		14,270,661
Net Asset Value	$	15.97	$	10.72	$	11.20	$	19.33	$	12.60
Investor B
Net Assets	$	30,498,944	$	86,979,188	$	30,511,681	$	163,505,199	$	15,065,481
Shares outstanding, unlimited number of shares authorized, $0.001 par value		2,061,137		8,842,697		3,029,406		10,560,698		1,396,486
Net Asset Value	$	14.80	$	9.84	$	10.07	$	15.48	$	10.79
Investor C
Net Assets	$	12,882,256	$	139,029,444	$	16,683,560	$	137,896,821	$	14,408,473
Shares outstanding, unlimited number of shares authorized, $0.001 par value		867,674		14,175,932		1,656,963		8,913,462		1,333,553
Net Asset Value	$	14.85	$	9.81	$	10.07	$	15.47	$	10.80
R
Net Assets	$	—	$	—	$	707,091	$	1,336,225	$	1,597,403
Shares outstanding, unlimited number of shares authorized, $0.001 par value		—		—		63,094		69,778		127,813
Net Asset Value	$	—	$	—	$	11.21	$	19.15	$	12.50

See Notes to Financial Statements.

76 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Assets and Liabilities (continued)

March 31, 2008 (Unaudited)	Small Cap Value Equity Portfolio			Small Cap Core Equity Portfolio			Small Cap Growth Equity Portfolio			Global Science & Technology Opportunities Portfolio			Global Resources Portfolio
Assets
Investments at value - unaffiliated1	$	51,539,929		$	98,804,227		$	892,392,253		$	40,621,427		$	1,071,715,155
Investments at value - affiliated2,3		3,913,950			17,951,200			171,307,500			—			140,075,000
Foreign currency at value4		—			—			—			1,054,807			1,891
Dividends and reclaims receivable		42,357			116,515			173,765			38,995			517,459
Interest receivable		—			—			609			—			—
Interest receivable - affiliated		—			—			—			—			3,024
Securities lending income receivable		10,289			14,737			146,914			162			124,220
Investments sold receivable		683,549			2,756,230			1,433,399			448,333			—
Receivable from advisor		98			7,462			—			4,087			—
Capital shares sold receivable		19,922			455,586			15,908,920			59,942			4,178,563
Prepaid expenses		46,337			45,284			89,432			49,991			89,904
Unrealized appreciation on forward foreign currency contracts		—			—			—			25,024			—
Total assets		56,256,431			120,151,241			1,081,452,792			42,302,768			1,216,705,216
Liabilities
Investments purchased payable		531,086			986,106			11,940,937			3,928			331,067
Unrealized depreciation on forward foreign currency contracts		—			—			—			209,136			—
Collateral received at value - securities loans		3,913,950			17,951,200			171,307,500			—			140,075,000
Transfer agent fees payable		24,055			47,816			255,998			28,821			264,576
Capital shares redeemed payable		14,686			486,202			2,263,014			230,206			2,672,046
Custodian fees payable		14,120			4,526			16,076			13,401			97,963
Investment advisory fees payable		11,845			83,697			405,022			24,997			678,651
Administration fees payable		4,105			6,266			69,375			2,842			82,632
Service and distribution fees payable		3,812			22,896			18,842			9,782			166,023
Officer and Trustees fees payable		1,542			1,989			19,421			1,129			22,804
Foreign taxes payable		—			—			1,755			6,403			64
Other accrued expenses payable		42,434			43,811			222,491			38,971			397,295
Total liabilities		4,561,635			19,634,509			186,520,431			569,616			144,788,121
Net Assets
Net Assets	$	51,694,796		$	100,516,732		$	894,932,361		$	41,733,152		$	1,071,917,095
Net Assets Consist of
Paid-in capital	$	57,183,478		$	109,331,679		$	1,278,367,115		$	111,976,029		$	583,062,629
Undistributed (distributions in excess of) net investment income (loss)		(1,477,172	)		(241,001	)		620,270			(342,542	)		(44,999,198	)
Accumulated net realized gain (loss)		(4,261,667	)		(5,997,116	)		(467,137,801	)		(71,884,033	)		108,451,390
Net unrealized appreciation/depreciation		250,157			(2,576,830	)		83,082,777			1,983,698			425,402,274
Net Assets	$	51,694,796		$	100,516,732		$	894,932,361		$	41,733,152		$	1,071,917,095
1        Investments at cost - unaffiliated	$	51,289,772		$	101,381,057		$	809,309,476		$	38,490,878		$	647,111,737
2        Investments at cost - affiliated		3,913,950			17,951,200			171,307,500			—			140,075,000
3        Market value of securities loans		3,864,965			16,657,428			168,087,813			—			134,988,730
4        Cost of foreign currency		—			—			—			1,017,003			(796,901	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 77

Statements of Assets and Liabilities (continued)

March 31, 2008 (Unaudited)	Small Cap Value Equity Portfolio		Small Cap Core Equity Portfolio		Small Cap Growth Equity Portfolio		Global Science & Technology Opportunities Portfolio		Global Resources Portfolio
BlackRock
Net Assets	$	3,181,645	$	—	$	—	$	—	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		367,339		—		—		—		—
Net Asset Value	$	8.66	$	—	$	—	$	—	$	—
Institutional
Net Assets	$	22,751,266	$	36,735,945	$	635,209,929	$	1,789,981	$	38,239,597
Shares outstanding, unlimited number of shares authorized, $0.001 par value		2,626,334		2,249,001		29,214,835		230,772		601,333
Net Asset Value	$	8.66	$	16.33	$	21.74	$	7.76	$	63.59
Service
Net Assets	$	1,725,722	$	3,632,550	$	35,904,982	$	132,503	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		204,979		223,923		1,736,949		17,500		—
Net Asset Value	$	8.42	$	16.22	$	20.67	$	7.57	$	—
Investor A
Net Assets	$	18,676,088	$	25,435,233	$	194,720,487	$	24,915,902	$	795,057,208
Shares outstanding, unlimited number of shares authorized, $0.001 par value		2,241,915		1,582,709		9,684,237		3,324,230		13,579,906
Net Asset Value	$	8.33	$	16.07	$	20.11	$	7.50	$	58.55
Investor B
Net Assets	$	2,728,237	$	6,666,205	$	7,392,366	$	6,782,861	$	78,478,474
Shares outstanding, unlimited number of shares authorized, $0.001 par value		406,474		426,387		414,891		962,146		1,589,237
Net Asset Value	$	6.71	$	15.63	$	17.82	$	7.05	$	49.38
Investor C
Net Assets	$	2,631,838	$	28,046,799	$	21,704,597	$	8,111,905	$	160,141,816
Shares outstanding, unlimited number of shares authorized, $0.001 par value		393,498		1,796,956		1,217,481		1,151,829		3,249,407
Net Asset Value	$	6.69	$	15.61	$	17.83	$	7.04	$	49.28

See Notes to Financial Statements.

78 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Assets and Liabilities (continued)

March 31, 2008 (Unaudited)	All Cap Global Resources Portfolio			Health Sciences Opportunities Portfolio			U.S. Opportunities Portfolio			Global Opportunities Portfolio			International Opportunities Portfolio
Assets
Investments at value - unaffiliated1	$	1,334,660,431		$	1,146,511,811		$	694,211,178		$	105,355,661		$	1,337,453,927
Investments at value - affiliated2,3		245,015,300			203,079,300			101,483,650			—			6,434,800
Cash on deposit for futures contracts		—			—			—			—			3,800,000
Foreign currency at value4		136,840			1,749,595			—			4,469,632			32,984,740
Dividends and reclaims receivable		818,396			1,867,719			652,759			235,998			4,154,595
Interest receivable		—			245			—			—			—
Securities lending income receivable		90,160			61,162			48,497			—			1,931
Investments sold receivable		18,272,510			55,981,634			15,508,429			1,675,650			4,358,615
Receivable from advisor		741			—			30,304			7			112,880
Capital shares sold receivable		1,733,131			1,113,860			4,695,926			538,283			8,185,053
Prepaid expenses		130,994			116,251			101,434			45,684			112,147
Unrealized appreciation on forward foreign currency contracts		—			8,551			—			1,302,091			32,093,149
Margin variation receivable		—			—			—			—			373,940
Total assets		1,600,858,503			1,410,490,128			816,732,177			113,623,006			1,430,065,777
Liabilities
Investments purchased payable		1,050,412			3,880,601			22,154,238			2,750,803			4,885,046
Unrealized depreciation on forward foreign currency contracts		156			5,900,308			—			215,689			18,739,870
Options written at value5		—			122,500			—			—			—
Collateral received at value - securities loans		245,015,300			203,079,300			101,483,650			—			6,434,800
Capital shares redeemed payable		1,601,967			2,558,820			1,849,559			191,529			3,397,676
Investment advisory fees payable		858,473			765,927			487,172			83,580			1,138,931
Transfer agent fees payable		262,553			517,091			227,217			87,289			431,714
Service and distribution fees payable		178,475			268,187			80,997			16,894			183,651
Administration fees payable		102,959			94,422			51,268			8,247			103,925
Custodian fees payable		35,862			29,603			9,525			16,801			184,578
Foreign taxes payable		31,998			65,509			4,574			1,299			134,732
Officer and Trustees fees payable		29,060			32,926			11,121			1,874			38,960
Other accrued expenses payable		342,666			414,470			178,032			49,716			495,430
Total liabilities		249,509,881			217,729,664			126,537,353			3,423,721			36,169,313
Net Assets
Net Assets	$	1,351,348,622		$	1,192,760,464		$	690,194,824		$	110,199,285		$	1,393,896,464
Net Assets Consist of
Paid-in capital	$	923,406,202		$	1,058,861,144		$	729,464,850		$	105,389,270		$	1,137,370,344
Undistributed (distributions in excess of) net investment income (loss)		(1,292,799	)		(1,866,608	)		(392,791	)		(328,785	)		(5,231,174	)
Accumulated net realized gain (loss)		69,727,120			55,253,182			(70,206,442	)		(887,724	)		56,162,554
Net unrealized appreciation		359,508,099			80,512,746			31,329,207			6,026,524			205,594,740
Net Assets	$	1,351,348,622		$	1,192,760,464		$	690,194,824		$	110,199,285		$	1,393,896,464
1        Investments at cost - unaffiliated	$	975,154,890		$	1,060,179,908		$	662,881,971		$	100,540,107		$	1,149,640,930
2        Investments at cost - affiliated		245,015,300			203,079,300			101,483,650			—			6,434,800
3        Market value of securities loans		240,173,992			199,926,149			99,071,219			—			6,169,806
4        Cost of foreign currency		136,246			1,736,493			—			4,354,845			32,770,352
5        Premiums received - written options		—			181,998			—			—			—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 79

Statements of Assets and Liabilities (concluded)

March 31, 2008 (Unaudited)	All Cap Global Resources Portfolio		Health Sciences Opportunities Portfolio		U.S. Opportunities Portfolio		Global Opportunities Portfolio		International Opportunities Portfolio
Institutional
Net Assets	$	689,421,745	$	162,406,616	$	173,141,585	$	40,730,911	$	445,508,573
Shares outstanding, unlimited number of shares authorized, $0.001 par value		33,200,270		5,852,550		5,038,830		3,495,289		11,334,753
Net Asset Value	$	20.77	$	27.75	$	34.36	$	11.65	$	39.30
Service
Net Assets	$	4,479,740	$	6,387,454	$	81,501,903	$	—	$	144,901,935
Shares outstanding, unlimited number of shares authorized, $0.001 par value		217,847		234,350		2,452,425		—		3,819,579
Net Asset Value	$	20.56	$	27.26	$	33.23	$	—	$	37.94
Investor A
Net Assets	$	377,982,389	$	617,123,787	$	307,394,515	$	42,332,364	$	511,536,979
Shares outstanding, unlimited number of shares authorized, $0.001 par value		18,381,915		22,693,386		9,339,071		3,639,791		13,590,531
Net Asset Value	$	20.56	$	27.19	$	32.91	$	11.63	$	37.64
Investor B
Net Assets	$	58,696,802	$	84,049,297	$	21,581,772	$	7,330,330	$	69,501,478
Shares outstanding, unlimited number of shares authorized, $0.001 par value		2,903,344		3,241,591		705,205		633,323		1,969,562
Net Asset Value	$	20.22	$	25.93	$	30.60	$	11.57	$	35.29
Investor C
Net Assets	$	220,767,946	$	322,793,310	$	106,575,049	$	19,805,680	$	222,447,499
Shares outstanding, unlimited number of shares authorized, $0.001 par value		10,914,472		12,470,765		3,484,418		1,711,750		6,323,334
Net Asset Value	$	20.23	$	25.88	$	30.59	$	11.57	$	35.18

See Notes to Financial Statements.

80 SEMI-ANNUAL REPORT MARCH 31, 2008

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Statements of Operations

Six Months Ended March 31, 2008 (Unaudited)	Capital Appreciation Portfolio			Mid-Cap Value Equity Portfolio			Mid-Cap Growth Equity Portfolio			Aurora Portfolio			Small/Mid-Cap Growth Portfolio
Investment Income
Dividends and reclaims	$	1,428,656		$	8,735,632		$	1,287,455		$	5,090,137		$	945,590
Interest		—			265,188			6,379			232,858			233
Interest from affiliates		2,875			8,404			6,783			13,100			2,376
Securities lending		55,514			654,618			100,419			1,019,520			55,996
Foreign taxes withheld		(167	)		—			(1,006	)		(95,937	)		—
Total investment income		1,486,878			9,663,842			1,400,030			6,259,678			1,004,195
Expenses
Investment advisory		839,049			3,934,554			1,516,709			5,267,665			975,380
Transfer agent - class specific		246,486			1,082,932			581,403			1,676,945			384,406
Service - class specific		233,676			1,063,867			392,223			1,386,507			296,064
Distribution - class specific		202,945			976,007			213,567			1,423,019			129,558
Administration		96,813			344,467			142,191			419,957			97,538
Administration - class specific		32,283			118,754			47,428			145,564			32,535
Printing		30,769			154,395			46,423			220,654			34,705
Custodian		18,322			50,795			21,753			52,504			34,817
Registration		17,544			34,618			23,892			24,089			20,985
Professional		21,611			47,113			26,566			60,888			22,766
Officer and Trustees		10,747			31,728			14,195			42,397			10,991
Miscellaneous		6,166			15,654			8,968			20,228			7,623
Total expenses		1,756,411			7,854,884			3,035,318			10,740,417			2,047,368
Less investment advisory fees waived		(137,430	)		(2,834	)		—			—			—
Less administration fees waived - class specific		(10,891	)		(118,628	)		(5,542	)		(138,089	)		(32,322	)
Less transfer agent fees waived - class specific		(2,476	)		(87,358	)		(12,461	)		(108,367	)		(25,851	)
Less transfer agent fees reimbursed - class specific		(9,589	)		(709,139	)		(18,239	)		(327,608	)		(134,813	)
Less fees paid indirectly		(600	)		(1,753	)		(1,413	)		(2,697	)		(488	)
												��
Total expenses after waivers and reimbursement		1,595,425			6,935,172			2,997,663			10,163,656			1,853,894
Net investment income (loss)		(108,547	)		2,728,670			(1,597,633	)		(3,903,978	)		(849,699	)
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		7,146,815			(37,619,413	)		18,697,862			(17,138,922	)		(764,015	)
Payment from affiliate		—			—			—			139,965			—
Written options		—			(1,293,818	)		—			—			—
Foreign currency transactions		—			—			—			55,989			—
		7,146,815			(38,913,231	)		18,697,862			(16,942,968	)		(764,015	)
Net change in unrealized appreciation/depreciation on:
Investments		(31,308,653	)		(95,233,720	)		(59,837,434	)		(189,459,119	)		(30,880,145	)
Written options		—			68,760			—			—			—
Foreign currency transactions		—			—			—			(2,476	)		—
		(31,308,653	)		(95,164,960	)		(59,837,434	)		(189,461,595	)		(30,880,145	)
Net realized and unrealized gain (loss)		(24,161,838	)		(134,078,191	)		(41,139,572	)		(206,404,563	)		(31,644,160	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(24,270,385	)	$	(131,349,521	)	$	(42,737,205	)	$	(210,308,541	)	$	(32,493,859	)

See Notes to Financial Statements.

82 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Operations (continued)

Small Cap Value Equity Portfolio	Small Cap Core Equity Portfolio			Small Cap Growth Equity Portfolio			Global Science & Technology Opportunities Portfolio			Global Resources Portfolio			All-Cap Global Resources Portfolio			Health Sciences Opportunities Portfolio
$434,438	$	654,339		$	3,729,211		$	178,455		$	3,554,561		$	20,378,657		$	8,317,303
—		—			99,861			1,687			73,092			140,031			555,583
251		1,198			2,877			697			3,892			5,468			9,399
52,794		84,721			598,702			3,547			567,197			429,673			337,971
—		—			(1,512	)		(3,497	)		(183,148	)		(241,334	)		(240,212	)
487,483		740,258			4,429,139			180,889			4,015,594			20,712,495			8,980,044
159,944		528,278			2,240,693			192,679			3,798,142			4,876,577			4,916,132
39,128		105,979			456,893			65,363			530,579			471,993			1,064,154
41,778		87,591			314,616			50,971			1,226,758			808,326			1,445,141
24,904		144,820			118,113			65,741			885,524			1,037,846			1,709,645
21,811		39,621			289,810			16,056			353,386			438,517			441,625
7,281		13,196			99,026			5,346			114,546			156,498			157,105
13,230		16,985			127,520			9,201			104,865			147,448			181,947
29,230		12,946			58,730			28,598			148,328			73,331			58,801
19,795		20,751			26,582			15,523			23,164			27,313			41,430
15,675		17,093			40,586			18,694			47,461			54,336			56,639
8,189		8,767			25,209			7,968			29,019			36,093			39,104
5,906		5,338			13,009			7,566			28,023			24,033			25,443
386,871		1,001,365			3,810,787			483,706			7,289,795			8,152,311			10,137,166
(29,208)		(95	)		—			(10,867	)		—			—			—
(1,057)		(6,635	)		(884	)		(4,159	)		(7,913	)		(7,661	)		—
(652)		(2,699	)		(154	)		(5,570	)		(2,001	)		(8,682	)		—
(1,181)		(10,422	)		(246	)		(16,617	)		(925	)		(5,729	)		—
(51)		(255	)		(634	)		(149	)		(823	)		(1,160	)		(1,953	)
354,722		981,259			3,808,869			446,344			7,278,133			8,129,079			10,135,213
132,761		(241,001	)		620,270			(265,455	)		(3,262,539	)		12,583,416			(1,155,169	)
(3,759,863)		(5,738,680	)		10,237,012			1,069,656			136,209,445			78,750,842			61,777,403
—		—			—			—			—			—			—
—		—			—			—			873,123			—			6,124,921
—		—			—			(257,995	)		111,625			42,876			(4,081,351	)
(3,759,863)		(5,738,680	)		10,237,012			811,661			137,194,193			78,793,718			63,820,973
(5,055,011)		(12,682,056	)		(78,926,539	)		(6,810,998	)		6,986,627			27,966,590			(128,668,914	)
—		—			—			—			(870,362	)		—			59,498
—		—			—			(10,056	)		(109,804	)		(11,961	)		(4,225,100	)
(5,055,011)		(12,682,056	)		(78,926,539	)		(6,821,054	)		6,006,461			27,954,629			(132,834,516	)
(8,814,874)		(18,420,736	)		(68,689,527	)		(6,009,393	)		143,200,654			106,748,347			(69,013,543	)
$(8,682,113)	$	(18,661,737	)	$	(68,069,257	)	$	(6,274,848	)	$	139,938,115		$	119,331,763		$	(70,168,712	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 83

Statements of Operations (concluded)

Six Months Ended March 31, 2008 (Unaudited)	U.S. Opportunities Portfolio			Global Opportunities Portfolio			International Opportunities Portfolio
Investment Income
Dividends and reclaims	$	3,994,702		$	913,363		$	10,145,916
Interest		118,247			21,581			336,223
Interest from affiliates		4,356			693			5,748
Securities lending		183,497			—			8,365
Foreign taxes withheld		(1,956	)		(30,059	)		(533,617	)
Total investment income		4,298,846			905,578			9,962,635
Expenses
Investment advisory		3,499,664			492,605			7,189,473
Service - class specific		584,700			86,930			1,249,063
Transfer agent - class specific		489,218			63,768			770,919
Distribution - class specific		480,072			102,687			1,208,724
Administration		231,799			41,050			476,760
Administration - class specific		79,243			13,653			181,335
Printing		73,704			12,004			196,589
Custodian		36,678			45,299			466,266
Professional		33,394			18,717			68,186
Registration		31,692			17,729			27,084
Officer and Trustees		18,578			8,774			44,470
Miscellaneous		11,937			10,749			50,325
Total expenses		5,570,679			913,965			11,929,194
Less investment advisory fees waived		(755,995	)		—			—
Less administration fees waived - class specific		(24,455	)		(1,463	)		—
Less transfer agent fees waived - class specific		(8,219	)		(234	)		—
Less transfer agent fees reimbursed - class specific		(89,415	)		(246	)		—
Less fees paid indirectly		(958	)		(148	)		(1,191	)
Total expenses after waivers and reimbursement		4,691,637			911,874			11,928,003
Net investment loss		(392,791	)		(6,296	)		(1,965,368	)
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(10,739,744	)		681,358			95,586,847
Payment from affiliate		—			—			112,880
Foreign currency related transactions		—			(157,126	)		(2,233,223	)
		(10,739,744	)		524,232			93,466,504
Net change in unrealized appreciation/depreciation on:
Investments		(41,956,996	)		(10,835,804	)		(234,075,931	)
Futures		—			—			4,109,045
Foreign currency transactions		—			1,019,604			16,177,898
		(41,956,996	)		(9,816,200	)		(213,788,988	)
Net realized and unrealized loss		(52,696,740	)		(9,291,968	)		(120,322,484	)
Net Decrease in Net Assets Resulting from Operations	$	(53,089,531	)	$	(9,298,264	)	$	(122,287,852	)

See Notes to Financial Statements.

84 SEMI-ANNUAL REPORT MARCH 31, 2008

[THIS PAGE INTENTIONALLY LEFT BLANK.]

Statements of Changes in Net Assets

	Capital Appreciation Portfolio						Mid-Cap Value Equity Portfolio
Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
Operations
Net investment income (loss)	$	(108,547	)	$	(666,814	)	$	2,728,670		$	4,421,708
Net realized gain (loss)		7,146,815			31,968,707			(38,913,231	)		131,988,313
Net change in unrealized appreciation/depreciation		(31,308,653	)		17,539,588			(95,164,960	)		25,639,634
Net increase (decrease) in net assets resulting from operations		(24,270,385	)		48,841,481			(131,349,521	)		162,049,655
Dividends and Distributions to Shareholders from
Net investment income:
Institutional		—			—			(651,188	)		(950,124	)
Service		—			—			(7,027	)		(28,046	)
Investor A		—			—			(1,235,390	)		(4,346,319	)
Investor B		—			—			—			(149,820	)
Investor C		—			—			—			(346,654	)
Net realized gain:
Institutional		—			—			(15,606,979	)		(10,598,964	)
Service		—			—			(391,037	)		(400,184	)
Investor A		—			—			(75,490,857	)		(62,756,283	)
Investor B		—			—			(13,996,184	)		(16,156,916	)
Investor C		—			—			(20,992,479	)		(18,615,276	)
R		—			—			—			—
Decrease in net assets resulting from dividends and distributions to shareholders		—			—			(128,371,141	)		(114,348,586	)
Capital Share Transactions
Net increase (decrease) in net assets resulting from capital share transactions		4,509,244			(31,677,089	)		109,969,494			183,584,154
Redemption Fees
Redemption fees		—			—			—			1,656
Net Assets
Total increase (decrease) in net assets		(19,761,141	)		17,164,392			(149,751,168	)		231,286,879
Beginning of period		266,204,601			249,040,209			1,074,144,942			842,858,063
End of period	$	246,443,460		$	266,204,601		$	924,393,774		$	1,074,144,942
End of period undistributed (distributions in excess of) net investment income (loss)	$	(108,547	)	$	—		$	1,754,390		$	919,325

See Notes to Financial Statements.

86 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Changes in Net Assets (continued)

Mid-Cap Growth Equity Portfolio					Aurora Portfolio						Small/Mid-Cap Growth Portfolio
Six Months Ended March 31, 2008 (Unaudited)		Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
$	(1,597,633)	$	(4,524,093	)	$	(3,903,978	)	$	(3,178,029	)	$	(849,699	)	$	(2,862,556	)
	18,697,862		62,310,657			(16,942,968	)		290,550,794			(764,015	)		49,844,202
	(59,837,434)		33,572,913			(189,461,595	)		(31,422,518	)		(30,880,145	)		10,425,975
	(42,737,205)		91,359,477			(210,308,541	)		255,950,247			(32,493,859	)		57,407,621
	—		—			—			—			—			—
	—		—			—			—			—			—
	—		—			—			—			—			—
	—		—			—			—			—			—
	—		—			—			—			—			—
	—		—			(31,795,565	)		(39,020,242	)		(3,835,548	)		(1,246,455	)
	—		—			—			(6,428	)		—			(1,145	)
	—		—			(168,608,397	)		(348,851,877	)		(36,072,316	)		(11,264,602	)
	—		—			(54,791,162	)		(110,014,015	)		(3,584,103	)		(1,395,885	)
	—		—			(46,145,945	)		(91,436,852	)		(3,000,370	)		(1,040,672	)
	—		—			(305,399	)		(6,360	)		(221,880	)		(1,135	)
	—		—			(301,646,468	)		(589,335,774	)		(46,714,217	)		(14,949,894	)
	(55,946,702)		(77,176,297	)		29,181,980			(119,171,388	)		24,757,286			(31,054,291	)
	—		(759	)		4,065			57,126			9,538			14,514
	(98,683,907)		14,182,421			(482,768,964	)		(452,499,789	)		(54,441,252	)		11,417,950
	414,461,995		400,279,574			1,502,811,870			1,955,311,659			285,055,401			273,637,451
$	315,778,088	$	414,461,995		$	1,020,042,906		$	1,502,811,870		$	230,614,149		$	285,055,401
$	(1,597,633)	$	—		$	(4,069,935	)	$	(25,991	)	$	(849,699	)	$	—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 87

Statements of Changes in Net Assets (continued)

	Small Cap Value Equity Portfolio						Small Cap Core Equity Portfolio
Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
Operations
Net investment income (loss)	$	132,761		$	212,079		$	(241,001	)	$	(1,148,210	)
Net realized gain (loss)		(3,759,863	)		11,328,942			(5,738,680	)		10,368,324
Net change in unrealized appreciation/depreciation		(5,055,011	)		(3,201,326	)		(12,682,056	)		3,477,355
Net increase (decrease) in net assets resulting from operations		(8,682,113	)		8,339,695			(18,661,737	)		12,697,469
Dividends and Distributions to Shareholders from
Net investment income:
BlackRock		(91,661	)		(96,251	)		—			—
Institutional		(734,053	)		(864,738	)		—			—
Service		(55,160	)		(79,661	)		—			—
Investor A		(569,152	)		(565,742	)		—			—
Investor B		(86,359	)		(85,437	)		—			—
Investor C		(73,548	)		(57,217	)		—			—
Net realized gain:
BlackRock		(468,470	)		(883,861	)		—			—
Institutional		(3,365,617	)		(7,026,310	)		(2,956,776	)		(389,967	)
Service		(277,066	)		(767,565	)		(358,504	)		(53,212	)
Investor A		(3,077,025	)		(5,528,989	)		(2,250,029	)		(354,006	)
Investor B		(640,834	)		(1,626,642	)		(603,710	)		(142,927	)
Investor C		(548,273	)		(983,319	)		(2,458,205	)		(437,962	)
Decrease in net assets resulting from dividends and distributions to shareholders		(9,987,218	)		(18,565,732	)		(8,627,224	)		(1,378,074	)
Capital Share Transactions
Net increase (decrease) in net assets resulting from capital share transactions		1,454,830			(5,609,699	)		18,482,045			15,600,046
Redemption Fees
Redemption fees		192			156			4,291			2,573
Net Assets
Total increase (decrease) in net assets		(17,214,309	)		(15,835,580	)		(8,802,625	)		26,922,014
Beginning of period		68,909,105			84,744,685			109,319,357			82,397,343
End of period	$	51,694,796		$	68,909,105		$	100,516,732		$	109,319,357
End of period undistributed (distributions in excess of) net investment income (loss)	$	(1,477,172	)	$	—		$	(241,001	)	$	—

See Notes to Financial Statements.

88 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Changes in Net Assets (continued)

Small Cap Growth Equity Portfolio					Global Science & Technology Opportunities Portfolio						Global Resources Portfolio
Six Months Ended March 31, 2008 (Unaudited)		Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
$	620,270	$	(3,622,784	)	$	(265,455	)	$	(413,529	)	$	(3,262,539	)	$	(4,118,065	)
	10,237,012		109,493,054			811,661			3,315,734			137,194,193			118,008,870
	(78,926,539)		48,459,896			(6,821,054	)		4,689,749			6,006,461			76,633,096
	(68,069,257)		154,330,166			(6,274,848	)		7,591,954			139,938,115			190,523,901
	—		—			—			—			—			—
	—		—			—			—			(943,161	)		(407,505	)
	—		—			—			—			—			—
	—		—			—			—			(26,697,832	)		(5,480,853	)
	—		—			—			—			(2,806,131	)		(90,725	)
	—		—			—			—			(5,676,427	)		(84,828	)
	—		—			—			—			—			—
	—		—			—			—			(2,630,410	)		(9,325,982	)
	—		—			—			—			—			—
	—		—			—			—			(77,529,172	)		(185,047,519	)
	—		—			—			—			(9,869,079	)		(26,519,774	)
	—		—			—			—			(19,221,873	)		(43,361,959	)
	—		—			—			—			(145,374,085	)		(270,319,145	)
	117,770,800		35,819,149			6,016,162			2,995,063			129,763,658			73,558,234
	55,144		38,501			2,845			1,818			23,866			17,221
	49,756,687		190,187,816			(255,841	)		10,588,835			124,351,554			(6,219,789	)
	845,175,674		654,987,858			41,988,993			31,400,158			947,565,541			953,785,330
$	894,932,361	$	845,175,674		$	41,733,152		$	41,988,993		$	1,071,917,095		$	947,565,541
$	620,270	$	—		$	(342,542	)	$	(77,087	)	$	(44,999,198	)	$	(5,613,108	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 89

Statements of Changes in Net Assets (continued)

	All-Cap Global Resources Portfolio						Health Sciences Opportunities Portfolio
Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
Operations
Net investment income (loss)	$	12,583,416		$	(569,716	)	$	(1,155,169	)	$	(4,009,242	)
Net realized gain (loss)		78,793,718			9,953,987			63,820,973			49,828,975
Net change in unrealized appreciation/depreciation		27,954,629			340,041,790			(132,834,516	)		131,502,266
Net increase (decrease) in net assets resulting from operations		119,331,763			349,426,061			(70,168,712	)		177,321,999
Dividends and Distributions to Shareholders from
Net investment income:
Institutional		(8,885,132	)		—			—			—
Service		(36,728	)		—			—			—
Investor A		(3,502,966	)		—			—			—
Investor B		(191,616	)		—			—			—
Investor C		(875,331	)		—			—			—
Net realized gain:
Institutional		(9,314,931	)		(10,090,707	)		(6,907,979	)		(1,602,984	)
Service		(51,597	)		(62,756	)		(294,520	)		(68,118	)
Investor A		(4,995,262	)		(7,092,333	)		(26,251,005	)		(6,106,733	)
Investor B		(809,538	)		(1,254,323	)		(2,731,955	)		(1,146,981	)
Investor C		(3,066,818	)		(4,033,407	)		(11,313,900	)		(3,784,320	)
Decrease in net assets resulting from dividends and distributions to shareholders		(31,729,919	)		(22,533,526	)		(47,499,359	)		(12,709,136	)
Capital Share Transactions
Net increase (decrease) in net assets resulting from capital share transactions		51,209,336			117,285,124			(26,726,981	)		287,573,622
Redemption Fees
Redemption fees		25,599			41,527			26,076			47,586
Net Assets
Total increase (decrease) in net assets		138,836,779			444,219,186			(144,368,976	)		452,234,071
Beginning of period		1,212,511,843			768,292,657			1,337,129,440			884,895,369
End of period	$	1,351,348,622		$	1,212,511,843		$	1,192,760,464		$	1,337,129,440
End of period undistributed (distributions in excess of) net investment income (loss)	$	(1,292,799	)	$	(384,442	)	$	(1,866,608	)	$	(711,439	)

See Notes to Financial Statements.

90 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Changes in Net Assets (concluded)

U.S. Opportunities Portfolio					Global Opportunities Portfolio						International Opportunities Portfolio
Six Months Ended March 31, 2008 (Unaudited)		Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
$	(392,791)	$	(1,525,019	)	$	(6,296	)	$	202,864		$	(1,965,368	)	$	8,582,599
	(10,739,744)		26,356,228			524,232			5,537,239			93,466,504			234,387,781
	(41,956,996)		55,336,731			(9,816,200	)		14,061,983			(213,788,988	)		212,534,037
	(53,089,531)		80,167,940			(9,298,264	)		19,802,086			(122,287,852	)		455,504,417
	—		—			(516,368	)		(80,270	)		(11,844,155	)		(5,714,004	)
	—		—			—			(241	)		(3,649,556	)		(1,836,362	)
	—		—			(438,794	)		(166,607	)		(11,746,350	)		(5,788,432	)
	—		—			(18,976	)		(24,703	)		(1,437,329	)		(560,575	)
	—		—			(63,696	)		(49,183	)		(3,891,839	)		(1,513,353	)
	—		—			(1,500,686	)		—			(70,893,491	)		(46,667,147	)
	—		—			—			—			(25,020,162	)		(17,687,846	)
	—		—			(1,612,774	)		—			(81,040,060	)		(57,992,691	)
	—		—			(310,579	)		—			(15,320,494	)		(13,325,007	)
	—		—			(756,979	)		—			(39,325,420	)		(30,320,263	)
	—		—			(5,218,852	)		(321,004	)		(264,168,856	)		(181,405,680	)
	187,978,453		281,295,705			22,677,221			35,418,024			201,946,123			134,535,995
	26,517		26,307			3,395			10,820			35,337			13,042
	134,915,439		361,489,952			8,163,500			54,909,926			(184,475,248	)		408,647,774
	555,279,385		193,789,433			102,035,785			47,125,859			1,578,371,712			1,169,723,938
$	690,194,824	$	555,279,385		$	110,199,285		$	102,035,785		$	1,393,896,464		$	1,578,371,712
$	(392,791)	$	—		$	(328,785	)	$	715,345		$	(5,231,174	)	$	29,303,423

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 91

Financial Highlights Capital Appreciation Portfolio

	Institutional
	Six Months Ended March 31, 2008			Year Ended September 30,						11/01/04 - 9/30/05			Year Ended October 31,
	(Unaudited)			2007			2006						2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	18.21		$	14.91		$	14.19		$	12.78		$	12.17		$	10.14
Net investment income (loss)		0.04	1		0.06	1		—	1,2		0.05	1		(0.04	)		(0.02	)
Net realized and unrealized gain (loss)		(1.65	)		3.24			0.72			1.36			0.65			2.05
Net increase (decrease) from investment operations		(1.61	)		3.30			0.72			1.41			0.61			2.03
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—
Net asset value, end of period	$	16.60		$	18.21		$	14.91		$	14.19		$	12.78		$	12.17
Total Investment Return
Based on net asset value		(8.84	)%4		22.13	%5		5.07	%5		11.03	%4,5,6		5.01	%		20.02	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.70	%7		0.75	%		0.95	%		1.05	%7		1.14	%		1.08	%
Total expenses		0.86	%7		0.88	%		1.00	%		1.15	%7		1.14	%		1.08	%
Net investment income (loss)		0.45	%7		0.38	%		0.00	%		0.43	%7		(0.31	)%		(0.19	)%
Supplemental Data
Net assets, end of period (000)	$	72,265		$	71,072		$	48,146		$	52,154		$	52,399		$	60,878
Portfolio turnover		44	%		97	%		87	%		70	%		91	%		113	%
	Investor A
	Six Months Ended March 31, 2008			Year Ended September 30,						11/01/04 - 9/30/05			Year Ended October 31,
	(Unaudited)			2007			2006						2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	17.56		$	14.46		$	13.82		$	12.47		$	11.91		$	9.96
Net investment income (loss)		—	1,2		(0.02	)1		(0.06	)1		0.02	1		(0.08	)		(0.05	)
Net realized and unrealized gain (loss)		(1.59	)		3.12			0.70			1.33			0.64			2.00
Net increase (decrease) from investment operations		(1.59	)		3.10			0.64			1.35			0.56			1.95
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—
Net asset value, end of period	$	15.97		$	17.56		$	14.46		$	13.82		$	12.47		$	11.91
Total Investment Return
Based on net asset value8		(9.05	)%4		21.44	%5		4.63	%5		10.83	%4,5,6		4.70	%		19.58	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.20	%7		1.28	%		1.35	%		1.31	%7		1.44	%		1.38	%
Total expenses		1.31	%7		1.35	%		1.53	%		1.48	%7		1.44	%		1.38	%
Net investment income (loss)		(0.05	)%7		(0.16	)%		(0.40	)%		0.21	%7		(0.62	)%		(0.47	)%
Supplemental Data
Net assets, end of period (000)	$	130,797		$	131,712		$	112,737		$	120,371		$	99,435		$	103,247
Portfolio turnover		44	%		97	%		87	%		70	%		91	%		113	%

See Notes to Financial Statements.

92 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Capital Appreciation Portfolio

	Investor B
	Six Months Ended March 31, 2008			Year Ended September 30,						11/01/04 - 9/30/05			Year Ended October 31,
	(Unaudited)			2007			2006						2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	16.34		$	13.56		$	13.06		$	11.86		$	11.41		$	9.61
Net investment loss		(0.07	)1		(0.14	)1		(0.16	)1		(0.06	)1		(0.15	)		(0.12	)
Net realized and unrealized gain (loss)		(1.47	)		2.92			0.66			1.26			0.60			1.92
Net increase (decrease) from investment operations		(1.54	)		2.78			0.50			1.20			0.45			1.80
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—
Net asset value, end of period	$	14.80		$	16.34		$	13.56		$	13.06		$	11.86		$	11.41
Total Investment Return
Based on net asset value8		(9.42	)%4		20.50	%5		3.83	%5		10.12	%4,5,9		3.94	%		18.73	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.08	%7		2.07	%		2.10	%		2.05	%7		2.14	%		2.08	%
Total expenses		2.21	%7		2.20	%		2.20	%		2.15	%7		2.14	%		2.08	%
Net investment loss		(0.94	)%7		(0.95	)%		(1.16	)%		(0.53	)%7		(1.31	)%		(1.17	)%
Supplemental Data
Net assets, end of period (000)	$	30,499		$	48,260		$	71,078		$	85,465		$	97,938		$	108,125
Portfolio turnover		44	%		97	%		87	%		70	%		91	%		113	%
	Investor C
	Six Months Ended March 31, 2008			Year Ended September 30,						11/01/04 - 9/30/05			Year Ended October 31,
	(Unaudited)			2007			2006						2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	16.38		$	13.57		$	13.06		$	11.86		$	11.41		$	9.61
Net investment loss		(0.06	)1		(0.12	)1		(0.15	)1		(0.06	)1		(0.15	)		(0.11	)
Net realized and unrealized gain (loss)		(1.47	)		2.93			0.66			1.26			0.60			1.91
Net increase (decrease) from investment operations		(1.53	)		2.81			0.51			1.20			0.45			1.80
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—
Net asset value, end of period	$	14.85		$	16.38		$	13.57		$	13.06		$	11.86		$	11.41
Total Investment Return
Based on net asset value8		(9.34	)%4		20.71	%5		3.91	%5		10.12	%4,5,9		3.94	%		18.73	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.88	%7		1.92	%		2.04	%		2.05	%7		2.14	%		2.08	%
Total expenses		1.98	%7		1.99	%		2.10	%		2.15	%7		2.14	%		2.08	%
Net investment loss		(0.73	)%7		(0.80	)%		(1.10	)%		(0.51	)%7		(1.30	)%		(1.15	)%
Supplemental Data
Net assets, end of period (000)	$	12,882		$	15,160		$	17,079		$	20,570		$	23,854		$	30,516
Portfolio turnover		44	%		97	%		87	%		70	%		91	%		113	%

¹ Based on average shares outstanding.

² Net investment loss is less than $0.005 per share.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Aggregate total investment return.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ The total return includes an increase of 0.08% related to payments made by State Street Research & Management (SSRM) prior to January 31, 2005.

⁷ Annualized.

⁸ Total investment returns exclude the effects of sales charges.

⁹ The total return includes an increase of 0.09% related to payments made by SSRM prior to January 31, 2005.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 93

Financial Highlights (continued) Mid-Cap Value Equity Portfolio*

	Institutional
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
	(Unaudited)			2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	14.35		$	13.67		$	13.74		$	12.73		$	12.14		$	9.07		$	10.66
Net investment income		0.06	1		0.11	1		0.12	1		0.04	1		0.11			0.08			0.08
Net realized and unrealized gain (loss)		(1.66	)		2.38			1.23			0.97			1.44			3.08			(1.21	)
Net increase (decrease) from investment operations		(1.60	)		2.49			1.35			1.01			1.55			3.16			(1.13	)
Dividends and distributions from:
Net investment income		(0.07	)		(0.15	)		(0.04	)		—			(0.15	)		(0.09	)		—
Net realized capital gain		(1.67	)		(1.66	)		(1.38	)		—			(0.81	)		—			(0.46	)
Total dividends and distributions		(1.74	)		(1.81	)		(1.42	)		—			(0.96	)		(0.09	)		(0.46	)
Redemption fees added to paid-in capital		—			—	2		—	2		—	2		—			—			—
Net asset value, end of period	$	11.01		$	14.35		$	13.67		$	13.74		$	12.73		$	12.14		$	9.07
Total Investment Return
Based on net asset value		(12.21	)%3		19.35	%4		10.77	%4		7.94	%3,4		13.07	%3		34.83	%		(10.21	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.94	%5		0.95	%		0.99	%		1.00	%5		0.99	%5		0.98	%		0.99	%
Total expenses		1.11	%5		1.07	%		1.07	%		1.30	%5		1.09	%5		1.03	%		1.18	%
Net investment income		1.02	%5		0.79	%		0.88	%		0.49	%5		1.18	%5		0.76	%		0.93	%
Supplemental Data
Net assets, end of period (000)	$	129,199		$	134,665		$	80,292		$	53,111		$	50,383		$	30,181		$	26,099
Portfolio turnover		54	%		202	%		153	%		60	%		53	%		86	%		66	%

	Service
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			Period Ended 2/28/056
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	14.14		$	13.49		$	13.61		$	12.63		$	12.04
Net investment income (loss)		0.04	1		0.10	1		0.08	1		0.02	1		(0.01	)
Net realized and unrealized gain (loss)		(1.64	)		2.33			1.21			0.96			0.60
Net increase (decrease) from investment operations		(1.60	)		2.43			1.29			0.98			0.59
Dividends and distributions from:
Net investment income		(0.03	)		(0.12	)		(0.03	)		—			—
Net realized capital gain		(1.67	)		(1.66	)		(1.38	)		—			—
Total dividends and distributions		(1.70	)		(1.78	)		(1.41	)		—			—
Redemption fees added to paid-in capital		—			—	2		—	2		—	2		—
Net asset value, end of period	$	10.84		$	14.14		$	13.49		$	13.61		$	12.63
Total Investment Return
Based on net asset value		(12.38	)%3		19.10	%4		10.45	%4		7.76	%3,4		4.89	%3
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.25	%5		1.20	%		1.25	%		1.25	%5		1.25	%5
Total expenses		1.28	%5		1.24	%		1.50	%		1.54	%5		1.49	%5
Net investment income		0.69	%5		0.68	%		0.61	%		0.20	%5		0.39	%5
Supplemental Data
Net assets, end of period (000)	$	2,703		$	3,716		$	3,130		$	889		$	1,374
Portfolio turnover		54	%		202	%		153	%		60	%		53	%

See Notes to Financial Statements.

94 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Mid-Cap Value Equity Portfolio*

	Investor A
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
	(Unaudited)			2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	14.00		$	13.38		$	13.49		$	12.53		$	11.92		$	8.91		$	10.53
Net investment income		0.04	1		0.08	1		0.08	1		0.02	1		0.07			0.05			0.06
Net realized and unrealized gain (loss)		(1.62	)		2.32			1.21			0.94			1.45			3.02			(1.22	)
Net increase (decrease) from investment operations		(1.58	)		2.40			1.29			0.96			1.52			3.07			(1.16	)
Dividends and distributions from:
Net investment income		(0.03	)		(0.12	)		(0.02	)		—			(0.11	)		(0.06	)		—
Net realized capital gain		(1.67	)		(1.66	)		(1.38	)		—			(0.80	)		���			(0.46	)
Total dividends and distributions		(1.70	)		(1.78	)		(1.40	)		—			(0.91	)		(0.06	)		(0.46	)
Redemption fees added to paid-in capital		—			—	2		—	2		—	2		—			—			—
Net asset value, end of period	$	10.72		$	14.00		$	13.38		$	13.49		$	12.53		$	11.92		$	8.91
Total Investment Return
Based on net asset value7		(12.37	)%3		19.02	%4		10.56	%4		7.66	%3,4		12.98	%3		34.51	%		(10.61	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.25	%5		1.25	%		1.25	%		1.25	%5		1.24	%5		1.28	%		1.29	%
Total expenses		1.43	%5		1.40	%		1.56	%		1.64	%5		1.38	%5		1.33	%		1.48	%
Net investment income		0.71	%5		0.61	%		0.62	%		0.24	%5		0.92	%5		0.47	%		0.65	%
Supplemental Data
Net assets, end of period (000)	$	566,483		$	642,264		$	497,964		$	500,479		$	448,237		$	363,188		$	194,034
Portfolio turnover		54	%		202	%		153	%		60	%		53	%		86	%		66	%

* The Performance prior to January 31, 2005 set forth in this table is the financial data of State Street Research Mid-Cap Value Fund, a series of a predecessor trust, State Street Research Equity Trust. BlackRock Funds acquired all of the assets and certain stated liabilities of State Street Research Mid-Cap Value Fund on January 28, 2005. The net asset values and other per share information listed have been restated to reflect the conversion ratios of 1.56483770, 1.57950264, 1.62345461 and 1.63087248 for Institutional, Investor A, Investor B and Investor C shares, respectively.

¹ Based on average shares outstanding.

² Redemption fees added to paid-in capital are less than $0.01 per share.

³ Aggregate total investment return.

⁴ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁵ Annualized.

⁶ Commenced operations on January 28, 2005.

⁷ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 95

Financial Highlights (continued) Mid-Cap Value Equity Portfolio*

	Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05				Year Ended June 30,
				2007			2006										2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	12.92		$	12.46		$	12.73		$	11.87		$	11.28			$	8.45		$	10.05
Net investment loss		—	1,2		(0.01	)2		(0.02	)2		(0.04	)2		(0.03	)			(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		(1.49	)		2.15			1.13			0.90			1.41				2.85			(1.15	)
Net increase (decrease) from investment operations		(1.49	)		2.14			1.11			0.86			1.38				2.83			(1.16	)
Dividends and distributions from:																��
Net investment income		—			(0.02	)		—			—			(0.01	)			—			—
Net realized capital gain		(1.59	)		(1.66	)		(1.38	)		—			(0.78	)			—			(0.44	)
Total dividends and distributions		(1.59	)		(1.68	)		(1.38	)		—			(0.79	)			—			(0.44	)
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—				—			—
Net asset value, end of period	$	9.84		$	12.92		$	12.46		$	12.73		$	11.87			$	11.28		$	8.45
Total Investment Return
Based on net asset value4		(12.65	)%5		18.18	%6		9.63	%6		7.25	%5,6		12.39	%5			33.53	%5		(11.13	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.00	%7		2.00	%		2.00	%		2.00	%7		1.99	%7			1.98	%		1.99	%
Total expenses		2.26	%7		2.23	%		2.25	%		2.29	%7		2.09	%7			2.03	%		2.18	%
Net investment income (loss)		(0.05	)%7		(0.09	)%		(0.13	)%		(0.52	)%7		0.20	%7			(0.24	)%		(0.05	)%
Supplemental Data
Net assets, end of period (000)	$	86,979		$	119,768		$	124,089		$	131,651		$	128,568			$	109,815		$	79,536
Portfolio turnover		54	%		202	%		153	%		60	%		53	%			86	%		66	%

See Notes to Financial Statements.

96 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Mid-Cap Value Equity Portfolio*

	Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
				2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	12.90		$	12.46		$	12.73		$	11.87		$	11.28		$	8.45		$	10.04
Net investment loss		—	1,2		(0.02	)2		(0.02	)2		(0.04	)2		(0.03	)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		(1.49	)		2.15			1.13			0.90			1.40			2.85			(1.14	)
Net increase (decrease) from investment operations		(1.49	)		2.13			1.11			0.86			1.37			2.83			(1.15	)
Dividends and distributions from:
Net investment income		—			(0.03	)		—			—			(0.01	)		—			—
Net realized capital gain		(1.60	)		(1.66	)		(1.38	)		—			(0.77	)		—			(0.44	)
Total dividends and distributions		(1.60	)		(1.69	)		(1.38	)		—			(0.78	)		—			(0.44	)
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—			—
Net asset value, end of period	$	9.81		$	12.90		$	12.46		$	12.73		$	11.87		$	11.28		$	8.45
Total Investment Return
Based on net asset value4		(12.65	)%5		18.16	%6		9.63	%6		7.25	%5,6		12.40	%5		33.53	%		(11.09	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.00	%7		2.00	%		2.00	%		2.00	%7		1.99	%7		1.98	%		1.99	%
Total expenses		2.19	%7		2.21	%		2.15	%		2.29	%7		2.09	%7		2.03	%		2.19	%
Net investment income (loss)		(0.04	)%7		(0.14	)%		(0.13	)%		(0.50	)%7		0.19	%7		(0.24	)%		(0.04	)%
Supplemental Data
Net assets, end of period (000)	$	139,029		$	173,731		$	137,382		$	103,344		$	91,657		$	82,758		$	58,499
Portfolio turnover		54	%		202	%		153	%		60	%		53	%		86	%		66	%

* The Performance prior to January 31, 2005 set forth in this table is the financial data of State Street Research Mid-Cap Value Fund, a series of a predecessor trust, State Street Research Equity Trust. BlackRock Funds acquired all of the assets and certain stated liabilities of State Street Research Mid-Cap Value Fund on January 28, 2005. The net asset values and other per share information listed have been restated to reflect the conversion ratios of 1.56483770, 1.57950264, 1.62345461 and 1.63087248 for Institutional, Investor A, Investor B and Investor C shares, respectively.

¹ Net investment loss is less than $0.005 per share.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Total investment returns exclude the effects of sales charges.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁷ Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 97

Financial Highlights (continued) Mid-Cap Growth Equity Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	13.49		$	10.70		$	10.44		$	8.76		$	7.57		$	6.06		$	12.92		$	10.27		$	10.07		$	8.46		$	7.33		$	5.89
Net investment loss		(0.02	)2		(0.07	)2		(0.06	)2		(0.07	)2		(0.06	)2		(0.05	)		(0.04	)2		(0.09	)2		(0.11	)2		(0.07	)2		(0.08	)2		(0.07	)
Net realized and unrealized gain (loss)		(1.39	)		2.86			0.45			1.75			1.25			1.56			(1.34	)		2.74			0.44			1.68			1.21			1.51
Net increase (decrease) from investment operations		(1.41	)		2.79			0.39			1.68			1.19			1.51			(1.38	)		2.65			0.33			1.61			1.13			1.44
Dividends and distributions from:
Net realized capital gain		—			—			(0.13	)		—			—			—			—			—			(0.13	)		—			—			—
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—	3		—	3		—			—	3		—	3		—	3		—	3		—	3
Net asset value, end of period	$	12.08		$	13.49		$	10.70		$	10.44		$	8.76		$	7.57		$	11.54		$	12.92		$	10.27		$	10.07		$	8.46		$	7.33
Total Investment Return
Based on net asset value		(10.45	)%4		26.08	%5		3.75	%5		19.18	%5		15.72	%5		24.92	%5		(10.68	)%4		25.80	%5		3.29	%5		19.03	%5		15.42	%5		24.45	%5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.07	%6		1.05	%		1.08	%		1.23	%		1.23	%		1.21	%		1.44	%6		1.22	%		1.53	%		1.53	%		1.53	%		1.51	%
Total expenses		1.07	%6		1.06	%		1.15	%		1.41	%		1.28	%		1.23	%		1.44	%6		1.32	%		2.02	%		1.60	%		1.56	%		1.53	%
Net investment loss		(0.33	)%6		(0.59	)%		(0.60	)%		(0.72	)%		(0.65	)%		(0.52	)%		(0.70	)%6		(0.76	)%		(1.06	)%		(0.77	)%		(0.97	)%		(0.80	)%
Supplemental Data
Net assets, end of period (000)	$	31,488		$	75,577		$	75,111		$	75,407		$	40,337		$	46,970		$	606		$	714		$	757		$	1,136		$	10,871		$	14,115
Portfolio turnover		20	%		53	%		64	%		85	%		29	%		168	%		20	%		53	%		64	%		85	%		29	%		168	%

	Investor A																		Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	12.55		$	10.00		$	9.82		$	8.26		$	7.17		$	5.77		$	11.32		$	9.09		$	9.00		$	7.63		$	6.67		$	5.41
Net investment loss		(0.05	)2		(0.12	)2		(0.11	)2		(0.11	)2		(0.09	)2		(0.07	)		(0.09	)2		(0.18	)2		(0.17	)2		(0.15	)2		(0.14	)2		(0.11	)
Net realized and unrealized gain (loss)		(1.30	)		2.67			0.42			1.67			1.18			1.47			(1.16	)		2.41			0.39			1.52			1.10			1.37
Net increase (decrease) from investment operations		(1.35	)		2.55			0.31			1.56			1.09			1.40			(1.25	)		2.23			0.22			1.37			0.96			1.26
Dividends and distributions from:
Net realized capital gain		—			—			(0.13	)		—			—			—			—			—			(0.13	)		—			—			—
																		��
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—	3		—	3		—			—	3		—	3		—	3		—	3		—	3
Net asset value, end of period	$	11.20		$	12.55		$	10.00		$	9.82		$	8.26		$	7.17		$	10.07		$	11.32		$	9.09		$	9.00		$	7.63		$	6.67
Total Investment Return
Based on net asset value7		(10.76	)%4		25.50	%5		3.16	%5		18.89	%5		15.20	%5		24.26	%5		(11.04	)%4		24.53	%5		2.44	%5		17.96	%5		14.39	%5		23.29	%5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.55	%6		1.57	%		1.58	%		1.58	%		1.67	%		1.68	%		2.33	%6		2.25	%		2.33	%		2.33	%		2.44	%		2.43	%
Total expenses		1.55	%6		1.60	%		1.74	%		1.78	%		1.77	%		1.71	%		2.50	%6		2.46	%		2.54	%		2.41	%		2.45	%		2.45	%
Net investment loss		(0.81	)%6		(1.11	)%		(1.11	)%		(1.14	)%		(1.09	)%		(0.96	)%		(1.59	)%6		(1.79	)%		(1.86	)%		(1.82	)%		(1.86	)%		(1.69	)%
Supplemental Data
Net assets, end of period (000)	$	235,782		$	274,333		$	257,729		$	290,285		$	27,777		$	25,960		$	30,512		$	43,610		$	48,635		$	59,100		$	31,900		$	33,982
Portfolio turnover		20	%		53	%		64	%		85	%		29	%		168	%		20	%		53	%		64	%		85	%		29	%		168	%

See Notes to Financial Statements.

98 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Mid-Cap Growth Equity Portfolio

	Investor C																		R
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Period Ended 9/30/078
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	11.32		$	9.09		$	9.00		$	7.63		$	6.67		$	5.41		$	12.55		$	9.92
Net investment loss		(0.08	)2		(0.19	)2		(0.17	)2		(0.15	)2		(0.14	)2		(0.11	)		(0.04	)2		(0.13	)2
Net realized and unrealized gain (loss)		(1.17	)		2.42			0.39			1.52			1.10			1.37			(1.30	)		2.76
Net increase (decrease) from investment operations		(1.25	)		2.23			0.22			1.37			0.96			1.26			(1.34	)		2.63
Dividends and distributions from:
Net realized capital gain		—			—			(0.13	)		—			—			—			—			—
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—	3		—	3		—			—	3
Net asset value, end of period	$	10.07		$	11.32		$	9.09		$	9.00		$	7.63		$	6.67		$	11.21		$	12.55
Total Investment Return
Based on net asset value		(11.04	)%4,7		24.53	%5,7		2.44	%5,7		17.96	%5,7		14.39	%5,7		23.29	%5,7		(10.68	)%4		26.51	%4,5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.26	%6		2.30	%		2.33	%		2.33	%		2.44	%		2.43	%		1.55	%6		1.59	%6
Total expenses		2.26	%6		2.31	%		2.37	%		2.41	%		2.45	%		2.45	%		1.61	%6		1.63	%6
Net investment loss		(1.52	)%6		(1.84	)%		(1.86	)%		(1.83	)%		(1.86	)%		(1.69	)%		(0.68	)%6		(1.12	)%6
Supplemental Data
Net assets, end of period (000)	$	16,684		$	20,203		$	18,047		$	20,748		$	11,269		$	12,212		$	707		$	25
Portfolio turnover		20	%		53	%		64	%		85	%		29	%		168	%		20	%		53	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Aggregate total investment return.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Annualized.

⁷ Total investment returns exclude the effects of sales charges.

⁸ Commenced operations on October 2, 2006.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 99

Financial Highlights (continued) Aurora Portfolio

	Institutional
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	30.87		$	37.15		$	43.43		$	40.71		$	33.18		$	25.05
Net investment income (loss)		(0.01	)1		0.10	1		0.08	1		(0.04	)1		(0.11	)		(0.11	)
Net realized and unrealized gain (loss)		(3.80	)		4.82			1.13			6.60			7.66			8.39
Net increase (decrease) from investment operations		(3.81	)		4.92			1.21			6.56			7.55			8.28
Dividends and distributions from:
Net realized capital gain		(6.02	)		(11.20	)		(7.49	)		(3.84	)		(0.02	)		(0.15	)
Redemption fees added to paid-in capital		—	2		—	2		—	2		—	2		—			—
Net asset value, end of period	$	21.04		$	30.87		$	37.15		$	43.43		$	40.71		$	33.18
Total Investment Return
Based on net asset value		(15.36	)%3,4		14.86	%3		3.40	%3		16.62	%3		22.75	%		33.21	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.05	%5		1.01	%		1.06	%		1.14	%		1.10	%		1.25	%
Total expenses		1.26	%5		1.11	%		1.07	%		1.14	%		1.10	%		1.25	%
Net investment income (loss)		(0.08	)%5		0.32	%		0.22	%		(0.09	)%		(0.27	)%		(0.38	)%
Supplemental Data
Net assets, end of period (000)	$	116,538		$	169,479		$	153,103		$	165,837		$	197,475		$	142,460
Portfolio turnover		58	%		134	%		142	%		73	%		33	%		48	%

	Investor A																		Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			2003						2007			2006			2005			2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	28.75		$	35.39		$	41.88		$	39.49		$	32.28		$	24.43		$	24.06		$	31.48		$	38.32		$	36.67		$	30.19		$	23.02
Net investment income (loss)		(0.05	)1		0.01	1		(0.05	)1		(0.16	)1		(0.22	)		(0.19	)		(0.11	)1		(0.19	)1		(0.29	)1		(0.40	)1		(0.45	)		(0.36	)
Net realized and unrealized gain (loss)		(3.49	)		4.55			1.05			6.39			7.45			8.19			(2.80	)		3.97			0.94			5.89			6.95			7.68
Net increase (decrease) from investment operations		(3.54	)		4.56			1.00			6.23			7.23			8.00			(2.91	)		3.78			0.65			5.49			6.50			7.32
Dividends and distributions from:
Net realized capital gain		(5.88	)		(11.20	)		(7.49	)		(3.84	)		(0.02	)		(0.15	)		(5.67	)		(11.20	)		(7.49	)		(3.84	)		(0.02	)		(0.15	)
Redemption fees added to paid-in capital		—	2		—	2		—	2		—	2		—			—			—	2		—	2		—	2		—	2		—			—
Net asset value, end of period	$	19.33		$	28.75		$	35.39		$	41.88		$	39.49		$	32.28		$	15.48		$	24.06		$	31.48		$	38.32		$	36.67		$	30.19
Total Investment Return
Based on net asset value6		(15.50	)%3,4		14.48	%3		2.95	%3		16.28	%3		22.39	%		32.90	%		(15.83	)%3,4		13.56	%3		2.18	%3		15.44	%3		21.53	%		31.96	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.44	%5		1.39	%		1.44	%		1.40	%		1.40	%		1.55	%		2.19	%5		2.16	%		2.19	%		2.14	%		2.10	%		2.25	%
Total expenses		1.49	%5		1.40	%		1.56	%		1.47	%		1.40	%		1.55	%		2.35	%5		2.24	%		2.23	%		2.15	%		2.10	%		2.25	%
Net investment income (loss)		(0.46	)%5		0.03	%		(0.15	)%		(0.36	)%		(0.57	)%		(0.69	)%		(1.21	)%5		(0.75	)%		(0.90	)%		(1.10	)%		(1.27	)%		(1.39	)%
Supplemental Data
Net assets, end of period (000)	$	600,767		$	871,699		$	1,189,440		$	1,690,497		$	2,169,836		$	1,682,504		$	163,505		$	250,672		$	329,207		$	436,642		$	470,430		$	401,016
Portfolio turnover		58	%		134	%		142	%		73	%		33	%		48	%		58	%		134	%		142	%		73	%		33	%		48	%

See Notes to Financial Statements.

100 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Aurora Portfolio

	Investor C																		R
	Six Months Ended March 31, 2008 (Unaudited)			Year ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Period Ended 9/30/077
				2007			2006			2005			2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	24.07		$	31.47		$	38.32		$	36.67		$	30.18		$	23.01		$	28.70		$	35.21
Net investment loss		(0.11	)1		(0.18	)1		(0.29	)1		(0.42	)1		(0.45	)		(0.35	)		(0.06	)1		(0.16	)1
Net realized and unrealized gain (loss)		(2.81	)		3.98			0.93			5.91			6.96			7.67			(3.47	)		4.85
Net increase (decrease) from investment operations		(2.92	)		3.80			0.64			5.49			6.51			7.32			(3.53	)		4.69
Dividends and distributions from:
Net realized capital gain		(5.68	)		(11.20	)		(7.49	)		(3.84	)		(0.02	)		(0.15	)		(6.02	)		(11.20	)
Redemption fees added to paid-in capital		—	2		—	2		—	2		—	2		—			—			—	2		—	2
Net asset value, end of period	$	15.47		$	24.07		$	31.47		$	38.32		$	36.67		$	30.18		$	19.15		$	28.70
Total Investment Return
Based on net asset value		(15.86	)%3,4,6		13.64	%3,6		2.16	%3,6		15.45	%3,6		21.57	%6		31.97	%6		(15.59	)%3,4		14.87	%3,4
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.19	%5		2.13	%		2.19	%		2.14	%		2.10	%		2.25	%		1.56	%5		1.50	%5
Total expenses		2.27	%5		2.17	%		2.22	%		2.15	%		2.10	%		2.25	%		1.68	%5		1.50	%5
Net investment loss		(1.21	)%5		(0.72	)%		(0.90	)%		(1.10	)%		(1.27	)%		(1.39	)%		(0.56	)%5		(0.57	)%5
Supplemental Data
Net assets, end of period (000)	$	137,897		$	209,820		$	283,562		$	405,952		$	493,980		$	409,076		$	1,336		$	1,141
Portfolio turnover		58	%		134	%		142	%		73	%		33	%		48	%		58	%		134	%

¹ Based on average shares outstanding.

² Redemption fees added to paid-in capital are less than $0.01 per share.

³ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ Total investment returns exclude the effects of sales charges.

⁷ Commenced operations on October 2, 2006.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 101

Financial Highlights (continued) Small/Mid-Cap Growth Portfolio

	Institutional
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	18.24		$	15.51		$	15.16		$	12.49		$	12.11		$	9.06
Net investment loss		(0.03	)1		(0.12	)1		(0.10	)1		(0.17	)1		(0.10	)		(0.08	)
Net realized and unrealized gain (loss)		(1.85	)		3.68			1.09			2.84			0.48			3.13
Net increase (decrease) from investment operations		(1.88	)		3.56			0.99			2.67			0.38			3.05
Dividends and distributions from:
Net realized capital gain		(2.89	)		(0.83	)		(0.64	)		—			—			—
Redemption fees added to paid-in capital		—	2		—	2		—	2		—	2		—			—
Net asset value, end of period	$	13.47		$	18.24		$	15.51		$	15.16		$	12.49		$	12.11
Total Investment Return
Based on net asset value		(11.85	)%3,4		23.74	%3		6.63	%3		21.38	%3		3.14	%		33.66	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.10	%5		1.05	%		0.99	%		1.10	%		1.09	%		1.10	%
					��
Total expenses		1.42	%5		1.38	%		1.06	%		1.28	%		1.28	%		1.55	%
Net investment loss		(0.33	)%5		(0.71	)%		(0.64	)%		(0.72	)%		(0.80	)%		(0.78	)%
Supplemental Data
Net assets, end of period (000)	$	19,786		$	26,976		$	23,866		$	20,133		$	87,520		$	7,809
Portfolio turnover		32	%		76	%		49	%		122	%		208	%		167	%

	Investor A																		Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			2003						2007			2006			2005			2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	17.24		$	14.74		$	14.48		$	11.96		$	11.63		$	8.73		$	15.09		$	13.10		$	13.03		$	10.84		$	10.62		$	8.03
Net investment loss		(0.04	)1		(0.15	)1		(0.15	)1		(0.13	)1		(0.14	)		(0.11	)		(0.08	)1		(0.24	)1		(0.23	)1		(0.19	)1		(0.21	)		(0.16	)
Net realized and unrealized gain (loss)		(1.74	)		3.48			1.05			2.65			0.47			3.01			(1.51	)		3.06			0.94			2.38			0.43			2.75
Net increase (decrease) from investment operations		(1.78	)		3.33			0.90			2.52			0.33			2.90			(1.59	)		2.82			0.71			2.19			0.22			2.59
Dividends and distributions from:
Net realized capital gain		(2.86	)		(0.83	)		(0.64	)		—			—			—			(2.71	)		(0.83	)		(0.64	)		—			—			—
Redemption fees added to paid-in capital		—	2		—	2		—	2		—	2		—			—			—	2		—	2		—	2		—	2		—			—
Net asset value, end of period	$	12.60		$	17.24		$	14.74		$	14.48		$	11.96		$	11.63		$	10.79		$	15.09		$	13.10		$	13.03		$	10.84		$	10.62
Total Investment Return
Based on net asset value6		(11.96	)%3,4		23.41	%3		6.31	%3		21.07	%3		2.84	%		33.22	%		(12.29	)%3,4		22.40	%3		5.52	%3		20.20	%3		2.17	%		32.25	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.35	%5		1.26	%		1.35	%		1.37	%*		1.39	%		1.40	%		2.10	%5		2.09	%		2.10	%		2.10	%		2.09	%		2.10	%
Total expenses		1.46	%5		1.42	%		1.66	%		1.64	%		1.56	%		1.78	%		2.45	%5		2.40	%		2.40	%		2.30	%		2.25	%		2.54	%
Net investment loss		(0.58	)%5		(0.92	)%		(1.00	)%		(0.87	)%		(1.09	)%		(1.10	)%		(1.33	)%5		(1.75	)%		(1.75	)%		(1.58	)%		(1.79	)%		(1.78	)%
Supplemental Data
Net assets, end of period (000)	$	179,757		$	218,851		$	209,646		$	215,622		$	268,065		$	117,571		$	15,065		$	21,110		$	23,085		$	24,925		$	24,880		$	19,797
Portfolio turnover		32	%		76	%		49	%		122	%		208	%		167	%		32	%		76	%		49	%		122	%		208	%		167	%

See Notes to Financial Statements.

102 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Small/Mid-Cap Growth Portfolio

	Investor C																			R
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															��	Six Months Ended March 31, 2008 (Unaudited)			Period Ended 9/30/077
				2007			2006			2005			2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	15.12		$	13.12		$	13.06		$	10.87		$	10.64		$	8.05			$	17.18		$	14.54
Net investment loss		(0.08	)1		(0.24	)1		(0.23	)1		(0.20	)1		(0.21	)		(0.16	)			(0.06	)1		(0.20	)1
Net realized and unrealized gain (loss)		(1.51	)		3.07			0.93			2.39			0.44			2.75				(1.72	)		3.67
Net increase (decrease) from investment operations		(1.59	)		2.83			0.70			2.19			0.23			2.59				(1.78	)		3.47
Dividends and distributions from:
Net realized capital gain		(2.73	)		(0.83	)		(0.64	)		—			—			—				(2.90	)		(0.83	)
Redemption fees added to paid-in capital		—	2		—	2		—	2		—	2		—			—				—	2		—	2
Net asset value, end of period	$	10.80		$	15.12		$	13.12		$	13.06		$	10.87		$	10.64			$	12.50		$	17.18
Total Investment Return
Based on net asset value		(12.32	)%3,4,6		22.44	%3,6		5.43	%3,6		20.15	%3,6		2.16	%6		32.17	%6			(12.04	)%3,4		24.68	%3,4
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.10	%5		2.07	%		2.10	%		2.10	%		2.09	%		2.10	%			1.59	%5		1.56	%5
Total expenses		2.25	%5		2.23	%		2.30	%		2.32	%		2.26	%		2.51	%			2.00	%5		1.81	%5
Net investment loss		(1.33	)%5		(1.73	)%		(1.75	)%		(1.60	)%		(1.79	)%		(1.79	)%			(0.79	)%5		(1.22	)%5
Supplemental Data
Net assets, end of period (000)	$	14,408		$	17,047		$	17,041		$	20,963		$	29,627		$	13,530			$	1,597		$	1,071
Portfolio turnover		32	%		76	%		49	%		122	%		208	%		167	%			32	%		76	%

* For the period October 1, 2004, through January 28, 2005, the expense ratio reflects the expenses of State Street Research Emerging Growth Fund prior to its reorganization with the Small/Mid-Cap Growth Portfolio on January 28, 2005. The expense ratio for the period October 1, 2004 through January 28, 2005 was 1.41%. The expense ratio of the Portfolio for the period January 29, 2005 through September 30, 2005 was 1.31%.

¹ Based on average shares outstanding.

² Redemption fees added to paid-in capital are less than $0.01 per share.

³ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ Total investment returns exclude the effects of sales charges.

⁷ Commenced operations on October 2, 2006.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 103

Financial Highlights (continued) Small Cap Value Equity Portfolio

	BlackRock															Institutional
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,									Period Ended 9/30/041			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005									2007			2006			2005			2004			20032
Per Share Operating Performance
Net asset value, beginning of period	$	11.83		$	13.46		$	15.16		$	15.23		$	16.02		$	11.86		$	13.49		$	15.17		$	15.22		$	14.17		$	12.81
Net investment income (loss)		0.03	3		0.04	3		—	3,4		0.02	3		—	3,4		0.04	3		0.07	3		0.03	3		0.04	3		(0.02	)3		0.01
Net realized and unrealized gain (loss)		(1.40	)		1.27			1.21			2.90			(0.79	)		(1.40	)		1.28			1.21			2.90			2.86			3.31
Net increase (decrease) from investment operations		(1.37	)		1.31			1.21			2.92			(0.79	)		(1.36	)		1.35			1.24			2.94			2.84			3.32
Dividends and distributions from:
Net investment income		(0.29	)		(0.29	)		(0.17	)		—			—			(0.33	)		(0.33	)		(0.18	)		—			—			—
Net realized capital gain		(1.51	)		(2.65	)		(2.74	)		(2.99	)		—			(1.51	)		(2.65	)		(2.74	)		(2.99	)		(1.79	)		(1.96	)
Total dividends and distributions		(1.80	)		(2.94	)		(2.91	)		(2.99	)		—			(1.84	)		(2.98	)		(2.92	)		(2.99	)		(1.79	)		(1.96	)
Redemption fees added to paid-in capital5		—			—			—			—			—			—			—			—			—			—			—
Net asset value, end of period	$	8.66		$	11.83		$	13.46		$	15.16		$	15.23		$	8.66		$	11.86		$	13.49		$	15.17		$	15.22		$	14.17
Total Investment Return
Based on net asset value6		(13.46	)%7		9.90	%		9.61	%		20.60	%		(4.93	)%7		(13.43	)%7		10.20	%		9.81	%		20.77	%		20.87	%		29.96	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.10	%8		1.08	%		1.10	%		1.07	%		1.10	%8		0.90	%8		0.86	%		0.89	%		0.97	%		0.95	%		0.91	%
Total expenses		1.23	%8		1.10	%		1.12	%		1.08	%		1.33	%8		1.00	%8		0.87	%		0.91	%		1.00	%		0.98	%		0.94	%
Net investment income (loss)		0.58	%8		0.32	%		(0.01	)%		0.16	%		(0.17	)%8		0.78	%8		0.57	%		0.23	%		0.26	%		(0.15	)%		0.09	%
Supplemental Data
Net assets, end of period (000)	$	3,182		$	4,929		$	4,454		$	5,162		$	4,787		$	22,751		$	27,999		$	36,480		$	68,880		$	66,083		$	69,641
Portfolio turnover		48	%		108	%		123	%		133	%		154	%		48	%		108	%		123	%		133	%		154	%		240	%

	Service																		Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20032						2007			2006			2005			2004			20032
Per Share Operating Performance
Net asset value, beginning of period	$	11.57		$	13.21		$	14.95		$	15.07		$	14.09		$	12.77		$	11.45		$	13.11		$	14.86		$	15.00		$	14.04		$	12.76
Net investment income (loss)		0.02	3		0.04	3		(0.02	)3		—	3,4		(0.07	)3		(0.03	)		0.02	3		0.02	3		(0.03	)3		—	3,4		(0.09	)3		(0.05	)
Net realized and unrealized gain (loss)		(1.36	)		1.25			1.19			2.87			2.84			3.31			(1.35	)		1.24			1.19			2.85			2.84			3.29
Net increase (decrease) from investment operations		(1.34	)		1.29			1.17			2.87			2.77			3.28			(1.33	)		1.26			1.16			2.85			2.75			3.24
Dividends and distributions from:
Net investment income		(0.30	)		(0.28	)		(0.17	)		—			—			—			(0.28	)		(0.27	)		(0.17	)		—			—			—
Net realized capital gain		(1.51	)		(2.65	)		(2.74	)		(2.99	)		(1.79	)		(1.96	)		(1.51	)		(2.65	)		(2.74	)		(2.99	)		(1.79	)		(1.96	)
Total dividends and distributions		(1.81	)		(2.93	)		(2.91	)		(2.99	)		(1.79	)		(1.96	)		(1.79	)		(2.92	)		(2.91	)		(2.99	)		(1.79	)		(1.96	)
Redemption fees added to paid-in capital5		—			—			—			—			—			—			—			—			—			—			—			—
Net asset value, end of period	$	8.42		$	11.57		$	13.21		$	14.95		$	15.07		$	14.09		$	8.33		$	11.45		$	13.11		$	14.86		$	15.00		$	14.04
Total Investment Return
Based on net asset value6		(13.55	)%7		9.92	%		9.45	%		20.46	%		20.45	%		29.70	%		(13.60	)%7,9		9.79	%9		9.40	%9		20.43	%9		20.38	%9		29.37	%9
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.26	%8		1.10	%		1.27	%		1.24	%		1.25	%		1.21	%		1.32	%8		1.23	%		1.29	%		1.24	%		1.35	%		1.38	%
Total expenses		1.39	%8		1.12	%		1.32	%		1.25	%		1.29	%		1.24	%		1.41	%8		1.24	%		1.40	%		1.35	%		1.47	%		1.41	%
Net investment income (loss)		0.43	%8		0.34	%		(0.18	)%		(0.03	)%		(0.45	)%		(0.19	)%		0.36	%8		0.17	%		(0.19	)%		(0.01	)%		(0.55	)%		(0.37	)%
Supplemental Data
Net assets, end of period(000)	$	1,726		$	2,143		$	3,852		$	3,405		$	3,288		$	4,139		$	18,676		$	25,737		$	27,943		$	31,889		$	35,240		$	38,052
Portfolio turnover		48	%		108	%		123	%		133	%		154	%		240	%		48	%		108	%		123	%		133	%		154	%		240	%

See Notes to Financial Statements.

104 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Small Cap Value Equity Portfolio

	Investor B																		Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20032						2007			2006			2005			2004			20032
Per Share Operating Performance
Net asset value, beginning of period	$	9.53		$	11.30		$	13.28		$	13.77		$	13.11		$	12.11		$	9.50		$	11.31		$	13.28		$	13.78		$	13.11		$	12.12
Net investment loss		(0.02	)3		(0.05	)3		(0.12	)3		(0.10	)3		(0.19	)3		(0.13	)		(0.02	)3		(0.06	)3		(0.11	)3		(0.10	)3		(0.19	)3		(0.14	)
Net realized and unrealized gain (loss)		(1.09	)		1.07			1.03			2.60			2.64			3.09			(1.08	)		1.05			1.03			2.59			2.65			3.09
Net increase (decrease) from investment operations		(1.11	)		1.02			0.91			2.50			2.45			2.96			(1.10	)		0.99			0.92			2.49			2.46			2.95
Dividends and distributions from:
Net investment income		(0.20	)		(0.14	)		(0.15	)		—			—			—			(0.20	)		(0.15	)		(0.15	)		—			—			—
Net realized capital gain		(1.51	)		(2.65	)		(2.74	)		(2.99	)		(1.79	)		(1.96	)		(1.51	)		(2.65	)		(2.74	)		(2.99	)		(1.79	)		(1.96	)
Total dividends and distributions		(1.71	)		(2.79	)		(2.89	)		(2.99	)		(1.79	)		(1.96	)		(1.71	)		(2.80	)		(2.89	)		(2.99	)		(1.79	)		(1.96	)
Redemption fees added to paid-in capital5		—			—			—			—			—			—			—			—			—			—			—			—
Net asset value, end of period	$	6.71		$	9.53		$	11.30		$	13.28		$	13.77		$	13.11		$	6.69		$	9.50		$	11.31		$	13.28		$	13.78		$	13.11
Total Investment Return
Based on net asset value6,9		(13.95	)%7		9.08	%		8.46	%		19.58	%		19.45	%		28.52	%		(13.88	)%7		8.80	%		8.56	%		19.49	%		19.53	%		28.42	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.18	%8		1.92	%		2.12	%		2.00	%		2.07	%		2.13	%		2.17	%8		2.04	%		2.10	%		2.00	%		2.09	%		2.13	%
Total expenses		2.39	%8		2.08	%		2.23	%		2.00	%		2.09	%		2.16	%		2.27	%8		2.05	%		2.11	%		2.00	%		2.11	%		2.16	%
Net investment loss		(0.51	)%8		(0.48	)%		(1.01	)%		(0.76	)%		(1.28	)%		(1.12	)%		(0.49	)%8		(0.64	)%		(1.00	)%		(0.76	)%		(1.30	)%		(1.13	)%
Supplemental Data
Net assets, end of period (000)	$	2,728		$	4,479		$	7,373		$	12,848		$	15,952		$	15,019		$	2,632		$	3,622		$	4,643		$	6,414		$	6,715		$	5,839
Portfolio turnover		48	%		108	%		123	%		133	%		154	%		240	%		48	%		108	%		123	%		133	%		154	%		240	%

¹ Commenced operations on April 12, 2004.

² Audited by other auditors.

³ Based on average shares outstanding.

⁴ Net investment loss is less than $0.005 per share.

⁵ Redemption fees added to paid-in capital are less than $0.01 per share.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁷ Aggregate total investment return.

⁸ Annualized.

⁹ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 105

Financial Highlights (continued) Small Cap Core Equity Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	21.21		$	18.50		$	17.62		$	14.77		$	11.99		$	8.35		$	21.05		$	18.41		$	17.59		$	14.73		$	11.99		$	8.35
Net investment income (loss)		0.01	2		(0.13	)2		(0.12	)2		(0.10	)2		(0.13	)2		(0.06	)		(0.02	)2		(0.18	)2		(0.18	)2		(0.13	)2		(0.20	)2		—	3
Net realized and unrealized gain (loss)		(3.22	)		3.15			1.30			3.06			3.01			3.70			(3.19	)		3.13			1.30			3.10			3.04			3.64
Net increase (decrease) from investment operations		(3.21	)		3.02			1.18			2.96			2.88			3.64			(3.21	)		2.95			1.12			2.97			2.84			3.64
Dividends and distributions from:
Net realized capital gain		(1.67	)		(0.31	)		(0.30	)		(0.11	)		(0.15	)		—			(1.62	)		(0.31	)		(0.30	)		(0.11	)		(0.15	)		—
Redemption fees added to paid-in capital		—	4		—	4		—	4		—	4		0.05			—			—	4		—	4		—	4		—	4		0.05			—
Net asset value, end of period	$	16.33		$	21.21		$	18.50		$	17.62		$	14.77		$	11.99		$	16.22		$	21.05		$	18.41		$	17.59		$	14.73		$	11.99
Total Investment Return
Based on net asset value		(15.95	)%5,6		16.46	%5		6.81	%5		20.10	%5		24.51	%7		43.59	%		(16.06	)%5,6		16.15	%5		6.47	%5		20.22	%5		24.17	%7		43.59	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.29	%8		1.30	%		1.30	%		1.30	%		1.30	%		1.30	%		1.56	%8		1.57	%		1.60	%		1.60	%		1.60	%		1.60	%
Total expenses		1.33	%8		1.38	%		1.47	%		1.81	%		2.37	%		2.96	%		1.57	%8		1.59	%		1.64	%		2.01	%		2.67	%		3.26	%
Net investment income (loss)		0.12	%8		(0.62	)%		(0.68	)%		(0.59	)%		(0.89	)%		(0.62	)%		(0.17	)%8		(0.88	)%		(0.99	)%		(0.80	)%		(1.19	)%		(0.92	)%
Supplemental Data
Net assets, end of period (000)	$	36,736		$	33,707		$	24,172		$	12,641		$	1,802		$	1,238		$	3,633		$	4,909		$	2,776		$	94		$	—	9	$	—	9
Portfolio turnover		37	%		103	%		111	%		118	%		78	%		218	%		37	%		103	%		111	%		118	%		78	%		218	%

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	20.86		$	18.27		$	17.49		$	14.71		$	11.99		$	8.35
Net investment loss		(0.03	)2		(0.21	)2		(0.20	)2		(0.17	)2		(0.24	)2		—	3
Net realized and unrealized gain (loss)		(3.17	)		3.11			1.28			3.06			3.04			3.64
Net increase (decrease) from investment operations		(3.20	)		2.90			1.08			2.89			2.80			3.64
Dividends and distributions from:
Net realized capital gain		(1.59	)		(0.31	)		(0.30	)		(0.11	)		(0.15	)		—
Redemption fees added to paid-in capital		—	4		—	4		—	4		—	4		0.07			—
Net asset value, end of period	$	16.07		$	20.86		$	18.27		$	17.49		$	14.71		$	11.99
Total Investment Return
Based on net asset value10		(16.13	)%5,6		16.00	%5		6.28	%5		19.71	%5		24.01	%11		43.59	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.75	%8		1.74	%		1.73	%		1.71	%		1.74	%		1.77	%
Total expenses		1.80	%8		1.80	%		1.90	%		2.17	%		2.89	%		3.43	%
Net investment loss		(0.36	)%8		(1.06	)%		(1.11	)%		(1.01	)%		(1.32	)%		(1.09	)%
Supplemental Data
Net assets, end of period (000)	$	25,435		$	29,070		$	20,973		$	11,997		$	3,154		$	7
Portfolio turnover		37	%		103	%		111	%		118	%		78	%		218	%

See Notes to Financial Statements.

106 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Small Cap Core Equity Portfolio

	Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	20.23		$	17.87		$	17.24		$	14.61		$	11.99		$	8.35
Net investment loss		(0.10	)2		(0.36	)2		(0.33	)2		(0.28	)2		(0.37	)2		—	3
Net realized and unrealized gain (loss)		(3.08	)		3.03			1.26			3.02			3.07			3.64
Net increase (decrease) from investment operations		(3.18	)		2.67			0.93			2.74			2.70			3.64
Dividends and distributions from:
Net realized capital gain		(1.42	)		(0.31	)		(0.30	)		(0.11	)		(0.15	)		—
Redemption fees added to paid-in capital		—	4		—	4		—	4		—	4		0.07			—
Net asset value, end of period	$	15.63		$	20.23		$	17.87		$	17.24		$	14.61		$	11.99
Total Investment Return
Based on net asset value10		(16.48	)%5,6		15.06	%5		5.49	%5		18.81	%5		23.17	%11		43.59	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.51	%8		2.51	%		2.49	%		2.44	%		2.49	%		2.52	%
Total expenses		2.56	%8		2.57	%		2.55	%		2.81	%		3.56	%		4.18	%
Net investment loss		(1.12	)%8		(1.84	)%		(1.87	)%		(1.74	)%		(2.07	)%		(1.84	)%
Supplemental Data
Net assets, end of period (000)	$	6,666		$	8,956		$	8,326		$	6,303		$	1,157		$	—	9
Portfolio turnover		37	%		103	%		111	%		118	%		78	%		218	%

	Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	20.25		$	17.87		$	17.23		$	14.60		$	11.99		$	8.35
Net investment loss		(0.10	)2		(0.35	)2		(0.32	)2		(0.28	)2		(0.28	)2		—	3
Net realized and unrealized gain (loss)		(3.07	)		3.04			1.26			3.02			2.99			3.64
Net increase (decrease) from investment operations		(3.17	)		2.69			0.94			2.74			2.71			3.64
Dividends and distributions from:
Net realized capital gain		(1.47	)		(0.31	)		(0.30	)		(0.11	)		(0.15	)		—
Redemption fees added to paid-in capital		—	4		—	4		—	4		—	4		0.05			—
Net asset value, end of period	$	15.61		$	20.25		$	17.87		$	17.23		$	14.60		$	11.99
Total Investment Return
Based on net asset value10		(16.45	)%5,6		15.17	%5		5.55	%5		18.82	%5		23.08	%7		43.59	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.48	%8		2.48	%		2.44	%		2.44	%		2.47	%		2.52	%
Total expenses		2.51	%8		2.54	%		2.48	%		2.80	%		3.56	%		4.18	%
Net investment loss	��	(1.08	)%8		(1.81	)%		(1.81	)%		(1.74	)%		(2.03	)%		(1.84	)%
Supplemental Data
Net assets, end of period (000)	$	28,047		$	32,677		$	26,151		$	17,266		$	3,352		$	—	9
Portfolio turnover		37	%		103	%		111	%		118	%		78	%		218	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Net investment loss is less than $0.005 per share.

⁴ Redemption fees added to paid-in capital are less than $0.01 per share.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Aggregate total investment return.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.42%.

⁸ Annualized.

⁹ Net assets end of period are less than $500.

¹⁰ Total investment returns exclude the effects of sales charges.

¹¹ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.59%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 107

Financial Highlights (continued) Small Cap Growth Equity Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	23.71		$	19.26		$	17.29		$	14.52		$	12.26		$	9.00		$	22.58		$	18.38		$	16.54		$	13.92		$	11.79		$	8.67
Net investment income (loss)		0.03	2		(0.07	) 2		(0.09	)2		(0.06	)2		(0.11	)2		(0.09	)		—	2,3		(0.11	)2		(0.13	)2		(0.11	)2		(0.15	)2		(0.12	)
Net realized and unrealized gain (loss)		(2.00	)		4.52			2.06			2.82			2.37			3.35			(1.91	)		4.31			1.97			2.72			2.28			3.24
Net increase (decrease) from investment operations		(1.97	)		4.45			1.97			2.76			2.26			3.26			(1.91	)		4.20			1.84			2.61			2.13			3.12
Redemption fees added to paid-in capital		—	4		—	4		—	4		0.01			—	4		—	4		—	4		—	4		—	4		0.01			—	4		—	4
Net asset value, end of period	$	21.74		$	23.71		$	19.26		$	17.29		$	14.52		$	12.26		$	20.67		$	22.58		$	18.38		$	16.54		$	13.92		$	11.79
Total Investment Return
Based on net asset value		(8.31	)%5,6		23.11	% 5		11.39	%5		19.08	%7		18.43	%5		36.22	%5		(8.46	)%5,6		22.85	%5		11.12%5			18.82	%7		18.07	%5		35.99	%5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.79	%8		0.82	%		0.83	%		0.94	%		0.92	%		0.89	%		1.11	%8		1.02	%		1.08	%		1.19	%		1.20	%		1.19	%
Total expenses		0.79	%8		0.82	%		0.83	%		0.95	%		0.93	%		0.92	%		1.11	%8		1.02	%		1.08	%		1.19	%		1.20	%		1.22	%
Net investment income (loss)		0.29	%8		(0.34	)%		(0.48	)%		(0.40	)%		(0.73	)%		(0.75	)%		(0.02	)%8		(0.54	)%		(0.73	)%		(0.70	)%		(1.02	)%		(1.05	)%
Supplemental Data
Net assets, end of period (000)	$	635,210		$	587,586		$	426,000		$	357,857		$	272,324		$	164,856		$	35,905		$	35,945		$	26,422		$	24,491		$	29,569		$	23,466
Portfolio turnover		52	%		81	%		74	%		91	%		81	%		167	%		52	%		81	%		74	%		91	%		81	%		167	%
	Investor A																		Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	21.97		$	17.90		$	16.12		$	13.57		$	11.51		$	8.48		$	19.57		$	16.07		$	14.61		$	12.39		$	10.59		$	7.86
Net investment income (loss)		—	2,3		(0.13	)2		(0.14	)2		(0.10	)2		(0.16	)2		(0.13	)		(0.10	)2		(0.26	) 2		(0.27	)2		(0.20	)2		(0.24	)2		(0.19	)
Net realized and unrealized gain (loss)		(1.86	)		4.20			1.92			2.64			2.22			3.16			(1.65	)		3.76			1.73			2.41			2.04			2.92
Net increase (decrease) from investment operations		(1.86	)		4.07			1.78			2.54			2.06			3.03			(1.75	)		3.50			1.46			2.21			1.80			2.73
Redemption fees added to paid-in capital		—	4		—	4		—	4		0.01			—	4		—	4		—	4		—	4		—	4		0.01			—	4		—	4
Net asset value, end of period	$	20.11		$	21.97		$	17.90		$	16.12		$	13.57		$	11.51		$	17.82		$	19.57		$	16.07		$	14.61		$	12.39		$	10.59
Total Investment Return
Based on net asset value9		(8.47	)%5,6		22.74	%5		11.04	%5		18.79	%7		17.90	%5		35.73	%5		(8.94	)%5,6		21.78	%5		9.99	%5		17.92	%10		17.00	%5		34.73	%5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.13	%8		1.12	%		1.15	%		1.19	%		1.30	%		1.37	%		2.15	%8		1.92	%		2.11	%		1.94	%		2.07	%		2.11	%
Total expenses		1.13	%8		1.12	%		1.25	%		1.29	%		1.40	%		1.40	%		2.15	%8		2.02	%		2.30	%		1.94	%		2.07	%		2.14	%
Net investment loss		(0.03	)%8		(0.64	)%		(0.80	)%		(0.66	)%		(1.12	)%		(1.22	)%		(1.06	)%8		(1.44	)%		(1.77	)%		(1.45	)%		(1.89	)%		(1.97	)%
Supplemental Data
Net assets, end of period (000)	$	194,720		$	189,575		$	176,250		$	160,374		$	131,795		$	102,642		$	7,392		$	10,222		$	10,649		$	15,516		$	23,983		$	24,167
Portfolio turnover		52	%		81	%		74	%		91	%		81	%		167	%		52	%		81	%		74	%		91	%		81	%		167	%

See Notes to Financial Statements.

108 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Small Cap Growth Equity Portfolio

	Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	19.57		$	16.09		$	14.62		$	12.40		$	10.60		$	7.86
Net investment loss		(0.09	)2		(0.29	)2		(0.26	)2		(0.19	)2		(0.25	)2		(0.18	)
Net realized and unrealized gain (loss)		(1.65	)		3.77			1.73			2.40			2.05			2.92
Net increase (decrease) from investment operations		(1.74	)		3.48			1.47			2.21			1.80			2.74
Redemption fees added to paid-in capital		—	4		—	4		—	4		0.01			—	4		—	4
Net asset value, end of period	$	17.83		$	19.57		$	16.09		$	14.62		$	12.40		$	10.60
Total Investment Return
Based on net asset value9		(8.89	)%5,6		21.63	%5		10.05	%5		17.90	%10		16.98	%5		34.86	%5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.06	%8		2.04	%		2.02	%		1.94	%		2.08	%		2.11	%
Total expenses		2.06	%8		2.09	%		2.02	%		1.94	%		2.08	%		2.14	%
Net investment loss		(0.98	)%8		(1.56	)%		(1.68	)%		(1.41	)%		(1.90	)%		(1.97	)%
Supplemental Data
Net assets, end of period (000)	$	21,705		$	21,847		$	15,667		$	15,434		$	13,989		$	11,396
Portfolio turnover		52	%		81	%		74	%		91	%		81	%		167	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Net investment loss is less than $0.005 per share.

⁴ Redemption fees added to paid-in capital are less than $0.01 per share.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Aggregate total investment return.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.07%.

⁸ Annualized.

⁹ Total investment returns exclude the effects of sales charges.

¹⁰ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.08%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 109

	Global Science & Technology
Financial Highlights (continued)	Opportunities Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	9.03		$	7.20		$	6.61		$	5.42		$	5.46		$	3.59		$	8.83		$	7.07		$	6.51		$	5.35		$	5.41		$	3.57
Net investment loss		(0.02	)2		(0.03	)2		(0.03	)2		(0.04	)2		(0.07	)2		(0.05	)		(0.04	)2		(0.07	)2		(0.05	)2		(0.06	)2		(0.08	)2		(0.06	)2
Net realized and unrealized gain (loss)		(1.25	)		1.86			0.61			1.23			0.03			1.92			(1.22	)		1.83			0.60			1.22			0.02			1.90
Net increase (decrease) from investment operations		(1.27	)		1.83			0.58			1.19			(0.04	)		1.87			(1.26	)		1.76			0.55			1.16			(0.06	)		1.84
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—	3		—			—	3		—	3		0.01			—	3		—	3		—
Net asset value, end of period	$	7.76		$	9.03		$	7.20		$	6.61		$	5.42		$	5.46		$	7.57		$	8.83		$	7.07		$	6.51		$	5.35		$	5.41
Total Investment Return
Based on net asset value		(14.06	)%4,5		25.42	%4		8.93	%6		21.96	%4		(0.73	)%4		52.09	%		(14.27	)%4,5		24.89	%4		8.60	%6		21.68	%4		(1.11	)%4		51.54	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.35	%7		1.35	%		1.38	%		1.43	%		1.43	%		1.35	%		1.73	%7		1.73	%		1.73	%		1.73	%		1.73	%		1.67	%
Total expenses		1.62	%7		1.91	%		1.79	%		1.98	%		1.63	%		1.63	%		1.95	%7		2.30	%		2.06	%		2.27	%		1.94	%		1.88	%
Net investment loss		(0.52	)%7		(0.44	)%		(0.45	)%		(0.73	)%		(1.12	)%		(1.06	)%		(0.90	)%7		(0.85	)%		(0.79	)%		(1.04	)%		(1.41	)%		(1.38	)%
Supplemental Data
Net assets, end of period (000)	$	1,790		$	1,449		$	1,262		$	847		$	1,592		$	2,821		$	133		$	123		$	148		$	116		$	86		$	108
Portfolio turnover		54	%		92	%		132	%		113	%		115	%		226	%		54	%		92	%		132	%		113	%		115	%		226	%

	Investor A																		Investor B
	Six Months Ended March 31, 2008			Year Ended September 30,															Six Months Ended March 31, 2008			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031			(Unaudited)			2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	8.74		$	7.00		$	6.45		$	5.31		$	5.38		$	3.55		$	8.26		$	6.66		$	6.19		$	5.13		$	5.24		$	3.49
Net investment loss		(0.04	)2		(0.06	)2		(0.06	)2		(0.07	)2		(0.09	)2		(0.07	)		(0.07	)2		(0.12	)2		(0.11	)2		(0.11	)2		(0.13	)2		(0.10	)
Net realized and unrealized gain (loss)		(1.20	)		1.80			0.60			1.21			0.02			1.90			(1.14	)		1.72			0.57			1.17			0.02			1.85
Net increase (decrease) from investment operations		(1.24	)		1.74			0.54			1.14			(0.07	)		1.83			(1.21	)		1.60			0.46			1.06			(0.11	)		1.75
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—	3		—			—	3		—	3		0.01			—	3		—	3		—
Net asset value, end of period	$	7.50		$	8.74		$	7.00		$	6.45		$	5.31		$	5.38		$	7.05		$	8.26		$	6.66		$	6.19		$	5.13		$	5.24
Total Investment Return
Based on net asset value8		(14.19	)%4,5		24.86	%4		8.53	%9		21.47	%4		(1.30	)%4		51.55	%		(14.65	)%4,5		24.02	%4		7.59	%9		20.66	%4		(2.10	)%4		50.14	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.75	%7		1.73	%		1.77	%		1.84	%		1.89	%		1.83	%		2.64	%7		2.50	%		2.63	%		2.59	%		2.65	%		2.57	%
Total expenses		1.94	%7		2.16	%		2.27	%		2.35	%		2.14	%		2.10	%		2.89	%7		3.01	%		3.06	%		3.00	%		2.82	%		2.85	%
Net investment loss		(0.89	)%7		(0.80	)%		(0.83	)%		(1.16	)%		(1.56	)%		(1.53	)%		(1.82	)%7		(1.59	)%		(1.73	)%		(1.91	)%		(2.33	)%		(2.28	)%
Supplemental Data
Net assets, end of period (000)	$	24,916		$	21,632		$	13,040		$	9,688		$	9,929		$	11,406		$	6,783		$	9,030		$	10,439		$	10,998		$	12,315		$	16,646
Portfolio turnover		54	%		92	%		132	%		113	%		115	%		226	%		54	%		92	%		132	%		113	%		115	%		226	%

See Notes to Financial Statements.

110 SEMI-ANNUAL REPORT MARCH 31, 2008

	Global Science & Technology
Financial Highlights (continued)	Opportunities Portfolio

	Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	8.25		$	6.66		$	6.19		$	5.14		$	5.24		$	3.49
Net investment loss		(0.07	)2		(0.12	)2		(0.11	)2		(0.11	)2		(0.13	)2		(0.10	)
Net realized and unrealized gain (loss)		(1.14	)		1.71			0.57			1.16			0.03			1.85
Net increase (decrease) from investment operations		(1.21	)		1.59			0.46			1.05			(0.10	)		1.75
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—	3		—
Net asset value, end of period	$	7.04		$	8.25		$	6.66		$	6.19		$	5.14		$	5.24
Total Investment Return
Based on net asset value8		(14.67	)%4,5		23.87	%4		7.59	%9		20.43	%4		(1.91	)%4		50.14	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.59	%7		2.61	%		2.62	%		2.59	%		2.65	%		2.57	%
Total expenses		2.64	%7		2.88	%		2.84	%		3.00	%		2.80	%		2.85	%
Net investment loss		(1.76	)%7		(1.69	)%		(1.67	)%		(1.91	)%		(2.33	)%		(2.28	)%
Supplemental Data
Net assets, end of period (000)	$	8,112		$	9,755		$	6,511		$	2,794		$	3,244		$	4,024
Portfolio turnover		54	%		92	%		132	%		113	%		115	%		226	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.15%.

⁷ Annualized.

⁸ Total investment returns exclude the effects of sales charges.

⁹ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.16%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 111

Financial Highlights (continued) Global Resources Portfolio

	Institutional
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
				2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	63.42		$	68.57		$	79.62		$	58.80		$	41.25		$	26.85		$	23.51
Net investment income (loss)		(0.08	)1		(0.02	)1		0.57	1		0.15	1		(0.08	)		0.27			(0.04	)
Net realized and unrealized gain (loss)		9.49			14.26			(2.50	)		20.67			19.52			14.78			3.38
Net increase (decrease) from investment operations		9.41			14.24			(1.93	)		20.82			19.44			15.05			3.34
Dividends and distributions from:
Net investment income		(2.44	)		(0.81	)		(0.53	)		—			(0.34	)		(0.65	)		—
Net realized capital gain		(6.80	)		(18.58	)		(8.60	)		—			(1.55	)		—			—
Total dividends and distributions		(9.24	)		(19.39	)		(9.13	)		—			(1.89	)		(0.65	)		—
Redemption fees added to paid-in capital		—	2		—	2		0.01			—	2		—			—			—
Net asset value, end of period	$	63.59		$	63.42		$	68.57		$	79.62		$	58.80		$	41.25		$	26.85
Total Investment Return
Based on net asset value		15.54	%3,4		23.55	%3		(2.89	)%5		35.41	%3,4		47.95	%4		56.49	%		14.21	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.03	%6		1.03	%		0.98	%		1.04	%6		1.01	%6		1.04	%		1.30	%
Total expenses		1.04	%6		1.07	%		1.02	%		1.18	%6		1.02	%6		1.04	%		1.31	%
Net investment income (loss)		(0.25	)%6		(0.03	)%		0.76	%		0.42	%6		(0.16	)%6		0.79	%		(0.20	)%
Supplemental Data
Net assets, end of period (000)	$	38,240		$	37,498		$	35,010		$	40,906	6	$	29,188	6	$	20,044		$	10,144
Portfolio turnover		19	%		15	%		27	%		9	%		22	%		27	%		33	%

See Notes to Financial Statements.

112 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Global Resources Portfolio

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
				2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	59.02		$	64.90		$	76.01		$	56.23		$	39.58		$	25.81		$	22.74
Net investment income (loss)		(0.14	)1		(0.16	)1		0.32	1		0.03	1		(0.15	)		0.21			(0.10	)
Net realized and unrealized gain (loss)		8.81			13.41			(2.36	)		19.75			18.69			14.15			3.17
Net increase (decrease) from investment operations		8.67			13.25			(2.04	)		19.78			18.54			14.36			3.07
Dividends and distributions from:
Net investment income		(2.34	)		(0.55	)		(0.48	)		—			(0.34	)		(0.59	)		—
Net realized capital gain		(6.80	)		(18.58	)		(8.60	)		—			(1.55	)		—			—
Total dividends and distributions		(9.14	)		(19.13	)		(9.08	)		—			(1.89	)		(0.59	)		—
Redemption fees added to paid-in capital		—	2		—	2		0.01			—	2		—			—			—
Net asset value, end of period	$	58.55		$	59.02		$	64.90		$	76.01		$	56.23		$	39.58		$	25.81
Total Investment Return
Based on net asset value7		15.41	%3,4		23.25	%3		(3.20	)%5		35.18	%3,4		47.69	%4		56.06	%		13.50	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.27	%6		1.29	%		1.30	%		1.34	%6		1.36	%6		1.34	%		1.60	%
Total expenses		1.27	%6		1.30	%		1.41	%		1.52	%6		1.38	%6		1.34	%		1.61	%
Net investment income (loss)		(0.48	)%6		(0.28	)%		0.44	%		0.10	%6		(0.52	)%6		0.64	%		(0.47	)%
Supplemental Data
Net assets, end of period (000)	$	795,057		$	685,590		$	683,417		$	877,120	6	$	676,234	6	$	406,209		$	103,987
Portfolio turnover		19	%		15	%		27	%		9	%		22	%		27	%		33	%

¹ Based on average shares outstanding.

² Redemption fees added to paid-in capital are less than $0.01 per share.

³ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁴ Aggregate total investment return.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.02%.

⁶ Annualized.

⁷ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 113

Financial Highlights (continued) Global Resources Portfolio

	Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
				2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	50.87		$	58.19		$	69.43		$	51.58		$	36.52		$	23.89		$	21.20
Net investment loss		(0.31	)1		(0.50	)1		(0.18	)1		(0.19	)1		(0.32	)		(0.06	)		(0.23	)
Net realized and unrealized gain (loss)		7.55			11.82			(2.09	)		18.04			17.18			13.14			2.92
Net increase (decrease) from investment operations		7.24			11.32			(2.27	)		17.85			16.86			13.08			2.69
Dividends and distributions from:
Net investment income		(1.93	)		(0.06	)		(0.38	)		—			(0.25	)		(0.45	)		—
Net realized capital gain		(6.80	)		(18.58	)		(8.60	)		—			(1.55	)		—			—
Total dividends and distributions		(8.73	)		(18.64	)		(8.98	)		—			(1.80	)		(0.45	)		—
Redemption fees added to paid-in capital		—	2		—	2		0.01			—	2		—			—			—
Net asset value, end of period	$	49.38		$	50.87		$	58.19		$	69.43		$	51.58		$	36.52		$	23.89
Total Investment Return
Based on net asset value3		14.96	%4,5		22.35	%4		(3.91	)%6		34.60	%4,5		47.09	%5		55.07	%		12.69	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.04	%7		2.03	%		2.02	%		2.04	%7		2.01	%7		2.04	%		2.30	%
Total expenses		2.06	%7		2.08	%		2.09	%		2.18	%7		2.02	%7		2.04	%		2.31	%
Net investment loss		(1.25	)%7		(1.01	)%		(0.27	)%		(0.60	)%7		(1.17	)%7		(0.20	)%		(1.17	)%
Net investment income (loss)
Net assets, end of period (000)	$	78,478		$	80,178		$	87,636		$	117,845	7	$	94,506	7	$	66,704		$	29,782
Portfolio turnover		19	%		15	%		27	%		9	%		22	%		27	%		33	%

See Notes to Financial Statements.

114 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Global Resources Portfolio

	Investor C
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			7/01/04 - 2/28/05			Year Ended June 30,
	(Unaudited)			2007			2006									2004			2003
Per Share Operating Performance
Net asset value, beginning of period	$	50.84		$	58.13		$	69.37		$	51.53		$	36.48		$	23.88		$	21.18
Net investment loss		(0.30	)1		(0.50	)1		(0.17	)1		(0.19	)1		(0.30	)		(0.03	)		(0.23	)
Net realized and unrealized gain (loss)		7.55			11.83			(2.10	)		18.03			17.14			13.10			2.93
Net increase (decrease) from investment operations		7.25			11.33			(2.27	)		17.84			16.84			13.07			2.70
Dividends and distributions from:
Net investment income		(2.01	)		(0.04	)		(0.38	)		—			(0.24	)		(0.47	)		—
Net realized capital gain		(6.80	)		(18.58	)		(8.60	)		—			(1.55	)		—			—
Total dividends and distributions		(8.81	)		(18.62	)		(8.98	)		—			(1.79	)		(0.47	)		—
Redemption fees added to paid-in capital		—	2		—	2		0.01			—	2		—			—			—
Net asset value, end of period	$	49.28		$	50.84		$	58.13		$	69.37		$	51.53		$	36.48		$	23.88
Total Investment Return
Based on net asset value3		14.99	%4,5		22.36	%4		(3.92	)%8		34.62	%4,5		47.01	%5		55.05	%		12.75	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.00	%7		2.01	%		2.01	%		2.04	%7		2.01	%7		2.04	%		2.30	%
Total expenses		2.00	%7		2.02	%		2.05	%		2.17	%7		2.02	%7		2.04	%		2.31	%
Net investment loss		(1.21	)%7		(1.00	)%		(0.26	)%		(0.61	)%7		(1.17	)%7		(0.10	)%		(1.18	)%
Net investment income (loss)
Net assets, end of period (000)	$	160,142		$	144,300		$	147,723		$	201,265	7	$	169,871	7	$	122,088		$	37,601
Portfolio turnover		19	%		15	%		27	%		9	%		22	%		27	%		33	%

¹ Based on average shares outstanding.

² Redemption fees added to paid-in capital are less than $0.01 per share.

³ Total investment returns exclude the effects of sales charges.

⁴ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.02%.

⁷ Annualized.

⁸ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.01%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 115

Financial Highlights (continued) All-Cap Global Resources Portfolio

	Institutional												Service
	Six Months Ended March 31, 2008			Year Ended September 30,						Period Ended 9/30/051			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						Period Ended 9/30/051
	(Unaudited)			2007			2006									2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	19.40		$	13.85		$	13.56		$	10.00		$	19.19		$	13.75		$	13.52		$	10.00
Net investment income (loss)		0.22	2		0.05	2		0.02	2		0.02	2		0.18	2		(0.02	)2		(0.02	)2		0.03	2
Net realized and unrealized gain		1.69			5.90			0.26			3.54			1.67			5.86			0.24			3.49
Net increase from investment operations		1.91			5.95			0.28			3.56			1.85			5.84			0.22			3.52
Dividends and distributions from:
Net investment income		(0.26	)		—			—			—			(0.20	)		—			—			—
Net realized capital gain		(0.28	)		(0.40	)		—			—			(0.28	)		(0.40	)		—			—
Total dividends and distributions		(0.54	)		(0.40	)		—			—			(0.48	)		(0.40	)		—			—
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—	3		—	3		0.01			—	3
Net asset value, end of period	$	20.77		$	19.40		$	13.85		$	13.56		$	20.56		$	19.19		$	13.75		$	13.52
Total Investment Return
Based on net asset value		9.95	%4,5		43.66	%4		2.14	%6		35.60	%4,5		9.69	%4,5		43.16	%4		1.70	%7		35.20	%4,5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.89	%8		0.93	%		0.99	%		1.04	%8		1.27	%8		1.33	%		1.34	%		1.34	%8
Total expenses		0.89	%8		0.93	%		1.01	%		1.54	%8		1.28	%8		1.42	%		1.40	%		1.77	%8
Net investment income (loss)		2.17	%8		0.31	%		0.17	%		0.25	%8		1.81	%8		(0.11	)%		(0.17	)%		0.01	%8
Supplemental Data
Net assets, end of period (000)	$	689,422		$	598,747		$	337,771		$	92,147		$	4,480		$	3,435		$	2,368		$	—	9
Portfolio turnover		15	%		31	%		41	%		12	%		15	%		31	%		41	%		12	%
	Investor A												Investor B
	Six Months Ended March 31, 2008			Year Ended September 30,						Period Ended 9/30/051			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						Period Ended 9/30/051
	(Unaudited)			2007			2006									2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	19.18		$	13.75		$	13.50		$	10.00		$	18.82		$	13.59		$	13.44		$	10.00
Net investment income (loss)		0.20	2		(0.02	)2		(0.02	)2		—	2,10		0.12	2		(0.13	)2		(0.12	)2		(0.05	)2
Net realized and unrealized gain		1.65			5.85			0.26			3.50			1.63			5.76			0.26			3.49
Net increase from investment operations		1.85			5.83			0.24			3.50			1.75			5.63			0.14			3.44
Dividends and distributions from:
Net investment income		(0.19	)		—			—			—			(0.07	)		—			—			—
Net realized capital gain		(0.28	)		(0.40	)		—			—			(0.28	)		(0.40	)		—			—
Total dividends and distributions		(0.47	)		(0.40	)		—			—			(0.35	)		(0.40	)		—			—
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—	3		—	3		0.01			—	3
Net asset value, end of period	$	20.56		$	19.18		$	13.75		$	13.50		$	20.22		$	18.82		$	13.59		$	13.44
Total Investment Return
Based on net asset value11		9.73	%4,5		43.09	%4		1.85	%7		35.00	%4,5		9.32	%4,5		42.11	%4		1.12	%6		34.40	%4,5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.25	%8		1.31	%		1.34	%		1.34	%8		2.04	%8		2.04	%		2.04	%		2.04	%8
Total expenses		1.25	%8		1.34	%		1.46	%		1.87	%8		2.11	%8		2.23	%		2.13	%		2.49	%8
Net investment income (loss)		1.96	%8		(0.10	)%		(0.16	)%		0.01	%8		1.19	%8		(0.82	)%		(0.86	)%		(0.64	)%8
Supplemental Data
Net assets, end of period (000)	$	377,982		$	347,598		$	248,557		$	87,949		$	58,697		$	55,538		$	43,477		$	16,019
Portfolio turnover		15	%		31	%		41	%		12	%		15	%		31	%		41	%		12	%

See Notes to Financial Statements.

116 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) All-Cap Global Resources Portfolio

	Investor C
	Six Months Ended March 31, 2008			Year Ended September 30,						Period Ended 9/30/051
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	18.84		$	13.60		$	13.46		$	10.00
Net investment income (loss)		0.12	2		(0.13	)2		(0.12	)2		(0.05	)2
Net realized and unrealized gain		1.63			5.77			0.25			3.51
Net increase from investment operations		1.75			5.64			0.13			3.46
Dividends and distributions from:
Net investment income		(0.08	)		—			—			—
Net realized capital gain		(0.28	)		(0.40	)		—			—
Total dividends and distributions		(0.36	)		(0.40	)		—			—
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3
Net asset value, end of period	$	20.23		$	18.84		$	13.60		$	13.46
Total Investment Return
Based on net asset value11		9.33	%4,5		42.15	%4		1.04	%7		34.60	%4,5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.02	%8		2.04	%		2.04	%		2.04	%8
Total expenses		2.02	%8		2.12	%		2.09	%		2.48	%8
Net investment income (loss)		1.19	%8		(0.83	)%		(0.86	)%		(0.70	)%8
Supplemental Data
Net assets, end of period (000)	$	220,768		$	207,194		$	136,120		$	48,288
Portfolio turnover		15	%		31	%		41	%		12	%

¹ Commenced operations on February 16, 2005.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.08%.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.07%.

⁸ Annualized.

⁹ Net assets end of period are less than $500.

¹⁰ Net investment loss is less than $0.005 per share.

¹¹ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 117

Financial Highlights (continued) Health Sciences Opportunities Portfolio

	Institutional
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			Year Ended 2/28/05			Year Ended 2/29/04			Year Ended 2/28/031
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	30.41		$	26.18		$	24.45		$	20.50		$	21.15		$	11.64		$	14.48
Net investment income (loss)		0.06	2		0.06	2		0.04	2		(0.06	)2		(0.15	)		(0.06	)		(0.09	)
Net realized and unrealized gain (loss)		(1.49	)		4.52			2.30			4.02			0.57			10.21			(2.71	)
Net increase (decrease) from investment operations		(1.43	)		4.58			2.34			3.96			0.42			10.15			(2.80	)
Dividends and distributions from:
Net realized capital gain		(1.23	)		(0.35	)		(0.62	)		(0.01	)		(1.07	)		(0.64	)		(0.04	)
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—			—			—
Net asset value, end of period	$	27.75		$	30.41		$	26.18		$	24.45		$	20.50		$	21.15		$	11.64
Total Investment Return
Based on net asset value		(5.13	)%4,5		17.68	%4		9.77	%6		19.32	%4,5		1.84	%		87.73	%		(19.42	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.99	%7		1.02	%		1.01	%		1.25	%7		1.25	%		1.25	%		1.25	%
Total expenses		0.99	%7		1.02	%		1.01	%		1.37	%7		1.37	%		1.84	%		2.75	%
Net investment income (loss)		0.37	%7		0.21	%		0.17	%		(0.47	)%7		(0.59	)%		(0.38	)%		(0.69	)%
Supplemental Data
Net assets, end of period (000)	$	162,407		$	172,902		$	112,563		$	31,229		$	4,262		$	5,067		$	988
Portfolio turnover		41	%		98	%		157	%		77	%		173	%		106	%		157	%

	Service
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			Period Ended 2/28/058
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	29.85		$	25.78		$	24.15		$	20.24		$	20.30
Net investment income (loss)		—	2,9		(0.02	)2		(0.03	)2		(0.12	)2		(0.01	)
Net realized and unrealized gain (loss)		(1.45	)		4.44			2.27			4.04			(0.05	)
Net increase (decrease) from investment operations		(1.45	)		4.42			2.24			3.92			(0.06	)
Dividends and distributions from:
Net realized capital gain		(1.14	)		(0.35	)		(0.62	)		(0.01	)		—
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—
Net asset value, end of period	$	27.26		$	29.85		$	25.78		$	24.15		$	20.24
Total Investment Return
Based on net asset value		(5.24	)%4,5		17.33	%4		9.47	%6		19.37	%4,5		(0.30	)%5
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.29	%7		1.30	%		1.34	%		1.55	%7		0.82	%7
Total expenses		1.29	%7		1.32	%		1.34	%		1.64	%7		0.82	%7
Net investment income (loss)		0.03	%7		(0.08	)%		(0.12	)%		(0.90	)%7		(0.70	)%7
Supplemental Data
Net assets, end of period (000)	$	6,387		$	7,806		$	4,347		$	66		$	—	10
Portfolio turnover		41	%		98	%		157	%		77	%		173	%

See Notes to Financial Statements.

118 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Health Sciences Opportunities Portfolio

	Investor A
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			Year Ended 2/28/05			Year Ended 2/29/04			Year Ended 2/28/031
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	29.77		$	25.72		$	24.11		$	20.24		$	20.96		$	11.57		$	14.43
Net investment income (loss)		0.01	2		(0.03	)2		(0.05	)2		(0.09	)2		(0.17	)		(0.12	)		(0.12	)
Net realized and unrealized gain (loss)		(1.47	)		4.43			2.27			3.97			0.52			10.15			(2.70	)
Net increase (decrease) from investment operations		(1.46	)		4.40			2.22			3.88			0.35			10.03			(2.82	)
Dividends and distributions from:
Net realized capital gain		(1.12	)		(0.35	)		(0.62	)		(0.01	)		(1.07	)		(0.64	)		(0.04	)
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—			—			—
Net asset value, end of period	$	27.19		$	29.77		$	25.72		$	24.11		$	20.24		$	20.96		$	11.57
Total Investment Return
Based on net asset value11		(5.28	)%4,5		17.29	%4		9.40	%6		19.17	%4,5		1.52	%		87.13	%		(19.63	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.30	%7		1.35	%		1.34	%		1.55	%7		1.58	%		1.55	%		1.55	%
Total expenses		1.30	%7		1.35	%		1.45	%		1.69	%7		1.73	%		2.11	%		3.04	%
Net investment income (loss)		0.04	%7		(0.13	)%		(0.19	)%		(0.68	)%7		(0.90	)%		(0.71	)%		(0.99	)%
Supplemental Data
Net assets, end of period (000)	$	617,124		$	697,451		$	434,360		$	186,545		$	76,550		$	54,638		$	9,250
Portfolio turnover		41	%		98	%		157	%		77	%		173	%		106	%		157	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.04%.

⁷ Annualized.

⁸ Commenced operations on January 28, 2005.

⁹ Net investment loss is less than $0.005 per share.

¹⁰ Net assets end of period are less than $500.

¹¹ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 119

Financial Highlights (continued) Health Sciences Opportunities Portfolio

	Investor B
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			Year Ended 2/28/05			Year Ended 2/29/04			Year Ended 2/28/031
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	28.28		$	24.65		$	23.31		$	19.65		$	20.52		$	11.41		$	14.34
Net investment loss		(0.11	)2		(0.25	)2		(0.24	)2		(0.17	)2		(0.28	)		(0.24	)		(0.21	)
Net realized and unrealized gain (loss)		(1.41	)		4.23			2.19			3.84			0.48			9.99			(2.68	)
Net increase (decrease) from investment operations		(1.52	)		3.98			1.95			3.67			0.20			9.75			(2.89	)
Dividends and distributions from:
Net realized capital gain		(0.83	)		(0.35	)		(0.62	)		(0.01	)		(1.07	)		(0.64	)		(0.04	)
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—			—			—
Net asset value, end of period	$	25.93		$	28.28		$	24.65		$	23.31		$	19.65		$	20.52		$	11.41
Total Investment Return
Based on net asset value4		(5.69	)%5,6		16.33	%5		8.54	%7		18.68	%5,6		0.80	%		85.89	%		(20.24	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.14	%8		2.19	%		2.16	%		2.25	%8		2.25	%		2.25	%		2.25	%
Total expenses		2.14	%8		2.22	%		2.16	%		2.33	%8		2.39	%		2.91	%		3.74	%
Net investment loss		(0.80	)%8		(0.96	)%		(1.02	)%		(1.35	)%8		(1.58	)%		(1.44	)%		(1.69	)%
Supplemental Data
Net assets, end of period (000)	$	84,049		$	95,231		$	78,902		$	45,073		$	29,495		$	22,825		$	9,290
Portfolio turnover		41	%		98	%		157	%		77	%		173	%		106	%		157	%

See Notes to Financial Statements.

120 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Health Sciences Opportunities Portfolio

	Investor C
	Six Months Ended March 31, 2008			Year Ended September 30,						3/01/05 - 9/30/05			Year Ended 2/28/05			Year Ended 2/29/04			Year Ended 2/28/031
	(Unaudited)			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	28.27		$	24.62		$	23.26		$	19.61		$	20.47		$	11.39		$	14.31
Net investment loss		(0.10	)2		(0.23	)2		(0.21	)2		(0.18	)2		(0.22	)		(0.23	)		(0.21	)
Net realized and unrealized gain (loss)		(1.40	)		4.23			2.18			3.84			0.43			9.95			(2.67	)
Net increase (decrease) from investment operations		(1.50	)		4.00			1.97			3.66			0.21			9.72			(2.88	)
Dividends and distributions from:
Net realized capital gain		(0.89	)		(0.35	)		(0.62	)		(0.01	)		(1.07	)		(0.64	)		(0.04	)
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—			—			—
Net asset value, end of period	$	25.88		$	28.27		$	24.62		$	23.26		$	19.61		$	20.47		$	11.39
Total Investment Return
Based on net asset value4		(5.65	)%5,6		16.43	%5		8.65	%7		18.67	%5,6		0.86	%		85.87	%		(20.21	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.04	%8		2.11	%		2.04	%		2.25	%8		2.25	%		2.25	%		2.25	%
Total expenses		2.04	%8		2.12	%		2.04	%		2.32	%8		2.41	%		2.77	%		3.74	%
Net investment loss		(0.69	)%8		(0.89	)%		(0.87	)%		(1.41	)%8		(1.56	)%		(1.38	)%		(1.69	)%
Supplemental Data
Net assets, end of period (000)	$	322,793		$	363,739		$	254,724		$	84,431		$	25,248		$	11,017		$	1,291
Portfolio turnover		41	%		98	%		157	%		77	%		173	%		106	%		157	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Total investment returns exclude the effects of sales charges.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Aggregate total investment return.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.04%.

⁸ Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 121

Financial Highlights (continued) U.S. Opportunities Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008			Year Ended September 30,															Six Months Ended March 31, 2008			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031			(Unaudited)			2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	37.05		$	29.07		$	25.56		$	20.34		$	16.56		$	13.06		$	35.89		$	28.28		$	24.96		$	19.93		$	16.27		$	12.88
Net investment income (loss)		0.06	2		0.03	2		0.04	2		(0.15	)2		(0.17	)2		(0.16	)		—	2,3		(0.09	) 2		(0.07	)2		(0.21	)2		(0.22	)2		(0.19	)
Net realized and unrealized gain (loss)		(2.75	)		7.95			3.46			5.37			3.95			3.66			(2.66	)		7.70			3.38			5.24			3.88			3.58
Net increase (decrease) from investment operations		(2.69	)		7.98			3.50			5.22			3.78			3.50			(2.66	)		7.61			3.31			5.03			3.66			3.39
Redemption fees added to paid-in capital		—	4		—	4		0.01			—	4		—	4		—			—	4		—	4		0.01			—	4		—	4		—
Net asset value, end of period	$	34.36		$	37.05		$	29.07		$	25.56		$	20.34		$	16.56		$	33.23		$	35.89		$	28.28		$	24.96		$	19.93		$	16.27
Total Investment Return
Based on net asset value		(7.26	)%5,6		27.45	%5		13.73	%7		25.66	%5		22.83	%5		26.80	%		(7.41	)%5,6		26.91	%5		13.30	%7		25.24	%5		22.50	%5		26.32	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.00	%8		1.01	%		1.19	%		1.60	%		1.60	%		1.52	%		1.37	%8		1.40	%		1.57	%		1.90	%		1.90	%		1.83	%
Total expenses		1.36	%8		1.42	%		1.49	%		1.73	%		1.65	%		1.59	%		1.61	%8		1.69	%		1.85	%		1.97	%		1.97	%		1.89	%
Net investment income (loss)		0.35	%8		0.09	%		0.15	%		(0.65	)%		(0.92	)%		(0.87	)%		(0.01	)%8		(0.28	)%		(0.25	)%		(0.96	)%		(1.15	)%		(1.17	)%
Supplemental Data
Net assets, end of period (000)	$	173,142		$	158,094		$	20,548		$	6,390		$	6,074		$	7,235		$	81,502		$	43,763		$	1,527		$	472		$	2,303		$	421
Portfolio turnover		67	%		106	%		120	%		94	%		106	%		248	%		67	%		106	%		120	%		94	%		106	%		248	%
	Investor A																		Investor B
	Six Months Ended March 31, 2008			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	35.57		$	28.03		$	24.76		$	19.78		$	16.17		$	12.81		$	33.20		$	26.37		$	23.45		$	18.87		$	15.55		$	12.41
Net investment loss		(0.02	)2		(0.10	) 2		(0.10	)2		(0.22	)2		(0.26	)2		(0.21	)		(0.15	)2		(0.32	) 2		(0.29	)2		(0.37	)2		(0.39	)2		(0.32	)
Net realized and unrealized gain (loss)		(2.64	)		7.64			3.36			5.20			3.87			3.57			(2.45	)		7.15			3.20			4.95			3.71			3.46
Net increase (decrease) from investment operations		(2.66	)		7.54			3.26			4.98			3.61			3.36			(2.60	)		6.83			2.91			4.58			3.32			3.14
Redemption fees added to paid-in capital		—	4		—	4		0.01			—	4		—	4		—			—	4		—	4		0.01			—	4		—	4		—
Net asset value, end of period	$	32.91		$	35.57		$	28.03		$	24.76		$	19.78		$	16.17		$	30.60		$	33.20		$	26.37		$	23.45		$	18.87		$	15.55
Total Investment Return
Based on net asset value9		(7.48	)%5,6		26.90	%5		13.21	%7		25.18	%5		22.33	%5		26.23	%		(7.83	)%5,6		25.90	%5		12.45	%7		24.27	%5		21.35	%5		25.30	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.44	%8		1.48	%		1.66	%		1.97	%		2.04	%		2.00	%		2.25	%8		2.23	%		2.40	%		2.72	%		2.80	%		2.74	%
Total expenses		1.68	%8		1.77	%		1.95	%		2.08	%		2.15	%		2.06	%		2.62	%8		2.56	%		2.68	%		2.73	%		2.81	%		2.81	%
Net investment loss		(0.09	)%8		(0.32	)%		(0.35	)%		(1.02	)%		(1.36	)%		(1.34	)%		(0.91	)%8		(1.06	)%		(1.13	)%		(1.77	)%		(2.12	)%		(2.09	)%
Supplemental Data
Net assets, end of period (000)	$	307,395		$	228,668		$	96,194		$	31,277		$	31,282		$	29,258		$	21,582		$	35,928		$	36,093		$	37,132		$	40,994		$	41,259
Portfolio turnover		67	%		106	%		120	%		94	%		106	%		248	%		67	%		106	%		120	%		94	%		106	%		248	%

See Notes to Financial Statements.

122 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) U.S. Opportunities Portfolio

	Investor C
	Six Months Ended March 31, 2008			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	33.18		$	26.34		$	23.43		$	18.85		$	15.53		$	12.40
Net investment loss		(0.14	)2		(0.32	)2		(0.28	)2		(0.37	)2		(0.38	)2		(0.32	)
Net realized and unrealized gain (loss)		(2.45	)		7.16			3.18			4.95			3.70			3.45
Net increase (decrease) from investment operations		(2.59	)		6.84			2.90			4.58			3.32			3.13
Redemption fees added to paid-in capital		—	4		—	4		0.01			—	4		—	4		—
Net asset value, end of period	$	30.59		$	33.18		$	26.34		$	23.43		$	18.85		$	15.53
Total Investment Return
Based on net asset value9		(7.81	)%5,6		25.97	%5		12.42	%7		24.30	%5		21.38	%5		25.24	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.19	%8		2.20	%		2.37	%		2.72	%		2.81	%		2.74	%
Total expenses		2.43	%8		2.51	%		2.60	%		2.73	%		2.83	%		2.81	%
Net investment loss		(0.84	)%8		(1.04	)%		(1.07	)%		(1.77	)%		(2.13	)%		(2.09	)%
Supplemental Data
Net assets, end of period (000)	$	106,575		$	88,826		$	39,427		$	20,774		$	20,261		$	20,761
Portfolio turnover		67	%		106	%		120	%		94	%		106	%		248	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Net investment loss is less than $0.005 per share.

⁴ Redemption fees added to paid-in capital are less than $0.01 per share.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Aggregate total investment return.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.04%.

⁸ Annualized.

⁹ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 123

Financial Highlights (continued) Global Opportunities Portfolio

	Institutional
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Period Ended 9/30/061
Per Share Operating Performance
Net asset value, beginning of period	$	13.31		$	10.10		$	10.00
Net investment income		0.02	2		0.09	2		0.08	2
Net realized and unrealized gain (loss)		(1.01	)		3.21			0.01
Net increase (decrease) from investment operations		(0.99	)		3.30			0.09
Dividends and distributions from:
Net investment income		(0.17	)		(0.09	)		—
Net realized capital gain		(0.50	)		—			—
Total dividends and distributions		(0.67	)		(0.09	)		—
Redemption fees added to paid-in capital		—	3		—	3		0.01
Net asset value, end of period	$	11.65		$	13.31		$	10.10
Total Investment Return
Based on net asset value		(7.78	)%4,5		32.81	%4		1.00	%5,6
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.29	%7		1.29	%		1.35	%7
Total expenses		1.29	%7		1.32	%		2.25	%7
Net investment income		0.37	%7		0.78	%		1.13	%7
Supplemental Data
Net assets, end of period (000)	$	40,731		$	35,679		$	9,099
Portfolio turnover		76	%		107	%		110	%

	Investor A									Investor B
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Period Ended 9/30/061			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Period Ended 9/30/061
Per Share Operating Performance
Net asset value, beginning of period	$	13.27		$	10.08		$	10.00		$	13.16		$	10.03		$	10.00
Net investment income (loss)		—	2,8		0.04	2		0.05	2		(0.05	)2		(0.04	)2		—	2,8
Net realized and unrealized gain (loss)		(1.00	)		3.22			0.02			(1.01	)		3.22			0.02
Net increase (decrease) from investment operations		(1.00	)		3.26			0.07			(1.06	)		3.18			0.02
																	��
Dividends and distributions from:
Net investment income		(0.14	)		(0.07	)		—			(0.03	)		(0.05	)		—
Net realized capital gain		(0.50	)		—			—			(0.50	)		—			—
Total dividends and distributions		(0.64	)		(0.07	)		—			(0.53	)		(0.05	)		—
Redemption fees added to paid-in capital		—	3		—	3		0.01			—	3		—	3		0.01
Net asset value, end of period	$	11.63		$	13.27		$	10.08		$	11.57		$	13.16		$	10.03
Total Investment Return
Based on net asset value9		(7.90	)%4,5		32.51	%4		0.80	%5,6		(8.35	)%4,5		31.79	%4		0.30	%5,6
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.58	%7		1.56	%		1.65	%7		2.39	%7		2.33	%		2.40	%7
Total expenses		1.58	%7		1.68	%		2.84	%7		2.41	%7		3.06	%		4.95	%7
Net investment income (loss)		0.08	%7		0.36	%		0.70	%7		(0.74	)%7		(0.39	)%		(0.05	)%7
Supplemental Data
Net assets, end of period (000)	$	42,332		$	40,467		$	23,097		$	7,330		$	7,673		$	4,907
Portfolio turnover		76	%		107	%		110	%		76	%		107	%		110	%

See Notes to Financial Statements.

124 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Global Opportunities Portfolio

	Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007				Period Ended 9/30/061
Per Share Operating Performance
Net asset value, beginning of period	$	13.16		$	10.03			$	10.00
Net investment loss		(0.04	)2		(0.05	)2			—	2,8
Net realized and unrealized gain (loss)		(1.01	)		3.23				0.02
Net increase (decrease) from investment operations		(1.05	)		3.18				0.02
Dividends and distributions from:
Net investment income		(0.04	)		(0.05	)			—
Net realized capital gain		(0.50	)		—				—
Total dividends and distributions		(0.54	)		(0.05	)			—
Redemption fees added to paid-in capital		—	3		—	3			0.01
Net asset value, end of period	$	11.57		$	13.16			$	10.03
Total Investment Return
Based on net asset value9		(8.27	)%4,5		31.76	%4			0.30	%5,6
Ratios to Average Net Assets							��
Total expenses, net of waivers and reimbursement		2.33	%7		2.35	%			2.40	%7
Total expenses		2.34	%7		2.42	%			3.38	%7
Net investment loss		(0.67	)%7		(0.40	)%			(0.01	)%7
Supplemental Data
Net assets, end of period (000)	$	19,806		$	18,217			$	10,012
Portfolio turnover		76	%		107	%			110	%

¹ Commenced operations on January 31, 2006.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.10%.

⁷ Annualized.

⁸ Net investment loss is less than $0.005 per share.

⁹ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 125

Financial Highlights (continued) International Opportunities Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	51.08		$	42.16		$	34.34		$	24.44		$	19.96		$	15.22		$	49.52		$	41.06		$	33.55		$	23.93		$	19.59		$	14.98
Net investment income (loss)		0.03	2		0.48	2		0.37	2		0.53	2		0.08	2		—	3		(0.04	)2		0.32	2		0.29	2		0.44	2		0.06	2		0.05
Net realized and unrealized gain (loss)		(3.36	)		14.98			8.57			9.68			4.41			4.73			(3.24	)		14.58			8.32			9.45			4.29			4.55
Net increase (decrease) from investment operations		(3.33	)		15.46			8.94			10.21			4.49			4.73			(3.28	)		14.90			8.61			9.89			4.35			4.60
Dividends and distributions from:
Net investment income		(1.21	)		(0.71	)		(0.37	)		(0.32	)		(0.02	)		—			(1.06	)		(0.61	)		(0.35	)		(0.28	)		(0.02	)		—
Net realized capital gain		(7.24	)		(5.83	)		(0.76	)		—			—			—			(7.24	)		(5.83	)		(0.76	)		—			—			—
Total dividends and distributions		(8.45	)		(6.54	)		(1.13	)		(0.32	)		(0.02	)		—			(8.30	)		(6.44	)		(1.11	)		(0.28	)		(0.02	)		—
Redemption fees added to paid-in capital		—	4		—	4		0.01			0.01			0.01			0.01			—	4		—	4		0.01			0.01			0.01			0.01
Net asset value, end of period	$	39.30		$	51.08		$	42.16		$	34.34		$	24.44		$	19.96		$	37.94		$	49.52		$	41.06		$	33.55		$	23.93		$	19.59
Total Investment Return
Based on net asset value		(7.71	)%5,6		40.42	%5		26.64	%7		42.13	%8		22.54	%9		31.14	%10		(7.85	)%5,6		40.00	%5		26.30	%7		41.65	%8		22.25	%9		30.78	%11
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.25	%12		1.25	%		1.33	%		1.45	%		1.45	%		1.41	%		1.56	%12		1.58	%		1.57	%		1.74	%		1.75	%		1.72	%
Total expenses		1.25	%12		1.25	%		1.33	%		1.51	%		1.58	%		1.51	%		1.56	%12		1.59	%		1.58	%		1.76	%		1.91	%		1.80	%
Net investment income (loss)		0.12	%12		1.06	%		0.91	%		1.81	%		0.31	%		0.42	%		(0.21	)%12		0.73	%		0.73	%		1.52	%		0.21	%		0.30	%
Supplemental Data
Net assets, end of period (000)	$	445,509		$	492,444		$	336,000		$	216,070		$	96,535		$	57,950		$	144,902		$	172,135		$	128,879		$	44,308		$	19,167		$	1,573
Portfolio turnover		50	%		77	%		91	%		86	%		98	%		72	%		50	%		77	%		91	%		86	%		98	%		72	%

See Notes to Financial Statements.

126 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) International Opportunities Portfolio

	Investor A
	Six Months Ended March 31, 2008			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	49.19		$	40.81		$	33.36		$	23.78		$	19.49		$	14.94
Net investment income (loss)		(0.04	)2		0.30	2		0.23	2		0.44	2		(0.02	)2		0.01
Net realized and unrealized gain (loss)		(3.22	)		14.49			8.32			9.38			4.32			4.53
Net increase (decrease) from investment operations		(3.26	)		14.79			8.55			9.82			4.30			4.54
Dividends and distributions from:
Net investment income		(1.05	)		(0.58	)		(0.35	)		(0.25	)		(0.02	)		—
Net realized capital gain		(7.24	)		(5.83	)		(0.76	)		—			—			—
Total dividends and distributions		(8.29	)		(6.41	)		(1.11	)		(0.25	)		(0.02	)		—
Redemption fees added to paid-in capital		—	4		—	4		0.01			0.01			0.01			0.01
Net asset value, end of period	$	37.64		$	49.19		$	40.81		$	33.36		$	23.78		$	19.49
Total Investment Return
Based on net asset value13		(7.86	)%5,6		39.98	%5		26.24	%7		41.60	%9		22.11	%10		30.45	%10
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.56	%12		1.60	%		1.63	%		1.75	%		1.89	%		1.89	%
Total expenses		1.56	%12		1.60	%		1.74	%		1.86	%		2.06	%		1.98	%
Net investment income (loss)		(0.19	)%12		0.69	%		0.62	%		1.53	%		(0.06	)%		0.05	%
Supplemental Data
Net assets, end of period (000)	$	511,537		$	555,189		$	407,282		$	253,710		$	99,879		$	37,934
Portfolio turnover		50	%		77	%		91	%		86	%		98	%		72	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Net investment loss is less than $0.005 per share.

⁴ Redemption fees added to paid-in capital are less than $0.01 per share.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Aggregate total investment return.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.03%.

⁸ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.04%.

⁹ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.05%.

¹⁰ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.06%.

¹¹ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.07%.

¹² Annualized.

¹³ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 127

Financial Highlights (continued) International Opportunities Portfolio

	Investor B
	Six Months Ended March 31, 2008			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	46.43		$	38.81		$	31.97		$	22.80		$	18.83		$	14.54
Net investment income (loss)		(0.21	)2		(0.04	)2		(0.07	)2		0.18	2		(0.21	)2		(0.12	)
Net realized and unrealized gain (loss)		(3.01	)		13.74			7.95			9.05			4.19			4.40
Net increase (decrease) from investment operations		(3.22	)		13.70			7.88			9.23			3.98			4.28
Dividends and distributions from:
Net investment income		(0.68	)		(0.25	)		(0.29	)		(0.07	)		(0.02	)		—
Net realized capital gain		(7.24	)		(5.83	)		(0.76	)		—			—			—
Total dividends and distributions		(7.92	)		(6.08	)		(1.05	)		(0.07	)		(0.02	)		—
Redemption fees added to paid-in capital		—	3		—	3		0.01			0.01			0.01			0.01
Net asset value, end of period	$	35.29		$	46.43		$	38.81		$	31.97		$	22.80		$	18.83
Total Investment Return
Based on net asset value4		(8.22	)%5,6		38.89	%5		25.24	%7		40.58	%8		21.18	%9		29.51	%9
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.36	%10		2.37	%		2.43	%		2.50	%		2.65	%		2.63	%
Total expenses		2.36	%10		2.37	%		2.43	%		2.51	%		2.72	%		2.72	%
Net investment income (loss)		(1.04	)%10		(0.10	)%		(0.22	)%		0.68	%		(0.94	)%		(0.74	)%
Supplemental Data
Net assets, end of period (000)	$	69,501		$	102,624		$	91,605		$	73,946		$	45,167		$	31,454
Portfolio turnover		50	%		77	%		91	%		86	%		98	%		72	%

See Notes to Financial Statements.

128 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (concluded) International Opportunities Portfolio

	Investor C
	Six Months Ended March 31, 2008			Year Ended September 30,
	(Unaudited)			2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	46.34		$	38.78		$	31.93		$	22.80		$	18.84		$	14.54
Net investment income (loss)		(0.19	)2		(0.03	)2		(0.04	)2		0.21	2		(0.21	)2		(0.11	)
Net realized and unrealized gain (loss)		(3.01	)		13.71			7.93			9.01			4.18			4.40
Net increase (decrease) from investment operations		(3.20	)		13.68			7.89			9.22			3.97			4.29
Dividends and distributions from:
Net investment income		(0.72	)		(0.29	)		(0.29	)		(0.10	)		(0.02	)		—
Net realized capital gain		(7.24	)		(5.83	)		(0.76	)		—			—			—
Total dividends and distributions		(7.96	)		(6.12	)		(1.05	)		(0.10	)		(0.02	)		—
Redemption fees added to paid-in capital		—	3		—	3		0.01			0.01			0.01			0.01
Net asset value, end of period	$	35.18		$	46.34		$	38.78		$	31.93		$	22.80		$	18.84
Total Investment Return
Based on net asset value4		(8.21	)%5,6		38.91	%5		25.33	%7		40.60	%9		21.12	%9		29.57	%9
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		2.32	%10		2.36	%		2.37	%		2.50	%		2.65	%		2.63	%
Total expenses		2.32	%10		2.36	%		2.37	%		2.51	%		2.72	%		2.72	%
Net investment income (loss)		(0.96	)%10		(0.08	)%		(0.13	)%		0.75	%		(0.86	)%		(0.71	)%
Supplemental Data
Net assets, end of period (000)	$	222,447		$	255,980		$	205,958		$	130,138		$	54,894		$	26,912
Portfolio turnover		50	%		77	%		91	%		86	%		98	%		72	%

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Total investment returns exclude the effects of sales charges.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Aggregate total investment return.

⁷ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.03%.

⁸ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.04%.

⁹ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. The impact to the return for redemption fees received during the period was an increase of 0.05%.

¹⁰ Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 129

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

BlackRock Funds^SM (the “Fund”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of March 31, 2008, the Fund had 32 registered portfolios, 15 of which are included in these financial statements (the “Portfolios”). The Portfolios’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. Each Portfolio is authorized to issue an unlimited number of shares with a par value of $0.001. Each Portfolio of the Fund offers multiple classes of shares. BlackRock and Institutional Shares are sold without a sales charge and only to certain eligible investors. Service Shares are sold without a sales charge. Investor A Shares are sold with a front-end sales charge. Shares of Investor B and Investor C may be subject to a contingent deferred sales charge. R Shares are sold only to certain retirement plans. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the BlackRock, Service, Investor A, Investor B, Investor C and R Shares may bear certain expenses related to the service and/or distribution of such shares. Each class has exclusive voting rights with respect to matters relating to its service and distribution expenditures (except that Investor B shareholders may vote on material changes to the Investor A distribution plan).

The following is a summary of significant accounting policies followed by the Portfolios:

Valuation of Investments: Equity investments traded on a national securities exchange or on the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. Equity investments traded on a national securities exchange for which there were no sales on that day and equity investments traded on other over-the-counter markets for which market quotations are readily available are valued at the mean of the bid and asked prices. Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade and previously were valued at the last sales price as of the close of options trading on applicable exchanges. Over-the-counter (“OTC”) options quotations are provided by dealers or pricing services selected under the supervision of the Board of Trustees (the “Board”). Considerations utilized by dealers or pricing services in valuing OTC options include, but are not limited to, volatility factors of the underlying security, price movement of the underlying security in relation to the strike price and the time left until expiration of the option. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board of Trustees (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 the Portfolios might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deem relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of business on the New York Stock Exchange (“NYSE”). The values of such securities used in computing the net assets of the Portfolio are determined as of such times. Foreign currency exchange rates will be determined as of the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Portfolio’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 securities, those securities may be valued at their fair value as determined in good faith by the Board or by the investment advisor using a pricing service and/or procedures approved by the Board.

The Portfolios are not obligated for costs associated with the registration of restricted securities.

Derivative Financial Instruments: The Portfolios may engage in various portfolio investment strategies to increase the return of the Portfolios’ and to hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security, or if the counterparty does not perform under the contract.

• Futures - The Portfolios may purchase or sell financial or index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, a Portfolio deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Portfolio agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recognized by the Portfolio as unrealized gains or losses. When the contract is closed, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

• Forward foreign exchange contracts - The Portfolios may enter into forward foreign exchange contracts as a hedge against either specific transactions or portfolio positions. Forward currency contracts, when used by a Portfolio, help to manage the overall exposure to the foreign currency backing some of the investments held by the Portfolio. The contract is marked-to-market daily and the change in market value is recorded by the Portfolio as an unrealized gain or loss. When

130 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

the contract is closed, the Portfolio records 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.

• Options - The Portfolios may purchase and write call and put options. When a Portfolio writes an option, an amount equal to the premium received by the Portfolio is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Portfolio enters into a closing transaction), the Portfolio realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium received or paid). If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether the Portfolio has realized a gain or a loss on investment transactions.

A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time during the option period.

Foreign Currency Transactions: Foreign currency amounts are translated into United States dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the rates of exchange prevailing on the respective dates of such transactions. The Portfolio reports foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Preferred Stock: The Portfolios may invest in preferred stock. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Segregation: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Portfolio segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements, swaps or futures contracts), each Portfolio will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security 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 Portfolio has determined the ex-dividend date. Upon notification from issuers, some of the dividend income received from a real estate investment trust (“REIT”) may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income is recognized on the accrual basis. The Portfolios amortize all premiums and discounts on debt securities. Income, realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions to Shareholders: Dividends and distributions paid by the Portfolios are recorded on the ex-dividend dates.

Securities Lending: The Portfolios may lend securities to financial institutions that provide cash or securities issued or guaranteed by the U.S. government 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 Portfolios and any additional required collateral is delivered to the Portfolios on the next business day. The Portfolios typically receive the income on the loaned securities but does not receive the income on the collateral. Where the Portfolios receive cash collateral, it may invest such collateral and retain the amount earned on such investment, net of any amount rebated to the borrower. The Portfolios may receive a flat fee for its loans. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. The Portfolios may pay reasonable lending agent, administrative and custodial fees in connection with its loans. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Portfolios could experience delays and costs in gaining access to the collateral. The Portfolios also could suffer a loss where the value of the collateral falls below the market value of the borrowed securities, in the event of borrower default or in the event of losses on investments made with cash collateral.

Income Taxes: It is the Portfolios’ policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

SEMI-ANNUAL REPORT MARCH 31, 2008 131

Notes to Financial Statements (continued)

Effective March 31, 2008, the Portfolios implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to the Portfolios, and has determined that the adoption of FIN 48 did not have a material impact on the Portfolios’ financial statements. The Portfolios file U.S. and various state tax returns. No income tax returns are currently under examination. The statute of limitations on the Portfolios’ tax returns remains open for the years ended September 30, 2004 through September 30, 2006. The statute of limitations on the Portfolios’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The impact on the Portfolios’ financial statement disclosures, if any, is currently being assessed.

In addition, in February 2007, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Portfolios’ financial statement disclosures, if any, is currently being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133” (“FAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. The investment advisor is currently evaluating the implications of FAS 161 and the impact on the Portfolios’ financial statement disclosures, if any, is currently being assessed.

Other: Expenses directly related to one of the Portfolios or classes are charged to that Portfolio or class. Other operating expenses shared by several Portfolios are pro-rated among those Portfolios on the basis of relative net assets or other appropriate methods. Other expenses of a Portfolio are allocated daily to each class based on its relative net assets.

2. Investment Advisory Agreements and Other Transactions with Affiliates:

The Fund on behalf of the Portfolios entered into an Investment Advisory Agreement with the BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory services. Merrill Lynch & Co., Inc.(“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”) are principal owners of BlackRock, Inc.

The Advisor is responsible for the management of each Portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Portfolios. For such services, each Portfolio pays the Advisor a monthly fee based on the average daily value of the Portfolio’s net assets, at the following annual rates:

Average Daily Net Assets	first $1 billion		$1 billion - $2 billion		$2 billion - $3 billion		greater than $3 billion
Small Cap Value Equity and Small Cap Growth Equity	0.550	%	0.500	%	0.475	%	0.450	%
Mid-Cap Value Equity and Mid-Cap Growth Equity	0.800		0.700		0.650		0.625
U.S. Opportunities	1.100		1.050		1.025		1.000
Global Science & Technology Opportunities and Global Opportunities	0.900		0.850		0.800		0.750
Small/Mid-Cap Growth, Global Resources, All-Cap Global Resources and Health Sciences Opportunities	0.750		0.700		0.675		0.650
Capital Appreciation	0.650		0.600		0.575		0.550
Aurora	0.850		0.800		0.750		0.700
International Opportunities	1.000		0.950		0.900		0.850

Small Cap Core Equity Portfolio pays an advisory fee at an annual rate of 1.00% of average daily net assets.

In addition, the Advisor has entered into a sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Advisor, pursuant to which BFM serves as sub-advisor for a portion of the

132 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

assets of Global Opportunities Portfolio and BlackRock International, Ltd. (“BIL”), an affiliate of the Advisor, to serve as sub-advisor for International Opportunities Portfolio. The Advisor pays the sub-advisors, for services it provides, a monthly fee that is a percentage of the management fee paid by the Portfolios to the Advisor.

PFPC Trust Company (“PTC”), an indirect wholly-owned subsidiary of PNC, serves as custodian for each Portfolio. For these services, the custodian receives a fee computed daily and payable monthly, based on a percentage of the average daily gross assets of each Portfolio.

Prior to January 1, 2008, the fee was paid at the following annual rates: 0.0073% of the first $250 million, 0.006% of the next $250 million, 0.0056% of the next $250 million, 0.0048% of the next $250 million and 0.004% of average daily gross assets in excess of $1 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of each Portfolio.

Effective January 1, 2008, the fee is paid at the following annual rates: 0.005% of the first $400 million, 0.004% of the next $1.6 billion, and 0.003% of average daily gross assets in excess of $2 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of each Portfolio.

PFPC Inc. (“PFPC”), an indirect wholly-owned subsidiary of PNC, serves as transfer and dividend disbursing agent. Each class of each Portfolio bears the costs of transfer agent fees associated with such respective class. Transfer agency fees borne by each class of each Portfolio are comprised of those fees charged for all shareholder communications including shareholder reports, dividend and distribution notices, and proxy materials for shareholders meetings, as well as per account and per transaction fees related to servicing and maintenance of shareholder accounts, including the issuing, redeeming and transferring of shares of each class of each Portfolio, 12b-1 fee calculation, check writing, anti-money laundering services, and customer identification services.

Pursuant to written agreements, certain affiliates provide certain Portfolios with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these affiliates receive an annual fee per shareholder account which will vary depending on share class. For the six months ended March 31, 2008, the Portfolios paid the following fees in return for these services:

Capital Appreciation	$	10,327
Mid-Cap Value Equity		192,954
Mid-Cap Growth Equity		47,885
Aurora		388,426
Small/Mid-Cap Growth		120,495
Small Cap Value Equity		15,321
Small Cap Core Equity		27,673
Small Cap Growth Equity		182,035
Global Science & Technology Opportunities		21,190
Global Resources		47,174
All-Cap Global Resources		49,569
Health Sciences Opportunities		181,529
U.S. Opportunities		82,230
Global Opportunities		19,186
International Opportunities		166,406

PFPC and the Advisor act as co-administrators for the Fund. For these services, the co-administrators receive a combined administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of each Portfolio. The combined administration fee is paid at the following annual rates: 0.075% of the first $500 million, 0.065% of the next $500 million and 0.055% of average of daily net assets in excess of $1 billion. In addition, each of the share classes is charged an administration fee based on the following percentages of average daily net assets of each respective class: 0.025% of the first $500 million, 0.015% of the next $500 million and 0.005% of average of daily net assets in excess of $1 billion. In addition, PFPC and the Advisor may have, at their discretion, voluntarily waived all or any portion of their administration fees for the Portfolio or a share class.

The Portfolios have received an exemptive order from the Securities and Exchange Commission permitting it to lend portfolio securities to BlackRock Investment Management, LLC (“BIM”), an affiliate of the Advisor, or its affiliates. Pursuant to that order, the Portfolios have retained BIM as the securities lending agent for a fee based on a share of the returns on investment of cash collateral. BIM may, on behalf of the Portfolios, invest cash collateral received by the Portfolios for such loans, among other things, in a private investment company managed by the Advisor or in registered money market funds advised by the Advisor or its affiliates. The value of securities lent to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) or its affiliates and the securities lending agent fees received by BIM were as follows:

	Value of securities loans as of March 31, 2008		Securities lending agent fees for the period ended March 31, 2008
Capital Appreciation	$	993,300	$	14,413
Mid-Cap Value Equity		35,607,200		170,615
Mid-Cap Growth Equity		2,475,600		26,733
Aurora		72,010,650		265,855
Small/Mid-Cap Growth		—		15,191
Small Cap Value Equity		143,500		13,822
Small Cap Core Equity		—		22,249
Small Cap Growth Equity		35,533,150		158,950
Global Science & Technology Opportunities		—		892
Global Resources		28,363,300		149,865
All-Cap Global Resources		58,905,150		114,451
Health Sciences Opportunities		89,582,800		90,017
U.S. Opportunities		6,874,600		49,458
International Opportunities		—		2,222

SEMI-ANNUAL REPORT MARCH 31, 2008 133

Notes to Financial Statements (continued)

The Fund, on behalf of the Portfolios, has entered into a Distribution Agreement with BlackRock Distributors, Inc. (“BDI”). BDI is an affiliate of BlackRock, Inc. The Fund has also adopted a Distribution Plan on behalf of each Portfolio in accordance with Rule 12b-1 under the 1940 Act. Pursuant to the Distribution Plan the Portfolios pay the BDI ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows:

	Class Specific Fee Arrangement
Portfolio	Share Classes
	BlackRock				Institutional		Service				Investor A				Investor B				Investor C				R
	Contractual Fees (1)		Actual Fees (4)		Contractual Fees	Actual Fees (4)	Contractual Fees (1)		Actual Fees (4)		Contractual Fees (1)		Actual Fees (4)		Contractual Fees (2)		Actual Fees (4)		Contractual Fees (2)		Actual Fees (4)		Contractual Fees (3)		Actual Fees (4)
Capital Appreciation	N/A		N/A		None	None	N/A		N/A		0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Mid-Cap Value Equity	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Mid-Cap Growth Equity	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	0.50	%	0.50	%
Aurora	N/A		N/A		None	None	N/A		N/A		0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	0.50	%	0.50	%
Small/Mid-Cap Growth	N/A		N/A		None	None	N/A		N/A		0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	0.50	%	0.50	%
Small Cap Value Equity	0.25	%	0.25	%	None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Small Cap Core Equity	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Small Cap Growth Equity	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Global Science & Technology Opportunities	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Global Resources	N/A		N/A		None	None	N/A		N/A		0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
All-Cap Global Resources	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Health Sciences Opportunities	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
U.S. Opportunities	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
Global Opportunities	N/A		N/A		None	None	N/A		N/A		0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A
International Opportunities	N/A		N/A		None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%	N/A		N/A

(1) the maximum annual contractual fees are comprised of a 0.25% service fee.

(2) the maximum annual contractual fees are comprised of a 0.75% distribution fee and a 0.25% service fee.

(3) the maximum annual contractual fees are comprised of a 0.25% distribution fee and a 0.25% service fee.

(4) annualized; the actual fees are for the six months ended March 31, 2008.

For the six months ended March 31, 2008, the Portfolios paid to affiliates the following fees in return for distribution and sales support services:

Capital Appreciation	$	52,094
Mid-Cap Value Equity		401,066
Mid-Cap Growth Equity		84,968
Aurora		549,706
Small/Mid-Cap Growth		65,577
Small Cap Value Equity		33,135
Small Cap Core Equity		64,643
Small Cap Growth Equity		144,739
Global Science & Technology Opportunities		24,757
Global Resources		405,617
All-Cap Global Resources		264,419
Health Sciences Opportunities		870,353
U.S. Opportunities		176,957
Global Opportunities		31,296
International Opportunities		599,698

134 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

The Advisor maintains a call center, which is responsible for providing certain shareholder services to the Portfolios, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Portfolio shares. During the six months ended March 31, 2008, the following amounts have been accrued by each Portfolio to reimburse the Advisor for costs incurred running the call center, which are a component of the transfer agent fees in the accompanying Statements of Operations.

Call Center	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	1,104	$	—	$	14,954	$	8,328	$	827	$	—	$	25,213
Mid-Cap Value Equity		—		1,158		65		54,937		17,843		13,383		—		87,386
Mid-Cap Growth Equity		—		841		27		46,723		11,130		1,867		2		60,590
Aurora		—		1,600		—		71,323		41,981		20,660		13		135,577
Small/Mid-Cap Growth		—		374		—		19,485		5,017		1,629		12		26,517
Small Cap Value Equity		30		246		60		1,188		631		250		—		2,405
Small Cap Core Equity		—		840		227		4,833		1,059		2,591		—		9,550
Small Cap Growth Equity		—		5,867		445		13,363		1,076		2,785		—		23,536
Global Science & Technology Opportunities		—		172		28		4,176		1,350		766		—		6,492
Global Resources		—		692		—		23,649		6,140		5,057		—		35,538
All-Cap Global Resources		—		2,919		403		23,884		7,521		12,451		—		47,178
Health Sciences Opportunities		—		3,096		534		48,407		10,954		16,716		—		79,707
U.S. Opportunities		—		2,489		480		21,503		4,551		4,908		—		33,931
Global Opportunities		—		597		—		3,160		918		1,010		—		5,685
International Opportunities		—		6,741		2,122		27,034		6,061		9,647		—		51,605
For the six months ended March 31, 2008, the following charts show the various types of class-specific expenses borne directly by each class of each Portfolio and any associated waivers of those expenses.
Administration Fees	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	8,882	$	—	$	16,636	$	5,004	$	1,761	$	—	$	32,283
Mid-Cap Value Equity		—		16,422		388		69,409		12,966		19,569		—		118,754
Mid-Cap Growth Equity		—		7,975		85		32,210		4,781		2,327		50		47,428
Aurora		—		18,077		—		79,920		25,777		21,627		163		145,564
Small/Mid-Cap Growth		—		2,858		—		25,245		2,289		1,972		171		32,535
Small Cap Value Equity		433		3,096		240		2,682		445		385		—		7,281
Small Cap Core Equity		—		4,432		519		3,414		982		3,849		—		13,196
Small Cap Growth Equity		—		66,602		4,534		23,953		1,175		2,762		—		99,026
Global Science & Technology Opportunities		—		243		19		2,892		1,014		1,178		—		5,346
Global Resources		—		4,000		—		81,021		9,988		19,537		—		114,546
All-Cap Global Resources		—		75,610		479		45,812		7,257		27,340		—		156,498
Health Sciences Opportunities		—		22,061		938		77,113		11,660		45,333		—		157,105
U.S. Opportunities		—		20,647		8,239		34,349		3,590		12,418		—		79,243
Global Opportunities		—		4,957		—		5,274		984		2,438		—		13,653
International Opportunities		—		57,547		19,878		63,616		11,021		29,273		—		181,335

SEMI-ANNUAL REPORT MARCH 31, 2008 135

Notes to Financial Statements (continued)

Administration Fees Waived	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	8,881	$	—	$	—	$	2,010	$	—	$	—	$	10,891
Mid-Cap Value Equity		—		16,422		263		69,408		12,966		19,569		—		118,628
Mid-Cap Growth Equity		—		52		15		685		4,750		14		26		5,542
Aurora		—		18,077		—		72,868		25,606		21,430		108		138,089
Small/Mid-Cap Growth		—		2,858		—		25,094		2,289		1,961		120		32,322
Small Cap Value Equity		353		—		186		—		441		77		—		1,057
Small Cap Core Equity		—		2,981		105		1,597		619		1,333		—		6,635
Small Cap Growth Equity		—		—		818		—		51		15		—		884
Global Science & Technology Opportunities		—		243		18		2,879		1,007		12		—		4,159
Global Resources		—		1,056		—		—		6,857		—		—		7,913
All-Cap Global Resources		—		5		2		238		7,257		159		—		7,661
U.S. Opportunities		—		20,647		27		155		3,565		61		—		24,455
Global Opportunities		—		677		—		9		465		312		—		1,463
Transfer Agent Fees	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	10,227	$	—	$	150,371	$	75,136	$	10,752	$	—	$	246,486
Mid-Cap Value Equity		—		95,440		1,020		647,696		156,825		181,951		—		1,082,932
Mid-Cap Growth Equity		—		30,481		745		421,855		101,585		26,479		258		581,403
Aurora		—		191,784		—		892,816		361,907		229,270		1,168		1,676,945
Small/Mid-Cap Growth		—		53,554		—		257,607		45,864		23,645		3,736		384,406
Small Cap Value Equity		149		3,764		1,653		21,363		7,530		4,669		—		39,128
Small Cap Core Equity		—		12,475		1,370		40,958		11,914		39,262		—		105,979
Small Cap Growth Equity		—		208,257		35,429		154,361		20,221		38,625		—		456,893
Global Science & Technology Opportunities		—		2,101		218		32,426		19,711		10,907		—		65,363
Global Resources		—		19,681		—		391,161		56,083		63,654		—		530,579
All-Cap Global Resources		—		42,629		2,740		216,084		65,022		145,518		—		471,993
Health Sciences Opportunities		—		85,201		6,054		582,561		116,990		273,348		—		1,064,154
U.S. Opportunities		—		79,595		32,805		237,021		51,315		88,482		—		489,218
Global Opportunities		—		17,409		—		26,068		7,795		12,496		—		63,768
International Opportunities		—		132,528		98,137		315,625		73,594		151,035		—		770,919
Transfer Agent Fees Waived	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	1,104	$	—	$	—	$	1,372	$	—	$	—	$	2,476
Mid-Cap Value Equity		—		1,158		37		54,937		17,843		13,383		—		87,358
Mid-Cap Growth Equity		—		34		1		1,612		10,804		9		1		12,461
Aurora		—		1,600		—		46,962		40,828		18,969		8		108,367
Small/Mid-Cap Growth		—		385		—		18,954		4,921		1,583		8		25,851
Small Cap Value Equity		18		—		25		—		597		12		—		652
Small Cap Core Equity		—		397		34		1,236		406		626		—		2,699
Small Cap Growth Equity		—		—		25		—		8		121		—		154
Global Science & Technology Opportunities		—		169		28		4,065		1,308		—		—		5,570
Global Resources		—		147		—		—		1,854		—		—		2,001
All-Cap Global Resources		—		—		17		704		7,430		531		—		8,682
U.S. Opportunities		—		2,489		19		1,075		4,395		241		—		8,219
Global Opportunities		—		30		—		—		184		20		—		234

136 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

Transfer Agent Fees Reimbursed	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	9,089	$	—	$	—	$	500	$	—	$	—	$	9,589
Mid-Cap Value Equity		—		90,944		161		394,635		105,387		118,012		—		709,139
Mid-Cap Growth Equity		—		47		1		11		18,084		—		96		18,239
Aurora		—		135,242		—		60,295		102,265		29,166		640		327,608
Small/Mid-Cap Growth		—		33,260		—		65,359		24,976		8,525		2,693		134,813
Small Cap Value Equity		72		—		40		—		1,065		4		—		1,181
Small Cap Core Equity		—		2,822		97		4,228		890		2,385		—		10,422
Small Cap Growth Equity		—		—		180		—		—		66		—		246
Global Science & Technology Opportunities		—		1,770		79		8,947		5,821		—		—		16,617
Global Resources		—		594		—		—		331		—		—		925
All-Cap Global Resources		—		—		3		—		4,984		742		—		5,729
U.S. Opportunities		—		77,051		207		308		11,484		365		—		89,415
Global Opportunities		—		193		—		—		50		3		—		246

Service Fees	Share Classes
	BlackRock		Service		Investor A		Investor B		Investor C		R		Total
Capital Appreciation	$	—	$	—	$	166,050	$	50,015	$	17,611	$	—	$	233,676
Mid-Cap Value Equity		—		3,885		735,075		129,230		195,677		—		1,063,867
Mid-Cap Growth Equity		—		849		320,595		47,034		23,242		503		392,223
Aurora		—		—		911,596		257,259		216,018		1,634		1,386,507
Small/Mid-Cap Growth		—		—		251,824		22,805		19,721		1,714		296,064
Small Cap Value Equity		4,334		2,405		26,737		4,450		3,852		—		41,778
Small Cap Core Equity		—		5,187		34,132		9,820		38,452		—		87,591
Small Cap Growth Equity		—		35,911		239,342		11,742		27,621		—		314,616
Global Science & Technology Opportunities		—		185		28,887		10,121		11,778		—		50,971
Global Resources		—		—		931,681		99,783		195,294		—		1,226,758
All-Cap Global Resources		—		4,786		457,804		72,352		273,384		—		808,326
Health Sciences Opportunities		—		9,163		866,394		116,302		453,282		—		1,445,141
U.S. Opportunities		—		82,389		342,337		35,850		124,124		—		584,700
Global Opportunities		—		—		52,701		9,844		24,385		—		86,930
International Opportunities		—		198,758		647,488		110,120		292,697		—		1,249,063

Distribution Fees	Share Classes
	Investor B		Investor C		R		Total
Capital Appreciation	$	150,111	$	52,834	$	—	$	202,945
Mid-Cap Value Equity		388,975		587,032		—		976,007
Mid-Cap Growth Equity		143,424		69,640		503		213,567
Aurora		773,331		648,054		1,634		1,423,019
Small/Mid-Cap Growth		68,680		59,164		1,714		129,558
Small Cap Value Equity		13,349		11,555		—		24,904
Small Cap Core Equity		29,462		115,358		—		144,820
Small Cap Growth Equity		35,251		82,862		—		118,113
Global Science & Technology Opportunities		30,406		35,335		—		65,741
Global Resources		299,642		585,882		—		885,524
All-Cap Global Resources		217,694		820,152		—		1,037,846
Health Sciences Opportunities		349,799		1,359,846		—		1,709,645
U.S. Opportunities		107,700		372,372		—		480,072
Global Opportunities		29,532		73,155		—		102,687
International Opportunities		330,633		878,091		—		1,208,724

SEMI-ANNUAL REPORT MARCH 31, 2008 137

Notes to Financial Statements (continued)

The Advisor contractually agreed to waive or reimburse fees or expenses until February 1, 2009, in order to limit expenses. These expense limits apply to the aggregate expenses incurred on a share class (excluding; interest, taxes, brokerage commissions, expenses incurred as a result of investments in other funds and other expenses attributable to, and incurred as a result of, a Portfolio’s investments and other extraordinary expenses). This agreement is reviewed annually by the Board. The current expense limitations as a percentage of net assets are as follows:

	Share Classes
	BlackRock		Institutional		Service		Investor A		Investor B		Investor C		R
Capital Appreciation	N/A		0.70	%	1.35	%1	1.35	%	2.10	%	2.10	%	N/A
Mid-Cap Value Equity	N/A		0.94	%	1.25	%	1.25	%	2.00	%	2.00	%	N/A
Mid-Cap Growth Equity	N/A		1.23	%	1.53	%	1.58	%	2.33	%	2.33	%	1.60	%
Aurora	N/A		1.05	%	1.44	%1	1.44	%	2.19	%	2.19	%	1.60	%
Small/Mid-Cap Growth	N/A		1.10	%	1.35	%1	1.35	%	2.10	%	2.10	%	1.63	%
Small Cap Value Equity	1.10	%	0.97	%	1.27	%	1.44	%	2.19	%	2.19	%	N/A
Small Cap Core Equity	N/A		1.30	%	1.60	%	1.77	%	2.52	%	2.52	%	N/A
Small Cap Growth Equity	N/A		0.99	%	1.29	%	1.46	%	2.21	%	2.21	%	N/A
Global Science & Technology Opportunities	N/A		1.35	%	1.73	%	1.75	%	2.65	%	2.65	%	N/A
Global Resources	N/A		1.04	%	1.34	%1	1.34	%	2.04	%	2.04	%	N/A
All-Cap Global Resources	N/A		0.93	%	1.34	%	1.34	%	2.04	%	2.04	%	N/A
Health Sciences Opportunities	N/A		1.25	%	1.55	%	1.55	%	2.25	%	2.25	%	N/A
U.S. Opportunities	N/A		1.00	%	1.60	%	1.60	%	2.25	%	2.25	%	N/A
Global Opportunities	N/A		1.35	%	1.65	%1	1.65	%	2.40	%	2.40	%	N/A
International Opportunities	N/A		1.45	%	1.75	%	1.92	%	2.67	%	2.67	%	N/A

¹ There were no shares outstanding as of March 31, 2008.

If operating expenses within two years following a waiver or reimbursement of the operating expenses of a share class that previously received a waiver or reimbursement from the Advisor, are less than the expense limit for that share class, the share class is required to repay the Advisor up to the amount of fees waived or expenses reimbursed under the agreement if: (1) the Portfolio has more than $50 million in assets, (2) the Advisor or an affiliate continues to be the Portfolio’s investment advisor or administrator and (3) the Board has approved the payments to the Advisor at the previous quarterly meeting.

At March 31, 2008, the amounts subject to possible future reimbursement under the expense limitation agreement are as follows:

	Expiring January 31,
	2009		2010		2011
Capital Appreciation	$	—	$	200,876	$	22,077
Mid-Cap Value Equity		—		1,831,805		330,872
Mid Cap Growth Equity		—		157,137		9,089
Aurora		—		805,630		169,198
Small/Mid Cap Growth		—		477,871		67,136
Small Cap Value Equity		15,969		13,841		12,758
Small Cap Core Equity		45,835		54,375		15,843
Small Cap Growth Equity		28,413		16,894		—
Global Science & Technology Opportunities		109,289		120,153		18,773
Global Resources		—		55,847		349
All Cap Global Resources		131,783		268,738		6,231
Health Sciences Opportunities		—		18,972		—
U.S. Opportunities		427,587		1,134,428		239,509
Global Opportunities		263,545		51,967		1,083
International Opportunities		—		13,266		—

The following waivers previously recorded by the Portfolios, which were subject to recoupment by the Advisor expired on January 31, 2008:

Small Cap Value Equity	$	24,977
Small Cap Core Equity		73,554
Global Science & Technology Opportunities		95,323
All-Cap Global Resources		303,884
U.S. Opportunities		8,580
International Opportunities		81,759

For the six months ended March 31, 2008, Merrill Lynch, through its affiliated broker dealer, MLPF&S, earned commissions on transactions of securities as follows:

Mid-Cap Value	$	23,445
Mid-Cap Growth		138
Aurora		2,320
Small Cap Value		68
Small Cap Core		360
Small Cap Growth		734
Global Science & Technology Opportunities		125
Global Resources		24,453
All-Cap Global Resources		9,659
Health Sciences Opportunities		29,617
U.S. Opportunities		8,560
Global Opportunities		1,722
International Opportunities		19,716

For the six months ended March 31, 2008, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Portfolios’ Investor A shares as follows:

Capital Appreciation	$	1,696
Mid-Cap Value		14,694
Mid-Cap Growth		6,013
Aurora		9,860
Small/Mid-Cap Growth		2,015
Small Cap Value		478
Small Cap Core		6,831
Small Cap Growth		15,879
Global Science & Technology Opportunities		19,979

138 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

Global Resources	$	51,923
All-Cap Global Resources		84,528
Health Sciences Opportunities		55,311
U.S. Opportunities		79,396
Global Opportunities		30,354
International Opportunities		67,449

For the six months ended March 31, 2008, affiliates received the following contingent deferred sales charges relating to transactions in Investor A, Investor B and Investor C shares:

	Investor A		Investor B		Investor C
Capital Appreciation	$	1,576	$	8,611	$	607
Mid-Cap Value		2,267		49,359		12,872
Mid-Cap Growth		41		25,108		678
Aurora		3,949		103,483		4,337
Small/Mid-Cap Growth		—		10,442		1,168
Small Cap Value		—		2,488		28
Small Cap Core		149		9,985		6,430
Small Cap Growth		—		9,263		1,990
Global Science & Technology Opportunities		100		7,133		2,382
Global Resources		1,221		35,319		11,397
All-Cap Global Resources		2,952		80,784		21,145
Health Sciences Opportunities		2,015		91,905		30,987
U.S. Opportunities		—		15,858		18,669
Global Opportunities		259		5,946		1,875
International Opportunities		242		50,070		6,496

The Portfolios may earn income on positive cash balances in demand deposit accounts that are maintained by PFPC on behalf of the Portfolios. The income earned for the six months ended March 31, 2008, was as follows:

Capital Appreciation	$	2,875
Mid-Cap Value Equity		8,404
Mid-Cap Growth Equity		6,783
Aurora		13,100
Small/Mid-Cap Growth		2,376
Small Cap Value Equity		251
Small Cap Core Equity		1,198
Small Cap Growth Equity		2,877
Global Science & Technology Opportunities		697
Global Resources		3,892
All-Cap Global Resources		5,468
Health Sciences Opportunities		9,399
U.S. Opportunities		4,356
Global Opportunities		693
International Opportunities		5,748

The Portfolios may also receive earnings credits related to cash balances with PFPC which are shown on the Statements of Operations as fees paid indirectly.

In December 2007, the Advisor determined that the Aurora Portfolio violated a fundamental investment policy. The Portfolio purchased securities representing over 5% of the value of the Portfolio’s total net assets resulting in the Portfolio’s having over 5% of its value invested in securities that derive more than 15% of its gross revenues from securities related activities. The Portfolio sold the securities and the Advisor reimbursed the Portfolio $139,965, for the realized losses incurred from the date of the violation (October 29, 2007) through the date of the disposition (December 3, 2007).

In March 2008, the Advisor determined that the International Opportunities Portfolio violated a fundamental investment policy. The Portfolio purchased shares in a registered investment company (“RIC”) representing over 3% of the total outstanding voting stock of the acquired RIC. The Portfolio sold a portion of its holdings to reduce its ownership to below the 3% level and the Advisor reimbursed the Portfolio $112,880 for the realized losses incurred from the date of the violation (March 7, 2008) through the date of the disposition (March 10, 2008).

During the six months ended March 31, 2008, the following Portfolios received reimbursements from an affiliate, which are included in capital share transactions on the Statements of Changes in Net Assets, relating to processing errors. The amounts of the reimbursements to the Portfolios were:

Aurora	$	52,054
Global Resources		132
Health Sciences Opportunities		245

Certain officers and/or trustees of the Portfolios are officers and/or trustees/directors of BlackRock, Inc. or its affiliates.

3. Investments:

For the six months ended March 31, 2008, purchases and sales of securities including paydowns, but excluding short-term investments, dollar rolls securities, were as follows:

	Purchases		Sales
Capital Appreciation	$	120,488,863	$	112,934,963
Mid-Cap Value Equity		522,919,163		513,647,203
Mid-Cap Growth Equity		76,128,658		138,117,674
Aurora		722,022,297		987,455,013
Small/Mid-Cap Growth		83,091,707		113,343,667
Small Cap Value Equity		27,597,662		36,891,900
Small Cap Core Equity		48,557,928		38,389,531
Small Cap Growth Equity		503,875,556		408,636,050
Global Science & Technology Opportunities		28,325,064		22,073,453
Global Resources		191,034,277		218,961,201
All-Cap Global Resources		192,746,441		262,847,524
Health Sciences Opportunities		478,849,851		545,155,612
U.S. Opportunities		599,452,333		396,809,876
Global Opportunities		91,428,101		77,736,957
International Opportunities		697,614,090		814,549,229

Written options transactions entered into during the six months ended March 31, 2008 are summarized as follows:

Mid-Cap Value	Contracts		Premium
Balance at 9/30/07	(900	)	$	(94,699	)
Written	(3,450	)		(567,776	)
Expired	1,950			143,323
Closed	1,400			468,192
Balance at 3/31/08	(1,000	)	$	(50,960	)

SEMI-ANNUAL REPORT MARCH 31, 2008 139

Notes to Financial Statements (continued)

Global Resources	Contracts		Premium
Balance at 9/30/07	(69,005,000	)	$	(873,123	)
Written	—			—
Expired	69,005,000			873,123
Closed	—			—
Balance at 3/31/08	—		$	—
Health Sciences Opportunities	Contracts		Premium
Balance at 9/30/07	—		$	—
Written	(45,380	)		(8,681,139	)
Expired	21,704			3,839,894
Closed	18,044			4,080,537
Exercised	4,632			578,710
Balance at 3/31/08	(1,000	)	$	(181,998	)

4. Capital Shares:

Transactions in capital shares for each period were as follows:

	Capital Appreciation
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	708,985		$	12,314,199		1,131,626		$	18,579,733
Service	—			—		1,391			20,000
Investor A	1,321,849			22,327,627		1,628,140			25,861,222
Investor B	53,226			846,109		64,995			949,613
Investor C	36,128			575,634		50,636			745,861
Shares redeemed:
Institutional	(259,595	)		(4,719,546	)	(457,378	)		(7,448,295	)
Service	—			—		(1,399	)		(24,569	)
Investor A	(633,367	)		(10,635,068	)	(1,927,401	)		(30,114,884	)
Investor B	(945,553	)		(14,713,721	)	(2,354,951	)		(34,680,383	)
Investor C	(94,100	)		(1,485,990	)	(383,786	)		(5,565,387	)
Net increase (decrease)	187,573		$	4,509,244		(2,248,127	)	$	(31,677,089	)
	Mid-Cap Value Equity
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	4,368,228		$	54,100,978		10,083,439		$	141,522,808
Service	18,570			226,048		75,815			1,035,731
Investor A	10,103,003			118,879,498		14,509,450			200,736,983
Investor B	167,109			1,892,314		742,774			9,476,342
Investor C	1,346,683			14,987,835		3,766,671			48,195,337
Shares issued in reinvestment of dividends:
Institutional	1,138,852			13,745,953		740,473			9,803,964
Service	31,430			374,021		32,447			424,084
Investor A	6,308,452			74,187,437		5,006,059			64,778,402
Investor B	1,233,902			13,350,825		1,293,371			15,546,349
Investor C	1,839,018			19,843,041		1,484,811			17,817,698
Shares redeemed:
Institutional	(3,153,968	)		(39,946,984	)	(7,315,208	)		(104,074,320	)
Service	(63,498	)		(811,848	)	(77,533	)		(1,073,163	)
Investor A	(9,446,181	)		(113,530,951	)	(10,859,028	)		(149,907,994	)
Investor B	(1,827,061	)		(19,981,106	)	(2,723,052	)		(34,782,138	)
Investor C	(2,473,350	)		(27,347,567	)	(2,810,110	)		(35,915,929	)
Net increase	9,591,189		$	109,969,494		13,950,379		$	183,584,154

140 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

	Mid-Cap Growth Equity
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	787,827		$	10,386,177		4,509,440		$	55,588,735
Service	2,957			37,410		9,667			160,097
Investor A	773,811			9,132,975		1,016,721			11,492,570
Investor B	69,460			756,539		173,450			1,754,126
Investor C	82,761			897,676		252,108			2,678,468
R	80,755			988,734		2,038			20,225
Shares redeemed:
Institutional	(3,781,281	)		(46,885,391	)	(5,925,671	)		(72,232,265	)
Service	(5,684	)		(70,147	)	(28,136	)		(320,512	)
Investor A	(1,590,035	)		(19,209,669	)	(4,915,575	)		(54,782,162	)
Investor B	(891,079	)		(9,448,175	)	(1,672,378	)		(16,976,514	)
Investor C	(210,815	)		(2,302,011	)	(452,352	)		(4,558,838	)
R	(19,677	)		(230,820	)	(22	)		(227	)
Net decrease	(4,701,000	)	$	(55,946,702	)	(7,030,710	)	$	(77,176,297	)
	Aurora
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	1,081,542		$	26,025,323		4,252,063		$	131,119,757
Service	—			—		932			30,052
Investor A	1,947,316			43,226,384		4,410,428			129,892,533
Investor B	103,195			1,823,504		293,125			7,330,857
Investor C	179,765			3,062,036		310,764			7,777,720
R	27,625			664,083		42,492			1,227,475
Shares issued in reinvestment of dividends:
Institutional	1,230,613			30,780,480		1,321,669			38,724,902
Service	—			—		2			68
Investor A	7,085,611			162,349,475		12,269,201			335,808,106
Investor B	2,853,258			52,471,586		4,483,647			103,348,590
Investor C	2,341,054			43,226,520		3,691,736			85,094,619
R	12,134			281,248		0			0
Shares redeemed:
Institutional	(2,264,080	)		(53,610,843	)	(4,204,960	)		(136,807,815	)
Service	—			—		(939	)		(27,016	)
Investor A	(8,270,458	)		(186,445,703	)	(19,963,549	)		(591,165,011	)
Investor B	(2,814,056	)		(51,578,261	)	(4,817,135	)		(121,149,485	)
Investor C	(2,325,657	)		(42,874,421	)	(4,294,158	)		(110,299,769	)
R	(9,749	)		(219,431	)	(2,724	)		(76,971	)
Net increase (decrease)	1,178,113		$	29,181,980		(2,207,406	)	$	(119,171,388	)

SEMI-ANNUAL REPORT MARCH 31, 2008 141

Notes to Financial Statements (continued)

	Small/Mid-Cap Growth
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	233,193		$	3,631,817		385,438		$	6,471,922
Service	—			—		1,379			20,054
Investor A	1,729,170			24,886,023		3,942,077			64,669,736
Investor B	27,119			338,321		82,922			1,159,711
Investor C	157,535			1,851,208		160,361			2,222,906
R	67,440			958,673		64,832			1,060,326
Shares issued in reinvestment of dividends:
Institutional	242,216			3,611,441		73,069			1,155,953
Service	—			—		1			9
Investor A	2,499,681			34,895,558		728,615			10,907,333
Investor B	281,241			3,369,266		97,425			1,285,043
Investor C	231,789			2,781,470		74,172			980,547
R	16,009			221,880		—			—
Shares redeemed:
Institutional	(485,278	)		(7,883,182	)	(517,620	)		(8,721,717	)
Service	—			—		(1,388	)		(23,933	)
Investor A	(2,656,035	)		(37,609,893	)	(6,200,400	)		(98,924,391	)
Investor B	(310,848	)		(3,805,937	)	(543,911	)		(7,591,746	)
Investor C	(182,993	)		(2,234,116	)	(405,776	)		(5,683,598	)
R	(17,973	)		(255,243	)	(2,495	)		(42,446	)
Net increase (decrease)	1,832,266		$	24,757,286		(2,061,299	)	$	(31,054,291	)
	Small Cap Value Equity
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
BlackRock	67		$	650		2,313		$	31,882
Institutional	657,261			6,462,462		2,203,931			27,232,170
Service	25,262			240,014		108,832			1,308,950
Investor A	109,269			970,947		265,906			3,132,937
Investor B	6,808			52,984		14,373			144,073
Investor C	9,941			73,381		8,943			87,724
Shares issued in reinvestment of dividends:
BlackRock	56,693			560,131		83,414			980,112
Institutional	94,196			930,649		540,715			6,358,811
Service	17,735			170,432		73,115			840,090
Investor A	378,470			3,599,259		523,955			5,962,612
Investor B	89,449			687,868		168,042			1,599,759
Investor C	75,079			575,118		97,716			929,291
Shares redeemed:
BlackRock	(106,036	)		(1,255,000	)	(12	)		(147	)
Institutional	(486,614	)		(4,864,887	)	(3,086,826	)		(37,936,509	)
Service	(23,328	)		(207,534	)	(288,316	)		(3,370,071	)
Investor A	(493,834	)		(4,790,952	)	(673,211	)		(7,906,070	)
Investor B	(159,757	)		(1,201,504	)	(364,861	)		(3,613,505	)
Investor C	(72,657	)		(549,188	)	(136,195	)		(1,391,808	)
Net increase (decrease)	178,004		$	1,454,830		(458,166	)	$	(5,609,699	)

142 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

	Small Cap Core Equity
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	792,576		$	14,512,534		964,252		$	20,076,507
Service	37,993			671,980		107,584			2,177,427
Investor A	408,499			7,412,769		617,262			12,489,365
Investor B	36,864			631,770		78,050			1,537,875
Investor C	323,090			5,740,326		481,288			9,560,770
Shares issued in reinvestment of dividends:
Institutional	144,345			2,634,283		18,955			373,227
Service	7,808			141,645		1,116			21,864
Investor A	114,911			2,066,088		16,263			315,990
Investor B	32,803			575,047		7,039			133,515
Investor C	132,854			2,323,753		21,846			414,639
Shares redeemed:
Institutional	(276,939	)		(5,065,613	)	(700,937	)		(14,155,104	)
Service	(55,086	)		(1,010,933	)	(26,289	)		(536,623	)
Investor A	(334,226	)		(6,055,498	)	(387,759	)		(7,814,097	)
Investor B	(85,902	)		(1,474,342	)	(108,386	)		(2,115,625	)
Investor C	(272,974	)		(4,621,764	)	(352,132	)		(6,879,684	)
Net increase	1,006,616		$	18,482,045		738,152		$	15,600,046
	Small Cap Growth Equity
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	13,201,664		$	298,561,130		14,091,075		$	316,995,355
Service	269,359			5,828,625		1,037,036			22,144,111
Investor A	2,505,889			53,432,989		3,319,482			68,051,019
Investor B	41,258			801,891		90,371			1,638,463
Investor C	213,442			4,039,055		396,856			7,224,508
Shares redeemed:
Institutional	(8,765,440	)		(206,094,290	)	(11,425,758	)		(257,326,360	)
Service	(124,098	)		(2,674,526	)	(882,605	)		(18,814,163	)
Investor A	(1,451,402	)		(31,324,397	)	(4,535,038	)		(95,253,392	)
Investor B	(148,750	)		(2,705,746	)	(230,670	)		(4,194,019	)
Investor C	(112,380	)		(2,093,931	)	(253,979	)		(4,646,373	)
Net increase	5,629,542		$	117,770,800		1,606,770		$	35,819,149

SEMI-ANNUAL REPORT MARCH 31, 2008 143

Notes to Financial Statements (continued)

	Global Science & Technology Opportunities
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	152,770		$	1,348,412		129,275		$	1,015,022
Service	6,152			54,000		5,656			45,500
Investor A	1,726,278			13,661,867		1,259,321			9,878,275
Investor B	82,408			643,894		121,861			885,132
Investor C	158,172			1,258,113		717,628			5,212,904
Shares redeemed:
Institutional	(82,432	)		(679,730	)	(144,018	)		(1,121,471	)
Service	(2,553	)		(19,751	)	(12,746	)		(94,398	)
Investor A	(876,096	)		(7,203,514	)	(647,942	)		(4,889,399	)
Investor B	(213,475	)		(1,639,471	)	(595,194	)		(4,274,956	)
Investor C	(188,707	)		(1,407,658	)	(512,221	)		(3,661,546	)
Net increase	762,517		$	6,016,162		321,620		$	2,995,063
	Global Resources
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	250,569		$	16,138,298		107,709		$	6,809,549
Investor A	2,008,961			118,603,032		2,310,679			132,240,360
Investor B	68,234			3,385,129		131,472			6,263,188
Investor C	293,229			14,743,955		233,977			11,701,273
Shares issued in reinvestment of dividends:
Institutional	44,167			2,677,417		148,201			8,557,075
Investor A	1,758,021			98,309,000		3,358,743			180,834,342
Investor B	237,561			11,255,908		432,847			20,209,647
Investor C	476,747			22,536,947		828,192			38,643,668
Shares redeemed:
Institutional	(284,696	)		(19,787,578	)	(175,214	)		(10,623,742	)
Investor A	(1,803,551	)		(105,692,741	)	(4,582,767	)		(258,498,908	)
Investor B	(292,677	)		(14,863,345	)	(494,294	)		(23,875,998	)
Investor C	(358,624	)		(17,542,364	)	(765,173	)		(38,702,220	)
Net Increase	2,397,941		$	129,763,658		1,534,372		$	73,558,234

144 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

	All-Cap Global Resources
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	4,945,049		$	100,735,290		9,927,422		$	155,386,527
Service	53,968			1,093,305		85,700			1,364,577
Investor A	2,335,337			47,162,645		6,090,574			95,782,046
Investor B	235,585			4,653,123		502,744			7,975,803
Investor C	1,203,232			23,648,520		3,313,554			52,091,379
Shares issued in reinvestment of dividends:
Institutional	838,728			16,866,827		625,701			9,760,937
Service	3,119			62,171		3,489			54,010
Investor A	358,961			7,154,105		404,691			6,260,400
Investor B	46,265			909,112		73,581			1,123,569
Investor C	188,487			3,705,692		248,771			3,801,210
Shares redeemed:
Institutional	(3,449,906	)		(70,681,242	)	(4,082,144	)		(64,114,699	)
Service	(18,261	)		(364,381	)	(82,364	)		(1,256,285	)
Investor A	(2,434,285	)		(48,495,665	)	(6,456,013	)		(99,358,821	)
Investor B	(330,053	)		(6,495,016	)	(824,608	)		(12,570,778	)
Investor C	(1,475,612	)		(28,745,150	)	(2,571,436	)		(39,014,751	)
Net increase	2,500,614		$	51,209,336		7,259,662		$	117,285,124
	Health Sciences Opportunities
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	1,117,391		$	34,319,755		2,652,938		$	73,240,733
Service	28,491			838,579		146,215			4,003,506
Investor A	2,653,396			78,859,100		12,029,609			326,011,610
Investor B	185,823			5,317,719		701,810			18,093,155
Investor C	1,670,409			47,975,639		4,662,549			120,324,076
Shares issued in reinvestment of dividends:
Institutional	208,481			6,450,394		56,271			1,496,805
Service	9,591			291,761		2,584			67,612
Investor A	788,663			23,935,929		213,260			5,568,206
Investor B	88,138			2,556,891		42,992			1,073,488
Investor C	185,106			5,358,829		71,871			1,792,457
Shares redeemed:
Institutional	(1,158,450	)		(34,675,191	)	(1,322,913	)		(36,368,909	)
Service	(65,213	)		(1,906,238	)	(55,912	)		(1,511,050	)
Investor A	(4,174,182	)		(121,497,758	)	(5,702,448	)		(154,261,812	)
Investor B	(400,139	)		(11,329,306	)	(577,497	)		(14,976,773	)
Investor C	(2,252,741	)		(63,223,084	)	(2,210,886	)		(56,979,482	)
Net increase (decrease)	(1,115,236	)	$	(26,726,981	)	10,710,443		$	287,573,622

SEMI-ANNUAL REPORT MARCH 31, 2008 145

Notes to Financial Statements (continued)

	U.S. Opportunities
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	1,315,613		$	47,296,029		4,219,830		$	140,879,893
Service	1,553,058			54,571,718		1,237,974			42,170,871
Investor A	3,877,800			135,388,159		4,511,775			145,396,928
Investor B	154,164			5,050,790		279,440			8,308,268
Investor C	1,129,137			36,571,787		1,487,039			44,530,359
Shares redeemed:
Institutional	(543,732	)		(19,389,874	)	(659,811	)		(22,390,949	)
Service	(320,054	)		(10,948,409	)	(72,552	)		(2,451,174	)
Investor A	(967,593	)		(33,176,149	)	(1,514,144	)		(48,692,644	)
Investor B	(531,006	)		(17,188,349	)	(566,285	)		(17,226,837	)
Investor C	(322,013	)		(10,197,249	)	(306,488	)		(9,229,010	)
Net increase	5,345,374		$	187,978,453		8,616,778		$	281,295,705
	Global Opportunities
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	1,091,892		$	13,778,187		2,617,422		$	31,249,421
Service	—			—		1,984			20,013
Investor A	843,605			10,516,743		1,299,421			15,413,998
Investor B	94,015			1,196,218		177,835			2,051,505
Investor C	535,527			6,714,767		618,436			7,153,639
Shares issued in reinvestment of dividends:
Institutional	52,175			655,316		2,610			28,474
Service	—			—		—			1
Investor A	138,764			1,741,483		12,984			141,531
Investor B	17,440			218,352		1,622			17,601
Investor C	41,450			518,953		3,093			33,589
Shares redeemed:
Institutional	(329,653	)		(4,065,995	)	(840,104	)		(10,526,865	)
Service	—			—		(2,994	)		(39,583	)
Investor A	(392,535	)		(4,802,753	)	(554,008	)		(6,422,507	)
Investor B	(61,335	)		(734,659	)	(85,427	)		(996,859	)
Investor C	(249,568	)		(3,059,391	)	(235,038	)		(2,705,934	)
Net increase	1,781,777		$	22,677,221		3,017,836		$	35,418,024

146 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (concluded)

	International Opportunities
	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	2,121,533		$	90,322,431		5,437,594		$	249,562,876
Service	256,371			10,343,468		558,336			24,349,747
Investor A	2,251,078			89,942,897		2,798,164			121,132,644
Investor B	72,300			2,644,192		102,178			4,163,593
Investor C	513,515			18,576,557		392,127			16,203,950
Shares issued in reinvestment of dividends:
Institutional	1,290,442			54,624,699		985,017			40,563,000
Service	664,200			27,165,771		463,687			18,561,373
Investor A	2,080,883			84,442,326		1,428,033			56,793,130
Investor B	403,239			15,379,610		332,037			12,540,780
Investor C	1,055,533			40,132,456		784,968			29,585,553
Shares redeemed:
Institutional	(1,717,052	)		(71,427,844	)	(4,753,218	)		(217,957,963	)
Service	(577,208	)		(22,492,770	)	(684,419	)		(29,971,638	)
Investor A	(2,028,755	)		(82,943,385	)	(2,917,616	)		(127,250,785	)
Investor B	(716,376	)		(26,162,178	)	(584,189	)		(24,143,077	)
Investor C	(770,004	)		(28,602,107	)	(963,705	)		(39,597,188	)
Net increase	4,899,699		$	201,946,123		3,378,994		$	134,535,995

There is a 2% redemption fee on shares of certain Portfolios redeemed or exchanged which have been held for 30 days or less. The redemption fees are collected and retained by the Portfolio for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid-in capital.

5. Short-Term Borrowings:

The Portfolios, along with certain other funds managed by the Advisor and its affiliates, is a party to a $500,000,000 credit agreement with a group of lenders. The Portfolios may borrow under the credit agreement to fund shareholder redemptions and for other lawful purposes other than for leverage. Each Portfolio may borrow up to the maximum amount allowable under the Portfolio’s current Prospectus and Statement of Additional Information, subject to various other legal, regulatory or contractual limits. On November 21, 2007, the credit agreement was renewed for one year under substantially the same terms. The Portfolios pay a commitment fee of 0.06% per annum based on the Portfolio’s pro rata share of the unused portion of the credit agreement, which is included in miscellaneous expenses in the Statements of Operations. Amounts borrowed under the credit agreement bear interest at a rate equal to, at the Portfolio’s election, the federal funds rate plus 0.35% or a base rate as defined in the credit agreement. The Portfolios did not borrow under the credit agreement during the six months ended March 31, 2008.

6. Capital Loss Carryforward:

As of September 30, 2007, the Portfolios had a capital loss carryforward available to offset future realized capital gains through the indicated expiration dates:

	Expiring September 30,
	2009		2010		2011		Total
Capital Appreciation	$	—	$	43,188,684	$	18,377,786	$	61,566,470
Mid-Cap Growth Equity		49,835,110		101,417,616		16,297,623		167,550,349
Small Cap Growth Equity		—		367,125,515		104,987,092		472,112,607
Global Science & Technology Opportunities		545,731		72,072,910		—		72,618,641
U.S. Opportunities		—		42,365,587		16,513,511		58,879,098

7. Market Risk:

The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Portfolios may be inhibited. In addition, a significant proportion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Portfolios.

8. Plan of Reorganization:

On February 26, 2008, the Board approved a plan of reorganization, subject to shareholder approval and certain other conditions, whereby Global Science & Technology Opportunities will acquire substantially all of the assets and assume certain stated liabilities of BlackRock Technology Fund, Inc. in exchange for newly issued shares of Global Science & Technology Opportunities.

SEMI-ANNUAL REPORT MARCH 31, 2008 147

Officers and Trustees

David O. Beim, Trustee	Investment Advisor and Co-Administrator
Richard S. Davis, Trustee	BlackRock Advisors, LLC
Ronald W. Forbes, Trustee	Wilmington, DE 19809
Henry Gabbay, Trustee
Dr. Matina Horner, Trustee	Sub-Advisor — International Opportunities Portfolio
Rodney D. Johnson, Trustee	BlackRock International, Ltd.
Herbert I. London, Trustee	Edinburgh, Scotland EH3 8JB
Cynthia A. Montgomery, Trustee
Joseph P. Platt, Jr., Trustee	Sub-Advisor — Global Opportunities Portfolio
Robert C. Robb, Jr., Trustee	BlackRock Financial Management, Inc.
Toby Rosenblatt, Trustee	New York, NY 10022
Kenneth L. Urish, Trustee
Frederick W. Winter, Trustee	Custodian
Donald C. Burke, President and Chief Executive Officer	PFPC Trust Company
Anne F. Ackerley, Vice President	Philadelphia, PA 19153
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer	Co-Administrator and Transfer Agent
Brian P. Kindelan, Chief Compliance Officer	PFPC Inc.
Howard Surloff, Secretary	Wilmington, DE 19809
	Distributor
	BlackRock Distributors, Inc.
	King of Prussia, PA 19406
	Legal Counsel
	Sidley Austin LLP
	New York, NY 10019
	Independent Registered Public Accounting Firm
	Deloitte & Touche LLP
	Philadelphia, PA 19103

148 SEMI-ANNUAL REPORT MARCH 31, 2008

Additional Information (Unaudited)

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 information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal 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 applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to 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 procedures relating to the proper storage and disposal of such information.

Availability of Additional Information

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly With BlackRock

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Click on the applicable link and follow the steps to sign up

3) Log into your account

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Fund at (800) 441-7762.

SEMI-ANNUAL REPORT MARCH 31, 2008 149

Additional Information (concluded)

Availability of Additional Information (concluded)

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request by calling (800) 441-7762; (2) at www.blackrock.com; (3) on the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Availability of Proxy Voting Record

Information (if any) on how proxies relating to the Fund’s voting securities were voted by BlackRock during the most recent 12-month period ended June 30th is available, upon request and without charge on our website at www.blackrock.com, by calling (800) 441-7762 or on the SEC’s website at http://www.sec.gov.

Availability of Quarterly Portfolio Schedule

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http:// www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock portfolios.

Systematic Withdrawal Plan

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock portfolios, as long as their account is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRA’s, SEP IRA’s and 403(b) Plans.

150 SEMI-ANNUAL REPORT MARCH 31, 2008

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds
BlackRock All-Cap Global Resources Portfolio	BlackRock Global Opportunities Portfolio	BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Asset Allocation Portfolio†	BlackRock Global Resources Portfolio	BlackRock Mid-Cap Value Equity Portfolio
BlackRock Aurora Portfolio	BlackRock Global Science & Technology Opportunities Portfolio	BlackRock Mid Cap Value Opportunities Fund
BlackRock Balanced Capital Fund†		BlackRock Natural Resources Trust
BlackRock Basic Value Fund	BlackRock Global SmallCap Fund	BlackRock Pacific Fund
BlackRock Capital Appreciation Portfolio	BlackRock Health Sciences Opportunities Portfolio*	BlackRock Small Cap Core Equity Portfolio
BlackRock Equity Dividend Fund	BlackRock Healthcare Fund	BlackRock Small Cap Growth Equity Portfolio
BlackRock EuroFund	BlackRock Index Equity Portfolio*	BlackRock Small Cap Growth Fund II
BlackRock Focus Growth Fund	BlackRock International Fund	BlackRock Small Cap Index Fund
BlackRock Focus Value Fund	BlackRock International Index Fund	BlackRock Small Cap Value Equity Portfolio*
BlackRock Fundamental Growth Fund	BlackRock International Opportunities Portfolio	BlackRock Small/Mid-Cap Growth Portfolio
BlackRock Global Allocation Fund†	BlackRock International Value Fund	BlackRock S&P 500 Index Fund
BlackRock Global Dynamic Equity Fund	BlackRock Large Cap Core Fund	BlackRock Technology Fund
BlackRock Global Emerging Markets Fund	BlackRock Large Cap Growth Fund	BlackRock U.S. Opportunities Portfolio
BlackRock Global Financial Services Fund	BlackRock Large Cap Value Fund	BlackRock Utilities and Telecommunications Fund
BlackRock Global Growth Fund	BlackRock Latin America Fund	BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Commodity Strategies Fund	BlackRock Income Builder Portfolio	BlackRock Low Duration Bond Portfolio
BlackRock Emerging Market Debt Portfolio	BlackRock Inflation Protected Bond Portfolio	BlackRock Managed Income Portfolio
BlackRock Enhanced Income Portfolio	BlackRock Intermediate Bond Portfolio II	BlackRock Short-Term Bond Fund
BlackRock GNMA Portfolio	BlackRock Intermediate Government Bond Portfolio	BlackRock Strategic Income Portfolio
BlackRock Government Income Portfolio		BlackRock Total Return Fund
BlackRock High Income Fund	BlackRock International Bond Portfolio	BlackRock Total Return Portfolio II
BlackRock High Yield Bond Portfolio	BlackRock Long Duration Bond Portfolio	BlackRock World Income Fund
BlackRock Income Portfolio
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio	BlackRock Intermediate Municipal Fund	BlackRock New York Municipal Bond Fund
BlackRock California Insured Municipal Bond Fund	BlackRock Kentucky Municipal Bond Portfolio	BlackRock Ohio Municipal Bond Portfolio
BlackRock Delaware Municipal Bond Portfolio	BlackRock Municipal Insured Fund	BlackRock Pennsylvania Municipal Bond Fund
BlackRock Florida Municipal Bond Fund	BlackRock National Municipal Fund	BlackRock Short-Term Municipal Fund
BlackRock High Yield Municipal Fund	BlackRock New Jersey Municipal Bond Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios	BlackRock Lifecycle Prepared Portfolios
Conservative Prepared Portfolio	Prepared Portfolio 2010	Prepared Portfolio 2030
Moderate Prepared Portfolio	Prepared Portfolio 2015	Prepared Portfolio 2035
Growth Prepared Portfolio	Prepared Portfolio 2020	Prepared Portfolio 2040
Aggressive Growth Prepared Portfolio	Prepared Portfolio 2025	Prepared Portfolio 2045
		Prepared Portfolio 2050

* See the prospectus for information on specific limitations on investments in the fund.

† Mixed asset fund.

BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and certain funds are also distributed by FAM Distributors, Inc. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing.

SEMI-ANNUAL REPORT MARCH 31, 2008 151

	This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a Portfolio unless accompanied or preceded by the Portfolio’s 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.
	BlackRock Funds
	100 Bellevue Parkway
	Wilmington, DE 19809
	EQUITY-3/08-SAR

EQUITIES  FIXED INCOME  REAL ESTATE  LIQUIDITY  ALTERNATIVES  BLACKROCK SOLUTIONS

BlackRock
Asset Allocation Portfolio
SEMI-ANNUAL REPORT    |    MARCH 31, 2008 (UNAUDITED)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents

	Page
A Letter to Shareholders	3
Semi-Annual Report:
Portfolio Summary	4
About Portfolio’s Performance	6
Disclosure of Expenses	7
Financial Statements:
Schedule of Investments	8
Statement of Assets and Liabilities	33
Statement of Operations	34
Statements of Changes in Net Assets	35
Financial Highlights	36
Notes to Financial Statements	40
Officers and Trustees	49
Additional Information	50
Mutual Fund Family	52

2 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

A Letter to Shareholders

Dear Shareholder

Financial markets endured severe bouts of volatility during the reporting period, particularly as the calendar turned to 2008. It was then that fears of an economic recession swelled and credit market strains intensified, producing calamity in the financial system and, ultimately, the demise of major Wall Street firm Bear Stearns.

The Federal Reserve Board (the “Fed”), after cutting the target federal funds rate 100 basis points (1%) between September 2007 and year-end, stepped up its efforts to support the ailing financial sector in the first three months of 2008. The central bank cut interest rates 125 basis points in January alone, and followed with another 75-basis-point cut on March 18, bringing the target rate to 2.25%. In an unprecedented move, the Fed also extended its financing operations directly to broker/dealers and assisted JPMorgan in its buyout of ill-fated Bear Stearns.

Against this backdrop, investor anxiety has been acute and equity markets have struggled. The S&P 500 Index of U.S. stocks was down in March, marking the fifth consecutive month of negative returns. International markets outperformed the U.S. for much of 2007, but that trend changed in more recent months as investors grew increasingly reluctant to take on the risks of foreign investing.

In fixed income markets, an ongoing investor flight to quality continued to drive Treasury yields lower and their prices higher. The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in five years), fell to 4.04% by year-end and to 3.45% by March 31. Investors largely shunned bonds associated with the housing and credit markets, and the riskier high yield sector landed in negative territory year-to-date. Meanwhile, the municipal bond market has struggled with concerns around the creditworthiness of monoline bond insurers and the failure of auctions for auction rate securities, driving yields higher and prices lower across the curve. At period-end, municipal bonds were trading at higher yields than their Treasury counterparts, a very unusual occurrence by historical standards.

Overall, the major benchmark indexes posted mixed results for the current reporting period, generally reflecting heightened investor risk aversion:

Total Returns as of March 31, 2008	6-month		12-month
U.S. equities (S&P 500 Index)	(12.46	)%	(5.08	)%
Small cap U.S. equities (Russell 2000 Index)	(14.02	)%	(13.00	)%
International equities (MSCI Europe, Australasia, Far East Index)	(10.50	)%	(2.70	)%
Fixed income (Lehman Brothers U.S. Aggregate Index)	5.23	%	7.67	%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)	0.75	%	1.90	%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)	(4.01	)%	(3.47	)%

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

3

Portfolio Summary (Unaudited)

Portfolio Management Commentary

How did the Portfolio perform?

• For the six-month period, Portfolio results lagged that of the benchmark, a 60%/40% composite of the S&P 500 Index and the Lehman Brothers U.S. Aggregate Index.

What factors influenced performance?

• The Portfolio’s overweight versus the composite benchmark in equities hindered relative results for the period, as global equity markets generally recorded negative returns, most notably in the first quarter of 2008.

• The fixed income markets were volatile during the semi-annual period, with all spread sectors underperforming U.S. Treasuries. The return of the Portfolio’s fixed income component exceeded that of the equity segment, but it lagged its fixed income benchmark, detracting from comparative performance.

• In contrast, overweight positions above the Portfolio’s historical strategic average in energy and commodities enhanced the relative return. Performance also benefited from our tilt toward large-cap stocks during the particularly volatile period in the market. Additional positive factors were the Portfolio’s overweight in international equities and emphasis on the consumer sectors in the emerging markets.

Describe recent Portfolio activity.

• During the fourth quarter of 2007, we reduced the Portfolio’s overall equity allocation, particularly in the large-cap value and large-cap core categories, as these groups have significant exposure to the financials sector.

• In the first quarter of 2008, we tilted the equity portion of the Portfolio toward sectors of the market that are traditionally less dependent on U.S. economic growth. We added to the Portfolio’s energy and commodities exposure and moderately increased exposure to emerging markets.

• We added to the Portfolio’s U.S. equity position in the first quarter by reallocating capital from international equities to the large-cap value sleeve. This had the effect of reducing the overall underweight in value assets and expresses our anticipation that, at some point, there will be a rebound in the U.S. dollar and a strengthening in value stocks.

• For most of the period, the fixed income portion of the Portfolio was short in duration relative to its benchmark (Lehman Brothers U.S. Aggregate Index). Near the end of the first quarter, we shifted to a more neutral duration following a sell-off in the U.S. Treasury market.

Describe Portfolio positioning at period-end.

• At period-end, the Portfolio was allocated 64% in equities, 28% in fixed income and 8% in cash, compared with the Portfolio’s benchmark of 60% equities and 40% fixed income.

• Within equity, the Portfolio was overweight non-U.S. stocks and underweight U.S. names. Among U.S. equities, we maintained the Portfolio’s underweight in small-cap equities and value stocks. We maintained the Portfolio’s overweight in energy and commodities and continue to emphasize the consumption theme in the emerging markets.

• The fixed income portion of the Portfolio maintained an overweight in high-quality spread sectors. We believe these issues are cheap relative to U.S. Treasury and U.S. agency securities and will rebound when risk appetites normalize.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
Federal National Mortgage Assoc.	4	%
iShares MSCI Brazil Index Fund	1
CONSOL Energy, Inc.	1
The Coca-Cola Co.	1
Wal-Mart Stores, Inc.	1
General Electric Capital Corp., Unsecured Notes	1
Apple Computer, Inc.	1
Bear Stearns Mortgage Trust, Series 05-4, Class 3A1	1
Credit Quality Allocations1	Percent of Fixed Income Portion
AAA	78	%
AA	7
A	4
BBB	3
below BBB	8

1 Using the higher of Standard & Poor’s or Moody’s Investors Service rating.

Ten Largest Industries	Percent of Long-Term Investments
Oil & Gas	7	%
Banks	6
Finance	5
Telecommunications	4
Manufacturing	4
Metal & Mining	3
Computer Software & Services	3
Pharmaceuticals	3
Retail Merchandising	3
Energy & Utilities	2

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

4 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Portfolio Summary (concluded)

Total Return Based on a $10,000 Investment

* Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.

† The Portfolio uses an asset allocation strategy, investing varying percentages of its portfolio in three major categories: stocks, bonds and, to a lesser extent, money market instruments.

†† The Standard & Poor’s Composite Stock Price Index, an unmanaged index of 500 stocks, most of which are listed on the New York Stock Exchange. The index focuses on the large-cap segment of the market, with 80% coverage of U.S. equities

††† An unmanaged index comprised of more than 5,000 taxable bonds. This is an index of investment grade bonds. All securities included must be rated investment grade by Moody’s, Standard & Poor’s or Fitch

Performance Summary for the Period Ended March 31, 2008

			Average Annual Total Returns*
			1 Year				5 Years				10 Years
	6-Month Total Returns		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge		w / o sales charge		w / sales charge
Institutional	(5.65	)%	1.30	%	—		11.79	%	—		6.30	%	—
Service	(5.72	)%	1.06	%	—		11.51	%	—		6.07	%	—
Investor A	(5.78	)%	0.88	%	(4.43	)%	11.39	%	10.20	%	5.96	%	5.39	%
Investor B	(6.13	)%	0.22	%	(3.90	)%	10.59	%	10.32	%	5.29	%	5.29	%
Investor C	(6.18	)%	0.09	%	(0.83	)%	10.59	%	10.59	%	5.20	%	5.20	%
60% S&P 500® Index/40% Lehman Brothers U.S. Aggregate Index	(5.64	)%	0.03	%	—		8.71	%	—		4.83	%	—

* Assuming maximum sales charge. See “About Portfolio’s Performance” on page 6 for a detailed description of share classes, including any related sales charges and fees.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	943.52	$	4.53	$	1,000.00	$	1,020.28	$	4.72
Service	$	1,000.00	$	942.83	$	5.61	$	1,000.00	$	1,019.15	$	5.85
Investor A	$	1,000.00	$	942.19	$	6.25	$	1,000.00	$	1,018.48	$	6.52
Investor B	$	1,000.00	$	938.72	$	10.09	$	1,000.00	$	1,014.46	$	10.54
Investor C	$	1,000.00	$	938.25	$	9.63	$	1,000.00	$	1,014.93	$	10.07

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.93% for Institutional, 1.16% for Service, 1.29% for Investor A, 2.08% for Investor B and 1.99% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 7 for further information on how expenses were calculated.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 5

About Portfolio’s Performance

• Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors.

• Service Shares are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee).

• 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, these 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 automatic share conversions.) All returns for periods greater than eight years reflect this conversion.

• Investor C Shares are subject to a 1.00% contingent deferred sales charge if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance 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 distributions or the redemption of fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

The performance information on the previous pages includes information for each class of the Portfolio since the commencement of operations of the Portfolio, rather than the date such class was introduced. Performance information for each class introduced after the commencement of operations of the Portfolio is therefore based on the performance history of a predecessor class adjusted to reflect the class specific fees applicable to each class at the time of the launch of such share class. This information may be considered when assessing the Portfolio’s performance, but does not represent the actual performance of this share class.

Performance for the Portfolio for the periods prior to January 31, 2005 is based on performance of the former State Street Research mutual fund that reorganized with the Portfolio on that date.

Performance information is restated to reflect the current maximum front-end sales charge (in the case of Investor A Shares) or the maximum contingent deferred sales charge (in the case of Investor B and Investor C Shares), and assumes the reinvestment of dividends and distributions.

The performance information also reflects fee waivers and reimbursements that subsidize and reduce the total operating expenses of the Portfolio. The Portfolio’s returns would have been lower if there were no such waivers and reimbursements. BlackRock Advisors, LLC is under no obligation to waive or continue waiving its fees after February 1, 2009. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

The performance shown in the line graph is that of Institutional Shares and Investor A Shares of the Portfolio. The actual performance of Investor B, Investor C and Service Shares is lower than the performance of Institutional Shares because Investor B, Investor C and Service Shares have higher expenses than Institutional Shares. Excluding the effects of sales charges, the actual performance of Investor B and Investor C Shares is lower than the performance of Investor A Shares because Investor B and Investor C Shares have higher expenses than Investor A Shares. Purchasers of Investor A Shares generally pay a front-end sales charge, while purchasers of Investor B and Investor C Shares may pay a contingent deferred sales charge (depending on how long they hold their shares) when they sell their shares.

6 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Disclosure of Expenses

As a shareholder of the Portfolio, you incur two types of costs: (1) transaction costs, including front and back end sales charges (loads) or redemption/exchange fees, where applicable; and (2) ongoing costs, including advisory fees, distribution (12b-1) and service fees, where applicable, and other Portfolio expenses. The Expense Example on page 5 is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example on page 5 is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008. The information under “Actual” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period”, to estimate the expenses incurred on your account during this period.

The information under “Hypothetical” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 7

Schedule of Investments March 31, 2008 (Unaudited)

	Shares	Value
Common Stocks — 58.1%
Australia — 0.5%
Finance — 0.1%
Macquarie Airports Management Ltd.	132,100	$	389,946
Manufacturing — 0.1%
United Group Ltd.	95,300		1,051,234
Metal & Mining — 0.1%
Lihir Gold Ltd.	119,800		393,052
Zinifex Ltd.	25,900		236,227
			629,279
Oil & Gas — 0.1%
Oil Search Ltd.	138,400		610,917
Retail Merchandising — 0.1%
Woolworths Ltd.	39,034		1,034,523
Total Australia			3,715,899
Belgium — 0.3%
Beverages & Bottling — 0.2%
Inbev NV	16,450		1,447,598
Metal & Mining — 0.1%
Umicore	10,400		541,172
Total Belgium			1,988,770
Bermuda — 0.1%
Business Services — 0.0%
Genpact Ltd.(a)	14,000		171,500
Electronics — 0.1%
Tyco Electronics Ltd.	9,850		338,052
Manufacturing — 0.0%
Tyco International Ltd.	2,850		125,542
Medical & Medical Services — 0.0%
Covidien Ltd.	6,550		289,838
Total Bermuda			924,932
Brazil — 0.5%
Banks — 0.1%
Banco Industrial e Comercial SA	36,700		173,597
Unibanco SA - ADR	5,400		629,856
			803,453
Energy & Utilities — 0.1%
Companhia Energetica de Minas Gerais- CEMIG - ADR	21,100		380,644
Oil & Gas — 0.2%
Petroleo Brasileiro SA - ADR	10,400		1,061,944
Paper & Forest Products — 0.1%
Votorantim Celulose ADR	13,300		379,183
Real Estate — 0.0%
Mrv Engenharia(a)	14,800		263,156
Telecommunications — 0.0%
GVT Holding SA(a)	12,300		231,181
Total Brazil			3,119,561
Canada — 1.4%
Energy & Utilities — 0.0%
Epsilon Energy, Inc.	5,900		11,726
Tanganyika Oil Co. Ltd.	3,700		65,384
			77,110
Metal & Mining — 0.6%
Agnico-Eagle Mines Ltd.	15,935		1,080,807
Alexco Resource Corp.(a)	12,122		50,781
Aurora Energy Resources, Inc.(a)	5,300		27,883
Baja Mining Corp.(a)	59,300		78,570
Crosshair Exploration & Mining Corp.(a)	5,600		4,910
Denison Mines Corp.(a)	4,700		29,671
European Goldfields Ltd.(a)	12,100		63,185
Fording Canadian Coal Trust	7		365
Frontier Pacific Mining Corp.(a)	79,200		50,153
Gold Reserve, Inc.(a)	26,280		121,151
Kinross Gold Corp.	43,500		970,481
Minefinders Corp. Ltd.(a)(b)	40,000		491,200
NovaGold Resources, Inc.(a)	16,792		129,466
Silver Wheaton Corp.(a)	22,800		354,084
Southwestern Resources Corp.(a)	47,300		23,501
Sunridge Gold Corp.(a)	146,757		164,422
Triex Minerals Corp.(a)	3,300		5,369
Triex Minerals Corp. (acquired 12/23/05, cost $14,206)(c)	6,600		10,738
Uranium One, Inc.(a)	11,270		37,111
West Timmins Mining, Inc.(a)	36,372		24,096
Yamana Gold, Inc.	35,600		522,321
			4,240,265
Motor Vehicles — 0.0%
Westport Innovations, Inc.(a)	70,500		209,484
Oil & Gas — 0.8%
Accrete Energy, Inc.(a)	4,960		23,243
Alberta Clipper Energy, Inc.(a)	5,026		11,752
Bayou Bend Petroleum Ltd.(a)	40,700		21,412
Canadian Superior Energy, Inc.(a)	55,890		173,818
Canext Energy Ltd.(a)	4,021		2,938
Cinch Energy Corp.(a)	40,320		49,101
Compton Petroleum Corp.(a)	68,499		762,768
Cork Exploration, Inc.(a)	1,400		4,706
Crescent Point Energy Trust	1,800		50,189

Portfolio Abbreviations

To simplify the listings of Portfolio holdings in the Schedule of Investments, the names of many of the securities have been abbreviated according to the list on the right.

ADR	American Depository Receipts
AUD	Australian Dollar
CAD	Canadian Dollar
CHF	Swiss Francs
DKK	Danish Krone
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
IO	Interest Only
JPY	Japanese Yen
LLC	Limited Liability Corporation
LP	Limited Partnership
NOK	Norwegian Krone
PLN	Polish Zloty
PO	Principal Only
REIT	Real Estate Investment Trust
SEK	Swedish Krona
SGD	Singapore Dollar
TBA	To Be Announced
ZAR	South African Rand

See Notes to Financial Statements.

8 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
Canada (Continued)
Oil & Gas (Continued)
Crew Energy, Inc.(a)	29,400	$	383,808
Daylight Resources Trust	13,410		117,188
Delphi Energy Corp.(a)	24,700		50,774
Ember Resources, Inc.(a)	12,136		16,671
Endev Energy, Inc.(a)	231,700		187,355
Fairborne Energy Ltd.	1,482		9,962
First Calgary Petroleums Ltd.(a)	14,554		40,977
Galleon Energy, Inc.—Class A(a)	48,617		700,990
Gastar Exploration Ltd.(a)	15,900		20,670
Heritage Oil Corp.(a)	4,000		201,003
Highpine Oil & Gas Ltd.(a)	8,993		84,984
HSE Integrated Ltd.(a)	561		492
Iteration Energy Ltd.(a)	4,021		23,583
Leader Energy Services Ltd.(a)	15,957		1,244
Lynden Ventures Ltd.(a)	3,500		2,728
Midnight Oil Exploration Ltd.(a)	81,200		96,511
Niko Resources Ltd. (acquired 01/31/05, cost $40,606)(c)	2,000		162,210
Oilexco, Inc.(a)	3,525		46,121
Open Range Energy Corp.(a)	1,976		7,911
Pacific Rodera Energy, Inc.(a)	37,300		18,169
Pacific Rubiales Energy Corp.(a)	74,800		108,580
Pan Orient Energy Corp.(a)	3,600		40,579
Pengrowth Energy Trust	1,505		28,844
Penn West Energy Trust	819		22,979
Petro Andina Resources Inc.(a)	800		9,392
Petrolifera Petroleum Ltd.(a)	30,150		267,295
ProspEx Resources Ltd.(a)	43,140		146,259
Suncor Energy, Inc.	9,762		988,611
Tag Oil Ltd. (acquired 09/22/05, cost $4,409)(c)	4,000		331
Technicoil Corp.(a)	46,400		33,451
Trafalgar Energy Ltd.(a)	841		2,957
TransCanada Corp.	700		26,972
TriStar Oil & Gas Ltd.(a)	12,585		177,290
True Energy Trust	11,382		40,586
Tusk Energy Corp. (acquired 03/14/05 through 02/01/07, cost $211,317)(c)	57,966		96,003
Vero Energy, Inc.(a)	4,447		33,143
West Energy Ltd.(a)	143		474
WesternZagros Resources Ltd.(a)	1,800		4,279
			5,301,303
Transportation — 0.0%
Railpower Technologies Corp.(a)	17,600		5,830
Total Canada			9,833,992
Cayman Islands — 0.0%
Semiconductors & Related Devices — 0.0%
O2Micro International Ltd. - ADR(a)	4,000		30,920
Chile — 0.0%
Banks — 0.0%
Banco Santander Chile SA - ADR	3,600		188,136
Denmark — 0.1%
Retail Merchandising — 0.1%
FLSmidth & Co. A/S	5,600		554,262
Finland — 0.6%
Banks — 0.0%
OKO Bank Plc - Series A	14,300		269,334
Manufacturing — 0.1%
Wartsila Oyj - Series B	5,600		377,954
Paper & Forest Products — 0.1%
UPM-Kymmene Oyj	52,356		929,896
Telecommunications — 0.4%
Elisa Oyj	9,400		234,774
Nokia Oyj	82,510		2,610,474
			2,845,248
Total Finland			4,422,432
France — 1.6%
Banks — 0.2%
Credit Agricole SA	52,765		1,632,740
Computer Software & Services — 0.1%
Cie Generale De Geophysique	1,400		348,514
Entertainment & Leisure — 0.1%
Ubisoft Entertainment	3,900		335,996
Food & Agriculture — 0.4%
Carrefour SA	30,351		2,341,696
Casino Guichard-Perrachon SA	5,700		683,377
			3,025,073
Machinery & Heavy Equipment — 0.2%
ALSTOM	7,394		1,602,981
Manufacturing — 0.1%
Compagnie Generale des Etablissements Michelin - Class B	4,400		459,304
Medical Instruments & Supplies — 0.3%
Essilor International SA	28,723		1,876,896
Telecommunications — 0.2%
France Telecom SA	44,733		1,504,259
Total France			10,785,763
Germany — 2.1%
Banks — 0.2%
Commerzbank AG	37,496		1,172,102
Chemicals — 0.4%
Bayer AG	26,335		2,110,425
SGL Carbon AG	7,400		467,312
			2,577,737
Computer Software & Services — 0.1%
United Internet AG	29,400		632,642
Durable Goods — 0.1%
Gerry Weber International AG	11,900		425,530
Energy & Utilities — 0.3%
E.ON AG	12,302		2,277,407
Insurance — 0.5%
Allianz AG	13,090		2,593,159
Hannover Rueckversicherung AG	12,700		662,058
			3,255,217
Manufacturing — 0.4%
Adidas-Salomon AG	5,300		352,352
K+S AG	1,000		327,292
Siemens AG	17,853		1,934,937
			2,614,581

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 9

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
Germany (Continued)
Medical & Medical Services — 0.0%
Rhoen Klinikum AG	6,900	$	204,470
Medical Instruments & Supplies — 0.1%
Fresenius Medical Care AG & Co.	8,200		412,324
Miscellaneous Services — 0.0%
GEA Group AG	11,500		386,716
Waste Management — 0.0%
Zhongde Waste Technology AG	3,246		130,986
Total Germany			14,089,712
Greece — 0.1%
Banks — 0.0%
Piraeus Bank SA	5,800		178,374
Computer & Office Equipment — 0.1%
Intralot SA	21,000		375,965
Transportation — 0.0%
Navios Maritime Holdings, Inc.	7,700		71,456
Total Greece			625,795
Hong Kong — 0.9%
Banks — 0.3%
Hang Seng Bank Ltd.	101,000		1,828,542
Chemicals — 0.1%
Huabao International Holdings Ltd.	418,800		344,397
Construction — 0.0%
Shenzhen Expressway Co. Ltd.	311,100		237,842
Entertainment & Leisure — 0.0%
The Hongkong & Shanghai Hotels Ltd.	145,600		239,092
Finance — 0.0%
Rexcapital Financial Holdings Ltd.(a)	1,996,500		223,183
Metal & Mining — 0.0%
Yanzhou Coal Mining Co. Ltd.	178,700		253,034
Real Estate — 0.3%
Henderson Land Development Co. Ltd.	142,000		1,008,988
New World Development Co. Ltd.	129,600		314,065
Wheelock & Co. Ltd.	184,600		517,083
			1,840,136
Retail Merchandising — 0.2%
Esprit Holdings Ltd.	121,500		1,458,128
Total Hong Kong			6,424,354
Indonesia — 0.3%
Banks — 0.0%
PT Bank Mandiri	1,037,100		354,901
Metal & Mining — 0.1%
PT Bumi Resources Tbk	742,500		500,109
Motor Vehicles — 0.2%
PT Astra International Tbk	466,500		1,228,965
Total Indonesia			2,083,975
Ireland — 0.4%
Computer Software & Services — 0.1%
SkillSoft Plc - ADR(a)	82,190		860,529
Pharmaceuticals — 0.3%
Elan Corp. Plc - ADR(a)	77,500		1,616,650
ICON Plc - ADR(a)	1,700		110,313
			1,726,963
Total Ireland			2,587,492
Italy — 0.2%
Construction — 0.0%
Astaldi SpA	29,300		225,737
Energy & Utilities — 0.2%
AEM SpA	152,550		560,553
Terna Rete Elettrica Nazionale SpA	113,000		482,125
			1,042,678
Total Italy			1,268,415
Japan — 2.9%
Banks — 0.4%
Bank of Kyoto Ltd.	33,200		403,676
The Chiba Bank Ltd.	72,800		494,438
The Iyo Bank Ltd.	32,800		350,112
Mizuho Financial Group, Inc.	320		1,171,750
			2,419,976
Chemicals — 0.1%
Dainippon Ink and Chemicals, Inc.	50,700		157,675
Nihon Nohyaku Co. Ltd.	64,400		593,736
Nippon Carbon Co. Ltd.	46,000		218,278
			969,689
Conglomerates — 0.2%
Mitsui & Co. Ltd.	69,000		1,398,274
Construction — 0.0%
Daito Trust Construction Co., Ltd.	5,500		283,607
Durable Goods — 0.1%
ASICS Corp.	29,500		339,155
Electronics — 0.2%
Denso Corp.	18,500		597,613
Hosiden Corp.	30,300		603,082
Star Micronics Co. Ltd.	17,500		241,046
			1,441,741
Energy & Utilities — 0.2%
Air Water, Inc.	42,300		404,413
Kurita Water Industries Ltd.	23,700		872,582
			1,276,995
Finance — 0.0%
Shinko Securities Co. Ltd.(a)	53,500		155,648
Machinery & Heavy Equipment — 0.3%
Komatsu Ltd.	43,000		1,192,767
Miura Co. Ltd.	10,000		226,224
Mori Seiki Co., Ltd.	12,700		228,060
Nabtesco Corp.	35,100		475,371
			2,122,422
Manufacturing — 0.2%
Daihatsu Motor Co., Ltd.	24,600		295,407
Taiyo Nippon Sanso Corp.	45,900		367,458
Tokai Rika Co. Ltd.	13,100		342,351

See Notes to Financial Statements.

10 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
Japan (Continued)
Manufacturing (Continued)
Uni-Charm Corp.	5,800	$	424,177
			1,429,393
Medical Instruments & Supplies — 0.0%
Nihon Kohden Corp.	10,200		233,307
Metal & Mining — 0.2%
Marubeni Corp.	176,000		1,281,862
Yamato Kogyo Co. Ltd.	5,600		225,843
			1,507,705
Motor Vehicles — 0.4%
Futaba Industrial Co. Ltd.	15,000		337,831
Toyota Motor Corp.	42,000		2,094,101
			2,431,932
Pharmaceuticals — 0.0%
Towa Pharmaceuticals Co., Ltd.	3,500		148,525
Photographic Equipment — 0.0%
Tamron Co. Ltd.	8,800		215,851
Retail Merchandising — 0.1%
Shimachu Co. Ltd.	9,900		297,457
Tsuruha Holdings, Inc.	8,600		371,850
			669,307
Telecommunications — 0.2%
KDDI Corp.	201		1,228,020
Transportation — 0.3%
Canon, Inc.	29,000		1,335,373
Hino Motors Ltd.	50,700		334,677
Kintetsu World Express, Inc.	10,000		232,745
			1,902,795
Total Japan			20,174,342
Kazakhstan — 0.1%
Oil & Gas — 0.1%
Kamunaigaz Exploration Production, Inc.	15,100		378,255
Luxembourg — 0.3%
Oil & Gas — 0.0%
Acergy SA - ADR	9,750		208,163
Telecommunications — 0.3%
SES SA	84,778		1,793,684
Total Luxembourg			2,001,847
Malaysia — 0.1%
Entertainment & Leisure — 0.1%
Tanjong Plc	86,800		455,914
Morocco — 0.1%
Construction — 0.1%
IJM Corp. Bhd	234,000		446,272
Food & Agriculture — 0.0%
Kuala Lumpur Kepong Bhd	73,100		370,242
Total Morocco			816,514
Netherlands — 0.7%
Construction — 0.1%
Koninklijke Boskalis Westminster NV	12,800		737,191
Food & Agriculture — 0.1%
Nutreco Holding NV	6,900		530,509
Medical & Medical Services — 0.0%
Qiagen NV	16,134		334,203
Telecommunications — 0.3%
Koninklijke KPN NV	119,991		2,026,971
Transportation — 0.2%
TNT NV	27,776		1,031,827
Total Netherlands			4,660,701
Norway — 0.6%
Banks — 0.0%
Sparebanken Rogaland	7,433		76,998
Chemicals — 0.1%
Yara International ASA	12,600		728,681
Oil & Gas — 0.4%
Fred Olsen Energy ASA	9,600		544,817
Prosafe ASA	33,700		529,422
Sevan Marine ASA	7,600		97,008
Statoil ASA	51,196		1,534,166
			2,705,413
Transportation — 0.1%
Songa Offshore ASA	46,900		626,273
Stolt-Nielsen SA (acquired 01/31/05, cost $177,441)(c)(d)	13,000		270,602
			896,875
Total Norway			4,407,967
Philippines — 0.1%
Telecommunications — 0.1%
Philippine Long Distance Telephone Co. - ADR	5,300		352,238
Singapore — 0.5%
Finance — 0.3%
DBS Group Holdings Ltd.	154,107		2,015,275
Real Estate — 0.2%
CapitaCommercial Trust Management Ltd.	209,000		337,085
Keppel Corp. Ltd.	160,000		1,150,786
			1,487,871
Retail Merchandising — 0.0%
Hongguo International Holdings Ltd.	340,475		127,389
Total Singapore			3,630,535
South Korea — 0.3%
Banks — 0.0%
Pusan Bank	22,200		277,962
Beverages & Bottling — 0.1%
Woongjin Coway Co. Ltd.	11,700		353,239
Electronics — 0.2%
Samsung Electronics Co. Ltd.	2,252		1,416,667
Security Brokers & Dealers — 0.0%
Korea Investment Holdings Co. Ltd.(a)	7,400		347,453
Total South Korea			2,395,321
Sweden — 0.3%
Banks — 0.2%
Nordea Bank AB	101,587		1,646,428
Entertainment & Leisure — 0.0%
Rezidor Hotel Group AB	28,900		168,774

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 11

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
Sweden (Continued)
Soaps & Cosmetics — 0.1%
Oriflame Cosmetics SA	8,510	$	565,008
Total Sweden			2,380,210
Switzerland — 2.0%
Chemicals — 0.6%
Lonza Group AG	4,800		636,552
Syngenta AG	11,792		3,455,314
			4,091,866
Food & Agriculture — 0.5%
Barry Callebaut AG	478		413,936
Nestle SA	6,686		3,340,980
			3,754,916
Insurance — 0.0%
Swiss Life Holding	1,300		361,293
Machinery & Heavy Equipment — 0.1%
Meyer Burger Technology AG	1,300		399,255
Pharmaceuticals — 0.8%
Novartis AG	42,425		2,174,436
Roche Holding AG	15,965		3,004,590
			5,179,026
Total Switzerland			13,786,356
Taiwan — 0.3%
Chemicals — 0.2%
Polaris Securities Co., Ltd.(a)	408,100		291,505
Taiwan Fertilizer Co. Ltd.	187,800		819,088
			1,110,593
Computer Software & Services — 0.0%
Geovision, Inc.	19,500		137,042
Finance — 0.1%
Yuanta Financial Holding Co.(a)	384,500		360,712
Semiconductors & Related Devices — 0.0%
Av Tech Corp.	2,440		12,529
Vanguard International Semiconductor Corp.	149,465		107,255
			119,784
Transportation — 0.0%
U-Ming Marine Transport Corp.	117,630		355,064
Total Taiwan			2,083,195
Thailand — 0.2%
Banks — 0.1%
Siam Commercial Bank Public Co. Ltd.	227,200		653,060
Metal & Mining — 0.1%
Banpu Public Co. Ltd.	33,200		390,134
Total Thailand			1,043,194
United Kingdom — 4.1%
Aerospace — 0.5%
BAE Systems Plc	230,916		2,223,828
Cobham Plc	103,700		411,614
Meggitt Plc	84,800		464,080
			3,099,522
Banks — 0.4%
Lloyd TSB Group Plc	196,243		1,756,517
Standard Chartered Plc	35,795		1,223,311
			2,979,828
Business Services — 0.3%
Aegis Group Plc	223,600		551,378
Babcock International Group	49,400		560,305
De La Rue Plc	29,767		523,710
Intertek Group Plc	24,400		499,748
			2,135,141
Energy & Utilities — 0.1%
International Power Plc	67,100		530,014
ITM Power Plc	12,000		14,825
			544,839
Entertainment & Leisure — 0.1%
IG Group Holdings Plc	29,100		188,996
InterContinental Hotels Group Plc	14,419		217,482
			406,478
Finance — 0.0%
ICAP Plc	17,100		193,104
Food & Agriculture — 0.1%
Britvic Plc	64,000		404,866
Dairy Crest Group Plc	14,300		133,104
			537,970
Insurance — 0.3%
Hiscox Ltd.	95,700		454,408
Prudential Plc	128,713		1,700,012
			2,154,420
Machinery & Heavy Equipment — 0.1%
VT Group Plc	27,500		358,574
The Weir Group Plc	37,600		567,877
			926,451
Measuring & Controlling Devices — 0.1%
Rotork Plc	21,700		464,689
Miscellaneous Services — 0.6%
Aggreko Plc	30,700		393,293
Anglo American Plc	44,657		2,683,648
Mondi Plc	107,192		889,240
			3,966,181
Oil & Gas — 0.6%
Archipelago Resources Plc (acquired 5/13/05, cost $51,017)(c)	78,900		46,976
BG Group Plc	147,079		3,406,458
Gulfsands Petroleum Plc	9,000		28,757
Wellstream Holdings Plc	17,800		464,545
			3,946,736
Pharmaceuticals — 0.3%
GlaxoSmithKline Plc	85,506		1,808,987
Shire Plc - ADR	4,100		237,636
			2,046,623
Publishing & Printing — 0.0%
United Business Media Plc	23,400		250,315

See Notes to Financial Statements.

12 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
United Kingdom (Continued)
Real Estate — 0.1%
Bellway Plc	20,600	$	365,090
Telecommunications — 0.4%
Vodafone Group Plc	977,019		2,925,996
Transportation — 0.1%
Arriva Plc	33,800		460,174
National Express Group Plc	19,500		388,940
			849,114
Waste Management — 0.0%
Northumbrian Water Group Plc	46,900		325,080
Total United Kingdom			28,117,577
United States — 36.4%
Aerospace — 0.6%
AAR Corp.(a)	5,500		149,985
Alliant Techsystems, Inc.(a)	400		41,412
Argon ST, Inc.(a)	7,700		130,977
BE Aerospace, Inc.(a)	12,450		435,127
The Boeing Co.	5,350		397,880
DRS Technologies, Inc.	800		46,624
Goodrich Corp.	3,300		189,783
Lockheed Martin Corp.	5,750		570,975
Northrop Grumman Corp.	25,550		1,988,046
Orbital Sciences Corp.(a)	5,750		138,575
			4,089,384
Air Transportation — 0.0%
Continental Airlines, Inc. - Class B(a)	8,575		164,897
Banks — 1.4%
Bank of America Corp.	23,600		894,676
The Bank of New York Mellon Corp.	29,590		1,234,791
Citigroup, Inc.	22,350		478,737
CoBiz, Inc.	7,058		91,895
Columbia Banking System, Inc.	2,294		51,340
Cullen/Frost Bankers, Inc.	5,431		288,060
Fidelity National Information Services, Inc.	7,150		272,701
First Midwest Bancorp, Inc.	8,754		243,099
First State Bancorporation	4,300		57,577
Hudson City Bancorp, Inc.	9,800		173,264
JPMorgan Chase & Co.	57,850		2,484,657
KBW, Inc.(a)(b)	4,500		99,225
New York Community Bancorp, Inc.	2,200		40,084
People’s United Financial, Inc.	21,810		377,531
Prosperity Bancshares, Inc.	3,100		88,846
Signature Bank(a)	2,950		75,225
Sterling Bancshares, Inc.	8,000		79,520
Susquehanna Bancshares, Inc.	2,100		42,777
SVB Financial Group(a)	1,450		63,278
U.S. Bancorp	27,350		885,046
UMB Financial Corp.	2,450		100,940
Umpqua Holdings Corp.(b)	6,150		95,386
Valley National Bancorp	3,100		59,551
Wells Fargo & Co.	31,450		915,195
Westamerica Bancorp	2,125		111,775
Wintrust Financial Corp.	9,810		342,860
Zions Bancorporation	4,680		213,174
			9,861,210
Beverages & Bottling — 1.1%
The Coca-Cola Co.	73,600		4,480,032
Coca-Cola Enterprises, Inc.	17,650		427,130
Constellation Brands, Inc.(a)	16,160		285,547
Green Mountain Coffee Roasters, Inc.(a)	3,200		101,280
Molson Coors Brewing Co. - Class B	10,100		530,957
Pepsi Bottling Group, Inc.	12,600		427,266
PepsiAmericas, Inc.	1,200		30,636
PepsiCo, Inc.	12,900		931,380
			7,214,228
Broadcasting — 0.3%
Belo Corp.	27,352		289,111
CBS Corp. - Class B	16,500		364,320
CKX, Inc.(a)	53,900		513,128
DIRECTV Group, Inc.(a)	27,300		676,767
Outdoor Channel Holdings, Inc.(a)	7,169		52,692
			1,896,018
Business Services — 0.6%
Accenture Ltd.	6,050		212,778
The Advisory Board Co.(a)	3,000		164,820
Alliance Data Systems Corp.(a)	650		30,882
American Public Education, Inc.(a)	400		12,148
The Brink’s Co.	7,325		492,094
CommVault Systems, Inc.(a)	4,250		52,700
DeVry, Inc.	10,865		454,592
Diamond Management & Technology Consultants, Inc.	18,994		122,511
ExlService Holdings, Inc.(a)	14,896		342,012
Expedia, Inc.(a)	13,625		298,251
Fluor Corp.	3,500		494,060
Forrester Research, Inc.(a)	14,450		384,081
Gartner, Inc. - Class A(a)	3,600		69,624
Healthcare Services Group, Inc.	2,058		42,467
Hewitt Associates, Inc. - Class A(a)	1,925		76,557
Hiedrick & Struggles International, Inc.	1,700		55,301
HMS Holdings Corp.(a)	5,225		149,174
Iron Mountain, Inc.(a)	11,600		306,704
Martha Stewart Living Omnimedia, Inc.(a)(b)	11,500		85,445
Net1 UEPS Technologies, Inc.(a)	2,850		64,267
Strayer Education, Inc.	500		76,250
W.W. Grainger, Inc.	1,794		137,044
			4,123,762
Chemicals — 0.5%
Agrium, Inc.	6,600		409,926
Ashland, Inc.	7,280		344,344
Celanese Corp. - Series A	23,460		916,113
CF Industries Holdings, Inc.	700		72,534
The Dow Chemical Co.	12,725		468,916
Eastman Chemical Co.	6,550		409,047
Hercules, Inc.	19,750		361,228
The Lubrizol Corp.	8,825		489,876
Minerals Technologies, Inc.	1,000		62,800
Rockwood Holdings, Inc.(a)	1,800		58,986
Terra Industries, Inc.(a)	1,725		61,289
			3,655,059
Computer & Office Equipment — 1.4%
Apple Computer, Inc.(a)	28,819		4,135,527
Cisco Systems, Inc.(a)	92,193		2,220,929
Electronics for Imaging, Inc.(a)	9,500		141,740

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 13

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Computer & Office Equipment (Continued)
Hewlett-Packard Co.	18,675	$	852,701
International Business Machines Corp.	11,800		1,358,652
Intuit, Inc.(a)	7,450		201,224
NCR Corp.(a)	1,600		36,528
Phase Metrics, Inc.(a)(e)	50,574		1,011
Western Digital Corp.(a)	22,096		597,476
			9,545,788
Computer Software & Services — 2.9%
ACI Worldwide, Inc.(a)	7,850		156,372
Activision, Inc.(a)	37,075		1,012,518
Adobe Systems, Inc.(a)	92,456		3,290,509
Affiliated Computer Services, Inc. - Class A(a)	2,800		140,308
Aladdin Knowledge Systems Ltd.(a)	12,950		246,438
Blackboard, Inc.(a)	9,589		319,601
BMC Software, Inc.(a)	1,925		62,601
CACI International, Inc.(a)	1,800		81,990
comScore, Inc.(a)	4,200		84,252
DemandTec, Inc.(a)	15,500		158,100
eBay, Inc.(a)	2,700		80,568
Emulex Corp.(a)	3,275		53,186
Foundry Networks, Inc.(a)	18,950		219,441
Google, Inc. - Class A(a)	6,172		2,718,581
Greenfield Online, Inc.(a)	7,319		86,803
Guidance Software, Inc.(a)	10,969		98,173
i2 Technologies, Inc.(a)	12,250		137,935
IHS, Inc.(a)	10,050		646,316
International Game Technology	14,300		575,003
Jack Henry & Associates, Inc.	15,050		371,284
Juniper Networks, Inc.(a)	5,650		141,250
Lawson Software, Inc.(a)	12,200		91,866
McAfee, Inc.(a)	1,500		49,635
MICROS Systems, Inc.(a)	8,600		289,476
Microsoft Corp.	129,293		3,669,335
Move, Inc.(a)	20,550		63,294
Nuance Communications, Inc.(a)	17,150		298,582
Oracle Corp.(a)	23,950		468,462
Phase Forward, Inc.(a)	8,800		150,304
PROS Holdings, Inc.(a)	7,200		90,360
Quality Systems, Inc.	3,000		89,610
Salesforce.com, Inc.(a)	26,760		1,548,601
SonicWALL, Inc.(a)	29,350		239,790
Sun Microsystems, Inc.(a)	42,238		655,948
Sybase, Inc.(a)	2,150		56,545
Sykes Enterprises, Inc.(a)	17,550		308,704
Symantec Corp.(a)	16,900		280,878
Synopsys, Inc.(a)	1,700		38,607
Tech Data Corp.(a)	6,140		201,392
Teradata Corp.(a)	6,900		152,214
The TriZetto Group, Inc.(a)	10,033		167,451
Yahoo!, Inc.(a)	5,200		150,436
			19,742,719
Construction — 0.0%
EMCor Group, Inc.(a)	1,900		42,199
NVR, Inc.(a)	45		26,888
Toll Brothers, Inc.(a)	4,600		108,008
United Rentals, Inc.(a)	3,200		60,288
			237,383
Containers — 0.1%
Owens-Illinois, Inc.(a)	2,940		165,904
Pactiv Corp.(a)	10,250		268,652
Silgan Holdings, Inc.	3,450		171,224
Smurfit-Stone Container Corp.(a)	17,110		131,747
Tupperware Corp.	7,100		274,628
			1,012,155
Electronics — 0.4%
Agilent Technologies, Inc.(a)	9,780		291,737
Ametek, Inc.	8,150		357,866
Amphenol Corp.	8,450		314,763
Arrow Electronics, Inc.(a)	2,300		77,395
Benchmark Electronics, Inc.(a)	6,300		113,085
Brady Corp.	3,800		127,034
Intel Corp.	25,500		540,090
Intersil Corp. - Class A	14,410		369,905
RF Micro Devices, Inc.(a)	8,400		22,344
TiVo, Inc.(a)	21,700		190,092
TTM Technologies, Inc.(a)	4,900		55,468
			2,459,779
Energy & Utilities — 1.3%
Airgas, Inc.	2,600		118,222
Black Hills Corp.	1,825		65,298
Calpine Corp.(a)	16,100		296,562
CenterPoint Energy, Inc.	48,200		687,814
Constellation Energy Group, Inc.	3,450		304,532
Duke Energy Corp.	7,600		135,660
Edison International	20,590		1,009,322
El Paso Electric Co.(a)	5,800		123,946
Energy East Corp.	2,350		56,682
Entergy Corp.	2,580		281,426
Equitable Resources, Inc.	9,720		572,508
Evergreen Energy, Inc.(a)(b)	11,500		17,710
Exelon Corp.	14,900		1,210,923
FPL Group, Inc.	9,550		599,167
Integrys Energy Group, Inc.	6,100		284,504
KBR, Inc.	1,500		41,595
Longview Energy Co. (acquired 01/31/05, cost $48,000)(c)(e)	3,200		64,000
NRG Energy, Inc.(a)	7,770		302,952
Ocean Power Technologies, Inc.(a)	1,000		12,220
PPL Corp.	7,570		347,614
Quanta Services, Inc.(a)	8,150		188,836
Questar Corp.	9,610		543,542
SCANA Corp.	14,900		545,042
Sempra Energy	3,075		163,836
Sierra Pacific Resources	8,225		103,882
UIL Holdings Corp.	5,600		168,728
Vectren Corp.	1,875		50,306
Wisconsin Energy Corp.	9,350		411,307
Xcel Energy, Inc.	9,200		183,540
			8,891,676
Entertainment & Leisure — 0.6%
Ameristar Casinos, Inc.	5,100		93,075
DreamWorks Animation SKG, Inc. - Class A(a)	10,150		261,667
Las Vegas Sands Corp.(a)	11,101		817,478
Morgans Hotel Group Co.(a)	7,265		107,667
Orient-Express Hotels Ltd. - Class A	12,437		536,781

See Notes to Financial Statements.

14 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Entertainment & Leisure (Continued)
Pinnacle Entertainment, Inc.(a)	29,360	$	375,808
Royal Caribbean Cruises Ltd.(b)	9,650		317,485
Scientific Games Corp. - Class A(a)	18,600		392,646
The Walt Disney Co.	26,350		826,863
World Wrestling Entertainment, Inc.	4,700		87,467
			3,816,937
Finance — 1.8%
Affiliated Managers Group, Inc.(a)	4,200		381,108
AllianceBernstein Holding LP	2,450		155,281
American Express Co.	10,150		443,758
Astoria Financial Corp.	8,000		217,280
Capital One Financial Corp.	4,435		218,291
CME Group, Inc.	650		304,915
Deluxe Corp.	2,175		41,782
Evercore Partners, Inc.	7,000		124,250
Federated Investors, Inc. - Class B	8,425		329,923
The Goldman Sachs Group, Inc.	7,350		1,215,616
Invesco Ltd.	16,520		402,427
Knight Capital Group, Inc.(a)	2,700		43,848
Market Vectors Russia	45,000		2,120,400
NGP Capital Resources Co.	2,700		44,334
NYSE Euronext, Inc.	9,200		567,732
Regions Financial Corp.	5,800		114,550
Riskmetrics Group, Inc.(a)	2,300		44,505
State Street Corp.	12,500		987,500
Streettracks Gold Trust(a)	42,000		3,795,960
TD Ameritrade Holding Corp.(a)	42,930		708,774
Wright Express Corp.(a)	6,950		213,574
			12,475,808
Food & Agriculture — 0.7%
Bunge Ltd.	4,950		430,056
Dean Foods Co.(a)	11,320		227,419
Del Monte Foods Co.	38,936		371,060
Diamond Foods, Inc.	5,700		103,398
Fresh Del Monte Produce, Inc.(a)	1,125		40,950
Monsanto Co.	22,436		2,501,614
Panera Bread Co. - Class A(a)(b)	7,100		297,419
Potash Corp. of Saskatchewan, Inc.	6,190		960,750
			4,932,666
Furniture — 0.0%
Herman Miller, Inc.	2,100		51,597
Insurance — 1.0%
ACE Ltd.	8,050		443,233
Aetna, Inc.	11,200		471,408
American Financial Group, Inc.	2,175		55,593
American International Group, Inc.	9,050		391,412
Amerigroup Corp.(a)	1,975		53,977
Arch Capital Group Ltd.(a)	1,900		130,473
Assurant, Inc.	5,240		318,906
AXIS Capital Holdings Ltd.	18,390		624,892
CHUBB Corp.	10,575		523,251
Endurance Specialty Holdings Ltd.	10,661		390,193
Everest Re Group Ltd.	750		67,148
First Mercury Financial Corp.(a)	10,700		186,287
Genworth Financial, Inc.	5,425		122,822
HCC Insurance Holdings, Inc.	18,830		427,253
Lincoln National Corp.	5,400		280,800
MetLife, Inc.	10,800		650,808
PartnerRe Ltd.	2,375		181,212
Platinum Underwriters Holdings Ltd.	1,741		56,513
RenaissanceRe Holdings Ltd.	2,350		121,988
Travelers Companies, Inc.	13,725		656,741
UnumProvident Corp.	20,100		442,401
W.R. Berkley Corp.	14,930		413,412
WellPoint, Inc.(a)	2,100		92,673
			7,103,396
Leasing — 0.0%
GATX Corp.	1,400		54,698
Machinery & Heavy Equipment — 0.6%
AGCO Corp.(a)	7,625		456,585
Albany International Corp. - Class A	8,360		302,130
Altra Holdings, Inc.(a)	5,700		76,665
Bucyrus International, Inc. - Class A	1,600		162,640
Deere & Co.	9,000		723,960
Flowserve Corp.	450		46,971
H&E Equipment Services, Inc.(a)	4,800		60,336
Joy Global, Inc.	31,925		2,080,233
The Manitowoc Co., Inc.	1,025		41,820
			3,951,340
Manufacturing — 2.5%
Actuant Corp. - Class A	8,925		269,624
Acuity Brands, Inc.	1,350		57,982
AptarGroup, Inc.	700		27,251
Chart Industries, Inc.(a)	5,600		189,504
Chattem, Inc.(a)	2,398		159,083
Corning, Inc.	77,900		1,872,716
Crane Co.	1,300		52,455
Crocs, Inc.(a)(b)	26,400		461,208
Cummins, Inc.	8,600		402,652
Danaher Corp.	25,500		1,938,765
Dover Corp.	8,060		336,747
Eaton Corp.	6,880		548,130
Elizabeth Arden, Inc.(a)	11,475		228,926
Energizer Holdings, Inc.(a)	1,325		119,886
Foster Wheeler Ltd.(a)	6,096		345,156
Fuller (H.B.) Co.	4,300		87,763
Gardner Denver, Inc.(a)	5,825		216,108
General Cable Corp.(a)	1,900		112,233
General Electric Co.	101,818		3,768,284
Harsco Corp.	1,350		74,763
Hexel Corp.(a)	4,250		81,217
Honeywell International, Inc.	43,160		2,435,087
IDEX Corp.	7,775		238,615
Jones Apparel Group, Inc.	12,610		169,226
Kaydon Corp.	2,400		105,384
Ladish Co., Inc.(a)	2,150		77,400
Lear Corp.(a)	1,600		41,456
Mettler-Toledo International, Inc.(a)	575		55,844
Newell Rubbermaid, Inc.	18,650		426,526
NIKE, Inc., Class B	2,450		166,600
Parker Hannifin Corp.	7,025		486,622
Quanex Corp.	10,881		562,983
RBC Bearings, Inc.(a)	2,550		94,681

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 15

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Manufacturing (Continued)
Smith & Wesson Holding Corp.(a)	6,072	$	30,481
SPX Corp.	900		94,410
Textron, Inc.	3,190		176,790
VF Corp.	6,050		468,936
The Warnaco Group, Inc.(a)	3,759		148,255
Watson Wyatt Worldwide, Inc.	2,575		146,131
			17,275,880
Measuring & Controlling Devices — 0.4%
Thermo Electron Corp.(a)	44,100		2,506,644
Medical & Medical Services — 1.0%
Amedisys, Inc.(a)	4,500		177,030
Apria Healthcare Group, Inc.(a)	2,500		49,375
Arthrocare Corp.(a)(b)	2,800		93,380
Baxter International, Inc.	9,250		534,835
Coventry Health Care, Inc.(a)	3,870		156,155
Davita, Inc.(a)	3,400		162,384
Express Scripts, Inc.(a)	3,300		212,256
Health Net, Inc.(a)	750		23,100
Henry Schein, Inc.(a)	17,600		1,010,240
Invitrogen Corp.(a)	5,525		472,222
Kindred Healthcare, Inc.(a)	2,750		60,142
Laboratory Corp. of America Holdings(a)	3,630		267,458
Lifecell Corp.(a)	2,700		113,481
Magellan Health Services, Inc.(a)	9,350		371,102
MedCath Corp.(a)	5,800		105,560
Medco Health Solutions, Inc.(a)	41,270		1,807,213
Pediatrix Medical Group, Inc.(a)	12,450		839,130
Quest Diagnostics, Inc.	5,510		249,438
Santarus, Inc.(a)	23,650		60,780
Sun Healthcare Group, Inc.(a)	6,200		81,468
UnitedHealth Group, Inc.	5,400		185,544
WellCare Health Plans, Inc.(a)	325		12,659
			7,044,952
Medical Instruments & Supplies — 1.4%
Align Technology, Inc.(a)	1,256		13,954
Bruker BioSciences Corp.(a)	8,050		123,890
C.R. Bard, Inc.	6,550		631,420
Charles River Laboratories International, Inc.(a)	850		50,099
The Cooper Cos., Inc.,	11,290		388,715
DENTSPLY International, Inc.	2,275		87,815
ev3, Inc.(a)	9,950		80,993
Hillenbrand Industries, Inc.	3,287		157,119
Hologic, Inc.(a)	45,725		2,542,310
Home Diagnostics, Inc.(a)	2,800		19,488
Intuitive Surgical, Inc.(a)	435		141,092
Johnson & Johnson	51,950		3,369,996
Kinetic Concepts, Inc.(a)	8,725		403,357
Martek Biosciences Corp.(a)	10,850		331,684
MWI Veterinary Supply, Inc.(a)	2,747		96,859
Orthofix International NV(a)	1,800		71,586
SonoSite, Inc.(a)	6,100		173,423
Symmetry Medical, Inc.(a)	9,200		152,720
Wright Medical Group, Inc.(a)	10,405		251,177
Zoll Medical Corp.(a)	8,000		212,720
			9,300,417
Metal & Mining — 2.0%
Arch Coal, Inc.	31,700		1,378,950
Century Aluminum Co.(a)	2,000		132,480
CONSOL Energy, Inc.	68,591		4,745,811
Foundation Coal Holdings, Inc.	900		45,297
Freeport-McMoRan Copper & Gold, Inc. - Class B	15,332		1,475,245
James River Coal Co.(a)	2,300		40,296
Kinross Gold Corp.	22,235		491,616
Massey Energy Co.	68,067		2,484,446
Pan American Silver Corp.(a)	8,200		314,634
Patriot Coal Corp.(a)	1,399		65,711
Peabody Energy Corp.	26,498		1,351,398
Reliance Steel & Aluminum Co.	4,915		294,212
Steel Dynamics, Inc.	4,100		135,464
United States Steel Corp.	5,550		704,128
			13,659,688
Miscellaneous Services — 0.1%
Owens & Minor, Inc.	1,300		51,142
TeleTech Holdings, Inc.(a)	13,050		293,103
			344,245
Motor Vehicles — 0.1%
American Axle & Manufacturing Holdings, Inc.	2,475		50,738
Ford Motor Co.(a)	37,158		212,544
Oshkosh Truck Corp.	8,850		321,078
Polaris Industries, Inc.	875		35,884
TRW Automotive Holdings Corp.(a)	5,150		120,355
			740,599
Oil & Gas — 4.7%
Allis-Chalmers Energy, Inc.(a)	4,700		64,813
American Oil & Gas, Inc.(a)	5,947		19,447
Apache Corp.	6,950		839,699
Approach Resources, Inc.(a)	1,700		26,656
Atwood Oceanics, Inc.(a)	2,600		238,472
Aventine Renewable Energy Holdings, Inc.(a)	7,900		41,080
Baker Hughes, Inc.	15,300		1,048,050
BJ Services Co.	4,000		114,040
Bois d’Arc Energy, Inc.(a)	3,400		73,066
Brigham Exploration Co.(a)	811		4,923
Cal Dive International, Inc.(a)	4,800		49,824
Callon Petroleum Co.(a)	2,500		45,225
CanArgo Energy Corp.(a)	194,100		67,838
Chesapeake Energy Corp.	25,250		1,165,287
Chevron Corp.	17,200		1,468,192
Cimarex Energy Co.	7,300		399,602
Clayton Williams Energy, Inc.(a)	20,823		1,092,999
Complete Production Services, Inc.(a)	900		20,646
Comstock Resources, Inc.(a)	6,250		251,875
ConocoPhillips	17,550		1,337,485
Dawson Geophysical Co.(a)	1,500		101,250
Delta Petroleum Corp.(a)	52,155		1,175,574
Denbury Resources, Inc.(a)	3,800		108,490
Devon Energy Corp.	2		209
Diamond Offshore Drilling, Inc.	1,727		201,023
Encore Acquisition Co.(a)	1,550		62,434
Energen Corp.	5,050		314,615
ENSCO International, Inc.	10,050		629,331
EOG Resources, Inc.	19,720		2,366,400
EXCO Resources, Inc.(a)	13,100		242,350
Exxon Mobil Corp.	38,250		3,235,185

See Notes to Financial Statements.

16 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Oil & Gas (Continued)
FMC Technologies, Inc.(a)	2,100	$	119,469
Forest Oil Corp.(a)	1,300		63,648
Gasco Energy, Inc.(a)	19,600		47,824
Goodrich Petroleum Corp.(a)	7,850		236,128
Grant Prideco, Inc.(a)	10,580		520,748
Halliburton Co.	22,730		893,971
Helmerich & Payne, Inc.	2,600		121,862
Hercules Offshore, Inc.(a)	5,800		145,696
ION Geophysical Corp.(a)	9,200		126,960
Marathon Oil Corp.	151		6,886
Mariner Energy, Inc.(a)	2,900		78,329
Matador Resources Co. (acquired 01/31/05 through 04/19/06, cost $62,950)(c)(e)	2,895		86,850
McMoRan Exploration Co.(a)	1,900		32,851
National-Oilwell, Inc.(a)	9,450		551,691
Newfield Exploration Co.(a)	10,054		531,354
Noble Corp.	11,400		566,238
Occidental Petroleum Corp.	5,200		380,484
Oceaneering International, Inc.(a)	1,500		94,500
Oil States International, Inc.(a)	3,200		143,392
Oneok, Inc.	2,200		98,186
Parallel Petroleum Corp.(a)	4,879		95,482
Particle Drilling Technologies, Inc.	10,800		10,714
Penn Virginia Corp.	16,500		727,485
Plains Exploration & Production Co.(a)	11,450		608,453
Precision Drilling Trust	3,300		76,560
Schlumberger Ltd.	42,010		3,654,870
Smith International, Inc.	6,400		411,072
Southwestern Energy Co.(a)	10,880		366,547
St. Mary Land & Exploration Co.	2,100		80,850
Superior Energy Services, Inc.(a)	7,800		309,036
Tidewater, Inc.	3,550		195,640
Transocean, Inc.(a)	22,427		3,032,130
Treasure Island Royalty Trust(a)	217,129		75,995
TXCO Resources, Inc.(a)	8,700		107,706
Verasun Energy Corp.(a)	6,900		50,715
Warren Resources, Inc.(a)	4,034		47,884
Weatherford International Ltd.(a)	7,300		529,031
The Williams Cos., Inc.	3,400		112,132
			32,145,449
Personal Services — 0.0%
MSCI, Inc.(a)	3,000		89,250
Pharmaceuticals — 1.6%
Abbott Laboratories	35,200		1,941,280
Applera Corp. - Applied Biosystems Group	6,900		226,734
Celgene Corp.(a)	19,900		1,219,671
Cephalon, Inc.(a)	1,225		78,890
Dyax Corp.(a)	30,702		144,606
Eli Lilly & Co.	12,700		655,193
Endo Pharmaceuticals Holdings, Inc.(a)	5,800		138,852
Forest Laboratories, Inc.(a)	2,450		98,025
Genentech, Inc.(a)	12,800		1,039,104
Gilead Sciences, Inc.(a)	42,950		2,213,214
Medicis Pharmaceutical Corp.	15,450		304,210
Merck & Co., Inc.	34,870		1,323,316
Millennium Pharmaceuticals, Inc.(a)	3,100		47,926
Myriad Genetics, Inc.(a)	1,900		76,551
Pfizer, Inc.	82,600		1,728,818
Watson Pharmaceuticals, Inc.(a)	2,700		79,164
			11,315,554
Plastics — 0.0%
Sonoco Products Co.	8,950		256,238
Publishing & Printing — 0.1%
Dolan Media Co.(a)	7,212		145,033
R.R. Donnelley & Sons Co.	15,410		467,077
Valassis Communications, Inc.(a)	3,600		39,060
			651,170
Railroad & Shipping — 0.2%
CSX Corp.	15,500		869,085
Norfolk Southern Corp.	3,490		189,577
			1,058,662
Real Estate — 0.4%
AMB Property Corp. (REIT)	1,725		93,875
Annaly Capital Management, Inc. (REIT)	4,100		62,812
Arbor Realty Trust, Inc. (REIT)(b)	7,328		110,506
BioMed Realty Trust, Inc. (REIT)	5,100		121,839
Boston Properties, Inc. (REIT)	3,750		345,263
California Coastal Communities, Inc.(a)	2,004		9,699
Colonial Properties Trust (REIT)	5,100		122,655
Corporate Office Properties Trust (REIT)	3,500		117,635
FX Real Estate and Entertainment, Inc.(a)	7,730		45,452
FX Real Estate and Entertainment, Inc., Rights expire 4/11/08(a)	5,390		431
Gramercy Capital Corp. (REIT)(b)	8,100		169,533
Health Care, Inc. (REIT)	1,350		60,926
Highwoods Properties, Inc.	2,200		68,354
Hospitality Properties Trust (REIT)	6,925		235,588
Jones Lang LaSalle, Inc. (REIT)	800		61,872
Mack-Cali Realty Corp. (REIT)	900		32,139
Nationwide Health Properties, Inc. (REIT)	1,800		60,750
ProLogis (REIT)	8,650		509,139
Redwood Trust, Inc. (REIT)(b)	600		21,810
Simon Property Group, Inc. (REIT)	6,750		627,143
Ventas, Inc. (REIT)	1,400		62,874
			2,940,295
Restaurants — 0.3%
Brinker International, Inc.	10,100		187,355
Carrols Restaurant Group, Inc.(a)	8,634		77,102
Chipotle Mexican Grill, Inc.(a)	350		39,700
Jack-in-the-Box, Inc.(a)	2,175		58,442
McDonald’s Corp.	32,150		1,793,006
Sonic Corp.(a)	2,900		63,916
			2,219,521
Retail Merchandising — 2.0%
Advance Auto Parts, Inc.	9,130		310,876
Aeropostale, Inc.(a)	2,000		54,220
Amazon.com, Inc.(a)	14,791		1,054,598
AnnTaylor Stores Corp.(a)	5,700		137,826
AutoZone, Inc.(a)	3,450		392,714
Best Buy Co., Inc.	4,050		167,913
BJ’s Wholesale Club, Inc.(a)	4,325		154,359
The Children’s Place Retail Stores, Inc.(a)	3,900		95,784
Christopher & Banks Corp.	4,400		43,956
Coldwater Creek, Inc.(a)	8,900		44,945
Copart, Inc.(a)	6,200		240,312
Deckers Outdoor Corp.(a)	200		21,564
GameStop Corp.(a)	11,450		592,080
Golfsmith International Holdings, Inc.(a)	5,800		12,238
Hanesbrands, Inc.(a)	2,875		83,950

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 17

Schedule of Investments (continued)

	Shares	Value
Common Stocks (Continued)
United States (Continued)
Retail Merchandising (Continued)
J. Crew Group, Inc.(a)	1,700	$	75,089
Jarden Corp.(a)	5,900		128,266
Jos. A. Bank Clothiers, Inc.(a)(b)	2,700		55,350
Kohl’s Corp.(a)	25,877		1,109,865
The Kroger Co.	15,950		405,130
Limited Brands, Inc.	18,430		315,153
Longs Drug Stores Corp.	6,380		270,895
Macy’s, Inc.	20,665		476,535
Nordstrom, Inc.	23,984		781,878
RadioShack Corp.	23,575		383,094
Safeway, Inc.	16,620		487,797
Sally Beauty Holdings, Inc.(a)	13,035		89,942
The Talbots, Inc.(b)	24,606		265,253
TJX Cos., Inc.	21,150		699,430
Urban Outfitters, Inc.(a)	4,100		128,535
Wal-Mart Stores, Inc.	84,586		4,455,990
			13,535,537
Security Brokers & Dealers — 0.4%
GFI Group, Inc.	850		48,705
Janus Capital Group, Inc.	71,133		1,655,265
Lehman Brothers Holdings, Inc.	7,500		282,300
Piper Jaffray Cos., Inc.(a)	7,400		251,304
Waddell & Reed Financial, Inc.	6,500		208,845
			2,446,419
Semiconductors & Related Devices — 0.5%
Amkor Technology, Inc.(a)	3,400		36,380
Avnet, Inc.(a)	6,150		201,290
Broadcom Corp. - Class A(a)	48,300		930,741
Lam Research Corp.(a)	8,400		321,048
MEMC Electronic Materials, Inc.(a)	2,850		202,065
Micron Technology, Inc.(a)	43,130		257,486
Microsemi Corp.(a)	6,400		145,920
NVIDIA Corp.(a)	7,250		143,477
PMC-Sierra, Inc.(a)	198,750		1,132,875
Semtech Corp.(a)	3,700		53,021
Standard Microsystems Corp.(a)	5,350		156,113
Ultra Clean Holdings, Inc.(a)	9,804		96,079
			3,676,495
Soaps & Cosmetics — 0.7%
Avon Products, Inc.	32,200		1,273,188
Bare Escentuals, Inc.(a)(b)	16,300		381,746
Colgate-Palmolive Co.	4,200		327,222
Estee Lauder Cos., Inc.	2,300		105,455
The Procter & Gamble Co.	37,030		2,594,692
			4,682,303
Telecommunications — 1.7%
ADC Telecommunications, Inc.(a)	3,775		45,602
Amdocs Ltd.(a)	19,207		544,711
American Tower Corp. - Class A(a)	38,750		1,519,388
Anixter International, Inc.(a)	3,129		200,381
AT&T, Inc.	96,828		3,708,512
CenturyTel, Inc.	1,400		46,536
EMS Technologies, Inc.(a)	11,700		317,538
Harris Corp.	8,871		430,510
Iowa Telecommunications Services, Inc.	7,000		124,110
iPCS, Inc.	3,670		85,694
Neutral Tandem, Inc.(a)	3,100		55,831
Occam Networks, Inc.(a)	6,400		34,816
Plantronics, Inc.	1,800		34,758
QUALCOMM, Inc.	71,932		2,949,212
Research In Motion Ltd.(a)	4,570		512,891
Verizon Communications, Inc.	25,994		947,481
			11,557,971
Textiles — 0.0%
Carter’s, Inc.(a)	6,100		98,515
Kenneth Cole Productions, Inc.	3,800		64,372
			162,887
Tobacco — 0.6%
Altria Group, Inc.	22,269		494,372
Loews Corp.-Carolina Group	5,220		378,711
Philip Morris International, Inc.(a)	63,505		3,212,083
UST, Inc.	6,080		331,481
			4,416,647
Transportation — 0.3%
Con-Way, Inc.	3,300		163,284
Expeditors International of Washington, Inc.	24,265		1,096,293
J.B. Hunt Transport Services, Inc.	1,800		56,574
Kirby Corp.(a)	1,125		64,125
Knight Transportation, Inc.	3,800		62,548
Ryder Systems, Inc.	6,150		374,596
Vitran Corp., Inc.(a)	2,107		30,067
			1,847,487
Waste Management — 0.1%
Allied Waste Industries, Inc.(a)	48,600		525,366
Clean Harbors, Inc.(a)	4,700		305,500
			830,866
Total United States			249,985,676
Total Common Stocks
(Cost $341,171,845)			399,314,252
Preferred Stocks — 0.5%
United Kingdom — 0.3%
Food & Agriculture — 0.3%
Tesco Plc	261,468		1,966,705
United States — 0.2%
Government — 0.2%
Federal Home Loan Mortgage Corp.	25,800		629,520
Federal National Mortgage Assoc.	34,700		834,535
			1,464,055
Total Preferred Stocks
(Cost $3,881,522)			3,430,760

See Notes to Financial Statements.

18 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Par (000)		Value
Trust Preferred Stocks — 0.9%
Banks — 0.6%
Bank of America Corp., Capital Securities
8.07%, 12/31/26(d)	$	225	$	231,923
Bank of America Corp., Depositary Shares
8.00%(f)		720		720,864
Citigroup Capital XXI, Trust Preferred Securities
8.30%, 12/21/57(g)		615		606,004
First Union Capital l, Capital Securities
7.94%, 1/15/27		325		333,014
JPMorgan Chase Capital XXV, Captial Securities
6.80%, 10/01/37		1,150		1,050,729
Mellon Captial IV, Capital Securities
6.24%(f)(g)		250		193,067
UBS Preferred Funding Trust, Inc., Capital Securities
8.62%(f)(g)		35		34,743
Wachovia Corp., Preferred Stock
7.98%(f)(g)		875		859,687
				4,030,031
Finance — 0.0%
Goldman Sachs Capital Trust II, Unsecured Notes
5.79%(f)(g)		300		199,830
Lehman Brothers Holdings Capital Trust VII, Trust Preferred Securities
5.86%(f)(g)		110		69,575
				269,405
Insurance — 0.1%
CHUBB Corp., Capital Securities
6.38%, 3/29/67(g)		175		163,009
Progressive Corp., Junior Subordinated Notes
6.70%, 6/15/37(g)		310		276,093
				439,102
Yankee — 0.2%
Banks — 0.1%
Barclays Bank Plc (United Kingdom), Unsecured Notes
7.43%(d)(f)(g)(h)		350		316,430
Royal Bank of Scotland Group Plc (United Kingdom), Subordinated Notes
7.64%, 9/29/17(g)(h)		500		430,595
				747,025
Finance — 0.1%
Credit Suisse (Guernsey), Unsecured Notes
5.86%, 5/15/17(g)(h)		530		448,978
Total Trust Preferred Stocks
(Cost $6,485,101)				5,934,541
	Shares
Warrant — 0.0%
Point North Energy Ltd. (issued/exercisable 7/24/03, 1 share for 1 warrant, expiring 7/23/08, strike price 5.00 CAD) (acquired 7/24/03, cost $0)
(Cost $0)(c)(e)		13,755		1
	Par (000)		Value
U.S. Government & Agency Obligations — 0.6%
Federal Home Loan Mortgage Corp., Unsecured Notes
4.63%, 5/28/13	$	150	$	150,390
Resolution Funding Corp., Strip Bonds
6.29%, 7/15/18(i)		150		98,239
6.30%, 10/15/18(i)		150		96,775
U.S. Treasury Bonds
5.00%, 5/15/37		1,075		1,202,573
4.38%, 2/15/38		775		784,203
U.S. Treasury Inflation Protected Notes
2.38%, 1/15/25		325		395,918
U.S. Treasury Notes
3.50%, 2/15/18(j)		1,590		1,599,192
Total U.S. Government & Agency Obligations
(Cost $4,217,530)				4,327,290
Mortgage Pass-Throughs — 17.8%
Federal Home Loan Mortgage Corp. ARM
5.03%, 12/01/35(g)		625		634,926
Federal Home Loan Mortgage Corp. Gold
8.50%, 7/01/09(k)		—		2
4.00%, 5/01/10-5/01/19		159		158,247
6.00%, 4/01/13-4/01/23		397		408,811
5.50%, 9/01/21-8/01/33(l)(m)		3,125		3,185,972
9.50%, 12/01/22		193		221,140
8.00%, 2/01/23-8/01/27		21		22,439
7.50%, 9/01/27(k)		—		296
6.50%, 1/01/29-8/01/32		57		59,676
5.00%, 5/01/34		202		200,612
Federal Home Loan Mortgage Corp. Gold 15 Year TBA
4.50%, 4/01/23		1,000		993,750
Federal Home Loan Mortgage Corp. Gold 30 Year TBA
5.00%, 4/01/38		2,000		1,979,380
5.50%, 4/01/38		5,000		5,048,450
Federal National Mortgage Assoc.
8.00%, 4/01/08-2/01/33		134		145,977
7.00%, 8/01/08-10/01/32		247		259,511
8.50%, 2/01/09		1		616
6.50%, 1/01/11-9/01/36(m)		3,390		3,534,659
6.00%, 9/01/11-8/01/36		2,731		2,813,965
5.50%, 4/01/17-6/01/36(l)(m)		7,372		7,511,772
5.00%, 1/01/18-12/01/35(l)(m)		15,657		15,708,677
4.00%, 6/01/19		801		784,112
7.50%, 10/01/25-1/01/31		358		387,161
Federal National Mortgage Assoc. 15 Year TBA
4.50%, 4/01/23		1,500		1,492,035
6.00%, 4/01/23		2,300		2,366,838
Federal National Mortgage Assoc. 30 Year TBA
5.50%, 4/01/38		18,200		18,370,716
6.00%, 4/01/38		700		716,842
6.50%, 4/01/38-5/01/38		12,400		12,831,673
Federal National Mortgage Assoc. ARM
4.19%, 12/01/34(g)		949		949,919
4.78%, 1/01/35(g)		657		661,641
Government National Mortgage Assoc. I
6.50%, 2/15/09-11/15/28		278		290,125

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 19

Schedule of Investments (continued)

	Par (000)		Value
Mortgage Pass-Throughs (Continued)
7.50%, 12/15/10	$	22	$	23,036
6.00%, 10/15/23-2/15/24		225		234,035
7.00%, 9/15/31-5/15/32		37		39,810
5.50%, 4/15/33-12/15/34		596		609,161
Government National Mortgage Assoc. I 30 Year TBA
5.00%, 4/01/38		4,400		4,395,864
5.50%, 4/01/38		2,900		2,955,274
6.00%, 4/01/38		5,100		5,262,588
6.50%, 4/01/38		2,000		2,078,120
Government National Mortgage Assoc. II
5.00%, 10/20/33(n)		1,074		1,071,054
5.50%, 3/20/36(m)		5,795		5,906,051
6.00%, 12/20/37		196		202,109
Government National Mortgage Assoc. II 30 Year TBA
6.00%, 4/01/38		3,500		3,605,000
6.50%, 4/01/38		12,700		13,172,313
5.00%, 5/01/38		1,000		994,690
Government National Mortgage Assoc. II ARM
4.75%, 5/20/34(g)		140		140,288
Total Mortgage Pass-Throughs
(Cost $120,874,021)				122,429,333
Collateralized Mortgage Obligations — 4.6%
Banc of America Alternative Loan Trust, Series 04-6, Class 4A1,
5.00%, 7/25/19		170		161,063
Bear Stearns Mortgage Trust, Series 06-2, Class2A1,
5.65%, 7/25/36(g)		1,865		1,802,014
CitiMortgage Alternative Loan Trust, Series 07-A8, Class A1,
6.00%, 10/25/37		1,261		1,127,813
Countrywide Alternative Loan Trust, Series 06-OA10, Class 1A-1,
5.20%, 8/25/46(g)		207		157,320
Countrywide Home Loans, Series 03-27, Class M,
3.90%, 6/25/33(g)		503		463,581
Countrywide Home Loans, Series 03-56, Class 4A-1,
4.93%, 12/25/33(g)		1,294		1,180,991
Countrywide Home Loans, Series 03-58, Class B1,
4.56%, 2/19/34(g)		171		174,074
Countrywide Home Loans, Series 06-OA5, Class 2A-1,
2.80%, 4/25/46(g)		244		182,690
Countrywide Home Loans, Series 06-OA5, Class 3A-1,
2.80%, 4/25/46(g)		472		358,293
Countrywide Home Loans, Series 07-J3, Class A10,
6.00%, 7/25/37(g)		967		862,892
Credit Suisse Mortgage Capital Certificate, Series 06-8, Class 3-A1,
6.00%, 10/25/21		325		295,589
Fannie Mae Grantor Trust, Series 03-T1, Class R (IO),
0.67%, 11/25/12(o)		6,467		140,290
Fannie Mae, Series 07-21, Class FC,
2.96%, 3/25/37(g)		665		636,511
Fannie Mae, Series 07-75, Class JF,
3.59%, 8/25/37(g)		1,171		1,117,774
Federal Home Loan Mortgage Corp., Series 235 (IO),
5.50%, 2/01/36(o)		1,230		267,448
Federal Home Loan Mortgage Corp., Series 2529, Class MB,
5.00%, 11/15/17		100		103,556
Federal Home Loan Mortgage Corp., Series 2574, Class HP,
5.00%, 2/15/18		1,420		1,457,895
Federal Home Loan Mortgage Corp., Series 2707, Class PW,
4.00%, 7/15/14		99		98,685
Federal Home Loan Mortgage Corp., Series 2864, Class NA,
5.50%, 1/15/31		123		126,613
Federal National Mortgage Assoc., Series 04-88, Class HA,
6.50%, 7/25/34		50		52,196
Federal National Mortgage Assoc., Series 379, Class 5 (IO),
5.00%, 7/01/36(o)		2,025		441,682
Freddie Mac, Series 3295, Class FA,
3.22%, 3/15/37(g)		893		855,262
Freddie Mac, Series 3339, Class JF,
3.23%, 7/15/37(g)		1,033		984,251
JPMorgan Mortgage Trust, Series 06-S2, Class 2A-2,
5.88%, 7/25/36		161		145,970
JPMorgan Mortgage Trust, Series 07-S1, Class 1A-2,
5.50%, 3/25/22		174		156,747
Master Alternative Loans Trust, Series 04-4, Class 1A1,
5.50%, 5/25/34		116		107,255
Residential Accredit Loans, Inc., Series 06 QO2, Class A1,
2.82%, 2/25/46(g)		372		282,418
Residential Accredit Loans, Inc., Series 07-QO3, Class A1,
2.76%, 3/25/47(g)		282		231,025
Salomon Brothers Mortgage Securities VI, Series 87-1 (IO),
11.00%, 2/17/17(o)		31		6,998
Salomon Brothers Mortgage Securities VI, Series 87-1 (PO),
11.50%, 2/17/17(o)		35		33,068
Salomon Brothers Mortgage Securities VI, Series 87-2 (IO),
11.00%, 3/06/17(o)		22		5,722
Salomon Brothers Mortgage Securities VI, Series 87-2 (PO),
11.50%, 3/06/17(o)		22		20,012
Structured Asset Securities Corp., Series 01-21A, Class B2,
7.13%, 1/25/32(g)		6		5,640
Structured Asset Securities Corp., Series 03-2A, Class B2II,
6.18%, 2/25/33(g)		67		66,648
Washington Mutual Mortgage Loan Trust, Series 03-AR3, Class B2,
4.88%, 4/25/33(g)		71		68,532
Washington Mutual Mortgage Loan Trust, Series 03-AR5, Class B2,
4.50%, 6/25/33(g)		252		212,581

See Notes to Financial Statements.

20 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Par (000)		Value
Collateralized Mortgage Obligations (Continued)
Washington Mutual Mortgage Loan Trust, Series 03-AR8, Class B1,
4.19%, 8/25/33(g)	$	289	$	255,296
Washington Mutual Mortgage Loan Trust, Series 04-AR1, Class B1,
4.48%, 3/25/34(g)		1,020		1,039,133
Washington Mutual Mortgage Loan Trust, Series 04-AR3, Class B1,
4.17%, 6/25/34(g)		223		167,839
Washington Mutual Mortgage Pass-Through Certificates, Series 06-AR18, Class 1A-1,
5.35%, 1/25/37(g)		967		909,946
Washington Mutual Mortgage Pass-Through Certificates, Series 07-HY3, Class 1A-1,
5.67%, 3/25/37(g)		3,667		3,469,497
Washington Mutual Mortgage Pass-Through Certificates, Series 07-HY3, Class 4A-1,
5.35%, 3/25/37(g)		1,727		1,629,809
Washington Mutual Mortgage Pass-Through Certificates, Series 07-OA4, Class 1A,
5.10%, 5/25/47(g)		286		243,089
Washington Mutual Mortgage Pass-Through Certificates, Series 07-OA5, Class 1A,
5.08%, 6/25/47(g)		467		373,649
Washington Mutual Mortgage Pass-Through Certificates, Series 07-OC1, Class A1,
2.84%, 5/25/37(g)		1,590		1,183,813
Wells Fargo Mortgage Backed Securities Trust, Series 04-K, Class 1A-2,
4.47%, 7/25/34(g)		380		358,817
Wells Fargo Mortgage Backed Securities Trust, Series 05-AR10, Class 2A-2,
4.11%, 6/25/35(g)		2,377		2,194,140
Wells Fargo Mortgage Backed Securities Trust, Series 05-AR15, Class 2A-1,
5.11%, 9/25/35(g)		2,045		1,915,002
Wells Fargo Mortgage Backed Securities Trust, Series 06-AR12, Class 2A-1,
6.10%, 9/25/36(g)		419		394,499
Wells Fargo Mortgage Backed Securities Trust, Series 06-AR17, Class A1,
5.34%, 10/25/36(g)		732		694,297
Wells Fargo Mortgage Backed Securities Trust, Series 06-AR2, Class 2A-5,
5.11%, 3/25/36(g)		2,191		2,099,179
Total Collateralized Mortgage Obligations
(Cost $32,883,011)				31,319,104
Commercial Mortgage Backed Securities — 6.7%
Banc of America Commercial Mortgage, Inc., Series 07-2, Class A4
5.69%, 4/10/49(g)		1,000		992,825
Bank of America-First Union Commercial Mortgage, Series 01-3, Class A2
5.46%, 4/11/37		1,375		1,371,569
Bear Stearns Commercial Mortgage Securities, Inc., Series 99-WF2, Class A2
7.08%, 7/15/31		233		236,758
Bear Stearns Commercial Mortgage Securities, Inc., Series 00-WF2, Class A2
7.32%, 10/15/32		475		493,014
Bear Stearns Commercial Mortgage Securities, Inc., Series 02-TOP6, Class A1
5.92%, 10/15/36		492		496,477
Bear Stearns Commercial Mortgage Securities, Inc., Series 03-T12, Class A4
4.68%, 9/13/13		1,025		992,937
Bear Stearns Mortgage Trust, Series 05-4, Class 3A1
5.37%, 8/25/35(g)		4,345		4,093,400
CDC Commercial Mortgage Trust, Series 02-FX1, Class A1
5.25%, 5/15/19		1,208		1,209,650
Citigroup Commercial Mortgage Securities, Series 07-CD5, Class A4
5.89%, 11/15/44		475		474,387
Citigroup Commercial Mortgage Trust, Series 07-C6, Class AM
5.70%, 6/10/17(g)		475		433,534
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 07-CD4, Class A4
5.32%, 12/11/49		1,970		1,901,380
Commercial Mortgage Acceptance Corp., Series 98-C2, Class C
6.53%, 9/15/30(g)		275		275,414
Commercial Mortgage Acceptance Corp., Series 98-C2, Class E
7.31%, 6/15/10(g)		930		956,816
Credit Suisse First Boston Mortgage Securities Corp., Series 01-CP4, Class D
6.61%, 12/15/35		1,450		1,492,541
Credit Suisse First Boston Mortgage Securities Corp., Series 02-CKN2, Class A3
6.13%, 3/15/12		1,000		1,034,438
Credit Suisse First Boston Mortgage Securities Corp., Series 02-CKS4, Class A2
5.18%, 8/15/12		1,090		1,088,623
Credit Suisse First Boston Mortgage Securities Corp., Series 02-CP5, Class A2
4.94%, 12/15/35		1,010		976,229
Credit Suisse First Boston Mortgage Securities Corp., Series 03-C3, Class A5
3.94%, 5/15/38		1,020		936,133
Donaldson, Lufkin & Jenrette, Inc., Commercial Mortgage Corp., Series 99-CG1, Class A1B
6.46%, 3/10/32		138		138,612
First Horizon Mortgage Pass-Through Trust, Series 05-AR3, Class 3A1
5.50%, 8/25/35(g)		565		531,457
First Union National Bank Commercial Mortgage Trust, Series 01-C2, Class A2
6.66%, 1/12/43		970		998,370
First Union National Bank Commercial Mortgage Trust, Series 01-C4, Class A2
6.22%, 12/12/33		1,140		1,161,646
First Union-Lehman Brothers-Bank of America Commercial Mortgage Trust, Series 98-C2, Class A2
6.56%, 11/18/08		26		25,504
General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., Series 99-C3, Class A2
7.18%, 8/15/36		128		130,196
General Motors Acceptance Corp. Commercial Mortgage Securities, Inc., Series 00-C3, Class A2
6.96%, 11/15/10		1,295		1,339,609

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 21

Schedule of Investments (continued)

	Par (000)		Value
Commercial Mortgage Backed Securities (Continued)
Goldman Sachs Mortgage Securities Corp. II, Series 07-GG10, Class A4
5.80%, 8/10/45(g)	$	800	$	798,726
Impac Commercial Mortgage Backed Trust, Series 04-5, Class 1A1
2.96%, 10/25/34(g)		96		69,257
Impac Commercial Mortgage Backed Trust, Series 04-7, Class 1A1
3.34%, 11/25/34(g)		236		218,503
Impac Commercial Mortgage Backed Trust, Series 04-7, Class M4
4.94%, 11/25/34(g)		78		54,927
JPMorgan Chase Commercial Mortgage Securities Corp., Series 06-CB17, Class A4
5.43%, 12/12/43(g)		150		146,961
JPMorgan Commercial Mortgage Finance Corp., Series 99-C7, Class A2
6.51%, 10/15/35		197		197,300
JPMorgan Commercial Mortgage Finance Corp., Series 99-PLSI, Class D
6.86%, 2/15/32(g)		650		658,334
Lehman Brothers Commercial Conduit Mortgage Trust, Series 98-C4, Class A1B
6.21%, 10/15/08		390		390,086
Lehman Brothers Commercial Conduit Mortgage Trust, Series 99-C2, Class A2
7.33%, 10/15/32		243		247,337
Lehman Brothers Commercial Conduit Mortgage Trust, Series 99-C2, Class E
7.47%, 10/15/32		125		129,023
Lehman Brothers-UBS Commercial Mortgage Trust, Series 01-C7, Class A4
5.93%, 12/15/25		825		833,421
Lehman Brothers-UBS Commercial Mortgage Trust, Series 01-WM, Class A1
6.16%, 7/14/16(d)		497		505,039
Lehman Brothers-UBS Commercial Mortgage Trust, Series 03-C8, Class A1
3.64%, 11/15/27		289		287,724
Lehman Brothers-UBS Commercial Mortgage Trust, Series 04-C2, Class A1
2.95%, 3/15/29		219		215,381
Lehman Brothers-UBS Commercial Mortgage Trust, Series 04-C6, Class A1
3.88%, 8/15/29		148		146,655
Lehman Brothers-UBS Commercial Mortgage Trust, Series 06-C6, Class A4
5.37%, 9/15/39		470		459,976
Lehman Brothers-UBS Commercial Mortgage Trust, Series 07-C7, Class A3
5.87%, 9/15/45		1,050		1,018,395
Morgan Stanley Capital I, Inc., Series 99-WF1, Class A2
6.21%, 11/15/31		276		276,184
Morgan Stanley Capital I, Inc., Series 02-TOP7, Class A1
5.38%, 1/15/39		214		214,277
Morgan Stanley Capital I, Inc., Series 03-IQ4, Class A2
4.07%, 5/15/40		1,025		949,892
Morgan Stanley Capital I, Inc., Series 05-HQ6, Class A4-A
4.99%, 8/13/42		2,405		2,363,195
Morgan Stanley Capital I, Inc., Series 06-HE2, Class A2A
2.67%, 3/25/36(g)		52		49,233
Morgan Stanley Capital I, Inc., Series 07-IQ13, Class A4
5.36%, 3/15/44		1,540		1,486,615
Morgan Stanley Capital I, Inc., Series 07-IQ16, Class A4
5.81%, 12/12/49		640		634,500
Morgan Stanley Dean Witter Capital I, Inc., Series 01-TOP1, Class A4
6.66%, 2/15/33		903		932,985
Mortgage Capital Funding, Inc., Series 98-MC2, Class B
6.55%, 6/18/30		295		294,190
Nationslink Funding Corp., Series 98-2, Class A2
6.48%, 8/20/30		74		73,696
Nationslink Funding Corp., Series 98-2, Class B
6.80%, 8/20/30		525		524,861
Nationslink Funding Corp., Series 99-2, Class D
7.13%, 6/20/31(g)		175		174,890
Salomon Brothers Mortgage Securities VII, Series 00-C3, Class A2
6.59%, 10/18/10		1,325		1,356,169
Structured Asset Receivables Trust, Series 03-2
5.72%, 1/21/09(d)(g)		296		292,005
Structured Asset Securities Corp., Series 96-CFL, Class X1 (IO)
9.79%, 2/25/28(o)		579		2,946
Structured Mortgage Loan, Series 07-3, Class 2A1
5.73%, 4/25/37(g)		1,415		1,340,061
TIAA Retail Commercial LLC, Series 01-C1A, Class A4
6.68%, 6/19/31(d)		1,305		1,324,107
UBS Commerical Mortgage Trust, Series 06-C1, Class A4
5.16%, 2/15/31		1,085		1,056,241
Wachovia Bank Commercial Mortgage Trust, Series 06-C25, Class A5
5.74%, 5/15/43(g)		1,050		1,059,189
Wachovia Bank Commerical Mortgage Trust, Series 07-C33, Class A4
5.90%, 7/15/17(g)		1,405		1,415,810
Washington Mutual Asset Securities Corp., Series 05-C1A, Class A1
4.24%, 5/25/36(d)		36		35,454
Washington Mutual Asset Securities Corp., Series 05-C1A, Class X (IO)
2.00%, 5/25/36(d)(o)		7,921		282,161
Total Commercial Mortgage Backed Securities
(Cost $47,600,943)				46,297,225
Asset Backed Securities — 2.2%
Ace Securities Corp., Series 06-HE2, Class A2A
2.66%, 5/25/36(g)		37		36,466
Ameriquest Mortgage Securities, Inc., Series 02-3, Class M2
4.47%, 8/25/32(g)		20		18,119
Amortizing Residential Collateral Trust, Series 02-BC5, Class M2
4.40%, 7/25/32(g)		23		6,861
Capital Auto Receivables Asset Trust, Series 05-1, Class A4
4.05%, 7/15/09		113		113,573

See Notes to Financial Statements.

22 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Par (000)		Value
Asset Backed Securities (Continued)
Capital Auto Receivables Asset Trust, Series 06-SN1A, Class A2A
5.40%, 1/20/09(d)	$	53	$	52,797
Carrington Mortgage Loan Trust, Series 06-NC4, Class A1
2.65%, 10/25/36(g)		530		507,054
Centex Home Equity Loan Trust, Series 02-A, Class MF2
6.54%, 1/25/32		204		157,707
Centex Home Equity Loan Trust, Series 03-B, Class M3
5.70%, 6/25/33(g)		149		69,670
Chase Issuance Trust, Series 06, Class A3
2.81%, 7/15/11(g)		1,075		1,064,343
Chase Issuance Trust, Series 07-A17, Class A
5.12%, 10/15/12		1,200		1,240,645
Citibank Credit Card Issuance Trust, Series 03, Class A6
2.90%, 5/17/10		250		250,013
Citibank OMNI Master Trust, Series 07, Class A9
3.70%, 12/23/13(d)(g)		1,435		1,434,641
Countrywide Alternative Loan Trust, Series 06-18, Class 2A1
2.65%, 7/25/36(g)		875		840,964
Countrywide Certificates, Series 02-2, Class M2
4.32%, 12/25/31(g)		4		2,683
Countrywide Certificates, Series 03-2, Class M2
6.04%, 3/26/33(g)		162		75,953
Countrywide Certificates, Series 03-3, Class M6
6.04%, 7/25/32(g)		61		18,446
Countrywide Certificates, Series 03-BCI, Class M2
6.38%, 9/25/32(g)		55		25,695
Countrywide Certificates, Series 04-13, Class AV4
2.89%, 6/25/35(g)		5		3,802
Credit-Based Asset Servicing and Securitization, Series 04-CB4, Class M1
5.77%, 5/25/35(g)		275		253,476
General Electric Business Loan Trust, Series 03-1, Class A
3.25%, 4/15/31(d)(g)		151		146,082
General Electric Business Loan Trust, Series 03-1, Class B
4.12%, 4/15/31(d)(g)		101		87,183
General Electric Business Loan Trust, Series 03-2A, Class B
3.82%, 11/15/31(d)(g)		683		620,650
General Electric Business Loan Trust, Series 04-1, Class B
3.52%, 5/15/32(d)(g)		175		154,521
Green Tree Financial Corp., Series 96-6, Class A6
7.95%, 9/15/27		415		446,328
Green Tree Financial Corp., Series 96-7, Class A6
7.65%, 10/15/27		201		214,006
Harborview Mortgage Loan Trust, Series 05-10, Class 2A1A
2.87%, 11/19/35(g)		727		574,467
Harborview Mortgage Loan Trust, Series 06-9, Class 2A1A
2.77%, 11/19/36(g)		408		310,837
Harley-Davidson Motorcycle Trust, Series 05-2, Class A2
4.07%, 2/15/12		967		971,787
Hedged Mutual Fund Fee Trust, Series 03-1A, Class 2
5.22%, 11/30/10(d)		23		23,045
Home Equity Asset Trust, Series 07-2, Class 2A1
2.71%, 7/25/37(g)		554		523,572
Lehman XS Trust, Series 05-5N, Class 3A-2
2.96%, 11/25/35(g)		644		417,684
Long Beach Mortgage Loan Trust, Series 03-4, Class M5A
6.60%, 8/25/33(g)		56		8,356
Long Beach Mortgage Loan Trust, Series 04-1, Class M5
3.70%, 2/25/34(g)		475		237,500
Lothian Mortgages Plc, Series 3A, Class A1
5.23%, 7/24/19(d)(g)		16		15,858
Massachusetts RRB Special Purpose Trust, Series 01-1, Class A
6.53%, 6/01/15		806		862,676
MBNA Credit Card Master Notes Trust, Series 06-A4, Class A4
2.81%, 9/15/11(g)		1,650		1,634,887
Nationstar Home Equity Loan Trust, Series 06-B, Class AV1
2.67%, 9/25/36(g)		251		248,170
Option One Mortgage Loan Trust, Series 02-6, Class M1
3.72%, 11/25/32(g)		26		23,214
Option One Mortgage Loan Trust, Series 02-6, Class M2
5.15%, 11/25/32(g)		71		31,033
Option One Mortgage Loan Trust, Series 03-4, Class A4
2.92%, 7/25/33(g)		87		72,927
Option One Mortgage Loan Trust, Series 03-4, Class M5A
6.35%, 7/25/33(g)		63		12,659
Option One Mortgage Loan Trust, Series 03-5, Class M4
5.50%, 8/25/33(g)		37		4,800
Residential Asset Mortgage Products, Inc., Series 03-RZ2, Class B
5.50%, 4/25/33(g)		170		91,857
Residential Asset Securities Corp., Series 02-KS4, Class AIIB
3.10%, 7/25/32(g)		51		45,843
Structured Asset Investment Loan Trust, Series 03-BC2, Class M2
5.52%, 4/25/33(g)		47		16,912
Structured Asset Investment Loan Trust, Series 03-BC3, Class M2
5.52%, 4/25/33(g)		11		2,144
USAA Auto Owner Trust, Series 06-2, Class A3
5.32%, 9/15/10		1,047		1,054,746
Total Asset Backed Securities
(Cost $16,190,787)				15,026,652
Collateralized Debt Obligations — 0.1%
Knollwood Ltd., Series 04-1A, Class C,
8.32%, 1/10/39(d)(e)(g)		103		97

See Notes Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 23

Schedule of Investments (continued)

	Par (000)		Value
Collateralized Debt Obligations (Continued)
Small Business Administration Participation Certificates, Series 97-20F, Class 1,
7.20%, 6/01/17	$	411	$	430,592
Total Collateralized Debt Obligations
(Cost $514,549)				430,689
Corporate Bonds — 7.8%
Banks — 1.2%
Bank of America Corp., Senior Unsecured Notes
6.00%, 9/01/17		550		578,254
5.75%, 12/01/17		1,090		1,127,979
Bank of America Corp., Subordinated Notes
7.40%, 1/15/11		325		348,018
Citigroup, Inc., Depositary Shares
0.01%, 12/31/49		14		324,540
Citigroup, Inc., Senior Unsecured Notes
5.30%, 10/17/12		725		728,531
Citigroup, Inc., Subordinated Notes
5.00%, 9/15/14		500		471,213
Credit Suisse New York, Subordinated Notes
6.00%, 2/15/18		380		379,093
JPMorgan Chase Bank N.A., Subordinated Notes
6.00%, 7/05/17		425		444,027
U.S. Bank N.A., Senior Bank Notes
4.40%, 8/15/08		575		577,125
UBS AG, Senior Notes
5.88%, 12/20/17		935		955,690
Wachovia Bank N.A., Subordinated Notes
6.60%, 1/15/38		900		833,870
Wachovia Corp.
8.00%, 12/17/49		15		370,500
Wells Fargo & Co., Senior Unsecured Notes
4.20%, 1/15/10		1,200		1,220,029
				8,358,869
Broadcasting — 0.1%
Cablevision Systems Corp., Senior Unsecured Notes
9.64%, 4/01/09(g)		325		322,562
Charter Communications Holdings II LLC, Unsecured Notes
10.25%, 9/15/10		255		232,050
EchoStar DBS Corp., Senior Unsecured Notes
7.00%, 10/01/13		4		3,770
7.13%, 2/01/16		25		23,313
News America, Inc., Senior Debentures
7.75%, 1/20/24		25		27,555
7.28%, 6/30/28		35		36,927
News America, Inc., Senior Unsecured Notes
6.20%, 12/15/34		100		95,238
				741,415
Chemicals — 0.0%
Huntsman International LLC, Senior Subordinated Notes
7.88%, 11/15/14		225		238,500
Computer & Office Equipment — 0.1%
IBM Corp., Unsecured Notes
5.70%, 9/14/17		360		377,122
Electronics — 0.0%
L-3 Communications Corp., Senior Subordinated Notes
6.38%, 10/15/15		35		34,212
Energy & Utilities — 0.3%
AES Eastern Energy LP, Pass-Through Certificates, Series 99-A
9.00%, 1/02/17		211		218,523
Florida Power & Light Co., First Mortgage Bonds
5.63%, 4/01/34		150		144,107
5.95%, 2/01/38		225		225,824
Forest Oil Corp., Senior Unsecured Notes
7.25%, 6/15/19		130		132,275
MidAmerican Energy Holdings Co. Bonds
6.50%, 9/15/37		250		250,544
NRG Energy, Inc., Senior Unsecured Notes
7.38%, 2/01/16		190		186,200
PacifiCorp, First Mortgage Bonds
6.25%, 10/15/37		200		202,075
Tesoro Corp., Senior Unsecured Notes
6.50%, 6/01/17		250		223,750
Texas Competitive Electric Holding LLC, Senior Notes
10.25%, 11/01/15(d)		350		348,687
Texas Competitive Electric Holding LLC, Toggle Notes
10.50%, 11/01/16(d)(p)		110		107,800
Transocean, Inc., Senior Unsecured Notes
6.00%, 3/15/18		75		77,147
XTO Energy, Inc., Senior Unsecured Notes
6.75%, 8/01/37		250		267,386
				2,384,318
Entertainment & Leisure — 0.4%
Comcast Cable Holdings LLC, Senior Debentures
7.88%, 8/01/13-2/15/26		7		7,461
Comcast Cable Holdings LLC, Senior Notes
7.13%, 2/15/28		35		35,237
Comcast Corp., Senior Unsecured Notes
7.05%, 3/15/33		115		117,268
Comcast Corp., Unsecured Notes
6.50%, 1/15/17		850		868,122
6.95%, 8/15/37		360		360,722
CSC Holdings, Inc., Senior Unsecured Notes
8.13%, 7/15/09		640		646,400
Harrahs Operating Co., Inc., Unsecured Notes
10.75%, 2/01/18(d)		360		291,600
Riddell Bell Holdings, Inc., Senior Subordinated Notes
8.38%, 10/01/12		65		52,812
Seneca Gaming Corp., Senior Unsecured Notes
7.25%, 5/01/12		125		117,812
Station Casinos, Inc., Senior Subordinated Notes
6.63%, 3/15/18		20		11,100
Time Warner Cos., Inc., Senior Debentures
7.57%, 2/01/24		30		30,797
Time Warner, Inc., Senior Debentures
7.63%, 4/15/31(n)		200		209,182
				2,748,513

See Notes Financial Statements.

24 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Par (000)		Value
Corporate Bonds (Continued)
Finance — 2.2%
Arch Western Finance, Senior Notes
6.75%, 7/01/13(g)	$	400	$	399,000
The Bear Stearns Cos., Inc., Senior Unsecured Notes
6.95%, 8/10/12		655		655,323
Berkshire Hathaway Finance Corp., Senior Unsecured Notes
4.75%, 5/15/12		355		368,965
Ford Motor Credit Co., Senior Notes
5.80%, 1/12/09		235		223,881
Ford Motor Credit Co., Senior Unsecured Notes
8.63%, 11/01/10		250		217,824
Ford Motor Credit Co., Unsecured Notes
9.75%, 9/15/10		135		120,255
7.80%, 6/01/12		285		235,089
General Electric Capital Corp., Senior Unsecured Notes
5.00%, 12/01/10		300		313,804
6.75%, 3/15/32(n)		50		53,405
General Electric Capital Corp., Subordinated Debentures
6.38%, 11/15/67(g)		475		464,797
General Electric Capital Corp., Unsecured Notes
3.34%, 7/28/08(g)		150		150,093
5.00%, 11/15/11		3,445		3,548,381
6.15%, 8/07/37		505		504,268
The Goldman Sachs Group, Inc., Senior Unsecured Notes
5.25%, 10/15/13		1,050		1,043,976
JPMorgan Chase & Co., Unsecured Notes
5.60%, 6/01/11		550		575,737
Lehman Brothers Holdings, Inc., Senior Notes
5.63%, 1/24/13		725		701,468
7.00%, 9/27/27		475		439,057
Lehman Brothers Holdings, Inc., Subordinated Notes
6.75%, 12/28/17		190		182,650
Lehman Brothers Holdings, Inc., Unsecured Notes
5.25%, 2/06/12		440		424,572
6.00%, 7/19/12		350		345,452
Leucadia National Corp., Senior Unsecured Notes
7.13%, 3/15/17		200		189,500
Morgan Stanley, Senior Notes
4.79%, 1/09/12(g)		1,655		1,524,136
5.55%, 4/27/17		115		108,148
6.25%, 8/28/17		1,025		1,019,411
Morgan Stanley, Unsecured Notes
5.05%, 1/21/11		360		361,154
NSG Holdings LLC, Notes
7.75%, 12/15/25(d)		140		135,800
Russian Federation, Unsubordinated Notes
7.50%, 3/31/30(g)		98		113,423
SLM Corp., Senior Unsecured Notes
3.47%, 7/27/09(g)		525		441,699
TL Acquisitions, Inc., Senior Unsecured Notes
10.50%, 1/15/15(d)		290		249,400
				15,110,668
Food & Agriculture — 0.2%
Kraft Foods, Inc., Senior Unsecured Notes
6.50%, 8/11/17		535		548,883
6.13%, 2/01/18		475		474,699
				1,023,582
Insurance — 0.1%
Allstate Financial Global Funding LLC, Unsecured Notes
2.50%, 6/20/08(d)		325		324,545
MetLife, Inc., Junior Subordinated Debentures
6.40%, 12/15/36(g)		390		309,910
				634,455
Leasing — 0.0%
Rent-A-Center, Senior Subordinated Notes
7.50%, 5/01/10		180		166,500
Manufacturing — 0.1%
Georgia-Pacific Corp., Senior Unsecured Notes
7.13%, 1/15/17(d)		285		263,625
Jarden Corp., Senior Subordinated Notes
7.50%, 5/01/17		75		65,625
Rexnord LLC, Senior Notes
8.88%, 9/01/16		30		26,550
Rock-Tenn Co., Senior Unsecured Notes
8.20%, 8/15/11		250		256,250
Terex Corp., Senior Subordinated Notes
8.00%, 11/15/17		370		368,150
				980,200
Medical & Medical Services — 0.1%
Health Management Plc, Senior Unsecured Notes
6.13%, 4/15/16		230		194,350
Reable Therapeutics, Inc., Unsecured Notes
10.88%, 11/15/14(d)		280		263,200
				457,550
Metal & Mining — 0.1%
Freeport-McMoRan Copper & Gold, Inc., Senior Unsecured Notes
8.25%, 4/01/15		145		152,975
8.39%, 4/01/15(g)		130		127,725
8.38%, 4/01/17		445		472,256
				752,956
Motor Vehicles — 0.1%
ArvinMeritor, Inc., Unsecured Notes
8.13%, 9/15/15		385		313,775
Lear Corp., Senior Unsecured Notes
8.75%, 12/01/16		90		76,837
				390,612
Oil & Gas — 0.2%
Opti, Inc. (Canada), Notes
8.25%, 12/15/14(h)		175		173,250
Colorado Interstate Gas Co., Senior Unsecured Notes
6.80%, 11/15/15		35		36,085
Consolidated Natural Gas, Inc., Senior Debentures
5.00%, 3/01/14		20		19,569
EXCO Resources, Inc., Senior Secured Notes
7.25%, 1/15/11		65		63,213
Gazprom, Unsecured Notes
9.63%, 3/01/13		680		764,544
Newfield Exploration Co., Senior Subordinated Notes
6.63%, 9/01/14-4/15/16		250		245,650
Targa Resources, Inc., Senior Unsecured Notes
8.50%, 11/01/13		10		9,225

See Notes Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 25

Schedule of Investments (continued)

	Par (000)		Value
Corporate Bonds (Continued)
Oil & Gas (Continued)
Transocean, Inc., Senior Unsecured Notes
6.80%, 3/15/38	$	105	$	107,264
				1,418,800
Paper & Forest Products — 0.0%
NewPage Corp., Senior Secured Notes
10.00%, 5/01/12(d)		100		101,500
Pharmaceuticals — 0.1%
Bristol-Myers Squibb Co., Senior Debentures
6.88%, 8/01/97		25		24,979
Merck & Co., Inc., Senior Unsecured Notes
4.38%, 2/15/13		410		420,874
				445,853
Real Estate — 0.1%
American Real Estate Partners LP, Senior Unsecured Notes
7.13%, 2/15/13		420		381,150
The Rouse Co., Senior Unsecured Notes (REIT)
6.75%, 5/01/13(d)		290		249,914
The Rouse Co., Unsecured Notes (REIT)
3.63%, 3/15/09		195		183,622
				814,686
Restaurants — 0.0%
Landry’s Restaurants, Inc., Senior Notes
9.50%, 12/15/14		90		87,750
Retail Merchandising — 0.3%
Michaels Stores, Inc., Senior Subordinated Notes
11.38%, 11/01/16		80		62,800
Michaels Stores, Inc., Senior Unsecured Notes
10.00%, 11/01/14		145		126,875
Rite Aid Corp., Notes
7.50%, 3/01/17		320		288,000
Wal-Mart Stores, Inc., Senior Unsecured Notes
5.80%, 2/15/18		1,250		1,310,033
				1,787,708
Telecommunications — 0.5%
American Tower Corp., Senior Unsecured Notes
7.50%, 5/01/12		800		818,000
AT&T, Inc., Unsecured Notes
5.50%, 2/01/18		250		244,785
6.50%, 9/01/37		800		791,354
Cincinnati Bell, Inc., Senior Unsecured Notes
7.25%, 7/15/13		520		510,900
Citizens Communications Co., Senior Unsecured Notes
7.88%, 1/15/27		25		21,437
Qwest Communications International, Inc., Senior Unsecured Notes
7.50%, 2/15/14		310		291,400
Qwest Corp., Unsecured Notes
6.05%, 6/15/13(g)		75		67,500
Superior Essex Communications & Essex Group, Senior Notes
9.00%, 4/15/12		425		409,062
Verizon Maryland Inc., Debentures
5.13%, 6/15/33		10		8,010
Windstream Corp., Senior Unsecured Notes
8.63%, 8/01/16		150		147,375
				3,309,823
Tires & Rubber — 0.0%
Goodyear Tire & Rubber Co., Unsecured Notes
8.63%, 12/01/11		150		157,313
Waste Management — 0.0%
Aleris International, Inc., Senior Unsecured Notes
9.00%, 12/15/14(p)		230		167,900
Yankee — 1.6%
Banks — 0.4%
Anz National Bank International Ltd. (New Zealand), Unsecured Notes
4.49%, 4/14/10(d)(g)(h)		1,645		1,630,241
Banco Central de la Republica Dominicana (Dominican Republic), Unsecured Notes
9.04%, 1/23/18(h)		33		34,593
Banque Centrale de Tunisie (Tunisia), Senior Unsecured Notes
7.38%, 4/25/12(h)		425		459,000
United Mexican States (Mexico), Unsecured Notes
7.50%, 4/08/33(h)		185		224,312
6.05%, 1/11/40		225		224,438
VTB Capital SA (Luxembourg), Unsecured Notes
7.50%, 10/12/11(h)		110		112,783
				2,685,367
Electronics — 0.0%
NXP BV (Netherlands), Notes
7.01%, 10/15/13(g)(h)		190		156,750
Energy & Utilities — 0.0%
Suncor Energy, Inc. (Canada), Unsecured Notes
6.50%, 6/15/38(h)		20		19,729
Finance — 0.0%
Wind Acquisition Finance SA (Luxembourg), Senior Unsecured Notes
10.75%, 12/01/15(d)(h)		115		117,300
Government — 0.6%
AID-Israel (Israel), Unsecured Notes
5.50%, 4/26/24-9/18/33(h)		185		209,376
Oriental Republic of Uruguay Bonds
7.63%, 3/21/36(h)		165		167,062
Republic of Argentina Bonds
8.28%, 12/31/33(h)		113		92,388
Republic of Argentina, Unsecured Notes
1.33%, 12/31/38(g)(h)		170		61,200
Republic of Brazil Bonds
8.25%, 1/20/34(h)		100		119,500
11.00%, 8/17/40(h)		705		943,995
Republic of El Salvador, Unsecured Notes
7.65%, 6/15/35(d)(h)		55		58,300
Republic of Indonesia Bonds
6.63%, 2/17/34(d)(h)		100		92,000
Republic of Panama, Debentures
8.88%, 9/30/27(h)		95		121,125
Republic of Panama, Unsecured Notes
7.13%, 1/29/26(h)		170		183,600
Republic of Peru Bonds
6.55%, 3/14/37(h)		355		367,070
Republic of Peru, Unsecured Notes
8.75%, 11/21/33(h)		135		175,500
Republic of Philippines, Senior Unsecured Notes
9.00%, 2/15/13(h)		370		432,456
Republic of Turkey, Unsecured Notes
6.75%, 4/03/18(h)		730		722,700

See Notes Financial Statements.

26 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

	Par (000)		Value
Corporate Bonds (Continued)
Yankee (Continued)
Government (Continued)
Republic of Venezuela Bonds
9.25%, 9/15/27(h)	$	280	$	266,000
Republic of Venezuela, Unsecured Notes
8.50%, 10/08/14(h)		200		185,500
Ukraine Government, Unsecured Notes
6.58%, 11/21/16(d)(h)		100		99,250
				4,297,022
Manufacturing — 0.0%
Ford Capital BV (Netherlands), Debentures
9.50%, 6/01/10(h)		390		351,000
Metal & Mining — 0.0%
Ispat Inland ULC (Canada), Senior Secured Notes
9.75%, 4/01/14(h)		10		10,755
Oil & Gas — 0.2%
ConocoPhillips Funding Co. (Australia), Unsecured Notes
4.64%, 4/09/09(g)(h)		1,129		1,125,927
Gazprom Capital (Luxembourg), Unsecured Notes
9.63%, 3/01/13(d)(h)		200		224,250
				1,350,177
Paper & Forest Products — 0.1%
Ainsworth Lumber Co. Ltd. (Canada), Senior Unsecured Notes
6.45%, 10/01/10(g)(h)		285		188,100
7.25%, 10/01/12(h)		25		14,375
Domtar Corp. (Canada), Unsecured Notes
5.38%, 12/01/13(h)		90		78,750
7.13%, 8/15/15(h)		100		94,250
Norske Skog Canada Ltd. (Canada), Senior Unsecured Notes
8.63%, 6/15/11(h)		50		41,625
				417,100
Telecommunications — 0.3%
America Movil SAB de CV (Mexico), Unsecured Notes
6.38%, 3/01/35(h)		75		72,581
Rogers Wireless, Inc. (Canada), Senior Secured Notes
7.50%, 3/15/15(h)		500		525,304
Shaw Communications, Inc. (Canada), Unsecured Notes
7.20%, 12/15/11(h)		175		180,250
Telecom Italia Capital (Italy), Senior Unsecured Notes
4.95%, 9/30/14(h)		475		432,279
Telefonica Emisiones SAU (Spain), Senior Unsecured Notes
6.42%, 6/20/16(h)		150		153,738
7.05%, 6/20/36(h)		150		156,832
Vimpelcom (Luxembourg), Notes
8.25%, 5/23/16(h)		100		98,500
Vodafone Group Plc (United Kingdom), Senior Unsecured Notes
7.75%, 2/15/10(h)		125		132,471
				1,751,955
Total Corporate Bonds
(Cost $54,827,420)				53,847,960
Foreign Bonds — 0.2%
Germany — 0.2%
Bundesrepublic Deutschland (EUR)
4.00%, 1/04/37		425		612,698
4.25%, 7/04/39		250		375,258
Total Foreign Bonds
(Cost $920,765)				987,956
Taxable Municipal Bonds — 0.1%
Atlantic Marine Corp. Communities, Notes (Delaware)
5.34%, 12/01/50(d)		600		506,586
Ohana Hawaii Military Communities LLC, Military Housing Revenue Bonds (Navy Housing Privatization Project), Series 04-A, Class 1
6.19%, 4/01/49(d)		25		23,964
Total Taxable Municipal Bonds
(Cost $625,000)				530,550

	Shares
Exchange-Traded Funds — 1.5%
iShares MSCI Brazil Index Fund	71,000	5,469,130
iShares MSCI South Korea Index Fund	40,000	2,231,600
iShares Russell 2000 Value Index Fund	1,463	95,929
iShares Silver Trust(a)	15,000	2,562,450
Total Exchange-Traded Funds
(Cost $10,099,591)		10,359,109

	Par/Shares (000)
Short Term Investments — 11.6%
Atlantic Asset Securitization Corp.,
2.85%, 5/12/08	$	5,000	4,983,771
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(q)(r)(s) Cafco LLC,		2,936	2,935,650
2.87%, 5/19/08		5,000	4,979,416
Chariot Funding LLC,
2.80%, 5/13/08		5,000	4,983,667
Ciesco LLC,
2.87%, 5/07/08		5,000	4,985,650
Galileo Money Market Fund, 2.56%(s) Galleon Capital LLC,		31,867	31,867,011
2.98%, 5/14/08		5,000	4,981,906
Kitty Hawk Funding Corp.,
2.93%, 4/17/08		5,000	4,993,489
Liberty Street Funding LLC,
2.95%, 5/16/08		5,000	4,981,265
Old Line Funding LLC,
2.91%, 4/24/08		5,000	4,990,704
UBS Finance Delaware LLC,
2.69%, 6/02/08		5,000	4,976,358
Total Short Term Investments
(Cost $79,661,411)			79,658,887

See Notes Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 27

Schedule of Investments (continued)

	Contracts		Value
Call Options Purchased — 0.3%
Interest Rate Swaps,
Bank of America, Strike Rate 5.470%, Expires 5/08/12	560	(t)	$	386,245
Credit Suisse First National Bank, Strike Rate 4.542%, Expires 3/13/09	300	(t)		136,848
Goldman Sachs & Co., Strike Rate 5.21%, Expires 3/03/11	300	(t)		193,428
Goldman Sachs & Co., Strike Rate 5.338%, Expires 2/22/11	200	(t)		140,001
Lehman Brothers, Strike Rate 5.345%, Expires 11/09/09	450	(t)		362,484
Lehman Brothers, Strike Rate 5.390%, Expires 3/19/12	330	(t)		219,746
Lehman Brothers, Strike Rate 6.025%, Expires 6/08/12	391	(t)		358,727
Total Call Options Purchased
(Cost $1,077,359)				1,797,479
Put Options Purchased — 0.1%
Interest Rate Swaps,
Bank of America, Strike Rate 5.470%, Expires 5/08/12	560	(t)		254,440
Credit Suisse First National Bank, Strike Rate 4.542%, Expires 3/13/09	300	(t)		99,222
Goldman Sachs & Co., Strike Rate 5.21%, Expires 3/03/11	300	(t)		133,602
JPMorgan Chase, Strike Rate 5.338%, Expires 2/22/11	200	(t)		80,315
Lehman Brothers, Strike Rate 5.345%, Expires 11/09/09	450	(t)		104,428
Lehman Brothers, Strike Rate 5.390%, Expires 3/19/12	330	(t)		155,372
Lehman Brothers, Strike Rate 6.025%, Expires 6/08/12	391	(t)		121,830
Total Put Options Purchased
(Cost $1,077,359)				949,209
Total Investments Before Mortgage Pass-Through TBA Sale Commitments and Outstanding Options Written
(Cost $722,108,214*)				776,640,997

	Par (000)
Mortgage Pass-Through TBA Sale Commitments — (5.6)%
Federal Home Loan Mortgage Corp. Gold 15 Year,
5.50%, 4/01/22	$	(2,300	)	(2,344,574	)
Federal Home Loan Mortgage Corp. Gold 30 Year,
5.50%, 4/01/38		(5,700	)	(5,755,233	)
Federal National Mortgage Assoc. 15 Year,
5.00%, 4/01/23		(8,000	)	(8,075,040	)
5.50%, 4/01/23		(3,300	)	(3,367,023	)
6.00%, 4/01/23		(2,300	)	(2,366,838	)
Federal National Mortgage Assoc. 30 Year,
5.00%, 4/01/38		(2,900	)	(2,870,101	)
5.50%, 4/01/38		(1,200	)	(1,211,256	)
6.00%, 4/01/38-5/01/38		(3,300	)	(3,374,820	)
Government National Mortgage Assoc. I 30 Year,
5.50%, 4/01/38		(3,400	)	(3,464,804	)
Government National Mortgage Assoc. II 30 Year,
5.50%, 4/01/38		(3,000	)	(3,051,570	)
6.00%, 4/01/38		(2,200	)	(2,266,000	)
Total Mortgage Pass-Through TBA Sale Commitments
(Proceeds $37,886,574)				(38,147,259	)

	Contracts
Call Options Written — (0.2)%
Interest Rate Swaps,
Barclays Capital, Strike Rate 5.140%, Expires 4/21/08	(320	)(t)	(276,683	)
Chase Securities, Strike Rate 5.460%, Expires 8/22/08	(170	)(t)	(181,123	)
Chase Securities, Strike Rate 5.485%, Expires 10/26/09	(140	)(t)	(124,344	)
Citibank, Strike Rate 5.670%, Expires 1/04/10	(50	)(t)	(48,432	)
Deutsche Bank, Strike Rate 4.870%, Expires 2/04/10	(570	)(t)	(318,602	)
UBS Securities, Strike Rate 5.400%, Expires 12/14/10	(260	)(t)	(192,143	)
Total Call Options Written
(Premiums received $630,007)			(1,141,327	)

Put Options Written — 0.0%
Salomon Brothers, Strike Price $97.625, Expires 6/16/08	(12	)		(3,225	)
Citibank, Strike Price $112, Expires 5/23/08	(19	)		(1,484	)
Interest Rate Swaps,
Barclays Capital, Strike Rate 5.140%, Expires 4/21/08	(320	)(t)		(112	)
Chase Securities, Strike Rate 5.460%, Expires 8/22/08	(170	)(t)		(4,917	)
Chase Securities, Strike Rate 5.485%, Expires 10/26/09	(140	)(t)		(27,284	)
Citibank, Strike Rate 5.670%, Expires 1/04/10	(50	)(t)		(9,152	)
Deutsche Bank, Strike Rate 4.870%, Expires 2/04/10	(570	)(t)		(234,624	)
UBS Securities, Strike Rate 5.400%, Expires 12/14/10	(260	)(t)		(94,674	)
Total Put Options Written
(Premiums received $651,964)				(375,472	)
Total Options Written
(Premiums received $1,281,971)				(1,516,799	)
Total Investments Net of Mortgage Pass-Through TBA Sale Commitments and Outstanding Options Written — 107.3%
(Cost $682,939,669)				736,976,939
Liabilities in Excess of Other Assets — (7.3)%				(49,977,350	)
Net Assets — 100.0%			$	686,999,589

See Notes Financial Statements.

28 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

* The cost and unrealized appreciation (depreciation)of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	726,355,217
Gross unrealized appreciation	$	76,851,978
Gross unrealized depreciation		(26,566,198	)
Net unrealized appreciation	$	50,285,780

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Restricted security as to resale. As of report date the Portfolio held 0.1% of its net assets, with a current market value of $737,711 and an original cost of $609,946 in these securities.

(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. Unless otherwise indicated, these securities are not considered to be illiquid.

(e) Security is fair valued by the Board of Trustees.

(f) Security is perpetual in nature and has no stated maturity date. In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at the issuer’s option for a specified time without default.

(g) Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(h) U.S. dollar denominated security issued by foreign domiciled entity.

(i) The rate shown is the effective yield at the time of purchase.

(j) Security, or a portion thereof, subject to financing transactions.

(k) Par is less than $500.

(l) Security, or a portion thereof, with a market value of $1,178,200, has been pledged as collateral for swap and interest rate swap contracts.

(m) All or a portion of security, with a market value of $18,312,565 has been pledged as collateral for reverse repurchase agreements.

(n) All or a portion of security, with a value of $1,333,642 as well as cash of $2,694,000, as seen on the Statement of Asset and Liabilities, for a combined value of $4,027,642 have been pledged as collateral in connection with open financial futures contracts.

(o) The rate shown is the effective yield as of report date.

(p) Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.

(q) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	2,935,650	$	7,306

(r) Security purchased with the cash proceeds from securities loans.

(s) Represents current yield as of report date.

(t) One contract represents a notional amount of $10,000.

• Reverse repurchase agreements outstanding as of March 31, 2008 were as follows:

Counterparty	Interest Rate		Settlement Date	Maturity Date	Net Closing Amount		Par
Lehman Brothers	3.00	%	03/12/08	04/14/08	$	17,521,051	$	17,473,000

• Forward foreign exchange contracts purchased as of March 31, 2008 were as follows:

Foreign Currency Purchased		Settlement Date	Unrealized Appreciation (Depreciation)
AUD	131,000	04/02/08	$	(734	)
CAD	4,500	04/02/08		1
JPY	214,207,163	04/11/08		179,587
AUD	1,847,000	04/23/08		55,997
CAD	2,975,000	04/23/08		5,569
DKK	1,855,000	04/23/08		27,130
NOK	5,943,000	04/23/08		48,165
JPY	302,852,000	04/23/08		186,602
SEK	3,500,000	04/23/08		37,921
HKD	2,769,000	04/23/08		395
SGD	456,000	04/23/08		2,460
EUR	6,568,300	04/23/08		724,358
CHF	1,944,000	04/23/08		183,152
GBP	570,000	04/23/08		1,884
ZAR	2,372,000	04/23/08		(38,116	)
PLN	1,302,000	04/23/08		60,618
Total Net Unrealized Appreciation on Forward Foreign Exchange Contracts (USD Commitment - $25,579,482)			$	1,474,989

See Notes Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 29

Schedule of Investments (continued)

• Forward foreign exchange contracts sold as of March 31, 2008 were as follows:

Foreign Currency Sold		Settlement Date	Unrealized Appreciation (Depreciation)
CAD	131,000	04/01/08	$	1,145
NOK	2,100,000	04/01/08		(586	)
JPY	20,788,000	04/01/08		503
AUD	669,000	04/23/08		3,684
CAD	1,535,000	04/23/08		11,955
DKK	1,855,000	04/23/08		(5,887	)
NOK	16,695,000	04/23/08		(218,174	)
JPY	566,342,913	04/23/08		(313,485	)
SEK	878,900	04/23/08		(4,629	)
HKD	1,331,000	04/23/08		(229	)
SGD	19,000	04/23/08		(59	)
EUR	2,837,241	04/23/08		(187,856	)
CHF	646,500	04/23/08		(45,914	)
GBP	1,659,500	04/23/08		390
Total Net Unrealized Depreciation on Forward Foreign Exchange Contracts (USD Commitment - $20,196,315)			$	(759,142	)

• Financial futures contracts purchased as of March 31, 2008 were as follows:

Contracts	Issue	Expiration Date	Notional Amount		Unrealized Appreciation (Depreciation)
	U.S. Treasury
172	Notes (2 Year)	June 2008	$	36,920,875	$	46,904
	U.S. Treasury
176	Notes (10 Year)	June 2008	$	20,935,750		299,609
16	Euro-Bobl	June 2008	$	2,798,054		(30,816	)
29	Euro-Bund	June 2008	$	5,328,528		(40,362	)
31	Euro Dollar Futures	December 2008	$	7,582,600		14,056
51	Euro Dollar Futures	June 2009	$	12,447,825		40,310
120	MSCI Taiwan Index	April 2008	$	3,944,400		(113,670	)
Total Net Unrealized Appreciation					$	216,031
•        Financial futures contracts sold as of March 31, 2008 were as follows:
Contracts	Issue	Expiration Date	Notional Amount		Unrealized Appreciation (Depreciation)
	U.S. Treasury
312	Notes (5 Year)	June 2008	$	35,641,125	$	60,649
54	U.S. Treasury Bonds	June 2008	$	6,415,031		(36,732	)
51	Euro Dollar Futures	June 2010	$	12,332,438		(29,051	)
Total Net Unrealized Depreciation					$	(5,134	)

• Swaps outstanding as of March 31, 2008 were as follows:

		Notional Amount		Unrealized Appreciation (Depreciation)
Receive (pay) a variable return based on the change in the spread return of the Bank of America Aaa 10 Yr Index and pay a fixed rate of 1.0293%
Broker, Bank of America Expires, April 2008	USD	$	2,175,000	$	54,191
Receive (pay) a variable return based on the change in the spread return of the Lehman Brothers CMBS Aaa 8.5+ Yr Index and pay a fixed rate of 3.5708%
Broker, Goldman Sachs Expires, August 2008	USD		2,135,000		55,759
Receive (pay) a variable return based on the change in spread return of the Lehman Brothers Equity Swap Non Class 376 Index and pay a floating rate based on 1-month USD LIBOR plus .35%
Broker, Lehman Brothers Expires, February 2009	USD		19,838,300		616,873
Receive a fixed rate of 5.500% and pay a floating rate based on 3-month USD LIBOR
Broker, Bank of America Expires July 2009	USD		7,500,000		335,032
Receive a fixed rate of 4.780% and pay a floating rate based on 3-month USD LIBOR
Broker, Citibank Expires, August 2009	USD		8,400,000		292,100
Receive a fixed rate of 4.05% and pay a floating rate based on 3-month USD LIBOR
Broker, Barclays Bank Expires, December 2009	USD		2,600,000		99,193
Pay a fixed rate of 4.390% and receive a floating rate based on 3-month USD LIBOR
Broker, Morgan Stanley Expires, July 2010	USD		6,300,000		(257,372	)

See Notes to Financial Statements.

30 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Schedule of Investments (continued)

		Notional Amount		Unrealized Appreciation (Depreciation)
Receive a fixed rate of 5.110% and pay a floating rate based on 3-month USD LIBOR
Broker, UBS Expires, November 2011	USD	$	9,100,000	$	812,176
Sold credit default protection on Lehman Brothers Holdings, Inc. and receive 1.20%
Broker, Goldman Sachs Expires, September 2012	USD		325,000		(21,989	)
Receive a fixed rate of 3.774% and pay a floating rate based on 3-month USD LIBOR
Broker, Bank of America Expires, January 2013	USD		4,100,000		86,605
Pay a fixed rate of 3.604% and receive a floating rate based on 3-month USD LIBOR
Broker, Deutsche Bank Expires, March 2013	USD		5,700,000		(80,453	)
Pay a fixed rate of 3.484% and receive a floating rate based on 3-month USD LIBOR
Broker, Goldman Sachs Expires, March 2013	USD		1,400,000		(12,010	)
Pay a fixed rate of 3.461% and receive a floating rate based on 3-month USD LIBOR
Broker, Goldman Sachs Expires, March 2013	USD		1,400,000		(10,551	)
Receive a fixed rate of 3.461% and pay a floating rate based on 3-month USD LIBOR
Broker, Lehman Brothers Expires, March 2013	USD		7,600,000		(81,122	)
Receive a fixed rate of 3.380% and pay a floating rate based on 3-month USD LIBOR
Broker, Deutsche Bank Expires, March 2013	USD		6,400,000		24,658
Bought credit default protection on DJ CDX.NA.IG.10.VI and pay 1.55%
Broker, Morgan Stanley Expires, June 2013	USD		1,500,000		4,075
Bought credit default protection on DJ CDX.NA.IG.10.VI and pay 1.55%
Broker, Lehman Brothers Expires, June 2013	USD		1,500,000		7,049
Pay a fixed rate of 4.960% and receive a floating rate based on 3-month USD LIBOR
Broker, UBS Expires, March 2015	USD		5,000,000		(394,300	)
Pay a fixed rate of 4.500% and receive a floating rate based on 3-month USD LIBOR
Broker, JPMorgan Chase Expires, May 2015	USD		1,700,000		(104,452	)
Receive a fixed rate of 6.650% and pay a floating rate based on 3-month NZD Bank Bill Rate
Broker, Citibank Expires, December 2015	NZD		2,400,000		(78,343	)
Receive a fixed rate of 5.300% and pay a floating rate based on 3-month USD LIBOR
Broker, UBS Expires, February 2017	USD		6,700,000		697,975
Pay a fixed rate of 5.680% and receive a floating rate based on 3-month USD LIBOR
Broker, Lehman Brothers Expires, June 2017	USD		2,400,000		(351,370	)
Pay a fixed rate of 5.640% and receive a floating rate based on 3-month USD LIBOR
Broker, Citibank Expires, July 2017	USD		3,300,000		(431,492	)
Pay a fixed rate of 5.305% and receive a floating rate based on 3-month USD LIBOR
Broker, Citibank Expires, October 2017	USD		4,800,000		(562,273	)
Pay a fixed rate of 5.288% and receive a floating rate based on 3-month USD LIBOR
Broker, Deutsche Bank Expires, October 2017	USD		3,600,000		(417,947	)
Pay a fixed rate of 5.014% and receive a floating rate based on 3-month USD LIBOR
Broker, Deutsche Bank Expires, November 2017	USD		3,300,000		(310,045	)
Pay a fixed rate of 5.115% and receive a floating rate based on 3-month USD LIBOR
Broker, Lehman Brothers Expires, March 2018	USD		3,300,000		(287,592	)

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 31

Schedule of Investments (concluded)

		Notional Amount		Unrealized Appreciation (Depreciation)
Receive a fixed rate of 5.410% and pay a floating rate based on 3-month USD LIBOR
Broker, JPMorgan Chase Expires, August 2022	USD	$	4,230,000	$	126,336
Receive a fixed rate of 5.410% and pay a floating rate based on 3-month USD LIBOR
Broker, Goldman Sachs Expires, April 2027	USD		750,000		96,572
Total				$	(92,717	)

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

32 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Statement of Assets and Liabilities

March 31, 2008 (Unaudited)

Assets
Investments at value - unaffiliated (including securities loaned of $2,764,020) (cost $719,172,564)	$	773,705,347
Investments at value - affiliated (cost $2,935,650)		2,935,650
Cash on deposit for futures contracts		2,694,000
Foreign currency at value (cost $3,789,899)		3,979,268
Cash		1,159
Dividends and reclaims receivable		1,157,045
Interest receivable		1,859,216
Securities lending income receivable		7,306
Principal paydown receivable		423,978
Investments sold receivable		139,895,422
Receivable from advisor		1,134
Capital shares sold receivable		926,808
Prepaid expenses		74,653
Unrealized appreciation on forward foreign currency contracts		1,531,516
Unrealized appreciation on swaps		3,308,594
Margin variation receivable		27,786
Total assets		932,528,882
Liabilities
Investments purchased payable		176,731,719
Unrealized depreciation on forward foreign currency contracts		815,669
Margin variation payable		30,832
Unrealized depreciation on swaps		3,401,311
Options written at value (premiums received $1,281,971)		1,516,799
Reverse repurchase agreements payable		17,473,000
Payable for financing transactions		1,600,450
Mortgage Pass-Throughs TBA sale commitments at value (proceeds received $37,886,574)		38,147,259
Collateral received at value - securities loans		2,935,650
Premiums received for swap contracts		29,874
Capital shares redeemed payable		1,301,660
Transfer agent fees payable		405,188
Investment advisory fees payable		318,881
Service and distribution fees payable		141,021
Custodian fees payable		120,374
Interest payable		119,351
Administration fees payable		55,813
Officer and Trustees fees payable		18,174
Foreign taxes payable		6,334
Other accrued expenses payable		359,934
Total liabilities		245,529,293
Net Assets
Net Assets	$	686,999,589
Net Assets Consist of
Paid-in capital	$	633,938,043
Undistributed net investment income		2,230,539
Accumulated net realized gain		(4,624,743	)
Net unrealized appreciation		55,455,750
Net Assets	$	686,999,589
Net Asset Value
Institutional - Based on net assets of $29,696,942, and 2,021,379 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	14.69
Service - Based on net assets of $1,907,014, and 130,125 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	14.66
Investor A - Based on net assets of $452,469,585, and 30,906,340 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	14.64
Investor B - Based on net assets of $126,859,861, and 8,760,435 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	14.48
Investor C - Based on net assets of $76,066,187, and 5,273,434 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	14.42

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 33

Statement of Operations

Six Months Ended March 31, 2008 (Unaudited)

Investment Income
Interest	$	6,735,995
Securities lending		7,306
Dividends and reclaims		4,265,877
Foreign taxes withheld		(97,173	)
Interest from affiliates		7,263
Total investment income		10,919,268
Expenses
Investment advisory		2,015,137
Service - class specific		874,322
Distribution - class specific		830,470
Transfer agent - class specific		659,274
Custodian		273,907
Administration		263,153
Administration - class specific		91,543
Printing		73,833
Professional		57,696
Officer and Trustees		23,829
Registration		20,138
Miscellaneous		79,429
Total expenses excluding interest expense		5,262,731
Interest expense		256,863
Total expenses		5,519,594
Less administration fees waived - class specific		(3,905	)
Less transfer agent fees waived - class specific		(904	)
Less transfer agent fees reimbursed - class specific		(7,378	)
Less fees paid indirectly		(1,515	)
Total expenses after waivers and reimbursement		5,505,892
Net investment income		5,413,376
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		21,322,939
Written options		(448,677	)
Futures and swaps		(4,029,526	)
Foreign currency transactions		(50,525	)
		16,794,211
Net change in unrealized appreciation/depreciation on:
Investments		(65,851,923	)
Mortgage pass-throughs TBA sale commitments		(402,815	)
Written options		(689,289	)
Futures and swaps		(5,194	)
Foreign currency transactions		648,072
		(66,301,149	)
Net realized and unrealized loss		(49,506,938	)
Net Decrease in Net Assets Resulting from Operations	$	(44,093,562	)

See Notes to Financial Statements.

34 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Statements of Changes in Net Assets

Increase in Net Assets:	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
Operations
Net investment income	$	5,413,376		$	11,294,292
Net realized gain		16,794,211			64,921,547
Net change in unrealized appreciation/depreciation		(66,301,149	)		35,406,563
Net increase (decrease) in net assets resulting from operations		(44,093,562	)		111,622,402
Dividends and Distributions to Shareholders from
Net investment income:
Institutional		(363,099	)		(518,845	)
Service		(25,722	)		(30,612	)
Investor A		(5,327,806	)		(6,065,281	)
Investor B		(989,047	)		(1,015,381	)
Investor C		(589,482	)		(610,142	)
Net realized gain:
Institutional		(2,001,331	)		(1,296,964	)
Service		(175,568	)		(89,755	)
Investor A		(38,125,134	)		(19,046,801	)
Investor B		(11,393,688	)		(7,043,852	)
Investor C		(6,488,172	)		(3,276,940	)
Decrease in net assets resulting from dividends and distributions to shareholders		(65,479,049	)		(38,994,573	)
Capital Share Transactions
Net increase (decrease) in net assets resulting from capital share transactions		15,574,979			(64,773,363	)
Redemption Fees
Redemption fees		—			472
Net Assets
Total increase (decrease) in net assets		(93,997,632	)		7,854,938
Beginning of period		780,997,221			773,142,283
End of period	$	686,999,589		$	780,997,221
End of period undistributed net investment income	$	2,230,539		$	4,112,319

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 35

Financial Highlights

	Institutional*
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			4/01/04 - 2/28/05			Year Ended March 31,
				2007			2006									2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	17.07		$	15.53		$	15.51		$	14.99		$	14.91		$	11.38		$	14.17
Net investment income		0.16	2		0.33	2		0.31	2		0.17	2		0.20			0.24			0.28
Net realized and unrealized gain (loss)		(1.03	)		2.08			0.66			0.52			0.82			3.54			(2.68	)
Net increase (decrease) from investment operations		(0.87	)		2.41			0.97			0.69			1.02			3.78			(2.40	)
Dividends and distributions from:
Net investment income		(0.21	)		(0.24	)		(0.30	)		(0.17	)		(0.40	)		(0.25	)		(0.33	)
Net realized capital gain		(1.30	)		(0.63	)		(0.65	)		—			(0.54	)		—			(0.06	)
Total dividends and distributions		(1.51	)		(0.87	)		(0.95	)		(0.17	)		(0.94	)		(0.25	)		(0.39	)
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—			—
Net asset value, end of period	$	14.69		$	17.07		$	15.53		$	15.51		$	14.99		$	14.91		$	11.38
Total Investment Return
Based on net asset value		(5.65	)%4		16.04	%5		6.53	%5		4.66	%4,5		7.17	%4		33.46	%		(17.12	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement and excluding interest expense		0.86	%6		0.86	%		0.83	%		0.86	%6		1.03	%6		1.15	%		1.12	%
Total expenses, net of waivers and reimbursement		0.93	%6		0.86	%		0.83	%		0.86	%6		1.03	%6		1.15	%		1.12	%
Total expenses		1.01	%6		0.93	%		0.91	%		1.11	%6		1.05	%6		1.15	%		1.13	%
Net investment income		2.05	%6		2.03	%		2.04	%		1.90	%6		1.71	%6		1.74	%		2.21	%
Supplemental Data
Net assets, end of period (000)	$	29,697		$	34,720		$	32,545		$	29,752		$	31,328		$	21,989		$	17,992
Portfolio turnover		63	%		93	%		136	%		90	%		101	%		216	%		181	%

	Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			1/28/057 - 2/28/05
				2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	17.03		$	15.51		$	15.49		$	14.97		$	14.63
Net investment income		0.14	2		0.29	2		0.27	2		0.14	2		0.01
Net realized and unrealized gain (loss)		(1.02	)		2.08			0.65			0.52			0.33
Net increase (decrease) from investment operations		(0.88	)		2.37			0.92			0.66			0.34
Dividends and distributions from:
Net investment income		(0.19	)		(0.22	)		(0.25	)		(0.14	)		—
Net realized capital gain		(1.30	)		(0.63	)		(0.65	)		—			—
Total dividends and distributions		(1.49	)		(0.85	)		(0.90	)		(0.14	)		—
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—
Net asset value, end of period	$	14.66		$	17.03		$	15.51		$	15.49		$	14.97
Total Investment Return
Based on net asset value		(5.72	)%4		15.74	%5		6.24	%5		4.44	%4,5		2.32	%4
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement and excluding interest expense		1.09	%6		1.10	%		1.11	%		1.16	%6		1.16	%6
Total expenses, net of waivers and reimbursement		1.16	%6		1.10	%		1.11	%		1.16	%6		1.16	%6
Total expenses		1.16	%6		1.31	%		1.17	%		1.36	%6		1.26	%6
Net investment income (loss)		1.81	%6		1.80	%		1.76	%		1.60	%6		(0.17	)%6
Supplemental Data
Net assets, end of period (000)	$	1,907		$	2,325		$	2,201		$	2,171		$	2,171
Portfolio turnover		63	%		93	%		136	%		90	%		101	%

See Notes to Financial Statements.

36 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Financial Highlights (continued)

	Investor A*
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			4/01/04 - 2/28/05			Year Ended March 31,
				2007			2006									2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	17.01		$	15.50		$	15.48		$	14.95		$	14.89		$	11.36		$	14.15
Net investment income		0.13	2		0.27	2		0.25	2		0.13	2		0.18			0.19			0.24
Net realized and unrealized gain (loss)		(1.02	)		2.07			0.66			0.53			0.80			3.55			(2.68	)
Net increase (decrease) from investment operations		(0.89	)		2.34			0.91			0.66			0.98			3.74			(2.44	)
Dividends and distributions from:
Net investment income		(0.18	)		(0.20	)		(0.24	)		(0.13	)		(0.38	)		(0.21	)		(0.29	)
Net realized capital gain		(1.30	)		(0.63	)		(0.65	)		—			(0.54	)		—			(0.06	)
Total dividends and distributions		(1.48	)		(0.83	)		(0.89	)		(0.13	)		(0.92	)		(0.21	)		(0.35	)
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—			—
Net asset value, end of period	$	14.64		$	17.01		$	15.50		$	15.48		$	14.95		$	14.89		$	11.36
Total Investment Return
Based on net asset value8		(5.78	)%4		15.58	%5		6.12	%5		4.44	%4,5		6.78	%4		32.94	%		(17.37	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement and excluding interest expense		1.22	%6		1.21	%		1.23	%		1.25	%6		1.24	%6		1.45	%		1.42	%
Total expenses, net of waivers and reimbursement		1.29	%6		1.21	%		1.23	%		1.25	%6		1.24	%6		1.45	%		1.42	%
Total expenses		1.29	%6		1.21	%		1.36	%		1.46	%6		1.32	%6		1.45	%		1.43	%
Net investment income		1.69	%6		1.68	%		1.63	%		1.51	%6		1.55	%6		1.43	%		1.92	%
Supplemental Data
Net assets, end of period (000)	$	452,470		$	506,537		$	482,284		$	491,557		$	526,929		$	357,100		$	252,069
Portfolio turnover		63	%		93	%		136	%		90	%		101	%		216	%		181	%

* The performance prior to January 31, 2005 set forth in this table is the financial data of the State Street Research Asset Allocation Fund, a series of a predecessor trust, the State Street Research Income Trust. BlackRock Funds acquired all of the assets and certain stated liabilities of State Street Research Asset Allocation Fund on January 28, 2005. The net asset values and other per share information listed have been restated to reflect the conversion ratios of 0.71889936, 0.71991517, 0.72321182 and 0.72727901 for Institutional, Investor A, Investor B and Investor C shares, respectively.

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Aggregate total investment return.

⁵ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁶ Annualized.

⁷ Commenced operations on January 28, 2005.

⁸ Total investment returns exclude the effects of sales charges.

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 37

Financial Highlights (continued)

	Investor B*
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			4/01/04 - 2/28/05			Year Ended March 31,
				2007			2006									2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	16.83		$	15.35		$	15.34		$	14.81		$	14.74		$	11.26		$	14.01
Net investment income		0.07	2		0.14	2		0.13	2		0.07	2		0.08			0.10			0.15
Net realized and unrealized gain (loss)		(1.01	)		2.07			0.65			0.51			0.81			3.49			(2.63	)
Net increase (decrease) from investment operations		(0.94	)		2.21			0.78			0.58			0.89			3.59			(2.48	)
Dividends and distributions from:
Net investment income		(0.11	)		(0.10	)		(0.12	)		(0.05	)		(0.28	)		(0.11	)		(0.21	)
Net realized capital gain		(1.30	)		(0.63	)		(0.65	)		—			(0.54	)		—			(0.06	)
Total dividends and distributions		(1.41	)		(0.73	)		(0.77	)		(0.05	)		(0.82	)		(0.11	)		(0.27	)
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—			—
Net asset value, end of period	$	14.48		$	16.83		$	15.35		$	15.34		$	14.81		$	14.74		$	11.26
Total Investment Return
Based on net asset value4		(6.13	)%5		14.81	%6		5.30	%6		3.94	%5,6		6.20	%5		32.03	%		(17.91	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement and excluding interest expense		2.01	%7		2.01	%		2.00	%		2.01	%7		2.04	%7		2.15	%		2.12	%
Total expenses, net of waivers and reimbursement		2.08	%7		2.01	%		2.00	%		2.01	%7		2.04	%7		2.15	%		2.12	%
Total expenses		2.08	%7		2.01	%		2.03	%		2.11	%7		2.04	%7		2.15	%		2.13	%
Net investment income		0.89	%7		0.89	%		0.86	%		0.75	%7		0.73	%7		0.72	%		1.22	%
Supplemental Data
Net assets, end of period (000)	$	126,860		$	152,820		$	175,826		$	181,583		$	187,689		$	133,083		$	75,963
Portfolio turnover		63	%		93	%		136	%		90	%		101	%		216	%		181	%

See Notes to Financial Statements.

38 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Financial Highlights (continued)

	Investor C*
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,						3/01/05 - 9/30/05			4/01/04 - 2/28/05			Year Ended March 31,
				2007			2006									2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	16.78		$	15.34		$	15.33		$	14.81		$	14.74		$	11.25		$	14.01
Net investment income		0.08	2		0.15	2		0.15	2		0.06	2		0.08			0.10			0.15
Net realized and unrealized gain (loss)		(1.02	)		2.04			0.65			0.52			0.81			3.50			(2.65	)
Net increase (decrease) from investment operations		(0.94	)		2.19			0.80			0.58			0.89			3.60			(2.50	)
Dividends and distributions from:
Net investment income		(0.12	)		(0.12	)		(0.14	)		(0.06	)		(0.28	)		(0.11	)		(0.21	)
Net realized capital gain		(1.30	)		(0.63	)		(0.65	)		—			(0.54	)		—			(0.05	)
Total dividends and distributions		(1.42	)		(0.75	)		(0.79	)		(0.06	)		(0.82	)		(0.11	)		(0.26	)
Redemption fees added to paid-in capital		—			—	3		—	3		—	3		—			—			—
Net asset value, end of period	$	14.42		$	16.78		$	15.34		$	15.33		$	14.81		$	14.74		$	11.25
Total Investment Return
Based on net asset value4		(6.18	)%5		14.68	%6		5.42	%6		3.90	%5,6		6.20	%5		32.14	%		(17.96	)%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement and excluding interest expense		1.92	%7		1.94	%		1.91	%		2.00	%7		2.04	%7		2.15	%		2.12	%
Total expenses, net of waivers and reimbursement		1.99	%7		1.94	%		1.91	%		2.00	%7		2.04	%7		2.15	%		2.12	%
Total expenses		1.99	%7		1.95	%		1.94	%		2.11	%7		2.04	%7		2.15	%		2.13	%
Net investment income		0.99	%7		0.96	%		0.97	%		0.75	%7		0.76	%7		0.72	%		1.21	%
Supplemental Data
Net assets, end of period (000)	$	76,066		$	84,596		$	80,286		$	67,371		$	65,357		$	42,262		$	19,079
Portfolio turnover		63	%		93	%		136	%		90	%		101	%		216	%		181	%

* The performance prior to January 31, 2005 set forth in this table is the financial data of the State Street Research Asset Allocation Fund, a series of a predecessor trust, the State Street Research Income Trust. BlackRock Funds acquired all of the assets and certain stated liabilities of State Street Research Asset Allocation Fund on January 28, 2005. The net asset values and other per share information listed have been restated to reflect the conversion ratios of 0.71889936, 0.71991517, 0.72321182 and 0.72727901 for Institutional, Investor A, Investor B and Investor C shares, respectively.

¹ Audited by other auditors.

² Based on average shares outstanding.

³ Redemption fees added to paid-in capital are less than $0.01 per share.

⁴ Total investment returns exclude the effects of sales charges.

⁵ Aggregate total investment return.

⁶ Redemption fee of 2.00% received by the Portfolio is reflected in total return calculations. There was no impact to the return.

⁷ Annualized.

See Notes to Financial Statements.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 39

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

BlackRock Funds^SM (the “Fund”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of March 31, 2008, the Fund had 26 registered portfolios. These financial statements relate to the Fund’s Asset Allocation Portfolio (the “Portfolio”). The Portfolio is authorized to issue an unlimited number of shares with a par value of $0.001.The Portfolio’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Portfolio of the Fund offers multiple classes of shares. Institutional Shares are sold without a sales charge and only to certain eligible investors. Service Shares are sold without a sales charge. Investor A Shares are sold with a front-end sales charge. Shares of Investor B and Investor C may be subject to a contingent deferred sales charge. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the Service, Investor A, Investor B and Investor C Shares may bear certain expenses related to the service and/or distribution of such shares. Each class has exclusive voting rights with respect to matters relating to its service and distribution expenditures (except that Investor B shareholders may vote on material changes to the Investor A distribution plan).

The following is a summary of significant accounting policies followed by the Portfolio:

Valuation of Investments: Equity investments traded on a national securities exchange or on the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. Equity investments traded on a national securities exchange for which there were no sales on that day and equity investments traded on other over-the-counter markets for which market quotations are readily available are valued at the mean of the bid and asked prices. Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade and previously were valued at the last sales price as of the close of options trading on applicable exchanges. Over-the-counter (“OTC”) options quotations are provided by dealers or pricing services selected under the supervision of the Board of Trustees (the “Board”). Considerations utilized by dealers or pricing services in valuing OTC options include, but are not limited to, volatility factors of the underlying security, price movement of the underlying security in relation to the strike price and the time left until expiration of the option. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board of Trustees (the “Board”) as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that the Portfolio might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deem relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of business on the New York Stock Exchange (“NYSE”). The values of such securities used in computing the net assets of the Portfolio are determined as of such times. Foreign currency exchange rates will be determined as of the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Portfolio’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 securities, those securities may be valued at their fair value as determined in good faith by the Board or by the investment advisor using a pricing service and/or procedures approved by the Board.

The Portfolio is not obligated for costs associated with the registration of restricted securities.

Derivative Financial Instruments: The Portfolio may engage in various portfolio investment strategies to increase the return of the Portfolio and to hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract.

• Swaps-The Portfolio may enter into swap agreements, which are OTC contracts in which a Portfolio and a counterparty agree to make periodic net payments on a specified notional amount. These periodic payments received or made by the Portfolio are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. Gains or losses are also realized upon termination of the swap agreements. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, a Portfolio will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Portfolio’s basis in the contract, if any. Risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts’ terms and the possible lack of liquidity with respect to the swap agreements.

Interest rate swaps-Interest rate swaps are agreements in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. Interest rate swaps are efficient as asset/liability management tools. In more complex swaps, the notional principal amount may decline (or amortize) over time.

40 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Notes to Financial Statements (continued)

Total return swaps - Total return swaps are agreements in which one party commits to pay interest in exchange for a market-linked return. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty.

Credit default swaps - Credit default swaps are agreements in which one party pays fixed periodic payments to a counterparty in consideration for a guarantee from the counterparty to make a specific payment should a negative credit event take place.

• Futures - The Portfolio may purchase or sell financial or index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, a Portfolio deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Portfolio agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recognized by the Portfolio as unrealized gains or losses. When the contract is closed, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

• Forward foreign exchange contracts - The Portfolio may enter into forward foreign exchange contracts as a hedge against either specific transactions or portfolio positions. Forward currency contracts, when used by a Portfolio, help to manage the overall exposure to the foreign currency backing some of the investments held by the Portfolio. The contract is marked-to-market daily and the change in market value is recorded by the Portfolio as an unrealized gain or loss. When the contract is closed, the Portfolio records 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.

• Options - The Portfolio may purchase and write call and put options. When a Portfolio writes an option, an amount equal to the premium received by a Portfolio is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Portfolio enters into a closing transaction), the Portfolio realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium received or paid). If an option is exercised, the premium paid or received is added to the cost of the purchase or the proceeds from the sale in determining whether the Portfolio has realized a gain or a loss on investment transactions.

A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying position at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying position at the exercise price at any time or at a specified time during the option period.

Asset-Backed Securities: The Portfolio may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security subject to such a prepayment feature will have the effect of shortening the maturity of the security. If the Portfolio has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

Collateralized Debt Obligations: The Portfolio may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”). CBOs and CLOs are types of asset-backed securities. A CDO is a bankruptcy remote entity which is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cashflows of the CDO can be split into multiple segments, called “tranches”, which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 41

Notes to Financial Statements (continued)

Financing Transactions: The Portfolio may enter into financing transactions consisting of sales by the Portfolio of securities together with a commitment to repurchase similar securities at a future date. The difference between the selling price and the future purchase price is an adjustment to interest income. If the counterparty to whom the Portfolio sells the security becomes insolvent, the Portfolio’s right to repurchase the security may be restricted. The value of the security may change over the term of the financing transaction.

Foreign Currency Transactions: Foreign currency amounts are translated into United States dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the rates of exchange prevailing on the respective dates of such transactions. The Portfolio reports foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Forward Commitments, When-Issued and Delayed Delivery Securities: The Portfolio may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. Upon making a commitment to purchase a security on a when-issued basis, the Portfolio will hold liquid assets worth at least the equivalent of the amount due.

Inflation-indexed Bonds: Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Investing in Government Sponsored Enterprises: The Portfolio may invest in securities issued by the Federal Home Loan Mortgage Corp. (“Freddie Mac”) and similar U.S. government sponsored entities such as Federal National Mortgage Assoc. (“Fannie Mae”) and the Federal Home Loan Banks (“FHLB’s”). The debt and mortgage-backed securities issued by Freddie Mac, Fannie Mae and FHLB’s are neither guaranteed nor insured by the U.S. Government.

Mortgage Dollar Rolls: The Portfolio may sell mortgage-backed securities for delivery in the current month and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed-upon price. The market value of the securities that the Portfolio is required to purchase may decline below the agreed upon repurchase price of those securities. Pools of mortgages collateralizing those securities may have different prepayment histories than those sold. During the period between the sale and repurchase, the Portfolio will not be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in additional instruments for the Portfolio, and the income from these investments will generate income for the Portfolio.

If such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of the Portfolio compared with what the performance would have been without the use of dollar rolls.

Mortgage Pass-Through Securities: The Portfolio may purchase in the secondary market certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by the Government National Mortgage Association (“GNMA”) include Ginnie Maes, which are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by the Federal National Mortgage Association (“FNMA”) include FNMA guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”) which are solely the obligations of the FNMA, are not backed by or entitled to the full faith and credit of the United States and are supported by the right of the issuer to borrow from the Treasury.

Multiple Class Pass-Through Securities: The Portfolio may invest in multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage backed securities (“CMBS”). These multiple class securities may be issued by GNMA, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, these securities are debt obligations of a legal entity that are collateralized by, and multiple class pass-through securities represent direct ownership interests in, a pool of residential or commercial mortgage loans or mortgage pass-through securities, the payments on which are used to make payments on the multiple class pass-through securities. The markets for multiple class pass-through securities may be more illiquid than those of other securities.

Classes of multiple class pass-through securities include interest only (“IOs”), principal only (“POs”), planned amortization classes (“PACs”) and targeted amortization classes (“TACs”). IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages the cash flow from which has been separated into interest and principal

42 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Notes to Financial Statements (continued)

components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the investment is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slow, the life of the PO is lengthened and the yield to maturity is reduced.

Preferred Stock: The Portfolio may invest in preferred stock. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Reverse Repurchase Agreements: The Portfolio may enter into reverse repurchase agreements with qualified third party broker-dealers. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates at the time of issuance and is included within the related liability on the Statement of Assets and Liabilities. At the time the Portfolio enters into a reverse repurchase agreement, it identifies for segregation certain liquid securities having a value not less than the repurchase price, including accrued interest, of the reverse repurchase agreement. The Portfolio may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction.

Stripped Mortgage Backed Securities: The Portfolio may invest in stripped mortgage-backed securities issued by the U.S. government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. In certain cases, one class will receive all of the interest (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). The yield to maturity on IO’s is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal pre-payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated pre-payments of principal, the Portfolio may not fully recoup its initial investment in IO’s. Such securities will be considered liquid only if so determined in accordance with guidelines established by the Board.

TBA Purchase Commitments: The Portfolio may enter into to be announced (“TBA”) commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. Unsettled TBA commitments are valued at the current market value of the underlying securities, according to the procedures described under “Valuation of Investments”.

Trust Preferred Stock: These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for Federal income tax purposes. These securities can have a rating that is slightly below that of the issuing company’s senior debt securities.

Zero-Coupon Bonds: The Portfolio may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Portfolio segregate assets in connection with certain investments (e.g., when-issued securities, reverse repurchase agreements, swaps or futures contracts), each Portfolio will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security 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 Portfolio has determined the ex-dividend date. Upon notification from issuers, some of the dividend income received from a real estate investment trust (“REIT”) may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income is recognized on the accrual basis. The Portfolio amortize all premiums and discounts on debt securities. Income, realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 43

Notes to Financial Statements (continued)

Dividends and Distributions to Shareholders: Dividends and distributions paid by the Portfolio are recorded on the ex-dividend dates.

Securities Lending: The Portfolio may lend securities to financial institutions that provide cash or securities issued or guaranteed by the U.S. government 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 Portfolio and any additional required collateral is delivered to the Portfolio on the next business day. The Portfolio typically receives the income on the loaned securities but does not receive the income on the collateral. Where the Portfolio receives cash collateral, it may invest such collateral and retain the amount earned on such investment, net of any amount rebated to the borrower. The Portfolio may receive a flat fee for its loans. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. The Portfolio may pay reasonable lending agent, administrative and custodial fees in connection with its loans. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Portfolio could experience delays and costs in gaining access to the collateral. The Portfolio also could suffer a loss where the value of the collateral falls below the market value of the borrowed securities, in the event of borrower default or in the event of losses on investments made with cash collateral.

Income Taxes: It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

Effective March 31, 2008, the Portfolio implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to the Portfolio, and has determined that the adoption of FIN 48 did not have a material impact on the Portfolio’s financial statements. The Portfolio files U.S. and various state tax returns. No income tax returns are currently under examination. The statute of limitations on the Portfolio’s tax returns remains open for the years ended September 30, 2004 through September 30, 2006. The statute of limitations on the Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a frame- work for measuring fair value and expands disclosures about fair value measurements.The impact on the Portfolio’s financial statement disclosures, if any, is currently being assessed.

In addition, in February 2007, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Portfolio’s financial statement disclosures, if any, is currently being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133” (“FAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. The investment advisor is currently evaluating the implications of FAS 161 and the impact on the Portfolio’s financial statement disclosures, if any, is currently being assessed.

Other: Expenses directly related to the Portfolio or its classes are charged to that Portfolio or class. Other operating expenses shared by several Portfolios are pro-rated among those Portfolios on the basis of relative net assets or other appropriate methods. Other expenses of the Portfolio are allocated daily to each class based on its relative net assets.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

The Fund on behalf of the Portfolio entered into an Investment Advisory Agreement with the BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”) are principal owners of BlackRock, Inc.

44 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Notes to Financial Statements (continued)

The Advisor is responsible for the management of the Portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Portfolio. For such services, the Portfolio pays the Advisor a monthly fee based on the average daily value of the Portfolio’s net assets, at the following annual rates:

Average Daily Net Assets
first $1 billion	0.550	%
$1 billion - $2 billion	0.500
$2 billion - $3 billion	0.475
greater than $3 billion	0.450	��

In addition, the Advisor has entered into a sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Advisor, pursuant to which BFM serves as sub-advisor for the Portfolio. The Advisor pays the sub-advisor, for services it provides, a monthly fee that is a percentage of the management fee paid by the Portfolio to the Advisor.

PFPC Trust Company (“PTC”), an indirect wholly-owned subsidiary of PNC, serves as custodian for the Portfolio. For these services, the custodian receives a fee computed daily and payable monthly, based on a percentage of the average daily gross assets of the Portfolio.

Prior to January 1, 2008, the fee was paid at the following annual rates: 0.0073% of the first $250 million, 0.006% of the next $250 million, 0.0056% of the next $250 million, 0.0048% of the next $250 million and 0.004% of average daily gross assets in excess of $1 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of the Portfolio.

Effective January 1, 2008, the fee is paid at the following annual rates: 0.005% of the first $400 million, 0.004% of the next $1.6 billion, and 0.003% of average daily gross assets in excess of $2 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of the Portfolio.

PFPC Inc. (“PFPC”), an indirect wholly-owned subsidiary of PNC, serves as transfer and dividend disbursing agent. Each class of the Portfolio bears the costs of transfer agent fees associated with such respective class. Transfer agency fees borne by each class of the Portfolio are comprised of those fees charged for all shareholder communications including shareholder reports, dividend and distribution notices, and proxy materials for shareholders meetings, as well as per account and per transaction fees related to servicing and maintenance of shareholder accounts, including the issuing, redeeming and transferring of shares of each class of the Portfolio, 12b-1 fee calculation, check writing, anti-money laundering services, and customer identification services.

Pursuant to written agreements, certain affiliates provide the Portfolio with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, affiliates receive an annual fee per shareholder account which will vary depending on share class. For the six months ended March 31, 2008, the Portfolio paid $52,360 in return for these services.

PFPC and the Advisor act as co-administrators for the Fund. For these services, the co-administrators receive a combined administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Portfolio. The combined administration fee is paid at the following annual rates: 0.075% of the first $500 million, 0.065% of the next $500 million and 0.055% of average of daily net assets in excess of $1 billion of the Portfolio. In addition, each of the share classes is charged an administration fee based on the following percentages of average daily net assets of each respective class: 0.025% of the first $500 million, 0.015% of the next $500 million and 0.005% of average of daily net assets in excess of $1 billion. In addition, PFPC and the Advisor may have, at their discretion, voluntarily waived all or any portion of their administration fees for the Portfolio or a share class.

The Portfolio has received an exemptive order from the Securities and Exchange Commission permitting it to lend portfolio securities to BlackRock Investment Management, LLC (“BIM”), an affiliate of the Advisor, or its affiliates. As of March 31, 2008, the Portfolio had no securities loans to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a wholy owned subsidiary of Merrill Lynch, or its affiliates. Pursuant to that order, the Portfolio has retained BIM as the securities lending agent for a fee based on a share of the returns on investment of cash collateral. BIM may, on behalf of the Portfolio, invest cash collateral received by the Portfolio for such loans, among other things, in a private investment company managed by the Advisor or in registered money market funds advised by the Advisor or its affiliates. For the six months ended March 31, 2008, BIM received $2,167 in securities lending agent fees.

The Fund, on behalf of the Portfolio, has entered into a Distribution Agreement with BlackRock Distributors, Inc. (“BDI”). BDI is an affiliate of BlackRock, Inc. The Fund has also adopted a Distribution Plan on behalf of the Portfolio in accordance with Rule 12b-1 under the 1940 Act. Pursuant to the Distribution Plan the Portfolio pays BDI ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows:

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 45

Notes to Financial Statements (continued)

Class Specific Fee Arrangement
Share Classes
Institutional		Service				Investor A				Investor B				Investor C
Contractual Fees	Actual Fees (3)	Contractual Fees (1)		Actual Fees (3)		Contractual Fees (1)		Actual Fees (3)		Contractual Fees (2)		Actual Fees (3)		Contractual Fees (2)		Actual Fees (3)
None	None	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	1.00	%	1.00	%	1.00	%

(1) the maximum annual contractual fees are comprised of a 0.25% service fee.

(2) the maximum annual contractual fees are comprised of a 0.75% distribution fee and a 0.25% service fee.

(3) annualized; the actual fees are for the six months ended March 31, 2008.

For the six months ended March 31, 2008, the Portfolio paid $272,409 to affiliates in return for distribution and sales support services.

The Advisor maintains a call center, which is responsible for providing certain shareholder services to the Portfolio, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Portfolio shares. During the six months ended March 31, 2008, the following amounts have been accrued by the Portfolio to reimburse the Advisor for costs incurred running the call center, which are a component of the transfer agent fees in the accompanying Statement of Operations.

Share Classes
Institutional	Service	Investor A	Investor B	Investor C	Total
$    731	$    69	$    42,769	$    15,547	$    4,011	$    63,127

For the six months ended March 31, 2008, the following charts show the various types of class-specific expenses borne directly by each class of the Portfolio and any associated waivers of those expenses.

	Share Classes
	Institutional			Service			Investor A			Investor B		Investor C			Total
Administration Fees	$	3,731		$	268		$	59,833		$	17,602	$	10,109		$	91,543
Administration Fees Waived		(3,731	)		(2	)		(115	)		—		(58	)		(3,905	)
Transfer Agent Fees		21,937			583			427,170			157,020		52,564			659,274
Transfer Agent Fees Waived		(731	)		(3	)		—			—		(171	)		(904	)
Transfer Agent Fees Reimbursed		(7,177	)		(78	)		—			—		(123	)		(7,378	)
Service Fees		—			2,684			595,767			175,065		100,806			874,322
Distribution Fees		—			—			—			528,051		302,419			830,470

The Advisor contractually agreed to waive or reimburse fees or expenses until February 1, 2009, in order to limit expenses. These expense limits apply to the aggregate expenses incurred on a share class (excluding; interest, taxes, brokerage commissions, expenses incurred as a result of investments in other funds and other expenses attributable to, and incurred as a result of, a Portfolio’s investments and other extraordinary expenses). This agreement is reviewed annually by the Board. The current expense limitations as a percentage of net assets are as follows:

Share Classes
Institutional		Service		Investor A		Investor B		Investor C
0.86	%	1.16	%	1.33	%	2.08	%	2.08	%

If operating expenses, within two years following a waiver or reimbursement of the operating expenses of a share class that previously received a waiver or reimbursement from the Advisor, are less than the expense limit for that share class, the share class is required to repay the Advisor up to the amount of fees waived or expenses reimbursed under the agreement if: (1) the Portfolio has more than $50 million in assets, (2) the Advisor or an affiliate continues to be the Portfolio’s investment advisor or administrator and (3) the Board has approved the payments to the Advisor at the previous quarterly meeting.

At March 31, 2008, the amounts subject to possible future reimbursement under the expense limitation agreement are as follows:

Expiring January 31,
2010	2011
$47,788	$3,660

For the six months ended March 31, 2008, Merrill Lynch, through its affiliated broker dealer, MLPF&S, earned $3,875 in commissions on transactions of securities.

For the six months ended March 31, 2008, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Portfolio’s Investor A shares of $25,810.

46 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Notes to Financial Statements (continued)

For the six months ended March 31, 2008, affiliates received contingent deferred sales charges relating to transactions in Investor A, Investor B and Investor C shares of $71, $95,946 and $5,794 respectively.

The Portfolio may earn income on positive cash balances in demand deposit accounts that are maintained by PFPC on behalf of the Portfolio. The income earned for the six months ended March 31, 2008 was $7,263.

The Portfolio may also receive earnings credits related to cash balances with PFPC which are shown on the Statement of Operations as fees paid indirectly.

Certain officers and/or trustees of the Portfolio are officers and/or trustees/directors of BlackRock, Inc. or its affiliates.

3. Investments:

For the six months ended March 31, 2008, purchases and sales of securities including paydowns, excluding short-term investments, dollar rolls securities, were $320,608,288 and $361,402,092, respectively.

For the six months ended March 31, 2008, purchases and sales of U.S. government securities were $90,139,167 and $87,848,142, respectively.

Written options transactions entered into during the six months ended March 31, 2008 are summarized as follows:

	Contracts		Premium
Balance at 9/30/07	(1,637,502	)	$	(1,994,023	)
Written	(7,119	)		(2,372,142	)
Expired	1,630,758			214,647
Closed	10,812			2,869,547
Balance at 3/31/08	(3,051	)	$	(1,281,971	)

4. Capital Shares:

Transactions in capital shares for each period were as follows:

	Six Months Ended March 31, 2008					Year Ended September 30, 2007
	Shares		Value			Shares		Value
Shares sold:
Institutional	513,260		$	7,818,606		774,819		$	12,673,325
Service	12,218			189,692		115,714			1,912,238
Investor A	1,407,299			21,697,411		2,956,580			47,917,929
Investor B	316,867			4,891,534		568,659			9,085,898
Investor C	417,790			6,341,821		701,045			11,178,693
Shares issued in reinvestment of dividends:
Institutional	101,948			1,607,941		101,243			1,603,042
Service	1,809			28,406		6,121			96,039
Investor A	2,651,548			41,602,823		1,521,117			23,985,487
Investor B	747,315			11,605,506		488,088			7,583,994
Investor C	419,088			6,483,200		229,834			3,573,154
Shares redeemed:
Institutional	(627,912	)		(10,606,328	)	(937,469	)		(15,341,460	)
Service	(20,425	)		(304,999	)	(127,252	)		(2,097,949	)
Investor A	(2,926,547	)		(45,500,455	)	(5,822,896	)		(93,990,201	)
Investor B	(1,382,704	)		(21,158,711	)	(3,432,187	)		(54,998,153	)
Investor C	(603,430	)		(9,121,468	)	(1,125,583	)		(17,955,399	)
Net increase (decrease)	1,028,124		$	15,574,979		(3,982,167	)	$	(64,773,363	)

There is a 2% redemption fee on shares of the Portfolio redeemed or exchanged which have been held for 30 days or less. The redemption fees are collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid-in capital.

5. Short-Term Borrowings:

The Portfolio, along with certain other funds managed by the Advisor and its affiliates, is a party to a $500,000,000 credit agreement with a group of lenders. The Portfolio may borrow under the credit agreement to fund shareholder redemptions and for other lawful purposes other than for leverage. Each Portfolio may borrow up to the maximum amount allowable under the Portfolio’s current Prospectus and Statement of Additional Information, subject to various other legal, regulatory or contractual limits. On November 21, 2007, the credit agreement was renewed for one year under substantially the same terms. The Portfolio pays a commitment fee of 0.06% per annum based on the Portfolio’s pro rata share of the unused portion of the credit agreement, which is included in miscellaneous expenses in the Statement of Operations. Amounts borrowed under the credit agreement bear interest at a rate equal to, at the Portfolio’s election, the federal funds rate plus 0.35% or a base rate as defined in the credit agreement. The Portfolio did not borrow under the credit agreement during the six months ended March 31, 2008.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 47

Notes to Financial Statements (concluded)

6. Capital Loss Carryforward:

As of September 30, 2007, the Portfolio had a capital loss carryforward available to offset future realized capital gains of $13,392,631 expiring September 30, 2010.

7. Market Risk:

The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Portfolio may be inhibited. In addition, a significant proportion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Portfolio.

48 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Officers and Trustees

David O. Beim, Trustee

Richard S. Davis, Trustee

Ronald W. Forbes, Trustee

Henry Gabbay, Trustee

Dr. Matina Horner, Trustee

Rodney D. Johnson, Trustee

Herbert I. London, Trustee

Cynthia A. Montgomery, Trustee

Joseph P. Platt, Jr., Trustee

Robert C. Robb, Jr., Trustee

Toby Rosenblatt, Trustee

Kenneth L. Urish, Trustee

Frederick W. Winter, Trustee

Donald C. Burke, President and Chief Executive Officer

Anne F. Ackerley, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Brian P. Kindelan, Chief Compliance Officer

Howard Surloff, Secretary

Investment Advisor and Co-Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Financial Management, Inc.

New York, NY 10022

Custodian

PFPC Trust Company

Philadelphia, PA 19153

Co-Administrator and Transfer Agent

PFPC Inc.

Wilmington, DE 19809

Distributor

BlackRock Distributors, Inc.

King of Prussia, PA 19406

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Philadelphia, PA 19103

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 49

Additional Information (Unaudited)

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 information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal 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 applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to 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 procedures relating to the proper storage and disposal of such information.

Availability of Additional Information

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly With BlackRock

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Click on the applicable link and follow the steps to sign up

3) Log into your account

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Fund at (800) 441-7762.

50 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

Additional Information (concluded)

Availability of Additional Information (concluded)

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request by calling (800) 441-7762; (2) at www.blackrock.com; (3) on the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Availability of Proxy Voting Record

Information (if any) on how proxies relating to the Fund’s voting securities were voted by BlackRock during the most recent 12-month period ended June 30th is available, upon request and without charge on our website at www.blackrock.com, by calling (800) 441-7762 or on the SEC’s website at http://www.sec.gov.

Availability of Quarterly Portfolio Schedule

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http:// www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock portfolios.

Systematic Withdrawal Plan

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock portfolios, as long as their account is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRA’s, SEP IRA’s and 403(b) Plans.

BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008 51

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds
BlackRock All-Cap Global Resources Portfolio	BlackRock Global Opportunities Portfolio	BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Asset Allocation Portfolio†	BlackRock Global Resources Portfolio	BlackRock Mid-Cap Value Equity Portfolio
BlackRock Aurora Portfolio	BlackRock Global Science & Technology	BlackRock Mid Cap Value Opportunities Fund
BlackRock Balanced Capital Fund†	Opportunities Portfolio	BlackRock Natural Resources Trust
BlackRock Basic Value Fund	BlackRock Global SmallCap Fund	BlackRock Pacific Fund
BlackRock Capital Appreciation Portfolio	BlackRock Health Sciences Opportunities Portfolio*	BlackRock Small Cap Core Equity Portfolio
BlackRock Equity Dividend Fund	BlackRock Healthcare Fund	BlackRock Small Cap Growth Equity Portfolio
BlackRock EuroFund	BlackRock Index Equity Portfolio*	BlackRock Small Cap Growth Fund II
BlackRock Focus Growth Fund	BlackRock International Fund	BlackRock Small Cap Index Fund
BlackRock Focus Value Fund	BlackRock International Index Fund	BlackRock Small Cap Value Equity Portfolio*
BlackRock Fundamental Growth Fund	BlackRock International Opportunities Portfolio	BlackRock Small/Mid-Cap Growth Portfolio
BlackRock Global Allocation Fund†	BlackRock International Value Fund	BlackRock S&P 500 Index Fund
BlackRock Global Dynamic Equity Fund	BlackRock Large Cap Core Fund	BlackRock Technology Fund
BlackRock Global Emerging Markets Fund	BlackRock Large Cap Growth Fund	BlackRock U.S. Opportunities Portfolio
BlackRock Global Financial Services Fund	BlackRock Large Cap Value Fund	BlackRock Utilities and Telecommunications Fund
BlackRock Global Growth Fund	BlackRock Latin America Fund	BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Commodity Strategies Fund	BlackRock Income Builder Portfolio	BlackRock Low Duration Bond Portfolio
BlackRock Emerging Market Debt Portfolio	BlackRock Inflation Protected Bond Portfolio	BlackRock Managed Income Portfolio
BlackRock Enhanced Income Portfolio	BlackRock Intermediate Bond Portfolio II	BlackRock Short-Term Bond Fund
BlackRock GNMA Portfolio	BlackRock Intermediate Government	BlackRock Strategic Income Portfolio
BlackRock Government Income Portfolio	Bond Portfolio	BlackRock Total Return Fund
BlackRock High Income Fund	BlackRock International Bond Portfolio	BlackRock Total Return Portfolio II
BlackRock High Yield Bond Portfolio	BlackRock Long Duration Bond Portfolio	BlackRock World Income Fund
BlackRock Income Portfolio
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio	BlackRock Intermediate Municipal Fund	BlackRock New York Municipal Bond Fund
BlackRock California Insured Municipal Bond Fund	BlackRock Kentucky Municipal Bond Portfolio	BlackRock Ohio Municipal Bond Portfolio
BlackRock Delaware Municipal Bond Portfolio	BlackRock Municipal Insured Fund	BlackRock Pennsylvania Municipal Bond Fund
BlackRock Florida Municipal Bond Fund	BlackRock National Municipal Fund	BlackRock Short-Term Municipal Fund
BlackRock High Yield Municipal Fund	BlackRock New Jersey Municipal Bond Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios	BlackRock Lifecycle Prepared Portfolios
Conservative Prepared Portfolio	Prepared Portfolio 2010	Prepared Portfolio 2030
Moderate Prepared Portfolio	Prepared Portfolio 2015	Prepared Portfolio 2035
Growth Prepared Portfolio	Prepared Portfolio 2020	Prepared Portfolio 2040
Aggressive Growth Prepared Portfolio	Prepared Portfolio 2025	Prepared Portfolio 2045
		Prepared Portfolio 2050

* See the prospectus for information on specific limitations on investments in the fund.

† Mixed asset fund.

BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and certain funds are also distributed by FAM Distributors, Inc. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing.

52 BLACKROCK ASSET ALLOCATION PORTFOLIO MARCH 31, 2008

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[THIS PAGE INTENTIONALLY LEFT BLANK.]

This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Portfolio unless accompanied or preceded by the Portfolio’s 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.

BlackRock Funds

100 Bellevue Parkway

Wilmington, DE 19809

AA-3/08-SAR

EQUITIES    FIXED INCOME    REAL ESTATE    LIQUIDITY    ALTERNATIVES    BLACKROCK    SOLUTIONS

BlackRock
Exchange Portfolio
SEMI-ANNUAL REPORT    |    MARCH 31, 2008 (UNAUDITED)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents

	Page
A Letter to Shareholders	3
Semi-Annual Report:
Portfolio Summary	4
About Portfolio’s Performance	6
Disclosure of Expenses	6
Financial Statements:
Schedule of Investments	7
Statement of Assets and Liabilities	9
Statement of Operations	10
Statements of Changes in Net Assets	11
Financial Highlights	12
Notes to Financial Statements	13
Officers and Trustees	17
Additional Information	18
Mutual Fund Family	20

2 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

A Letter to Shareholders

Dear Shareholder

Financial markets endured severe bouts of volatility during the reporting period, particularly as the calendar turned to 2008. It was then that fears of an economic recession swelled and credit market strains intensified, producing calamity in the financial system and, ultimately, the demise of major Wall Street firm Bear Stearns.

The Federal Reserve Board (the “Fed”), after cutting the target federal funds rate 100 basis points (1%) between September 2007 and year-end, stepped up its efforts to support the ailing financial sector in the first three months of 2008. The central bank cut interest rates 125 basis points in January alone, and followed with another 75-basis-point cut on March 18, bringing the target rate to 2.25%. In an unprecedented move, the Fed also extended its financing operations directly to broker/dealers and assisted JPMorgan in its buyout of ill-fated Bear Stearns.

Against this backdrop, investor anxiety has been acute and equity markets have struggled. The S&P 500 Index of U.S. stocks was down in March, marking the fifth consecutive month of negative returns. International markets outperformed the U.S. for much of 2007, but that trend changed in more recent months as investors grew increasingly reluctant to take on the risks of foreign investing.

In fixed income markets, an ongoing investor flight to quality continued to drive Treasury yields lower and their prices higher. The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in five years), fell to 4.04% by year-end and to 3.45% by March 31. Investors largely shunned bonds associated with the housing and credit markets, and the riskier high yield sector landed in negative territory year-to-date. Meanwhile, the municipal bond market has struggled with concerns around the creditworthiness of monoline bond insurers and the failure of auctions for auction rate securities, driving yields higher and prices lower across the curve. At period-end, municipal bonds were trading at higher yields than their Treasury counterparts, a very unusual occurrence by historical standards.

Overall, the major benchmark indexes posted mixed results for the current reporting period, generally reflecting heightened investor risk aversion:

Total Returns as of March 31, 2008	6-month		12-month
U.S. equities (S&P 500 Index)	(12.46	)%	(5.08	)%
Small cap U.S. equities (Russell 2000 Index)	(14.02	)%	(13.00	)%
International equities (MSCI Europe, Australasia, Far East Index)	(10.50	)%	(2.70	)%
Fixed income (Lehman Brothers U.S. Aggregate Index)	5.23	%	7.67	%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)	0.75	%	1.90	%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)	(4.01	)%	(3.47	)%

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

3

Portfolio Summary (Unaudited)

Portfolio Management Commentary

How did the Portfolio perform?

• Portfolio results outperformed that of the benchmark S&P 500 Index for the six-month period.

What factors influenced performance?

• Both sector positioning and stock selection contributed to the Portfolio’s relative outperformance. From a sector positioning standpoint, the Portfolio’s overweight in consumer staples and energy, along with an underweight in financials, added significant value during the period.

• Stock selection within the financials and information technology sectors produced the strongest relative results. Berkshire Hathaway drove performance among the Portfolio’s financials holdings, as shares of the company appreciated during an extremely challenging environment for the sector overall. Stock selection in the computers & peripherals sub-sector within information technology also contributed notably during the six months. In particular, Portfolio positions in International Business Machines and Hewlett-Packard Co., combined with its avoidance of Dell and EMC Corp., enhanced comparative results, as the former fared relatively well, while the latter two major technology holdings in the benchmark declined significantly over the period.

• Conversely, unfavorable stock selection in the energy and industrials sectors partially offset the successes in financials and technology. In energy, the Portfolio’s large position in Schlumberger detracted from results, as the company’s shares declined over the period following earnings disappointments. Boeing accounted for much of the relative weakness in the industrials group.

Describe recent Portfolio activity.

• During the period, we increased the Portfolio’s weighting in consumer staples, as we reduced the allocation to financials through the sale of SLM Corp.

Describe Portfolio positioning at period-end.

• Sector weights continue to be driven by our bottom-up stock selection decisions. At period-end, the Portfolio’s largest overweights versus the benchmark S&P 500 Index were in healthcare and consumer staples, while it was relatively underexposed to the consumer discretionary and materials sectors.

Portfolio Profile as of March 31, 2008

Ten Largest Holdings	Percent of Long-Term Investments
The Procter & Gamble Co.	6	%
Berkshire Hathaway, Inc. - Class B	6
Hewlett-Packard Co.	6
Exxon Mobil Corp.	6
Schlumberger Ltd.	6
Target Corp.	5
American Express Co.	4
General Electric Co.	4
International Business Machines Corp.	4
Microsoft Corp.	4
Ten Largest Industries	Percent of Long-Term Investments
Oil & Gas	15	%
Computer & Office Equipment	10
Pharmaceuticals	8
Retail Merchandising	8
Finance	8
Aerospace	7
Soaps & Cosmetics	6
Conglomerates	6
Beverages & Bottling	5
Manufacturing	4

For Portfolio compliance purposes, the Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Portfolio management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

4 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Portfolio Summary (concluded)

Total Return Based on a $10,000 Investment

† The Portfolio normally invests largely in a diversified and supervised portfolio of common stocks, or securities convertible into common stocks.

†† This unmanaged Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues) representing about 75% of NYSE market capitalization and 30% of NYSE issues. S&P 500 is a registered trademark of the McGraw-Hill Companies.

Shares of the Portfolio are not currently offered to the public.

Performance Summary for the Period Ended March 31, 2008

	6-Month Total Returns		Average Annual Total Returns*
			1 Year		5 Years		10 Years
BlackRock	(9.09	)%	2.59	%	9.94	%	3.99	%
S&P 500® Index	(12.46	)%	(5.08	)%	11.32	%	3.50	%

* See “About Portfolio’s Performance” on page 6 for a detailed description of performance related information.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
BlackRock	$	1,000.00	$	909.09	$	2.86	$	1,000.00	$	1,021.96	$	3.04

* For the BlackRock share class of the Portfolio, expenses are equal to the annualized expense ratio of 0.60%, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 6 for further information on how expenses were calculated.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 5

About Portfolio’s Performance

• BlackRock Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance 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 Portfolio distributions or the redemption of Portfolio shares. Figures shown in the performance table on the previous page assume reinvestment of all dividends and 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.

The performance information also reflects fee waivers and reimbursements that subsidize and reduce the total operating expenses of the Portfolio. The Portfolio’s returns would have been lower if there were not such waivers and reimbursements. BlackRock Advisors, LLC is under no obligation to waive or continue waiving its fees after February 1, 2009.

Disclosure of Expenses

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees, and other Portfolio expenses. This Expense Example on page 5 is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example on page 5 is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

6 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)

	Shares	Value
Common Stocks — 98.8%
Aerospace — 6.5%
The Boeing Co.	131,800	$	9,801,966
General Dynamics Corp.	93,000		7,753,410
			17,555,376
Banks — 2.0%
JPMorgan Chase & Co.	124,728		5,357,068
Beverages & Bottling — 5.3%
Anheuser-Busch Cos., Inc.	192,315		9,125,347
The Coca-Cola Co.	87,735		5,340,429
			14,465,776
Computer & Office Equipment — 9.8%
Hewlett-Packard Co.	349,270		15,947,668
International Business Machines Corp.	92,371		10,635,597
			26,583,265
Computer Software & Services — 3.8%
Microsoft Corp.	367,277		10,423,321
Conglomerates — 6.1%
Berkshire Hathaway, Inc. - Class B(a)	3,687		16,491,582
Electronics — 0.9%
Agilent Technologies, Inc.(a)	29,749		887,412
Intel Corp.	70,215		1,487,154
			2,374,566
Finance — 7.6%
American Express Co.	271,045		11,850,087
Ameriprise Financial, Inc.	61,125		3,169,331
Western Union Co.	266,480		5,668,030
			20,687,448
Food & Agriculture — 0.8%
General Mills, Inc.	8,497		508,800
Kraft Foods, Inc. - Class A	53,285		1,652,368
			2,161,168
Insurance — 1.5%
American International Group, Inc.	94,900		4,104,425
Machinery & Heavy Equipment — 3.6%
Caterpillar, Inc.(b)	124,256		9,728,002
Manufacturing — 4.3%
General Electric Co.	317,848		11,763,555
Medical & Medical Services — 3.1%
Millipore Corp.(a)	123,378		8,316,911
Medical Instruments & Supplies — 4.0%
Johnson & Johnson	120,414		7,811,256
Medtronic, Inc.	60,000		2,902,200
			10,713,456
Oil & Gas — 14.8%
BP Plc - ADR	116,846		7,086,710
Exxon Mobil Corp.	188,062		15,906,284
Schlumberger Ltd.	172,339		14,993,493
Transocean, Inc.(a)	14,795		2,000,284
			39,986,771
Pharmaceuticals — 7.9%
AstraZeneca Plc	76,000		2,887,240
Merck & Co., Inc.	83,999		3,187,762
Novartis AG - ADR	161,364		8,266,678
Pfizer, Inc.	89,719		1,877,819
Wyeth	125,465		5,239,418
			21,458,917
Retail Merchandising — 7.6%
Target Corp.	248,429		12,590,382
Wal-Mart Stores, Inc.	154,700		8,149,596
			20,739,978
Soaps & Cosmetics — 6.4%
The Procter & Gamble Co.	246,400		17,265,248
Telecommunications — 0.7%
Vodafone Group Plc - ADR	64,452		1,901,979
Tobacco — 2.1%
Altria Group, Inc.	77,000		1,709,400
Philip Morris International, Inc.(a)	77,000		3,894,660
			5,604,060
TOTAL COMMON STOCKS
(Cost $58,843,669)			267,682,872
Short Term Investments — 4.0%
BlackRock Liquidity Series, LLC Money Market Series, 3.10%(c)(d)(e)	7,900,000		7,900,000
Galileo Money Market Fund, 2.56%(e)	3,074,861		3,074,861
TOTAL SHORT TERM INVESTMENTS
(Cost $10,974,861)			10,974,861
TOTAL INVESTMENTS IN SECURITIES — 102.8%
(Cost $69,818,530*)			278,657,733
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.8)%			(7,597,548	)
NET ASSETS — 100.0%		$	271,060,185

Portfolio Abbreviations

To simplify the listings of Portfolio holdings in the Schedule of Investments, the names of many of the securities have been abbreviated according to the list on the right. ADR American Depository Receipt

See Notes to Financial Statements.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 7

Schedule of Investments (concluded) (Percentages shown are based on Net Assets)

* The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	65,484,475
Gross unrealized appreciation	$	216,111,615
Gross unrealized depreciation		(2,938,357	)
Net unrealized appreciation	$	213,173,258

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

(c) Investments in companies considered to be an affiliate of the Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

Affiliate	Net Activity		Interest Income
BlackRock Liquidity Series, LLC Money Market Series	$	7,900,000	$	32,152

(d) Security purchased with the cash proceeds from securities loans.

(e) Represents current yield as of report date.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

8 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Statement of Assets and Liabilities

March 31, 2008 (Unaudited)

Assets

Investments at value - unaffiliated (including securities loaned of $7,829,000) (cost $61,918,530)	$	270,757,733
Investments at value - affiliated (cost $7,900,000)		7,900,000
Dividends receivable		583,358
Securities lending income receivable		5,546
Receivable from advisor		720
Prepaid expenses		12,963
Total assets		279,260,320
Liabilities
Collateral received at value - securities loans		7,900,000
Investment advisory fees payable		107,446
Capital shares redeemed payable		77,766
Foreign taxes payable		36,192
Administration fees payable		17,163
Custodian fees payable		5,443
Officer and Trustees fees payable		4,988
Transfer agent fees payable		3,760
Other accrued expenses payable		47,377
Total liabilities		8,200,135
Net Assets
Net Assets	$	271,060,185
Net Assets Consist of
Paid-in capital	$	52,279,455
Undistributed net investment income		1,155,803
Accumulated net realized gain		8,785,724
Net unrealized appreciation		208,839,203
Net Assets	$	271,060,185
Net Asset Value
Shares outstanding, unlimited number of shares authorized, $0.001 par value		443,372
Net Asset Value	$	611.36

See Notes to Financial Statements.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 9

Statement of Operations

Six Months Ended March 31, 2008 (Unaudited)

Investment Income
Dividends	$	2,692,060
Securities lending		32,152
Interest from affiliates		70
Foreign taxes witheld		(36,192	)
Total investment income		2,688,090
Expenses
Investment advisory		726,413
Administration		145,284
Professional		22,868
Custodian		14,363
Printing		12,924
Officer and Trustees		11,411
Transfer agent		3,098
Miscellaneous		5,114
Total expenses		941,475
Less investment advisory fees waived		(30,369	)
Less administration fees waived		(36,322	)
Less transfer agent fees waived		(1,673	)
Less transfer agent fees reimbursed		(1,411	)
Less fees paid indirectly		(15	)
Total expenses after waivers and reimbursement		871,685
Net investment income		1,816,405
Realized and Unrealized Gain (Loss)
Net realized gain from:
Investments		193,597
Redemption-in-kind transactions		6,007,482
		6,201,079
Net change in unrealized appreciation/depreciation on:
Investments		(35,529,086	)
Net realized and unrealized loss		(29,328,007	)
Net Decrease in Net Assets Resulting from Operations	$	(27,511,602	)

See Notes to Financial Statements.

10 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Statements of Changes in Net Assets

	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Increase (Decrease) in Net Assets:	(Unaudited)
Operations
Net investment income	$	1,816,405		$	3,003,112
Net realized gain (loss) from investment transactions		193,597			(1,583,883	)
Net realized gain from redemption-in-kind transactions		6,007,482			19,717,131
Net change in unrealized appreciation/depreciation		(35,529,086	)		30,726,620
Net increase (decrease) in net assets resulting from operations		(27,511,602	)		51,862,980
Dividends to Shareholders from
Net investment income		(1,814,307	)		(2,701,038	)
Capital Share Transactions
Shares issued in reinvestment of dividends		280,571			448,506
Shares redeemed		(12,906,357	)		(30,149,442	)
Net decrease in net assets resulting from capital share transactions		(12,625,786	)		(29,700,936	)
Net Assets
Total increase (decrease) in net assets		(41,951,695	)		19,461,006
Beginning of period		313,011,880			293,550,874
End of period	$	271,060,185		$	313,011,880
End of period undistributed net investment income	$	1,155,803		$	1,153,705

See Notes to Financial Statements.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 11

Financial Highlights

	Six Months Ended March 31, 2008			Year Ended September 30,						Nine Months Ended 9/30/05			Year Ended December 31,
	(Unaudited)			2007			2006						20041			2003
Per Share Operating Performance
Net asset value, beginning of period	$	676.66		$	575.50		$	533.63		$	520.73		$	490.99		$	411.01
Net investment income		4.02	2		6.21	2		6.63	2		4.10	2		7.61			5.40
Net realized and unrealized gain (loss)		(65.33	)		100.52			41.58			11.80			29.63			80.08
Dividends from net investment income		(3.99	)		(5.57	)		(6.34	)		(3.00	)		(7.50	)		(5.50	)
Net asset value, end of period	$	611.36		$	676.66		$	575.50		$	533.63		$	520.73		$	490.99
Total Investment Return
Based on net asset value		(9.09	)%3		18.62	%		9.06	%		3.10	%3		7.63	%		20.89	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.60	%4		0.60	%		0.60	%		0.60	%4		0.61	%		0.59	%
Total expenses		0.65	%4		0.65	%		0.67	%		0.71	%4		0.61	%		0.59	%
Net investment income		1.25	%4		0.99	%		1.20	%		1.06	%4		1.47	%		1.20	%
Supplemental Data
Net assets, end of period (000)	$	271,060		$	313,012		$	293,551		$	292,516		$	299,352		$	309,699
Portfolio turnover		—			1	%		—			—			4	%		5	%

¹ During the year ended December 31, 2004, the investment advisor reimbursed the Portfolio as part of an internal review regarding the use of fund brokerage commissions. These payments increased net realized and unrealized gain on investments per share by $0.17 and increased total return by 0.04%.

² Based on average shares outstanding.

³ Aggregate total investment return.

⁴ Annualized.

See Notes to Financial Statements.

12 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

BlackRock Funds^SM (the “Fund”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of March 31, 2008, the Fund had 26 registered portfolios. These financial statements relate to the Fund’s Exchange Portfolio (the “Portfolio”). The Portfolio is authorized to issue an unlimited number of shares with a par value of $0.001. The Portfolio’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates.

The following is a summary of significant accounting policies followed by the Portfolio:

Valuation of Investments: Equity investments traded on a national securities exchange or on the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. Equity investments traded on a national securities exchange for which there were no sales on that day and equity investments traded on other over-the-counter markets for which market quotations are readily available are valued at the mean of the bid and asked prices. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board of Trustees (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 the Portfolio might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deem relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of business on the New York Stock Exchange (“NYSE”). The values of such securities used in computing the net assets of the Portfolio are determined as of such times. Foreign currency exchange rates will be determined as of the close of business on the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Portfolio’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 securities, those securities may be valued at their fair value as determined in good faith by the Board or by the investment advisor using a pricing service and/or procedures approved by the Board.

Foreign Currency Transactions: Foreign currency amounts are translated into United States dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the rates of exchange prevailing on the respective dates of such transactions. The Portfolio reports foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Redemptions-In-Kind: The Portfolio transferred securities and cash due to redemptions-in-kind. For purposes of generally accepted accounting principles, these transactions were treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the transfer. For tax purposes, no gains or losses were recognized. Gains and losses resulting from such redemptions in-kind are disclosed separately in the Statement of Operations.

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security 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 Portfolio has determined the ex-dividend date. Interest income is recognized on the accrual basis.

Dividends to Shareholders: Dividends and distributions paid by the Portfolio are recorded on the ex-dividend dates.

Securities Lending: The Portfolio may lend securities to financial institutions that provide cash or securities issued or guaranteed by the U.S. government 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 Portfolio and any additional required collateral is delivered to the Portfolio on the next business day. The Portfolio typically receives the income on the loaned securities but does not receive the income on the collateral. Where the Portfolio receives cash collateral, it may invest such collateral and retain the amount earned on such investment, net of any amount rebated to the borrower. The Portfolio may receive a flat fee for its loans. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. The Portfolio may pay reasonable lending agent, administrative and custodial fees in connection with its loans. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Portfolio could experience delays and costs in gaining access to the collateral. The Portfolio also could suffer a loss where the value of the collateral falls below the market value of the borrowed securities, in the event of borrower default or in the event of losses on investments made with cash collateral.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 13

Notes to Financial Statements (continued)

Income Taxes: It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

Effective March 31, 2008, the Portfolio implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to the Portfolio, and has determined that the adoption of FIN 48 did not have a material impact on the Portfolio’s financial statements. The Portfolio files U.S. and various state tax returns. No income tax returns are currently under examination. The statute of limitations on the Portfolio’s tax returns remains open for the years ended September 30, 2004 through September 30, 2006. The statute of limitations on the Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The impact on the Portfolio’s financial statement disclosures, if any, is currently being assessed.

In addition, in February 2007, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Portfolio’s financial statement disclosures, if any, is currently being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133” (“FAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. The investment advisor is currently evaluating the implications of FAS 161 and the impact on the Portfolio’s financial statement disclosures, if any, is currently being assessed.

Other: Expenses directly related to the Portfolio are charged to the Portfolio. Other operating expenses shared by several Portfolios are pro-rated among those Portfolios on the basis of relative net assets or other appropriate methods.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

The Fund on behalf of the Portfolio entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”) are principal owners of BlackRock, Inc. The Advisor is responsible for the management of the Portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Portfolio. For such services, the Portfolio pays the Advisor a monthly fee based on the average daily value of the Portfolio’s net assets, at the annual rate of 0.50%.

PFPC Trust Company (“PTC”), an indirect wholly-owned subsidiary of PNC, serves as custodian for the Portfolio. For these services, the custodian receives a fee computed daily and payable monthly, based on a percentage of the average daily gross assets of the Portfolio.

Prior to January 1, 2008, the fee was paid at the following annual rates: 0.0073% of the first $250 million, 0.006% of the next $250 million, 0.0056% of the next $250 million, 0.0048% of the next $250 million and 0.004% of average daily gross assets in excess of $1 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of the Portfolio.

Effective January 1, 2008, the fee is paid at the following annual rates: 0.005% of the first $400 million, 0.004% of the next $1.6 billion, and 0.003% of average daily gross assets in excess of $2 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of the Portfolio.

PFPC Inc. (“PFPC”), an indirect wholly-owned subsidiary of PNC, serves as transfer and dividend disbursing agent. Transfer agency fees are comprised of those fees charged for all shareholder communications including shareholder reports, dividend and distribution notices, and proxy materials for shareholders meetings. The Portfolio is also charged per account and per transaction fees related to servicing and maintenance of shareholder accounts, including the issuing, redeeming and transferring of shares of the Portfolio, check writing, anti-money laundering services, and customer identification services.

Pursuant to written agreements, certain affiliates provide the Portfolio with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For

14 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Notes to Financial Statements (continued)

these services, affiliates receive an annual fee per shareholder account which will vary depending on share class. For the six months ended March 31, 2008, the Portfolio paid $17 in return for these services.

PFPC and the Advisor act as co-administrators for the Portfolio. For these services, the co-administrators receive a combined administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Portfolio. The combined administration fee is paid at the following annual rates: 0.075% of the first $500 million, 0.065% of the next $500 million and 0.055% of average of daily net assets in excess of $1 billion. In addition, the Portfolio is charged an administration fee based on the following percentages of average daily net assets of the BlackRock class: 0.025% of the first $500 million, 0.015% of the next $500 million and 0.005% of average of daily net assets in excess of $1 billion. In addition, PFPC and the Advisor may have, at their discretion, voluntarily waived all or any portion of their administration fees for the Portfolio.

The Advisor contractually agreed to waive or reimburse fees or expenses until February 1, 2009, in order to limit expenses to 0.60% of the Portfolio’s average daily net assets. These expense limits apply to the aggregate expenses incurred on a share class (excluding; interest, taxes, brokerage commissions, expenses incurred as a result of investments in other funds and other expenses attributable to, and incurred as a result of, the Portfolio’s investments and other extraordinary expenses). This agreement is reviewed annually by the Board.

If operating expenses, within two years following a waiver or reimbursement of the operating expenses of a share class that previously received a waiver or reimbursement from the Advisor, are less than the expense limit for that share class, the share class is required to repay the Advisor up to the amount of fees waived or expenses reimbursed under the agreement if: (1) the Portfolio has more than $50 million in assets, (2) the Advisor or an affiliate continues to be the Portfolio’s investment advisor or administrator and (3) the Board approved the payments to the Advisor at the previous quarterly meeting.

At March 31, 2008, the amounts subject to possible future reimbursement under the expense limitation agreement are as follows:

Expiring January 31,
2010	2011
$137,424	$24,523

The Portfolio may earn income on positive cash balances in demand deposit accounts that are maintained by PFPC on behalf of the Portfolio. The income earned for the six months ended March 31, 2008, was $70.

The Portfolio may also receive earnings credits related to cash balances with PFPC which are shown on the Statement of Operations as fees paid indirectly.

The Portfolio has received an exemptive order from the Securities and Exchange Commission permitting it to lend portfolio securities to BlackRock Investment Management, LLC (“BIM”), an affiliate of the Advisor, or its affiliates. As of March 31, 2008, the Portfolio had no securities loans to Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch or its affiliates. Pursuant to that order, the Portfolio has retained BIM as the securities lending agent for a fee based on a share of the returns on investment of cash collateral. BIM may, on behalf of the Portfolio, invest cash collateral received by the Portfolio for such loans, among other things, in a private investment company managed by the Advisor or in registered money market funds advised by the Advisor or its affiliates. For the six months ended March 31, 2008, BIM received $8,372 in securities lending agent fees.

Certain officers and/or trustees of the Portfolio are officers and/or trustees/directors of BlackRock, Inc. or its affiliates.

3. Investments:

For the six months ended March 31, 2008, purchases and sales of securities, excluding short-term securities, were $642,157 and $15,154,055, including $9,746,393 of sales representing redemptions-in-kind, respectively.

4. Capital Shares:

Transactions in capital shares for each period were as follows:

	Six Months Ended March 31, 2008		Year Ended September 30, 2007
Shares issued in reinvestment of dividends	421		714
Shares redeemed	(19,634	)1	(48,206	)2
Net decrease	(19,213	)	(47,492	)

¹ Including (14,687) representing redemptions-in-kind.

² Including (40,737) representing redemptions-in-kind.

5. Short-Term Borrowings:

The Portfolio, along with certain other funds managed by the Advisor and its affiliates, is a party to a $500,000,000 credit agreement with a group of lenders. The Portfolio may borrow under the credit agreement to fund shareholder redemptions and for other lawful purposes other than for leverage. Each Portfolio may borrow up to the maximum amount allowable under the Portfolio’s current Prospectus and Statement of Additional Information, subject to various other legal, regulatory or contractual limits. On November 21, 2007, the credit agreement was renewed for one year under substantially the same terms. The Portfolio pays a commitment fee of 0.06% per annum based on the Portfolio’s pro rata share of the unused portion of the credit agreement, which is included in miscellaneous expenses in the Statement of Operations. Amounts borrowed under the credit agreement bear interest at a rate equal to, at the Portfolio’s election, the federal funds rate plus 0.35% or a base rate as defined in the credit agreement. The Portfolio did not borrow under the credit agreement during the six months ended March 31, 2008.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 15

Notes to Financial Statements (concluded)

6. Capital Loss Carryforward:

As of December 31, 2007, the Portfolio had a capital loss carryforward available to offset future realized capital gains through the indicated expiration dates:

Expiring December 31,
2009	2010	2013	2014	Total
$633,046	$7,112,583	$1,281,140	$233,900	$9,260,669

16 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Officers and Trustees

David O. Beim, Trustee	Investment Advisor and Co-Administrator
Richard S. Davis, Trustee	BlackRock Advisors, LLC
Ronald W. Forbes, Trustee	Wilmington, DE 19809
Henry Gabbay, Trustee
Dr. Matina Horner, Trustee	Custodian
Rodney D. Johnson, Trustee	PFPC Trust Company
Herbert I. London, Trustee	Philadelphia, PA 19153
Cynthia A. Montgomery, Trustee
Joseph P. Platt, Jr., Trustee	Co-Administrator and Transfer Agent
Robert C. Robb, Jr., Trustee	PFPC Inc.
Toby Rosenblatt, Trustee	Wilmington, DE 19809
Kenneth L. Urish, Trustee
Frederick W. Winter, Trustee	Distributor
Donald C. Burke, President and Chief Executive Officer	BlackRock Distributors, Inc.
Anne F. Ackerley, Vice President	King of Prussia, PA 19406
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer	Legal Counsel
Brian P. Kindelan, Chief Compliance Officer	Sidley Austin LLP
Howard Surloff, Secretary	New York, NY 10019
	Independent Registered Public Accounting Firm
	Deloitte & Touche LLP
	Philadelphia, PA 19103

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 17

Additional Information (Unaudited)

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 information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal 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 applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to 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 procedures relating to the proper storage and disposal of such information.

Availability of Additional Information

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly With BlackRock

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Click on the applicable link and follow the steps to sign up

3) Log into your account

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Fund at (800) 441-7762.

18 BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008

Additional Information (concluded)

Availability of Additional Information (concluded)

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request by calling (800) 441-7762; (2) at www.blackrock.com; (3) on the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Availability of Proxy Voting Record

Information (if any) on how proxies relating to the Fund’s voting securities were voted by BlackRock during the most recent 12-month period ended June 30th is available, upon request and without charge on our website at www.blackrock.com, by calling (800) 441-7762 or on the SEC’s website at http://www.sec.gov.

Availability of Quarterly Portfolio Schedule

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

BLACKROCK EXCHANGE PORTFOLIO MARCH 31, 2008 19

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds
BlackRock All-Cap Global Resources Portfolio	BlackRock Global Opportunities Portfolio	BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Asset Allocation Portfolio†	BlackRock Global Resources Portfolio	BlackRock Mid-Cap Value Equity Portfolio
BlackRock Aurora Portfolio	BlackRock Global Science & Technology	BlackRock Mid Cap Value Opportunities Fund
BlackRock Balanced Capital Fund†	Opportunities Portfolio	BlackRock Natural Resources Trust
BlackRock Basic Value Fund	BlackRock Global SmallCap Fund	BlackRock Pacific Fund
BlackRock Capital Appreciation Portfolio	BlackRock Health Sciences Opportunities Portfolio*	BlackRock Small Cap Core Equity Portfolio
BlackRock Equity Dividend Fund	BlackRock Healthcare Fund	BlackRock Small Cap Growth Equity Portfolio
BlackRock EuroFund	BlackRock Index Equity Portfolio*	BlackRock Small Cap Growth Fund II
BlackRock Focus Growth Fund	BlackRock International Fund	BlackRock Small Cap Index Fund
BlackRock Focus Value Fund	BlackRock International Index Fund	BlackRock Small Cap Value Equity Portfolio*
BlackRock Fundamental Growth Fund	BlackRock International Opportunities Portfolio	BlackRock Small/Mid-Cap Growth Portfolio
BlackRock Global Allocation Fund†	BlackRock International Value Fund	BlackRock S&P 500 Index Fund
BlackRock Global Dynamic Equity Fund	BlackRock Large Cap Core Fund	BlackRock Technology Fund
BlackRock Global Emerging Markets Fund	BlackRock Large Cap Growth Fund	BlackRock U.S. Opportunities Portfolio
BlackRock Global Financial Services Fund	BlackRock Large Cap Value Fund	BlackRock Utilities and Telecommunications Fund
BlackRock Global Growth Fund	BlackRock Latin America Fund	BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Commodity Strategies Fund	BlackRock Income Builder Portfolio	BlackRock Low Duration Bond Portfolio
BlackRock Emerging Market Debt Portfolio	BlackRock Inflation Protected Bond Portfolio	BlackRock Managed Income Portfolio
BlackRock Enhanced Income Portfolio	BlackRock Intermediate Bond Portfolio II	BlackRock Short-Term Bond Fund
BlackRock GNMA Portfolio	BlackRock Intermediate Government	BlackRock Strategic Income Portfolio
BlackRock Government Income Portfolio	Bond Portfolio	BlackRock Total Return Fund
BlackRock High Income Fund	BlackRock International Bond Portfolio	BlackRock Total Return Portfolio II
BlackRock High Yield Bond Portfolio	BlackRock Long Duration Bond Portfolio	BlackRock World Income Fund
BlackRock Income Portfolio
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio	BlackRock Intermediate Municipal Fund	BlackRock New York Municipal Bond Fund
BlackRock California Insured Municipal Bond Fund	BlackRock Kentucky Municipal Bond Portfolio	BlackRock Ohio Municipal Bond Portfolio
BlackRock Delaware Municipal Bond Portfolio	BlackRock Municipal Insured Fund	BlackRock Pennsylvania Municipal Bond Fund
BlackRock Florida Municipal Bond Fund	BlackRock National Municipal Fund	BlackRock Short-Term Municipal Fund
BlackRock High Yield Municipal Fund	BlackRock New Jersey Municipal Bond Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios	BlackRock Lifecycle Prepared Portfolios
Conservative Prepared Portfolio	Prepared Portfolio 2010	Prepared Portfolio 2030
Moderate Prepared Portfolio	Prepared Portfolio 2015	Prepared Portfolio 2035
Growth Prepared Portfolio	Prepared Portfolio 2020	Prepared Portfolio 2040
Aggressive Growth Prepared Portfolio	Prepared Portfolio 2025	Prepared Portfolio 2045
		Prepared Portfolio 2050

* See the prospectus for information on specific limitations on investments in the fund.

† Mixed asset fund.

BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and certain funds are also distributed by FAM Distributors, Inc. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing.

20

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This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Portfolio unless accompanied or preceded by the Portfolio’s 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.

BlackRock Funds

100 Bellevue Parkway

Wilmington, DE 19809

EXCH-3/08-SAR

EQUITIES    FIXED    INCOME    REAL ESTATE    LIQUIDITY    ALTERNATIVES    BLACKROCK SOLUTIONS

BlackRock Money Market Portfolios   SEMI-ANNUAL REPORT  |  MARCH 31, 2008 (UNAUDITED)

Money Market

U.S. Treasury Money Market

Municipal Money Market

New Jersey Municipal Money Market

North Carolina Municipal Money Market

Ohio Municipal Money Market

Pennsylvania Municipal Money Market

Virginia Municipal Money Market

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents

	Page
A Letter to Shareholders	3
Semi-Annual Report:
Portfolio Summaries:
Money Market	4
U.S. Treasury Money Market	5
Municipal Money Market	6
New Jersey Municipal Money Market	7
North Carolina Municipal Money Market	8
Ohio Municipal Money Market	9
Pennsylvania Municipal Money Market	10
Virginia Municipal Money Market	11
Financial Statements:
Schedules of Investments	12
Statements of Assets and Liabilities	40
Statements of Operations	44
Statements of Changes in Net Assets	46
Financial Highlights	48
Notes to Financial Statements	57
Officers and Trustees	64
Additional Information	65
Mutual Fund Family	67

2 SEMI-ANNUAL REPORT MARCH 31, 2008

A Letter to Shareholders

Dear Shareholder

Financial markets endured severe bouts of volatility during the reporting period, particularly as the calendar turned to 2008. It was then that fears of an economic recession swelled and credit market strains intensified, producing calamity in the financial system and, ultimately, the demise of major Wall Street firm Bear Stearns.

The Federal Reserve Board (the “Fed”), after cutting the target federal funds rate 100 basis points (1%) between September 2007 and year-end, stepped up its efforts to support the ailing financial sector in the first three months of 2008. The central bank cut interest rates 125 basis points in January alone, and followed with another 75-basis-point cut on March 18, bringing the target rate to 2.25%. In an unprecedented move, the Fed also extended its financing operations directly to broker/dealers and assisted JPMorgan in its buyout of ill-fated Bear Stearns.

Against this backdrop, investor anxiety has been acute and equity markets have struggled. The S&P 500 Index of U.S. stocks was down in March, marking the fifth consecutive month of negative returns. International markets outperformed the U.S. for much of 2007, but that trend changed in more recent months as investors grew increasingly reluctant to take on the risks of foreign investing.

In fixed income markets, an ongoing investor flight to quality continued to drive Treasury yields lower and their prices higher. The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in five years), fell to 4.04% by year-end and to 3.45% by March 31. Investors largely shunned bonds associated with the housing and credit markets, and the riskier high yield sector landed in negative territory year-to-date. Meanwhile, the municipal bond market has struggled with concerns around the creditworthiness of monoline bond insurers and the failure of auctions for auction rate securities, driving yields higher and prices lower across the curve. At period-end, municipal bonds were trading at higher yields than their Treasury counterparts, a very unusual occurrence by historical standards.

Overall, the major benchmark indexes posted mixed results for the current reporting period, generally reflecting heightened investor risk aversion:

Total Returns as of March 31, 2008	6-month		12-month
U.S. equities (S&P 500 Index)	(12.46	)%	(5.08	)%
Small cap U.S. equities (Russell 2000 Index)	(14.02	)%	(13.00	)%
International equities (MSCI Europe, Australasia, Far East Index)	(10.50	)%	(2.70	)%
Fixed income (Lehman Brothers U.S. Aggregate Index)	5.23	%	7.67	%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)	0.75	%	1.90	%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)	(4.01	)%	(3.47	)%

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

3

Portfolio Summary (Unaudited)	Money Market Portfolio
Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Commercial Paper	55	%
Certificates of Deposit	20
Variable Rate Obligations	15
Agency Obligations	6
Promissory Note	2
Master Notes	2
7-Day Yield (Annualized)
Institutional	3.00	%
Service	2.64
Hilliard Lyons	2.64
Investor A	2.59
Investor B	1.92
Investor C	1.92

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	283,319,000	16	%
8-14 Days		62,305,000	4
15-30 Days		452,768,000	26
31-60 Days		254,489,000	14
61-90 Days		553,431,000	31
91-120 Days		52,445,000	3
121-150 Days		66,455,000	4
over 150 Days		30,645,000	2
Average Weighted Maturity - 49 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees, distribution (12b-1) and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,022.03	$	2.12	$	1,000.00	$	1,022.87	$	2.13
Service	$	1,000.00	$	1,020.62	$	3.52	$	1,000.00	$	1,021.47	$	3.53
Hilliard Lyons	$	1,000.00	$	1,020.62	$	3.52	$	1,000.00	$	1,021.48	$	3.52
Investor A	$	1,000.00	$	1,020.24	$	3.90	$	1,000.00	$	1,021.09	$	3.91
Investor B	$	1,000.00	$	1,017.72	$	6.51	$	1,000.00	$	1,018.47	$	6.53
Investor C	$	1,000.00	$	1,017.71	$	6.52	$	1,000.00	$	1,018.46	$	6.54

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.42% for Institutional, 0.70% for Service, 0.70% for Hilliard Lyons, 0.77% for Investor A, 1.29% for Investor B and 1.29% for Investor C), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

4 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (Unaudited)	U.S. Treasury Money Market Portfolio
Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Repurchase Agreements	100	%
7-Day Yield (Annualized)
Institutional	1.33	%
Service	1.05
Investor A	1.05

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	375,132,000	65	%
15-30 Days		150,000,000	26
61-90 Days		25,000,000	4
91-120 Days		25,000,000	5
Average Weighted Maturity - 15 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,015.56	$	2.07	$	1,000.00	$	1,022.92	$	2.08
Service	$	1,000.00	$	1,014.15	$	3.46	$	1,000.00	$	1,021.52	$	3.48
Investor A	$	1,000.00	$	1,014.12	$	3.49	$	1,000.00	$	1,021.50	$	3.50

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.41% for Institutional, 0.69% for Service and 0.69% for Investor A), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

SEMI-ANNUAL REPORT MARCH 31, 2008 5

Portfolio Summary (Unaudited)	Municipal Money Market Portfolio
Portfolio Profile as of March 31, 2008

Top Ten States	Percentage of Portfolio
Florida	16	%
Texas	16
New York	7
Illinois	6
North Carolina	6
Michigan	5
Colorado	4
Arizona	3
California	3
New Jersey	3
7-Day Yield (Annualized)
Institutional	1.99	%
Service	1.72
Hilliard Lyons	1.97
Investor A	1.71

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	248,587,000	77	%
8-14 Days		5,000,000	2
31-60 Days		4,000,000	1
61-90 Days		13,515,000	4
91-120 Days		16,100,000	5
121-150 Days		21,065,000	6
over 150 Days		15,820,000	5
Average Weighted Maturity - 32 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees, distribution (12b-1) and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,014.10	$	2.12	$	1,000.00	$	1,022.87	$	2.13
Service	$	1,000.00	$	1,012.69	$	3.51	$	1,000.00	$	1,021.47	$	3.53
Hilliard Lyons	$	1,000.00	$	1,013.97	$	2.25	$	1,000.00	$	1,022.74	$	2.26
Investor A	$	1,000.00	$	1,012.66	$	3.55	$	1,000.00	$	1,021.42	$	3.58

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.42% for Institutional, 0.70% for Service, 0.45% for Hilliard Lyons and 0.71% for Investor A), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

6 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (Unaudited) New Jersey Municipal Money Market Portfolio

Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Variable Rate Demand Notes	76	%
Municipal Bonds	20
Commercial Paper	4
7-Day Yield (Annualized)
Institutional	1.89	%
Service	1.62
Investor A	1.62

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	135,645,000	78	%
31-60 Days		1,592,000	1
61-90 Days		11,471,000	7
91-120 Days		2,305,000	1
121-150 Days		4,305,000	3
over 150 Days		17,749,000	10
Average Weighted Maturity - 42 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,013.83	$	1.96	$	1,000.00	$	1,023.03	$	1.97
Service	$	1,000.00	$	1,012.43	$	3.36	$	1,000.00	$	1,021.62	$	3.38
Investor A	$	1,000.00	$	1,012.43	$	3.35	$	1,000.00	$	1,021.62	$	3.38

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.39% for Institutional, 0.67% for Service and 0.67% for Investor A), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

SEMI-ANNUAL REPORT MARCH 31, 2008 7

Portfolio Summary (Unaudited) North Carolina Municipal Money Market Portfolio

Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Variable Rate Demand Notes	84	%
Municipal Bonds	10
Commercial Paper	5
Municipal Put Bonds	1
7-Day Yield (Annualized)
Institutional	2.03	%
Service	1.75
Investor A	1.58

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	78,696,000	86	%
31-60 Days		500,000	1
61-90 Days		1,300,000	1
91-120 Days		4,385,000	5
121-150 Days		3,715,000	4
over 150 Days		2,515,000	3
Average Weighted Maturity - 25 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,013.96	$	1.51	$	1,000.00	$	1,023.48	$	1.52
Service	$	1,000.00	$	1,012.56	$	2.90	$	1,000.00	$	1,022.08	$	2.92
Investor A	$	1,000.00	$	1,011.57	$	3.86	$	1,000.00	$	1,021.11	$	3.89

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.30% for Institutional, 0.58% for Service and 0.77% for Investor A), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

8 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (Unaudited) Ohio Municipal Money Market Portfolio

Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Variable Rate Demand Notes	77	%
Municipal Bonds	19
Commercial Paper	2
Municipal Put Bonds	2
7-Day Yield (Annualized)
Institutional	2.38	%
Service	2.10
Investor A	2.10

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	127,586,000	80	%
8-14 Days		300,000	0
15-30 Days		205,000	0
31-60 Days		3,285,000	2
61-90 Days		5,100,000	3
91-120 Days		1,130,000	1
121-150 Days		1,810,000	1
over 150 Days		20,080,000	13
Average Weighted Maturity - 43 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,014.65	$	1.96	$	1,000.00	$	1,023.03	$	1.97
Service	$	1,000.00	$	1,013.27	$	3.35	$	1,000.00	$	1,021.63	$	3.37
Investor A	$	1,000.00	$	1,013.27	$	3.35	$	1,000.00	$	1,021.63	$	3.37

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.39% for Institutional, 0.67% for Service and 0.67% for Investor A), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

SEMI-ANNUAL REPORT MARCH 31, 2008 9

Portfolio Summary (Unaudited) Pennsylvania Municipal Money Market Portfolio

Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Variable Rate Demand Notes	87	%
Commercial Paper	7
Municipal Bonds	5
Municipal Put Bonds	1
7-Day Yield (Annualized)
Institutional	1.91	%
Service	1.63
Investor A	1.63

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	544,332,000	93	%
31-60 Days		26,100,000	4
over 150 Days		16,408,000	3
Average Weighted Maturity - 16 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional	$	1,000.00	$	1,013.37	$	2.11	$	1,000.00	$	1,022.87	$	2.13
Service	$	1,000.00	$	1,011.97	$	3.50	$	1,000.00	$	1,021.47	$	3.53
Investor A	$	1,000.00	$	1,011.97	$	3.51	$	1,000.00	$	1,021.47	$	3.53

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.42% for Institutional, 0.70% for Service and 0.70% for Investor A), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

10 SEMI-ANNUAL REPORT MARCH 31, 2008

Portfolio Summary (Unaudited) Virginia Municipal Money Market Portfolio

Portfolio Profile as of March 31, 2008

Portfolio Diversification	Percentage of Portfolio
Variable Rate Demand Notes	87	%
Municipal Bonds	8
Commercial Paper	5
7-Day Yield (Annualized)
Institutional	1.85	%
Service	1.57

Maturity Information

Maturity	Par		Percentage of Portfolio
1-7 Days	$	94,965,000	86	%
8-14 Days		1,100,000	1
31-60 Days		850,000	1
61-90 Days		4,950,000	4
121-150 Days		5,120,000	5
over 150 Days		2,850,000	3
Average Weighted Maturity - 23 days

Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including advisory fees and service fees, where applicable, and other Portfolio expenses. This Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds.

The Expense Example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.

The information under “Actual Expenses,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the column entitled “Expenses Paid During the Period,” to estimate the expenses incurred on your account during this period.

The information under “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you incurred for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front and back end sales charges (loads) or redemption fees, where applicable. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Actual						Hypothetical**
	Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*		Beginning Account Value October 1, 2007		Ending Account Value March 31, 2008		Expenses Paid During the Period*
Institutional Class	$	1,000.00	$	1,013.64	$	1.51	$	1,000.00	$	1,023.48	$	1.52
Service Class	$	1,000.00	$	1,012.17	$	2.95	$	1,000.00	$	1,022.03	$	2.97

* For each class of the Portfolio, expenses are equal to the annualized expense ratio for the class (0.30% for Institutional and 0.59% for Service), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown).

** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 366.

SEMI-ANNUAL REPORT MARCH 31, 2008 11

Schedule of Investments March 31, 2008 (Unaudited) Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Agency Obligations — 6.0%
Federal Home Loan Bank Variable Rate Notes — 1.7%
2.36%, 3/20/09(a)	$	8,535	$	8,542,700
2.82%, 8/13/09(a)		9,050		9,050,000
2.77%, 8/14/09(a)		13,255		13,253,183
				30,845,883
Federal Home Loan Mortgage Corp. Discount Note — 0.2%
2.50%, 8/18/08(b)		3,755		3,718,754
Federal Home Loan Mortgage Corp. Variable Rate Notes — 2.2%
2.46%, 9/25/09(a)		24,015		24,004,514
2.61%, 9/28/09(a)		14,820		14,814,515
				38,819,029
Federal National Mortgage Assoc. Discount Notes — 1.9%
2.50%, 8/06/08(b)		4,140		4,103,487
2.50%, 8/20/08(b)		3,465		3,431,140
2.51%, 8/20/08(b)		15,000		14,852,537
2.49%, 9/08/08(b)		7,415		7,332,941
2.49%, 9/10/08(b)		4,555		4,503,961
				34,224,066
Total Agency Obligations
(Cost $107,607,732)				107,607,732
Certificates of Deposit — 19.9%
Domestic — 2.2%
Chase Bank USA N.A.,
5.13%, 4/15/08		9,600		9,600,000
5.13%, 4/16/08		10,250		10,250,000
4.70%, 5/07/08		18,580		18,580,000
				38,430,000
Yankee — 17.7%
Banco Bilbao Vizcaya Argentaria S.A., New York,
5.06%, 4/02/08(c)(d)		6,305		6,305,001
2.45%, 4/21/08(c)(d)		15,000		15,000,000
3.80%, 4/22/08(c)(d)		10,000		10,000,000
2.80%, 6/16/08(c)(d)		10,000		10,000,000
2.56%, 6/25/08(c)(d)		24,500		24,500,000
Bank of Montreal, Chicago,
5.10%, 4/01/08(d)		6,140		6,140,000
4.87%, 6/02/08(d)		6,030		6,030,000
Bank of Scotland Plc, New York,
4.39%, 7/07/08(d)		5,000		5,000,000
3.07%, 7/31/08(d)		11,000		11,000,000
Banque Nationale de Paris, New York,
4.80%, 6/05/08(d)		19,125		19,125,000
2.91%, 8/19/08(d)		20,000		20,000,000
Barclays Bank Plc, New York,
4.60%, 4/03/08(d)		10,000		10,000,000
2.60%, 6/19/08(d)		10,000		10,000,000
Canadian Imperial Bank of Commerce, New York,
5.09%, 4/01/08(d)		17,435		17,435,000
4.87%, 6/10/08(d)		13,910		13,910,000
DEPFA Bank Plc, New York,
4.30%, 4/14/08(d)		20,000		20,000,000
Natixis, New York,
5.42%, 7/10/08(d)		5,170		5,175,327
Nordea Bank Finland Plc, New York,
4.91%, 6/23/08(d)		5,565		5,565,124
4.82%, 10/17/08(d)		18,675		18,675,985
Rabobank Nederland N.V., New York,
2.95%, 4/15/08(d)		8,000		8,000,000
Societe Generale, New York,
3.62%, 4/22/08(c)(d)		14,000		14,000,000
Svenska Handelsbanken AB, New York,
3.86%, 4/16/08(d)		10,000		10,000,041
Toronto Dominion Bank, New York,
4.86%, 5/30/08(d)		1,850		1,850,000
4.85%, 6/06/08(d)		14,240		14,240,000
2.57%, 6/20/08(d)		20,000		20,000,000
UBS AG, Stamford,
4.90%, 6/04/08(d)		4,745		4,745,000
Unicredito Italiano Bank, New York,
2.65%, 6/26/08(d)		9,000		9,000,000
				315,696,478
Total Certificates of Deposit
(Cost $354,126,478)				354,126,478

Portfolios Abbreviations

To simplify the listings of Portfolios holdings in the Schedules of Investments, the names of many of the securities have been abbreviated according to the list on the right.

AAC	Aid Anticipation Certificate
AMBAC	American Municipal Bond Assurance Corp.
AMT	Alternative Minimum Tax (subject to)
BAN	Bond Anticipation Note
COP	Certificate of Participation
DN	Demand Note
FGIC	Financial Guaranty Insurance Co.
FSA	Financial Security Assurance
GAN	Grant Anticipation Note
GO	General Obligation
HFA	Housing Finance Authority
IDA	Industrial Development Authority
IDRB	Industrial Development Revenue Bond
ISD	Independent School District
LOC	Letter of Credit
MB	Municipal Bond
MBIA	Municipal Bond Insurance Association
MERLOTS	Municipal Exempt Receipt-Liquidity
	Optional Tender
PCRB	Pollution Control Revenue Bond
PUTTERS	Putable Tax-Exempt Receipt
RAN	Revenue Anticipation Note
RB	Revenue Bond
ROC	Reset Option Certificate
SBPA	Stand-by Bond Purchase Agreement
TAN	Tax Anticipation Note
TECP	Tax-Exampt Commercial Paper
TRAN	Tax & Revenue Anticipation Note

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (continued) Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Commercial Paper — 54.0%
Asset Backed Securities — 32.8%
Amstel Funding Corp.,
3.07%, 5/09/08	$	25,000	$	24,918,986
Apreco LLC,
2.87%, 6/05/08		13,000		12,932,635
Atlantic Asset Securitization Corp.,
4.30%, 4/07/08		10,000		9,992,833
Atlantis One Funding Corp.,
3.13%, 4/21/08		5,000		4,991,305
3.22%, 4/29/08		25,000		24,937,389
3.10%, 5/05/08		53,386		53,229,698
3.11%, 6/04/08		4,860		4,833,130
Cafco LLC,
2.72%, 5/07/08		10,000		9,972,800
Cancara Asset Securitisation LLC,
3.10%, 4/14/08		10,000		9,988,806
Ciesco LLC,
3.16%, 5/28/08		28,000		27,859,907
2.80%, 6/05/08		27,000		26,863,500
CRC Funding LLC,
3.26%, 4/02/08		14,000		13,998,732
Galleon Capital LLC,
3.36%, 4/04/08		12,523		12,519,494
2.93%, 4/23/08		20,000		19,964,189
Liberty Street Funding LLC,
3.23%, 4/28/08		40,000		39,903,100
Long Lane Master Trust IV,
3.00%, 5/08/08		5,000		4,984,583
3.05%, 5/09/08		17,000		16,945,269
Nieuw Amsterdam Receivables Corp.,
3.25%, 4/01/08		60,000		60,000,000
4.45%, 4/03/08		9,589		9,586,629
Palisades CP Program,
3.60%, 4/03/08		5,700		5,698,860
Picaros Funding LLC,
2.87%, 6/12/08		30,877		30,699,766
Ranger Funding Co. LLC,
2.86%, 6/06/08		15,000		14,921,350
Regency Markets No. 1 LLC,
2.85%, 4/18/08		5,000		4,993,271
Thames Asset Global Securitization No. 1, Inc.,
3.90%, 4/04/08		9,042		9,039,061
3.85%, 4/18/08		28,635		28,582,940
3.25%, 4/28/08		28,788		28,717,829
3.14%, 5/07/08		10,000		9,968,600
3.10%, 5/15/08		7,000		6,973,478
Ticonderoga Funding LLC,
3.00%, 5/05/08		10,000		9,971,667
Versailles Commercial Paper LLC,
3.15%, 5/07/08		1,000		996,850
Victory Receivables Corp.,
3.00%, 4/24/08		22,000		21,957,833
Windmill Funding Corp.,
3.05%, 4/25/08		19,000		18,961,367
Yorktown Capital LLC,
3.15%, 5/09/08		5,000		4,983,375
				584,889,232
Banks — 19.2%
Banco Bilbao Vizcaya Argentaria S.A.,
2.80%, 6/27/08(c)		8,000		7,945,867
Banco Santander Puerto Rico,
2.57%, 5/19/08		27,958		27,862,197
Bank of America Corp.,
3.67%, 6/12/08		11,000		10,919,194
3.80%, 7/11/08		11,275		11,154,796
2.83%, 8/19/08		9,095		8,994,940
Citigroup Funding, Inc.,
4.73%, 5/02/08		7,830		7,798,108
Danske Corp.,
4.46%, 4/03/08		5,000		4,998,761
2.52%, 6/20/08		25,000		24,860,000
2.62%, 6/25/08		5,000		4,969,069
JPMorgan Chase & Co.,
4.97%, 4/01/08		10,000		10,000,000
2.86%, 7/07/08		21,500		21,334,319
Lloyds TSB Bank Plc,
2.90%, 6/03/08		6,539		6,505,814
Raiffeisen Zentralbank Osterreich AG,
4.06%, 4/02/08		13,100		13,098,523
3.20%, 4/23/08		65,000		64,872,889
3.14%, 5/01/08		5,000		4,986,917
Royal Bank of Scotland Plc,
4.79%, 5/21/08		6,000		5,960,083
San Paolo IMI U.S. Financial Co.,
2.64%, 6/27/08		29,127		28,941,170
Svenska Handelsbanken AB,
3.76%, 4/17/08		6,500		6,489,138
UBS Finance Delaware LLC,
3.94%, 4/11/08		10,000		9,989,055
2.56%, 6/09/08		10,148		10,098,207
Unicredito Italiano Bank, Ireland,
4.68%, 4/03/08		10,000		9,997,400
4.00%, 4/17/08		30,000		29,946,667
2.83%, 6/11/08		10,000		9,944,186
				341,667,300
Finance Services — 2.0%
General Electric Capital Corp.,
3.50%, 4/29/08		16,325		16,280,560
3.83%, 7/10/08		9,500		9,398,930
KBC Financial Products International Ltd.,
3.00%, 6/06/08		10,000		9,945,000
				35,624,490
Total Commercial Paper
(Cost $962,181,022)				962,181,022
Master Notes — 1.7%
Security Brokers & Dealers — 1.7%
Bank of America Securities LLC,
3.08%, 4/01/08
(Cost $30,250,000)		30,250		30,250,000
Variable Rate Obligations — 14.8%
Asset Backed Securities — 0.6%
Cullinan Finance Corp.,
2.58%, 6/25/08(a)(e)		10,235		10,234,762
Banks — 8.4%
Bank of Montreal, Chicago,
3.20%, 11/10/08(a)		15,885		15,885,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 13

Schedule of Investments (concluded) Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Variable Rate Obligations (Continued)
Banks (Continued)
Deutsche Bank AG, New York,
2.81%, 1/21/09(a)	$	12,265	$	12,265,000
HBOS Treasury Services Plc,
2.67%, 6/24/08(a)		65,000		65,000,000
Park Street Properties I LLC Series 2004 DN (U.S. Bank N.A. LOC),
3.30%, 4/07/08(f)		445		445,000
Park Village (Bank One N.A. LOC),
2.26%, 4/07/08(c)(f)		6,655		6,655,000
Royal Bank of Scotland Plc,
2.76%, 9/26/08(a)		15,000		15,000,000
Wachovia Bank, N.A.,
4.75%, 2/04/09(a)		9,300		9,300,000
Westpac Banking Corp., New York,
3.00%, 10/10/08(a)		24,250		24,250,000
				148,800,000
Life Insurance — 4.2%
MetLife Global Funding I,
2.79%, 4/28/08(a)		15,000		15,000,000
Transamerica Occidental Life Insurance Co.,
3.29%, 5/01/09(a)(e)		60,000		60,000,000
				75,000,000
Municipal Bonds — 1.6%
Savannah College Georgia RB (Art & Design Project) Series 2004 DN (Bank of America N.A. LOC),
2.70%, 4/07/08(f)(g)		6,600		6,600,000
South Central Texas IDRB (Rohr Industries Project) Series 1990 DN (Bank One N.A. LOC),
2.85%, 4/07/08(f)(g)		14,800		14,800,000
Utah Telecommunication Open Infrastructure Agency Taxable Adjustable Rate Telecommunications RB Series 2004 DN (Bank of America N.A. LOC),
2.70%, 4/07/08(f)(g)		7,900		7,900,000
				29,300,000
Total Variable Rate Obligations
(Cost $263,334,762)				263,334,762
Promissory Note — 2.0%
Security Brokers & Dealers — 2.0%
The Goldman Sachs Group, Inc.,
2.65%, 8/22/08(a)(e)
(Cost $34,850,000)		34,850		34,850,000
Total Investments in Securities — 98.4%
(Cost $1,752,349,994*)				1,752,349,994
Other Assets in Excess of Liabilities — 1.6%				28,028,483
Net Assets — 100.0%			$	1,780,378,477

* Aggregate cost for federal income tax purposes.

(a) Rate shown is as of report date and the date shown is the final maturity date.

(b) Rate shown is the effective yield at the time of purchase.

(c) Ratings reflect those of main branch.

(d) Issuer is a U.S. branch of a foreign domiciled bank.

(e) Illiquid security.

(f) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

(g) Ratings reflect those of guarantor.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) U.S. Treasury Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Repurchase Agreements — 99.9%
Credit Suisse Securities (USA) LLC,
0.40%, 4/01/08	$	25,000	$	25,000,000
(Agreement dated 3/24/08 to be repurchased at $25,002,222, collateralized by $21,625,000 U.S. Treasury Inflation Indexed Securities 2.38% to 3.88% due from 1/15/09 to 1/15/17. The value of the collateral is $25,504,088.)
Credit Suisse Securities (USA) LLC,
1.85%, 4/03/08		25,000		25,000,000
(Agreement dated 3/14/08 to be repurchased at $25,025,694, collateralized by $21,690,000 U.S. Treasury Inflation Indexed Securities 2.38% due 1/15/17. The value of the collateral is $25,503,471.)
Deutsche Bank Securities Inc.,
2.50%, 4/22/08		50,000		50,000,000
(Agreement dated 1/23/08 to be repurchased at $50,312,500, collateralized by $100,174,714 U.S. Treasury Strips due from 2/15/21 to 5/15/26. The value of the collateral is $51,000,000.)
Deutsche Bank Securities Inc.,
1.79%, 6/10/08		25,000		25,000,000
(Agreement dated 3/11/08 to be repurchased at $25,113,118, collateralized by $50,087,357 U.S. Treasury Strips due from 2/15/21 to 5/15/26. The value of the collateral is $25,500,000.)
Greenwich Capital Markets, Inc.,
1.35%, 4/01/08		75,000		75,000,000
(Agreement dated 3/31/08 to be repurchased at $75,002,813, collateralized by $76,620,000 U.S. Treasury Notes 2.50% due 3/31/13. The value of the collateral is $76,500,475.)
Greenwich Capital Markets, Inc.,
2.26%, 4/01/08		35,000		35,000,000
(Agreement dated 1/24/08 to be repurchased at $35,149,411, collateralized by $35,760,000 U.S. Treasury Notes 2.50% due 3/31/13. The value of the collateral is $35,704,215.)
Greenwich Capital Markets, Inc.,
1.40%, 7/25/08		25,000		25,000,000
(Agreement dated 3/18/08 to be repurchased at $25,125,417, collateralized by $25,540,000 U.S. Treasury Notes 2.50% due 3/31/13. The value of the collateral is $25,500,158.)
HSBC Securities (USA) Inc.,
1.45%, 4/01/08		50,000		50,000,000
(Agreement dated 3/31/08 to be repurchased at $50,002,014, collateralized by $35,380,000 U.S. Treasury Bonds 8.00% due 11/15/21. The value of the collateral is $51,000,832.)
JPMorgan Securities Inc.,
1.45%, 4/01/08	$	100,000	$	100,000,000
(Agreement dated 3/31/08 to be repurchased at $100,004,028, collateralized by $174,653,000 U.S. Treasury Strips due from 8/15/16 to 5/15/24. The value of the collateral is $102,002,617.)
Lehman Brothers Inc.,
1.40%, 4/01/08		15,000		15,000,000
(Agreement dated 3/31/08 to be repurchased at $15,000,583, collateralized by $12,395,000 U.S. Treasury Bonds 6.25% due 8/15/23. The value of the collateral is $15,301,958.)
Morgan Stanley & Co., Inc.,
1.35%, 4/01/08		50,132		50,132,000
(Agreement dated 3/31/08 to be repurchased at $50,133,880, collateralized by $101,868,000 U.S. Treasury Strips due 5/15/23. The value of the collateral is $51,134,680.)
UBS Securities LLC,
2.45%, 4/21/08		50,000		50,000,000
(Agreement dated 1/22/08 to be repurchased at $50,360,250, collateralized by $41,614,000 U.S. Treasury Bonds 7.13% to 11.75% due from 11/15/14 to 2/15/23. The value of the collateral is $51,001,600.)
UBS Securities LLC,
2.45%, 4/25/08		50,000		50,000,000
(Agreement dated 1/22/08 to be repurchased at $50,319,861, collateralized by $38,365,000 U.S. Treasury Bonds 7.13% due 2/15/23. The value of the collateral is $51,003,906.)
Total Repurchase Agreements — 99.9%
(Cost $575,132,000*)				575,132,000
Other Assets in Excess of Liabilities — 0.1%				511,921
Net Assets — 100.0%			$	575,643,921

* Aggregate cost for federal income tax purposes.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 15

Schedule of Investments March 31, 2008 (Unaudited) Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds — 99.2%
Alabama — 1.2%
Alabama HFA Single Family Mortgage RB Series 2006H AMT DN (Bayerische Landesbank Girozentrale Guaranty),
2.47%, 4/07/08(a)	$	345	$	345,000
Alexander Industrial Board IDRB (Precision Millwork Project) Series 2000 AMT DN (Wachovia Bank N.A. LOC),
2.20%, 4/07/08(a)		865		865,000
Geneva County Health Care Authority RB Series 2001 DN (Wachovia Bank N.A. LOC),
2.20%, 4/07/08(a)		2,833		2,833,000
				4,043,000
Arizona — 3.3%
Revenue Bond Certificates (Tierra Antigua Project) Series 2006-1 AMT DN (AIG Retirement Services, Inc. Liquidity Facilities),
2.61%, 4/07/08(a)(b)		7,688		7,688,000
Scottsdale IDA RB (Scottsdale Health Care Project) Series 2006C DN (FSA Insurance, Citibank N.A. Liquidity Facility),
2.05%, 4/07/08(a)		3,200		3,200,000
				10,888,000
Arkansas — 0.6%
Little Rock Residential Housing & Public Facilities Board Capital Improvement RB (Park Systems Project) Series 2001 DN (Bank of America N.A. LOC),
2.31%, 4/07/08(a)		2,075		2,075,000
California — 3.1%
California GO Series 2007 RAN,
4.00%, 6/30/08		7,000		7,010,648
California PCRB Solid Waste Disposal RB (Republic Services, Inc. Project) Series 2003 AMT DN (Republic Services, Inc. Guaranty),
3.10%, 4/07/08(a)		3,000		3,000,000
				10,010,648
Colorado — 3.7%
Colorado Housing & Finance Authority RB Series 2001 DN (Landesbank Hessen-Thueringen Girozentrale SBPA),
2.10%, 4/07/08(a)		8,740		8,740,000
Revenue Bond Certificates (Sterling Park Apartments Project) Series 2006-6 AMT DN (AIG Retirement Services, Inc. Liquidity Facilities),
2.61%, 4/07/08(a)		1,808		1,808,000
Southglenn Metropolitan District RB Series 2007 DN (Banque Nationale de Paribas LOC),
2.26%, 4/07/08(a)		1,500		1,500,000
				12,048,000
Connecticut — 1.8%
Connecticut Health & Educational Facilities Authority RB (Yale University Project) Series 1997T-2 DN,
1.50%, 4/07/08(a)		6,000		6,000,000
Delaware — 0.6%
Delaware Economic Development Authority RB (St. Anne’s Episcopal School Project) Series 2001 DN (Wilmington Trust Co. LOC),
2.19%, 4/07/08(a)		1,935		1,935,000
Florida — 16.1%
Brevard County Health Facilities Authority RB (Health First, Inc. Project) Series 2003 DN (SunTrust Bank LOC),
1.25%, 4/01/08(a)		2,000		2,000,000
Dade County IDA PCRB (Florida Power & Light Co. Project) Series 1995 DN,
1.18%, 4/01/08(a)		2,500		2,500,000
Florida Housing Finance Corp. Multi-Family Mortgage RB Series 2006 ROC-RR-II-R-600CE AMT DN (Citigroup Financial Products Guaranty, Citigroup Financial Products Liquidity Facility),
2.35%, 4/07/08(a)(b)		1,000		1,000,000
Florida Housing Finance Corp. RB Series 2007 ROC-RR-II-R-11209 AMT DN (Government National Mortgage Assoc. Insurance, Federal National Mortgage Assoc. Insurance, Federal Home Loan Mortgage Corp. Insurance),
2.32%, 4/07/08(a)(b)		3,200		3,200,000
Gainesville Utilities System RB Series 2006A DN (SunTrust Bank SBPA),
1.25%, 4/07/08(a)		10,700		10,700,000
Greater Orlando Aviation Authority RB (Special Purpose Cessna Aircraft Project) Series 2001 AMT DN (Textron, Inc. Guaranty),
3.29%, 4/07/08(a)		3,000		3,000,000
Gulfstream Park Community Development District Special Assessment RB Municipal Trust Receipts Floaters Series 2008-2G DN (The Goldman Sachs Group, Inc. Guaranty, The Goldman Sachs Group, Inc. Liquidity Facility),
1.79%, 4/07/08(a)(b)		5,055		5,055,000
Highlands County Health Facilities Authority RB (Adventist Health System Project) Series 2007A-2 DN,
2.15%, 4/07/08(a)		2,300		2,300,000
Jacksonville Electric Authority RB (Electric Systems Project) Series 2001B DN (Bank of America N.A. SBPA),
1.30%, 4/01/08(a)		7,900		7,900,000
Jacksonville Health Facilities Authority Hospital RB (Baptist Medical Center Project) Series 2001 DN (Wachovia Bank N.A. LOC),
1.20%, 4/01/08(a)		4,950		4,950,000
Lee County IDRB (Raymond Building Supply Corp. Project) Series 1997 AMT DN (SunTrust Bank LOC),
2.36%, 4/07/08(a)		1,145		1,145,000
Miami-Dade County School District GO PUTTERS Series 2007-1783 DN (MBIA Insurance, JPMorgan Chase & Co. Liquidity Facility),
3.50%, 4/07/08(a)(b)		4,000		4,000,000
Sunrise Utility System RB Series 2008-518 DN (AMBAC Insurance, Deutsche Bank Guaranty, Deutsche Bank Liquidity Facility),
2.27%, 4/07/08(a)(b)		2,715		2,715,000

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (continued) Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

		Par (000)		Value
Municipal Bonds (Continued)
Florida (Continued)
Wauchula IDRB (Hardee County Center Project) Series 1993 DN (JPMorgan Chase Bank LOC),
2.22%, 4/07/08(a)		$	2,275	$	2,275,000
					52,740,000
Idaho — 0.3%
Idaho GO Series 2007 TAN,
4.50%, 6/30/08			1,100		1,102,007
Illinois — 6.3%
Harvard Multi-Family Housing RB (Northfield Court Project) Series 1999 AMT DN (Fifth Third Bank N.A. LOC),
2.32%, 4/07/08(a)			7,350		7,350,000
Illinois Development Finance Authority PCRB (Amoco Oil Co. Project) Series 1994 DN,
1.25%, 4/01/08(a)			700		700,000
Illinois Educational Facilities Authority RB Series 2007 1B-3 TECP (Dexia Bank LOC),
3.66%, 5/06/08			3,000		3,000,000
Illinois Housing Development Authority RB Series 2007H-2 AMT DN,
3.48%, 10/01/08(a)			520		520,000
Quad Cities Regional Economic Development Authority RB (Whitey’s Ice Cream Manufacturing Project) Series 1995 AMT DN (Bank One N.A. LOC),
3.60%, 4/07/08(a)			410		410,000
Rockford County RB (Fairhaven Christian Center Project) Series 2000 DN (JPMorgan Chase Bank LOC),
3.50%, 4/07/08(a)			1,100		1,100,000
Rockford County RB (Wesley Willows Obligation Project) Series 2007 DN (M & I Marshall & Ilsley LOC),
1.23%, 4/01/08(a)(b)			6,800		6,800,000
Roselle Village IDRB (Abrasive-Form, Inc. Project) Series 1995 AMT DN (Lasalle Bank N.A. LOC),
2.25%, 4/07/08(a)(c)			600		600,000
					20,480,000
Indiana — 2.3%
Elkhart County Industrial Hospital Authority RB (Oaklawn Center Project) Series 2006 DN (Charter One Bank, N.A. LOC),
2.26%, 4/07/08(a)			3,305		3,305,000
Hendricks County Industrial Redevelopment Commission Tax Increment RB (Heartland Crossing Project) Series 2000A DN (Huntington National Bank LOC),
2.60%, 4/07/08(a)			2,600		2,600,000
Indiana Bond Bank RB (Mid-Year Funding Program) Series 2007A RAN (Bank of New York LOC),
4.50%, 5/20/08			1,000		1,000,971
South Bend Economic Development Authority RB (SGW Realty LLC Project) Series 1998 DN (Fifth Third Bank N.A. LOC),
2.40%, 4/07/08(a)			600		600,000
					7,505,971
	��
Iowa — 0.6%
Iowa GO Series 2007 TRAN,
4.00%, 6/30/08			1,000		1,001,813
Urbandale IDRB (Meredith Drive Assoc. Project) Series 1985 DN (Wells Fargo Bank N.A. LOC),
2.27%, 4/07/08(a)			1,000		1,000,000
					2,001,813
Kentucky — 0.5%
Newport Industrial Building RB (Newport Holdings Project) Series 2001A AMT DN (Huntington National Bank LOC),
2.53%, 4/07/08(a)			1,525		1,525,000
Louisiana — 1.5%
Lake Charles Harbor & Terminal District RB (Lake Charles Cogeneration Project) Series 2008 MB (Rabobank N.A. GIC),
2.25%, 3/15/09			2,000		2,000,000
Plaquemines Parish Environmental RB (BP Exploration & Oil, Inc. Project) Series 1995 AMT DN,
1.35%, 4/01/08(a)			2,800		2,800,000
					4,800,000
Maine — 0.3%
Maine School Administrative District No. 051 GO Series 2007 BAN,
3.75%, 12/30/08			1,000		1,004,694
Maryland — 2.6%
Baltimore County RB (Odyssey School Facility Project) Series 2001 DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)			2,175		2,175,000
Baltimore County RB (St. Paul’s School for Girls Facility Project) Series 2000 DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)			1,240		1,240,000
Maryland Economic Development Corp. RB (Assoc. of Catholic Charities Project) Series 1999B DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)			1,275		1,275,000
Maryland Economic Development Corp. RB (Assoc. of Catholic Charities Project) Series 2001 DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)			2,035		2,035,000
Maryland Economic Development Corp. RB (Assoc. of Catholic Charities Project) Series 2002 DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)			1,800		1,800,000
					8,525,000
Massachusetts — 0.4%
Massachusetts GO MERLOTS Trust Receipts Series 2002A-9 DN (FSA Insurance, Wachovia Bank N.A. SBPA),
2.30%, 4/07/08(a)(b)			1,480		1,480,000
Michigan — 4.9%
Detroit Economic Development Corp. RB (E.H. Assoc. Ltd. Project) Series 2002 DN (First Federal Bank of Northern Michigan LOC),
2.29%, 4/07/08(a)			2,765		2,765,000
Michigan Hospital Finance Authority RB (Ascension Health Credit Group Project) Series 1999B-2 DN,
1.95%, 4/07/08(a)			1,300		1,300,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 17

Schedule of Investments (continued) Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Michigan (Continued)
Michigan Housing Development Authority Multi-Family Housing RB (Berrien Woods III Project) Series 2000A AMT DN (Citibank N.A. LOC),
2.15%, 4/07/08(a)	$	300	$	300,000
Michigan Municipal Bond Authority GO Series 2007B-2 RAN (Scotiabank LOC),
4.50%, 8/20/08		2,400		2,407,304
Michigan Strategic Fund Ltd. Obligation RB (Apollo Plating, Inc. Project) Series 2007 AMT DN (Fifth Third Bank N.A. LOC),
2.34%, 4/07/08(a)		1,680		1,680,000
Michigan Strategic Fund Ltd. Obligation RB (Horizons of Michigan Project) Series 2001 DN (Huntington National Bank LOC),
2.46%, 4/07/08(a)		1,255		1,255,000
Michigan Strategic Fund Ltd. Obligation RB (Surefil Properties LLC Project) Series 2006 AMT DN (Huntington National Bank LOC),
2.70%, 4/07/08(a)		4,300		4,300,000
Wayne State University RB Munitops Trust Certificates Series 2006-61 DN (AMBAC Insurance, Bank of America N.A. SBPA),
2.31%, 4/07/08(a)(b)		2,000		2,000,000
				16,007,304
Minnesota — 0.9%
Minnesota School District Tax & Aid Anticipation Borrowing Program COP Series 2007 AAC,
4.50%, 8/28/08		3,000		3,010,125
Missouri — 1.4%
Taney County IDRB (Keeter Heights Project) Series 2006 AMT DN (U.S. Bank N.A. LOC),
2.33%, 4/07/08(a)		4,500		4,500,000
New Jersey — 3.1%
New Jersey GO Series 2007 TRAN,
4.50%, 6/24/08		10,000		10,019,895
New Mexico — 2.1%
New Mexico GO Series 2007 TRAN,
3.75%, 6/30/08		7,000		7,012,036
New York — 6.6%
New York City GO Series 2005E-3 DN (Bank of America N.A. LOC),
2.07%, 4/07/08(a)		1,400		1,400,000
New York City GO Series 2006I-6 DN (CALSTRS LOC),
1.05%, 4/01/08(a)		2,900		2,900,000
New York City Municipal Water Finance Authority Water & Sewer System RB (Second General Resolution Project) Series 2005AA-1 DN (State Street Bank & Trust Co. & CALSTERS SBPA),
1.05%, 4/01/08(a)		6,000		6,000,000
New York City Municipal Water Finance Authority Water & Sewer System RB (Second General Resolution Project) Series 2007-2008BB-1 DN (Fortis Bank SBPA),
1.25%, 4/01/08(a)		100		100,000
New York City Transitional Finance Authority RB (Future Tax Secured Project) Series 1998A-1 DN (WestLB AG SBPA),
2.05%, 4/07/08(a)		200		200,000
New York City Transitional Finance Authority RB (New York City Recovery Project) Series 2002-3B DN (Citigroup Global Markets Holdings, Inc. SBPA),
1.36%, 4/01/08(a)		7,100		7,100,000
New York City Transitional Finance Authority RB Series 2002-2A DN (Dexia Credit Local Liquidity Facility),
1.15%, 4/01/08(a)		900		900,000
New York Mortgage Agency RB (Homeowner Mortgage Project) Series 2006-135 AMT DN (Dexia Credit Local SBPA),
1.25%, 4/01/08(a)		2,000		2,000,000
Rockland County IDRB (Northern River Assisted Living Project) Series 1999 DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)		1,065		1,065,000
				21,665,000
North Carolina — 5.7%
Charlotte Water & Sewer System RB Munitops Trust Certificates Series 2007-10 DN (Bank of America N.A. SBPA),
2.24%, 4/07/08(a)(b)		4,000		4,000,000
Charlotte-Mecklenburg Hospital Authority RB (Carolina’s Healthcare System Project) Series 2006-1388 DN (Morgan Stanley Group Liquidity Facility),
2.21%, 4/07/08(a)(b)		300		300,000
Guilford County Industrial Facilities PCRB (Recreational Facilities-YMCA Project) Series 2002 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(a)		1,550		1,550,000
North Carolina Capital Facilities Finance Agency Educational Facilities RB (High Point University Project) Series 2006 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(a)		3,160		3,160,000
North Carolina Capital Facilities Finance Agency RB Municipal Trust Receipts Floaters Series 2007-1895 DN (Morgan Stanley Group Liquidity Facility),
2.16%, 4/07/08(a)(b)		546		546,500
North Carolina Educational Facilities Finance Agency RB (Duke University Project) Series 1991B DN,
1.60%, 4/07/08(a)		3,000		3,000,000
North Carolina GO Series 2003A-23 MB (Wachovia Bank N.A. SBPA),
2.00%, 2/09/09(b)		300		300,000
North Carolina Medical Care Commission Health Care Facilities RB Series 2007 ROC-RR-II- R-10313 DN (Citigroup Financial Products Liquidity Facility),
2.31%, 4/07/08(a)(b)		4,300		4,300,000
University of North Carolina at Chapel Hill RB Munitops Trust Certificates Series 2005-52 DN (Bank of America N.A. SBPA),
2.24%, 4/07/08(a)(b)		1,400		1,400,000
				18,556,500

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (continued) Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Ohio — 1.5%
American Municipal Power, Inc. GO (Cleveland Public Power Project) Series 2007 BAN,
3.78%, 8/14/08	$	265	$	265,000
Butler Hospital Facilities RB (Ucpha, Inc. Project) Series 2004 DN (Huntington Capital LOC),
2.55%, 4/07/08(a)		1,400		1,400,000
Dover GO (Municipal Electric Systems Improvements Project) Series 2007 BAN,
4.25%, 6/05/08		100		100,090
Franklin County Health Care Facilities RB (Worthington Christian Project) Series 2007 DN (Huntington National Bank LOC),
2.60%, 4/07/08(a)		1,620		1,620,000
Mason GO (Downtown Improvements Project) Series 2007 BAN,
4.50%, 6/04/08		315		315,425
Summit County Civic Facility RB (Akron Area Electric Junction Project) Series 2001 DN (KeyBank N.A. LOC),
2.29%, 4/07/08(a)		1,205		1,205,000
				4,905,515
Oklahoma — 0.3%
Oklahoma Development Finance Authority GO (ConocoPhillips Co. Project) Series 2003 AMT DN,
2.35%, 4/07/08(a)		1,000		1,000,000
Pennsylvania — 2.9%
Butler County IDRB (Concordia Lutheran Project) Series 2000C DN (Bank of America N.A. LOC),
2.10%, 4/07/08(a)		2,000		2,000,000
Delaware County IDRB (Scott Paper Co. Project) Series 1984A DN,
2.60%, 4/07/08(a)		2,500		2,500,000
Pennsylvania Economic Development Financing Authority RB UBS Municipal Certificates Floaters Series 2007-07-15 DN (Landebank Hessen-Thruingen Girozentrale Liquidity Facility),
2.26%, 4/07/08(a)(b)		2,975		2,975,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2006-92B AMT DN (Landesbank Hessen-Thueringen Girozentrale SBPA),
2.25%, 4/07/08(a)		400		400,000
Philadelphia Authority IDRB (Gift of Life Donor Program Project) Series 2003 DN (Commerce Bank N.A. LOC),
2.24%, 4/07/08(a)		965		965,000
Upper Merion General Authority Lease RB Series 2003 DN (Commerce Bank N.A. LOC),
2.24%, 4/07/08(a)		500		500,000
				9,340,000
South Carolina — 0.5%
Greenwood County Exempt Facility IDRB (FUJIFILM Photo Project) Series 2004 AMT DN (FUJIFILM Corp. Guaranty),
2.38%, 4/07/08(a)		1,500		1,500,000
Tennessee — 2.9%
Municipal Energy Acquistion Corp. of Tennessee Gas RB PUTTERS Series 2006-1578 DN (JPMorgan Chase Liquidity Facility),
2.29%, 4/07/08(a)(b)		5,425		5,425,000
Tennergy Corp. Gas RB BNP Paribas STARS Certificates Trust Series 2006-001 DN (BNP Paribas Liquidity Facility),
2.29%, 4/07/08(a)(b)		2,000		2,000,000
Tennergy Corp. Gas RB PUTTERS Series 2006-1258Q DN (JPMorgan Chase & Co. Liquidity Facility),
2.29%, 4/07/08(a)(b)		2,000		2,000,000
				9,425,000
Texas — 15.6%
Dallas ISD Building GO Munitops Trust Certificates Series 2006-8 DN (PSF Guaranty, Bank of America N.A. SBPA),
2.23%, 4/07/08(a)(b)		3,000		3,000,000
Harris County RB (Toll Road Unlimited Tax & Subordinate Lien Revenue Refunding Bonds Project) Series 2003 MB,
5.00%, 8/01/08		400		404,821
Houston Higher Education Finance Corp. RB Municipal Trust Receipts Floaters Series 2007-1914 DN (Morgan Stanley Group LOC),
2.16%, 4/07/08(a)(b)		707		707,000
Houston ISD GO (Schoolhouse Project) Series 2004 MB (PSF Guaranty, Bank of America N.A. SBPA),
3.75%, 6/16/08		2,000		2,000,000
Houston Water & Sewer System RB Municipal Trust Receipts Floaters Series 2007-2043 DN (Branch Banking & Trust Co. Liquidity Facility),
2.29%, 4/07/08(a)(b)		1,380		1,380,000
Hutto ISD GO Series 2007-1001 DN (PSF Guaranty, Bank of New York SBPA),
2.27%, 4/07/08(a)(b)		1,000		1,000,000
Lower Colorado River Authority RB MERLOTS Trust Receipts Series 2000 DN (FSA Insurance, Wachovia Bank N.A. SBPA),
2.30%, 4/07/08(a)(b)		3,385		3,385,000
North Texas Tollway Authority GO Series 2007 BAN,
4.12%, 11/19/08		10,000		10,001,752
Nueces River IDA Series 1984 TECP (National Rural Utilities Co-op Guaranty),
2.75%, 4/09/08		5,000		5,000,000
Red River Education Finance RB (Texas Christian University Project) Series 2000 DN,
2.18%, 4/07/08(a)		1,300		1,300,000
Texas GO Series 2007 TRAN,
4.50%, 8/28/08		15,000		15,048,131
Texas Municipal Gas Acquisition & Supply Corp. II RB Series 2007 ROC-RR-II-R-10014 DN (Dexia Credit Local Liquidity Facility),
2.31%, 4/07/08(a)(b)		2,100		2,100,000
Texas Municipal Gas Acquisition & Supply Corp. II RB Series 2007 ROC-RR-II-R-10015 DN (Landesbank Hessen-Thueringen Girozentrale Liquidity Facility),
2.31%, 4/07/08(a)(b)		1,100		1,100,000
Texas Public Finance Authority RB Series 2003A MB (FSA Insurance),
5.00%, 4/07/08		2,500		2,506,025

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 19

Schedule of Investments (concluded) Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Texas (Continued)
University of Texas Financing System RB Series 2007B DN (University of Texas System Board Liquidity Facility),
1.95%, 4/07/08(a)	$	2,000	$	2,000,000
				50,932,729
Virginia — 1.2%
Norfolk Redevelopment & Housing Authority Multi-Family Housing RB (Residential Rental Project) Series 2003 AMT DN (SunTrust Bank LOC),
2.29%, 4/07/08(a)		1,920		1,920,000
Virginia College Building Authority Educational Facilities RB Series 2003-379 DN (JPMorgan Chase & Co. LOC),
2.29%, 4/07/08(a)(b)		1,865		1,865,000
				3,785,000
Washington — 1.2%
Washington Economic Development Finance Authority RB Series 2006-1531 DN (Morgan Stanley Group LOC),
2.21%, 4/07/08(a)(b)		1,334		1,334,500
Washington Housing Finance Commission Non-Profit RB (Eastside Catholic School Project) Series 2007A DN (KeyBank N.A. LOC),
2.25%, 4/07/08(a)		1,000		1,000,000
Washington Housing Finance Commission Non-Profit RB (Eastside Catholic School Project) Series 2007B DN (KeyBank N.A. LOC),
2.11%, 4/07/08(a)		1,200		1,200,000
Yakima County Public Corp. RB (Michelsen Packaging Co. Project) Series 2000 AMT DN (Bank of America N.A. LOC),
2.25%, 4/07/08(a)		315		315,000
				3,849,500
West Virginia — 1.0%
Kanawha County RB (Bible Center Church Project) Series 2006 DN (Huntington National Bank LOC),
2.60%, 4/07/08(a)		3,200		3,200,000
Wisconsin — 1.6%
Amery IDRB (Plastech Corp. Project) Series 1997 AMT DN (U.S. Bank N.A. LOC),
2.49%, 4/07/08(a)		2,000		2,000,000
Mequon IDRB (Johnson Level GRW Investment Project) Series 1995 AMT DN (Bank One N.A. LOC),
3.60%, 4/07/08(a)		355		355,000
Sheboygan Falls IDRB (HTT, Inc. Project) Series 2007A AMT DN (U.S. Bank N.A. LOC),
2.32%, 4/07/08(a)		1,890		1,890,000
Wisconsin GO Series 2007 MB,
4.50%, 6/16/08		1,100		1,101,674
				5,346,674
Wyoming — 0.6%
Campbell County IDRB (Two Elk Partners Project) Series 2007 MB (Royal Bank of Canada GIC),
3.65%, 11/28/08		2,000		2,000,000
Total Investments in Securities — 99.2%
(Cost $324,219,411*)				324,219,411
Other Assets in Excess of Liabilities — 0.8%				2,695,088
Net Assets — 100.0%			$	326,914,499

* Aggregate cost for federal income tax purposes.

(a) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

(b) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

(c) Restricted security as to resale. As of report date the Portfolio held 0.2% of its net assets, with a current market value of $600,000 and an original cost of $600,000 in these securities.

• Investments in companies considered to be an affiliate of the Portfolio were as follows:

Affiliate	Purchase Cost	Sales Cost		Realized Gain	Interest Income
Golden State Tobacco Settlement Securitization Corp. RB P-Float Trust Receipts Series 2004 PA-1236 DN (Merrill Lynch & Co. Guaranty, Merrill Lynch Capital Services SBPA)	—	$	1,330,000	—	$	4,934
Affiliate	Purchase Cost	Sales Cost		Realized Gain	Interest Income
Municipal Securities Pool Trust Receipts RB Series 2004-18 DN (Multiple Insurers, Societe Generale Group SBPA)	—	$	975,000	—	$	11,982

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) New Jersey Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds — 88.1%
New Jersey — 88.1%
Alexandria Township GO Series 2007 BAN,
4.00%, 12/17/08	$	200	$	201,198
Camden County Improvement Authority RB (Harvest Village Project) Series 1999A DN (JPMorgan Chase Bank LOC),
2.99%, 4/01/08(a)		9,600		9,600,000
Chester Township Board of Education GO Series 2007 GAN,
4.12%, 8/15/08		515		515,654
Cinton GO Series 2008 BAN,
3.25%, 1/23/09		300		301,089
Cranford Township GO Series 2008 BAN,
2.25%, 2/04/09		500		500,865
Demarest School District GO Series 2007 TAN,
4.00%, 7/11/08		295		295,157
Dennis Township GO Series 2008 BAN,
2.25%, 3/20/09		100		100,246
East Brunswick Township GO Series 2008 BAN,
3.50%, 1/09/09		1,805		1,811,900
East Windsor Township GO Series 2007 BAN,
3.75%, 11/28/08		1,300		1,303,305
Edgewater GO Series 2007 BAN,
4.00%, 6/13/08		395		395,189
Elmwood Park GO Series 2007 TAN,
3.75%, 11/14/08		950		952,565
Essex County Utilities Authority GO Series 2007 MB,
3.75%, 11/14/08		750		751,796
Evesham Township GO Series 2007 BAN,
4.12%, 8/08/08		605		605,729
Haddon Heights GO Series 2008A BAN,
2.10%, 8/08/08		150		150,089
Hamilton Township GO Series 2008 BAN,
2.00%, 2/06/09		300		300,399
Hammonton GO Series 2008 BAN,
3.50%, 1/09/09		1,100		1,105,041
Highlands GO Series 2008 BAN,
3.12%, 1/29/09		400		401,660
Hillsborough Township GO Series 2007 BAN,
3.75%, 12/12/08		140		140,615
Howell Township GO Series 2007B BAN,
4.00%, 9/16/08		705		705,840
Hudson County Improvement Authority RB (Essential Purpose Pooled Government Project) Series 1986 DN (Bank of New York LOC),
2.05%, 4/07/08(a)		6,320		6,320,000
Keyport GO Series 2007 BAN,
4.12%, 8/08/08		980		981,146
Lakewood Township GO Series 2007 BAN,
4.25%, 7/11/08		250		250,299
Leonia GO Series 2008 BAN,
2.50%, 2/27/09		400		401,764
Long Beach Township GO Series 2007A BAN,
3.50%, 12/18/08		160		160,453
Lower Township GO Series 2007 BAN,
4.00%, 5/30/08		430		430,187
Lower Township GO Series 2008 BAN,
2.00%, 4/03/09		400		400,980
Lyndhurst Township GO Series 2008 BAN,
2.00%, 5/09/08		200		200,033
Manasquan Township GO Series 2008 BAN,
2.50%, 1/30/09		200		200,505
Maple Shade Township GO Series 2007 BAN,
4.00%, 8/01/08		560		560,413
Maywood GO Series 2008 BAN,
2.50%, 3/20/09		200		200,967
Mercer County GO Series 2007B BAN,
3.50%, 6/13/08		750		750,809
Mercer County Improvement Authority RB (Atlantic Foundation Project) Series 1998 DN (MBIA Insurance, Bank of America N.A. LOC),
2.43%, 4/07/08(a)		12,460		12,460,000
Middlesex County GO Series 2007 BAN,
4.00%, 5/23/08		475		475,195
Montville Township GO Series 2007 BAN,
4.00%, 5/23/08		487		487,264
New Jersey Economic Development Authority Multi-Mode IDRB (V&S Amboy Galvanizing LLC Project) Series 1999 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		1,510		1,510,000
New Jersey Economic Development Authority RB (Applewood Estates Project) Series 2005 DN (Commerce Bank N.A. LOC),
2.05%, 4/07/08(a)		3,650		3,650,000
New Jersey Economic Development Authority RB (Cedar Crest Village, Inc. Project) Series 2006B DN (Sovereign Bank LOC, Bank of New York LOC),
1.97%, 4/07/08(a)		8,200		8,200,000
New Jersey Economic Development Authority RB (Frisch School Project) Series 2006 DN (Princeton University Guaranty, Kredietbank N.V. LOC, Sovereign Bank LOC),
1.95%, 4/07/08(a)		1,550		1,550,000
New Jersey Economic Development Authority RB (Hamilton Industrial Development Project) Series 1998 DN (Wachovia Bank N.A. LOC),
2.18%, 4/07/08(a)		1,340		1,340,000
New Jersey Economic Development Authority RB (J. James Realty Co. Project) Series 1998 AMT DN (Wachovia Bank N.A. LOC),
2.18%, 4/07/08(a)		390		390,000
New Jersey Economic Development Authority RB (Jacea LLC Project) Series 2004 DN (Wachovia Bank N.A. LOC),
2.18%, 4/07/08(a)		3,190		3,190,000
New Jersey Economic Development Authority RB (Jewish Family Service Project) Series 2002 DN (Wachovia Bank N.A. LOC),
2.13%, 4/07/08(a)		660		660,000
New Jersey Economic Development Authority RB (Lawrenceville School Project) Series 1996B DN (JPMorgan Chase Bank SBPA),
0.80%, 4/01/08(a)		1,000		1,000,000
New Jersey Economic Development Authority RB (Morris Museum Project) Series 2006 DN (JPMorgan Chase Bank LOC),
1.97%, 4/07/08(a)		3,300		3,300,000
New Jersey Economic Development Authority RB (Nandan Co. Project) Series 2000 AMT DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)		2,650		2,650,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 21

Schedule of Investments (continued) New Jersey Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
New Jersey (Continued)
New Jersey Economic Development Authority RB (Nandan Co. Project) Series 2001 AMT DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)	$	1,025	$	1,025,000
New Jersey Economic Development Authority RB (Paddock Realty LLC Project) Series 2006 AMT DN (Wells Fargo Bank N.A. LOC),
2.41%, 4/07/08(a)		1,300		1,300,000
New Jersey Economic Development Authority RB (Pennington Montessori School Project) Series 1998 DN (Wachovia Bank N.A. LOC),
2.18%, 4/07/08(a)		1,045		1,045,000
New Jersey Economic Development Authority RB (Presbyterian Homes Project) Series 2006 DN (Commerce Bank LOC),
2.21%, 4/07/08(a)		1,400		1,400,000
New Jersey Economic Development Authority RB (Princeton Montessori Society Project) Series 2008 DN (Sovereign Bank LOC),
2.30%, 4/07/08(a)		2,000		2,000,000
New Jersey Economic Development Authority RB (School Facilities Project) Municipal Trust Receipts Floaters Series 2007-2420 DN (Morgan Stanley Municipal Funding Liquidity Facility, Morgan Stanley Municpal Funding Guaranty),
2.31%, 4/07/08(a)(b)		780		780,500
New Jersey Economic Development Authority RB (School Facilities Project) Municipal Trust Receipts Floaters Series 2008-2421 DN (Morgan Stanley Municipal Funding Liquidity Facility, Morgan Stanley Municpal Funding Guaranty),
2.31%, 4/07/08(a)(b)		1,080		1,079,500
New Jersey Economic Development Authority RB (Stuart Country Day School Project) Series 2002 DN (Allied Irish Bank Plc LOC),
2.10%, 4/07/08(a)		1,640		1,640,000
New Jersey Economic Development Authority RB MERLOTS Trust Receipts Series 2007D-41 DN (FSA Insurance, Wachovia Bank N.A. SBPA),
2.30%, 4/07/08(a)(b)		5,990		5,990,000
New Jersey Economic Development Authority RB P-Float Trust Receipts Series 2004 MT-035 DN (Assured Guaranty Ltd. Insurance, Landesbank Hessen-Thueringen Girozentrale SBPA),
2.21%, 4/07/08(a)(b)(c)		6,795		6,795,000
New Jersey Economic Development Authority RB Series 2004 ROC-RR-II-R-309 DN (Assured Guaranty Ltd. Insurance, Citibank N.A. Liquidity Facility),
2.27%, 4/07/08(a)(b)		5,565		5,565,000
New Jersey Economic Development Authority Thermal Energy Facilities RB (Marina Energy LLC Project) Series 2001A AMT DN (Wachovia Bank N.A. LOC),
2.20%, 4/07/08(a)		1,100		1,100,000
New Jersey Economic Development Authority Thermal Energy Facilities RB (Thermal Energy LP Project) Series 1995 AMT DN (Bank One N.A. LOC),
2.20%, 4/07/08(a)		500		500,000
New Jersey Environmental Infrastructure Trust RB Series 2004-585 AMT DN (JPMorgan Chase Bank Liquidity Facility),
2.39%, 4/07/08(a)(b)		3,965		3,965,000
New Jersey GO Series 2007 TRAN,
4.50%, 6/24/08		6,000		6,011,937
New Jersey Health Care Facilities Financing Authority RB (Hospital Capital Asset Financing Project) Series 1985A DN (Wachovia Bank N.A. LOC),
2.05%, 4/07/08(a)		1,175		1,175,000
New Jersey Health Care Facilities Financing Authority RB (Meridian Health System Project) Series 2003B DN (Fleet National Bank LOC),
2.15%, 4/07/08(a)		4,700		4,700,000
New Jersey Health Care Facilities Financing Authority RB (South Jersey Hospital Systems Project) Series 2004A-4 DN (Wachovia Bank N.A. LOC),
2.18%, 4/07/08(a)		700		700,000
New Jersey Health Care Facilities Financing Authority RB (Virtua Health Project) Series 2004 DN (Wachovia Bank N.A. LOC),
2.03%, 4/07/08(a)		1,880		1,880,000
New Jersey Health Care Facilities Financing Authority RB P-Float Trust Receipts (Bayonnne Hospital Project) Series 2005L-26UD DN (FSA Insurance, Lehman Liquidity Co. Liquidity Facility),
1.85%, 4/07/08(a)(b)		4,000		4,000,000
New Jersey Health Care Facilities Financing Authority RB P-Float Trust Receipts (JFK Health System Obligation Group Project) Series 2008-2397 DN (Morgan Stanley Municipal Funding Liquidity Facility),
2.31%, 4/07/08(a)(b)		870		870,000
New Jersey Housing & Mortgage Finance Agency RB (Multi-Family Housing Project) Series 2002D DN (FSA Insurance, Lehman SBPA),
1.98%, 4/07/08(a)(b)		200		200,000
New Jersey Housing & Mortgage Finance Agency RB (Single Family Housing Project) Series 2005O AMT DN (Dexia Credit Local LOC),
1.88%, 4/07/08(a)		500		500,000
New Jersey Sports & Exposition Authority State Contract RB Series 1992C DN (MBIA Insurance, Credit Suisse SBPA),
3.25%, 4/07/08(a)		1,085		1,085,000
New Jersey Transportation Trust Fund Authority Capital Appreciation RB Series 2006 ROC-RR-II-R-684Z DN (AMBAC Insurance, Citibank N.A. Liquidity Facility),
2.79%, 4/07/08(a)(b)		590		590,000
New Jersey Transportation Trust Fund Authority Capital Appreciation RB Series 2007DB-447 DN (FSA Insurance, AMBAC Insurance, Deutsche Bank Liquidity Facility),
2.28%, 4/07/08(a)(b)		3,750		3,750,000
New Jersey Transportation Trust Fund Authority RB Municipal Trust Receipts Floaters Series 2004-963D DN (FGIC Insurance, Transamerica Life Insurance Co. Guaranty, Morgan Stanley Municipal Funding Liquidity Facility),
2.31%, 4/07/08(a)(b)		5,100		5,100,000
New Jersey Transportation Trust Fund Authority RB PUTTERS Series 2001-241 DN (FSA Insurance, JPMorgan Chase & Co. Liquidity Facility),
2.29%, 4/07/08(a)(b)		1,545		1,545,000

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (continued) New Jersey Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
New Jersey (Continued)
New Jersey Turnpike Authority RB Municipal Trust Receipts Floaters Series 2005-K9D DN (FSA Insurance, Lehman Liquidity Co. Liquidity Facility),
1.93%, 4/07/08(a)(b)	$	1,300	$	1,300,000
New Jersey Turnpike Authority RB Series 2003C-1 DN (FSA Insurance, WestLB AG SBPA),
1.75%, 4/07/08(a)		3,100		3,100,000
New Jersey Turnpike Authority RB Series 2006 DN (FSA Insurance, Dexia Credit Local SBPA),
1.75%, 4/07/08(a)		1,600		1,600,000
New Milford GO Series 2008 BAN,
2.25%, 1/30/09		200		200,342
New Providence GO Series 2008 BAN,
2.50%, 2/20/09		100		100,605
Newark Housing Authority Port Newark Marine Terminal Additional Rent-Backed RB Municipal Trust Receipts Floaters (Newark Redevelopment Project) Series 2007-2044 DN (MBIA Insurance),
2.27%, 4/07/08(a)(b)		555		555,000
North Wildwood GO Series 2007 BAN,
3.75%, 12/12/08		1,100		1,104,531
Northvale GO Series 2008 BAN,
2.50%, 2/20/09		100		100,605
Oakland GO Series 2008 BAN,
2.25%, 2/11/09		100		100,270
2.50%, 2/11/09		500		502,998
Park Ridge GO Series 2008 BAN,
2.00%, 2/06/09		200		200,149
Pascack Valley Regional High School District GO
Series 2008 TAN,
2.00%, 2/06/09		200		200,150
Pennsauken Township GO Series 2007A BAN,
4.00%, 9/10/08		1,220		1,221,559
Pilesgrove Township GO Series 2007 BAN,
4.00%, 8/28/08		1,100		1,100,647
Port Authority of New York & New Jersey RB Eagle Trust Receipts Series 2006A-107 AMT DN (Landesbank Hessen-Thuringen Girozentrale Liquidity Facility),
2.31%, 4/07/08(a)(b)		2,000		2,000,000
Port Authority of New York & New Jersey RB Series 2006-1546 DN (JPMorgan Chase Bank Liquidity Facility),
2.29%, 4/07/08(a)(b)		1,300		1,300,000
Port Authority of New York & New Jersey Special Obligation RB (Versatile Structure Obligation Project) Series 1994-2 DN (JPMorgan Chase & Co. SBPA),
0.98%, 4/01/08(a)		700		700,000
Port Authority of New York & New Jersey Special Obligation RB (Versatile Structure Obligation Project) Series 1996-4 AMT DN (Landesbank Hessen-Thuringen Girozentrale SBPA),
1.09%, 4/01/08(a)		600		600,000
Port Authority of New York & New Jersey Special Obligation RB (Versatile Structure Obligation Project) Series 1997-1R AMT DN (Bayerische Landesbank Gironzentrale SBPA),
1.25%, 4/01/08(a)		3,000		3,000,000
Port Authority of New York & New Jersey TECP,
1.50%, 4/03/08		2,000		2,000,000
1.60%, 4/03/08		2,000		2,000,000
1.65%, 6/05/08		3,000		3,000,000
Rahway GO Series 2007 BAN,
4.25%, 6/24/08		310		310,294
Ringwood Borough GO Series 2007 BAN,
3.75%, 11/07/08		800		801,813
Rutherford Borough GO Series 2007 BAN,
3.50%, 7/01/08		300		300,301
4.00%, 7/17/08		685		685,423
Salem County Pollution Control Financing Authority RB (Atlantic City Electric Co. Project) Series 1997B AMT DN (MBIA Insurance, Bank of New York LOC),
2.25%, 4/07/08(a)		1,390		1,390,000
South Bound Brook GO Series 2007 BAN,
4.00%, 8/22/08		395		395,401
Summit GO Series 2007 BAN,
3.75%, 12/12/08		530		532,038
Tinton Falls GO Series 2008 BAN,
3.12%, 1/23/09		150		150,635
Tuckerton GO Series 2007 BAN,
4.00%, 6/20/08		546		546,252
Union Township GO Series 2008 BAN,
3.50%, 1/09/09		650		652,978
Waldwick GO Series 2007 BAN,
4.00%, 6/20/08		470		470,208
Washington Township GO Series 2007 BAN,
4.00%, 10/24/08		1,039		1,041,879
3.25%, 12/26/08		350		350,547
Westfield GO Series 2007 BAN,
4.00%, 7/18/08		775		776,091
Woodbury School District GO Series 2007 GAN,
4.00%, 12/04/08		600		602,385
Total Investments in Securities — 88.1%
(Cost $173,143,390*)				173,143,390
Other Assets in Excess of Liabilities — 11.9%				23,345,694
Net Assets — 100.0%			$	196,489,084

* Aggregate cost for federal income tax purposes.

(a) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 23

Schedule of Investments (concluded) New Jersey Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

(b) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

(c) Investments in companies considered to be an affiliate of the Portfolio were as follows:

Affiliate	Purchase Cost	Sales Cost		Realized Gain	Interest Income
New Jersey Economic Development Authority RB P-Float Trust Receipts Series 2004 MT-035 DN (Assured Guaranty Ltd. Insurance, Landesbank Hessen-Thuringen Girozentrale SBPA)	—		—	—	$	102,491
New Jersey Health Care Facilities Financing Authority RB P-Float Trust Receipts Series 2001 PT-1319 DN (AMBAC Insurance, Merrill Lynch Capital Services SBPA)	—	$	7,415,000	—	$	27,616
Port Authority of New York & New Jersey RB P-Float Trust Receipts Series 2004-056 DN (FGIC Insurance, Banque Nationale de Paribas SBPA)	—	$	7,855,000	—	$	88,829

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) North Carolina Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds — 99.7%
North Carolina — 96.4%
Cabarrus County Installment Financing Contract COP Series 2003 ROC-RR-II-4520 DN (AMBAC Insurance, Citigroup Financial Products Liquidity Facility),
2.39%, 4/07/08(a)(b)	$	900	$	900,000
Carrboro GO Series 2007 BAN,
3.75%, 8/27/08		715		715,789
Charlotte Airport RB Series 1999D DN (MBIA Insurance, Bank of America N.A. SBPA),
2.65%, 4/01/08(b)		2,000		2,000,000
Charlotte COP (Transit Projects Phase II Project) Series 2005F DN (Depfa Bank Plc SBPA),
2.05%, 4/07/08(b)		2,665		2,665,000
Charlotte GO Series 2007 DN (KBC Bank N.V. SBPA),
2.10%, 4/07/08(b)		400		400,000
Charlotte Water & Sewer System GO Series 2007 TECP,
3.05%, 7/22/08		3,500		3,500,000
Charlotte Water & Sewer System RB Munitops Trust Certificates Series 2007-10 DN (Bank of America N.A. SBPA),
2.24%, 4/07/08(a)(b)		2,000		2,000,000
Charlotte-Mecklenburg Hospital Authority RB (Carolina’s Healthcare System Project) Series 2006-1388 DN (Morgan Stanley Group Liquidity Facility),
2.21%, 4/07/08(a)(b)		2,900		2,900,000
Charlotte-Mecklenburg Hospital Authority RB (Carolina’s Healthcare System Project) Series 2007F DN (FSA Insurance, Dexia Credit Local SBPA),
2.10%, 4/01/08(b)		920		920,000
East Moore Water District GO Series 2007 BAN,
4.25%, 4/02/08		2,100		2,100,023
Fayetteville Public Works Commission RB Series 2003A DN (FSA Insurance, Dexia Credit Local SBPA),
2.05%, 4/07/08(b)		1,400		1,400,000
Fayetteville Public Works Commission RB Series 2003 DN (FSA Insurance, Dexia Credit Local SBPA),
2.05%, 4/07/08(b)		2,440		2,440,000
Guilford County GO Series 2005B DN (Wachovia Bank N.A. SBPA),
2.10%, 4/07/08(b)		600		600,000
Mecklenburg County COP Series 2006 DN (DEPFA Bank Plc SBPA),
2.08%, 4/07/08(b)		500		500,000
Mecklenburg County COP Series 2008A DN (SunTrust Bank SBPA),
2.25%, 4/07/08(b)		5,000		5,000,000
Mecklenburg County GO Series 1996C DN (Bank of America N.A. LOC),
2.08%, 4/07/08(b)		2,200		2,200,000
Mecklenburg County GO Series 2005B DN (Wachovia Bank N.A. SBPA),
2.08%, 4/07/08(b)		515		515,000
Mecklenburg County GO Series 2006A DN (DEPFA Bank Plc SBPA),
2.08%, 4/07/08(b)		590		590,000
New Hanover County COP Series 2007 DN (DEFPA Bank Plc SBPA),
2.08%, 4/07/08(b)		1,300		1,300,000
North Carolina Capital Facilities Finance Agency Educational Facilities RB (High Point University Project) Series 2006 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		790		790,000
North Carolina Capital Facilities Finance Agency Educational Facilities RB (Megellan Charter School Project) Series 2007 DN (Wachovia Bank N.A. LOC),
2.15%, 4/07/08(b)		1,300		1,300,000
North Carolina Capital Facilities Finance Agency Educational Facilities RB (The Downtown Middle School Project) Series 2006 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		1,150		1,150,000
North Carolina Capital Facilities Finance Agency RB (Aquarium Society Project) Series 2004 DN (Bank of America N.A. LOC),
2.10%, 4/07/08(b)		3,515		3,515,000
North Carolina Capital Facilities Finance Agency RB Eagle Trust Receipts Series 2006A DN (Citibank N.A. Liquidity Facility),
2.25%, 4/07/08(a)(b)		1,000		1,000,000
North Carolina Capital Facilities Finance Agency RB Municipal Trust Receipts Floaters Series 2007-1894 DN (Morgan Stanley Group Liquidity Facility),
2.16%, 4/07/08(a)(b)		106		106,000
North Carolina Capital Facilities TECP,
2.25%, 5/01/08		1,000		1,000,000
North Carolina Educational Facilities Finance Agency RB (Duke University Project) Series 1991B DN,
1.60%, 4/07/08(b)		9,900		9,900,000
North Carolina Educational Facilities Finance Agency RB (Duke University Project) Series 1992A DN,
1.60%, 4/07/08(b)		1,200		1,200,000
North Carolina GO MERLOTS Trust Receipts Series 2008C-04 DN (Wachovia Bank N.A. LOC),
2.05%, 4/07/08(a)(b)		1,400		1,400,000
North Carolina GO Series 2003A-23 MB (Wachovia Bank N.A. SBPA),
2.00%, 2/09/09(a)(b)		800		800,000
North Carolina HFA RB (Home Ownership Project) Series 2003-17-C AMT DN (Bank of America N.A. Liquidity Facility),
2.30%, 4/07/08(b)		350		350,000
North Carolina Medical Care Commission Health Care Facilities RB (Duke University Health System Project) Series 2005A DN,
2.07%, 4/07/08(b)		1,650		1,650,000
North Carolina Medical Care Commission Health Care Facilities RB (Duke University Health System Project) Series 2005B DN,
2.07%, 4/07/08(b)		700		700,000
North Carolina Medical Care Commission Health Care Facilities RB (Novant Health Group Project) Series 2004A DN (JPMorgan Chase Bank SBPA),
2.08%, 4/07/08(b)		1,600		1,600,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 25

Schedule of Investments (concluded) North Carolina Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
North Carolina (Continued)
North Carolina Medical Care Commission Health Care Facilities RB (Novant Health Group Project) Series 2004B DN (Morgan Stanley Guaranty Trust LOC),
1.80%, 4/07/08(b)	$	2,900	$	2,900,000
North Carolina Medical Care Commission Health Care Facilities RB (Watauga Medical Center Project) Series 2005 DN (Wachovia Bank N.A. LOC),
2.10%, 4/07/08(b)		1,000		1,000,000
North Carolina Medical Care Commission Health Care Facilities RB Series 2007 ROC-RR-II- R-10313 DN (Citigroup Financial Products Liquidity Facility),
2.31%, 4/07/08(a)(b)		3,700		3,700,000
North Carolina Medical Care Commission Hospital RB (Aces-Pooled Equipment Financing Project) Series 1985 DN (MBIA Insurance, KBC Bank N.V. SBPA),
3.50%, 4/07/08(b)		500		500,000
North Carolina Medical Care Commission Hospital RB (Moses Cone Health Systems Project) Series 2001B DN (Chase Manhattan Bank LOC),
2.00%, 4/07/08(b)		200		200,000
North Carolina Medical Care Commission Retirement Facilities RB (Aldersgate Project) Series 2001 DN (Branch Banking & Trust Co. LOC),
2.25%, 4/07/08(b)		4,400		4,400,000
North Carolina Medical Care Commission Retirement Facilities RB (United Church Homes & Services Project) Series 2007 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		500		500,000
North Carolina Municipal Power Agency RB Series 2003 ROCS-RR-11 R211 DN (MBIA Insurance, Citibank N.A. Liquidity Facility),
2.59%, 4/07/08(a)(b)		1,100		1,100,000
Oneals Water District GO Series 2007 BAN,
3.75%, 7/23/08		885		885,667
Raleigh Comb Enterprise System RB Eagle Trust Receipts Series 2007A-0010 DN (Landesbank Hessen-Thueringen Girozentrale Liquidity Facility),
2.23%, 4/07/08(a)(b)		1,275		1,275,000
Sampson County COP Eclipse Funding Trust Series 2006-0160 DN (FSA Insurance, U.S. Bank N.A. Liquidity Facility),
3.60%, 4/07/08(a)(b)		700		700,000
South Central Water & Sewer District GO Series 2008 BAN,
2.75%, 12/17/08		1,715		1,717,972
Spring Lake GO Series 2007 BAN,
3.90%, 5/21/08		300		300,144
Trinity GO Series 2007 BAN,
4.25%, 4/23/08		500		500,113
University of North Carolina at Chapel Hill RB Munitops Trust Certificates Series 2005-52 DN (Bank of America N.A. SBPA),
2.24%, 4/07/08(a)(b)		2,600		2,600,000
University of North Carolina at Chapel Hill RB Series 2001B DN,
2.08%, 4/07/08(b)		790		790,000
Wake County GO Series 2006B DN (Lloyds TSB Bank Plc SBPA),
2.15%, 4/07/08(b)		1,900		1,899,930
Wake County HFA RB (Casa Melvid Multi-Family Housing Project) Series 2001A AMT DN (SunTrust Bank LOC),
2.24%, 4/07/08(b)		400		400,000
Washington County Industrial Facilities PCRB (Mackey’s Ferry Sawmill, Inc. Project) Series 1997 AMT DN (Wachovia Bank N.A. LOC),
2.20%, 4/07/08(b)		330		330,000
Wilmington GO Series 2002 DN (Wachovia Bank N.A. SBPA),
2.10%, 4/07/08(b)		300		300,000
Winston-Salem COP (Risk Acceptance Management Corp. Project) Series 1988 DN (Dexia Credit Local LOC),
2.15%, 4/07/08(b)		400		400,000
Winston-Salem Water & Sewer Systems RB Series 2002C DN (Dexia Credit Local LOC),
2.10%, 4/07/08(b)		2,610		2,610,000
				88,115,638
Puerto Rico — 3.3%
Commonwealth of Puerto Rico GO Series 2007 TRAN (Bank of Nova Scotia, Banque Nationale de Paribas, Dexia Credit Local, Fortis Bank, Banco Bilbao Vizcaya Argentaria S.A., KBC Bank N.V. and Banco Santander Central Hisapano LOC),
4.25%, 7/30/08		3,000		3,008,193
Total Investments in Securities — 99.7%
(Cost $91,123,831*)				91,123,831
Other Assets in Excess of Liabilities — 0.3%				301,747
Net Assets — 100.0%			$	91,425,578

 * Aggregate cost for federal income tax purposes.

(a) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

(b) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) Ohio Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds — 99.6%
Ohio — 99.6%
American Municipal Power, Inc. GO (Amherst City Project) Series 2007 BAN,
3.50%, 11/25/08	$	150	$	150,000
American Municipal Power, Inc. GO (Bowling Green Project) Series 2007 BAN,
3.50%, 11/25/08		550		550,000
American Municipal Power, Inc. GO (Brewster Village Project) Series 2008 RAN,
3.50%, 1/09/09		150		150,457
American Municipal Power, Inc. GO (Electric System-Lodi Village Project) Series 2008 BAN,
3.00%, 3/12/09		300		301,402
American Municipal Power, Inc. GO (Hubbard Project) Series 2007 BAN,
3.70%, 9/25/08		175		175,000
American Municipal Power, Inc. GO (Oberlin Project) Series 2007 BAN,
3.50%, 12/04/08		115		115,000
American Municipal Power, Inc. GO (Shelby Project) Series 2007 BAN,
3.45%, 11/13/08		1,500		1,500,000
American Municipal Power, Inc. GO (St. Mary’s Electric System Project) Series 2007 BAN,
3.70%, 10/02/08		145		145,000
American Municipal Power, Inc. GO Series 2007 BAN,
3.50%, 10/30/08		600		600,000
American Municipal Power, Inc. GO Series 2008A TECP (JPMorgan Chase Bank LOC),
2.55%, 4/04/08		3,000		3,000,000
American Municipal Power, Inc. RB (Combustion Turbine Project) Series 2006 DN (KeyBank N.A. LOC),
2.24%, 4/07/08(a)		620		620,000
American Municipal Power, Inc. RB (Electric Systems Project) Series 2007 BAN,
3.85%, 8/15/08		1,200		1,200,000
Avon Local School District GO Series 2008 BAN,
3.50%, 1/08/09		550		552,139
Barberton GO Series 2007 BAN,
3.75%, 11/13/08		200		200,322
Barberton GO Series 2008 BAN,
2.25%, 4/08/09		350		351,368
Brooklyn IDRB (Dylon Industries, Inc. Project) Series 1999 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		630		630,000
Brunswick GO Series 2007 BAN,
3.70%, 12/04/08		100		100,163
Buckeye Tobacco Settlement Financing Authority RB Series 2007 ROC-RR-II-R-10308 DN (Citigroup Financial Products Liquidity Facility, Citigroup Financial Products Guaranty),
2.27%, 4/07/08(a)(b)		1,000		1,000,000
Buckeye Tobacco Settlement Financing Authority RB Series 2008-619 DN (Deutsche Bank A.G. Guaranty, Deutsche Bank A.G. Liquidity Facility),
2.27%, 4/07/08(a)(b)		11,500		11,500,000
Butler County GO Series 2007 BAN,
4.10%, 8/07/08		260		260,585
Celina GO Series 2007 BAN,
3.75%, 11/12/08		400		400,688
Cincinnati School District COP Series 2007 ROC-RR-II-R-12049 DN (FSA Insurance, Citigroup Financial Products Liquidity Facility),
2.28%, 4/07/08(a)(b)		1,000		1,000,000
Cincinnati Student Loan Funding Corp. RB Series 1998A-2 AMT DN (Citibank N.A. Liquidity Facility),
2.17%, 4/01/08(a)		1,000		1,000,000
Clark County GO Series 2007 BAN,
4.00%, 5/08/08		300		300,082
Clark County GO Series 2008 BAN,
2.50%, 2/11/09		100		100,338
Cleveland Waterworks RB Series 2006 DN (FSA Insurance, Dexia Credit Local SBPA),
1.95%, 4/07/08(a)		420		420,000
Cleveland-Cuyahoga County Port Authority Educational Facility RB (Laurel School Project) Series 2004 DN (KeyBank N.A. LOC),
2.29%, 4/07/08(a)		1,070		1,070,000
Clinton County GO (Human Services Project) Series 2008 BAN,
3.88%, 4/10/08		300		300,073
Clinton Massie Local School Distriict GO Series 2007 BAN,
4.00%, 11/18/08		600		602,050
Columbus GO (Police-Firemen Disability Project) Series 1998 MB,
5.00%, 4/07/08		250		255,096
Columbus Regional Airport Authority RB PUTTERS Series 2007-2353 DN (FSA Insurance, JPMorgan Chase Bank Liquidity Facility),
2.29%, 4/07/08(a)(b)		3,690		3,690,000
Columbus Sewerage System RB Series 2008B DN,
1.78%, 4/07/08(a)		1,000		1,000,000
Cuyahoga County Civic Facility RB (Orion Services, Inc. Project) Series 2001 DN (Bank One N.A. LOC),
3.50%, 4/07/08(a)		2,550		2,550,000
Cuyahoga County Economic Development RB (Berea Children’s Home Project) Series 2000 DN (Huntington National Bank LOC),
2.46%, 4/07/08(a)		2,800		2,800,000
Cuyahoga County Economic Development RB (Cleveland Botanical Garden Project) Series 2001 DN (M&T Bank Corp. LOC),
2.27%, 4/07/08(a)		635		635,000
Cuyahoga County IDRB (AFI Generations LLC Project) Series 2007B AMT DN (Charter One Bank N.A. LOC),
2.31%, 4/07/08(a)		2,015		2,015,000
Cuyahoga County IDRB (All Foils, Inc. Project) Series 2007A AMT DN (Charter One Bank N.A. LOC),
2.31%, 4/07/08(a)		1,000		1,000,000
Cuyahoga County IDRB (Trio Diversified Co. Project) Series 2000 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		1,125		1,125,000
Delaware County Economic Development RB (The Columbus Zoological Park Assoc., Inc. Project) Series 2003 DN (Huntington National Bank LOC),
2.60%, 4/07/08(a)		3,705		3,705,000
Delaware County IDRB (Air Waves, Inc. Project) Series 1995 DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		60		60,000
Dover GO Series 2007 BAN,
4.25%, 4/03/08		775		775,022
Elyria GO Series 2007-2 BAN,
4.00%, 10/02/08		1,100		1,102,024

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 27

Schedule of Investments (continued) Ohio Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Ohio (Continued)
Elyria GO Series 2007 BAN,
4.25%, 7/03/08	$	260	$	260,254
Euclid GO Series 2007 BAN,
4.00%, 5/29/08		780		780,297
Fairborn GO Series 2007 BAN,
4.25%, 6/26/08		295		295,293
4.50%, 6/26/08-8/15/08		200		200,410
Fairborn GO Series 2008 BAN,
3.25%, 10/30/08		80		80,274
Franklin County Economic Development RB (Columbus Montessori Educational Center Project) Series 2000 DN (Huntington National Bank LOC),
2.31%, 4/07/08(a)		1,460		1,460,000
Franklin County Economic Development RB (Dominican Sisters Project) Series 1994 DN (Fifth Third Bank N.A. LOC),
2.29%, 4/07/08(a)		850		850,000
Franklin County Health Care Facilities RB (Heritage Day Health Centers Project) Series 2002 DN (Huntington National Bank LOC),
2.60%, 4/07/08(a)		366		366,000
Franklin County Health Care Facilities RB (Ohio Presbyterian Retirement Services Project) Series 2006C DN (National City Bank N.A. LOC),
2.40%, 4/07/08(a)		6,665		6,665,000
Franklin County Health Care Facilities RB (Willow Brook Christian Project) Series 2004 DN (Fifth Third Bank N.A. LOC),
2.47%, 4/07/08(a)		500		500,000
Franklin County Hospital RB Series 2006 DN (AMBAC Insurance, Landesbank Hessen-Thueringen Girozentrale SBPA),
4.50%, 4/07/08(a)		10,050		10,050,000
Franklin County Senior Housing RB (St. George on the Commons Apartments Project) Series 2007 AMT DN (Federal National Mortgage Assoc. Insurance, Federal National Mortgage Assoc. Liquidity Facility),
2.35%, 4/07/08(a)		915		915,000
Fulton County RB (Fulton Couth Health Center Project) Series 2005 DN (JPMorgan Chase Bank LOC),
4.00%, 4/07/08(a)		2,475		2,475,000
Geauga County GO (Human Services Building Project) Series 2007 BAN,
4.00%, 12/04/08		150		150,391
Geauga County GO (Safety Center Project) Series 2007 BAN,
4.00%, 8/27/08		250		250,243
Geauga County RB (Thistle Lane Project) Series 2000 AMT DN (Huntington National Bank LOC),
2.40%, 4/07/08(a)		2,210		2,210,000
Greene County IDRB (AFC Stamping & Production, Inc., Barsplice Products Project) Series 1995 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		95		95,000
Hamilton County GO Series 2007 BAN,
4.00%, 9/11/08		1,240		1,241,331
Hamilton County Hospital Facilities RB (Health Alliance Project) Series 1997B DN (MBIA Insurance, Credit Suisse SBPA) ),
5.00%, 4/07/08(a)		2,280		2,280,000
Hamilton County Hospital Facilities RB P-Float Trust Receipts Series 2001 PT-507 DN (FSA Insurance, Svenska Handelsbanken AB SBPA),
2.23%, 4/07/08(a)(b)(c)		4,855		4,855,000
Indian Lake Local School District GO (School Construction Project) Series 2007 BAN,
4.00%, 12/11/08		290		291,168
Kent GO Series 2007 BAN,
4.00%, 10/16/08		300		300,627
Kent State University RB Municipal Trust Receipts Floaters Series 2001 DN (MBIA Insurance, Dexia Credit Local SBPA),
2.80%, 4/07/08(a)		4,125		4,125,000
Lake County GO Series 2007 BAN,
4.25%, 5/15/08-7/18/08		495		495,484
Lancaster GO Series 2007 BAN,
4.00%, 10/16/08		300		300,752
Lima GO (Water System Capacity Facility) Series 2007 BAN,
4.25%, 5/29/08		1,510		1,510,806
Lorain County GO Series 2007B Highway Improvement BAN,
4.25%, 6/04/08		720		720,606
Lorain County IDRB (Ohio Metallurgical Services Project) Series 2001 AMT DN (First Merit Bank N.A. LOC),
2.62%, 4/07/08(a)	��	1,270		1,270,000
Lucas County Economic Development RB (Hammill Manufacturing Co. Project) Series 1996 AMT DN (Fifth Third Bank N.A. LOC),
2.30%, 4/07/08(a)(b)		655		655,000
Mahoning County Housing RB (Youngstown State University Project) Series 2002 DN (National City Bank N.A. LOC),
2.25%, 4/07/08(a)		5,000		5,000,000
Marion County GO (Legacy Crossing Project) Series 2007 BAN,
4.10%, 5/01/08		435		435,130
Marion GO Series 2007 BAN,
4.00%, 6/26/08		285		285,129
Miami County GO Series 2007 BAN,
4.00%, 11/27/08		550		552,056
Montgomery County RB (Miami Valley Hospital Project) Series 1998A DN (National City Bank N.A. SBPA),
1.30%, 4/01/08(a)		2,150		2,150,000
Muskingum County GO Series 2007 BAN,
4.00%, 9/25/08		200		200,944
4.15%, 9/25/08		205		205,526
Muskingum County GO Series 2008 BAN,
3.50%, 1/15/09		710		713,100
North Olmsted GO (Capital Improvement Project) Series 2008 BAN,
2.35%, 4/02/09		550		551,073
North Ridgeville GO Series 2007-2 BAN,
4.00%, 6/05/08		285		285,131
North Ridgeville GO Series 2007-3 BAN,
3.95%, 6/05/08(d)		195		195,074
Ohio Building Authority Facilities RB (Administrative Building Fund Projects) Series 1998A MB,
5.25%, 4/07/08		55		56,396

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (continued) Ohio Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Ohio (Continued)
Ohio GO (Common Schools Project) Series 2005A DN,
1.95%, 4/07/08(a)	$	280	$	280,000
Ohio Higher Educational Facility RB (Kenyon College Project) Series 1999 DN (JPMorgan Chase Bank Liquidity Facility),
3.50%, 4/07/08(a)		200		200,000
Ohio Housing Finance Agency Mortgage RB (Residential Mortgage-Backed Securities Program) Series 2006F AMT DN (Citibank N.A. LOC),
2.00%, 4/07/08(a)(c)		1,400		1,400,000
Ohio Housing Finance Agency Mortgage RB (Residential Mortgage-Backed Securities Program) Series 2007B AMT DN (Government National Mortgage Assoc. Insurance, Federal National Mortgage Assoc. Insurance, KBC Bank N.V. SBPA),
1.95%, 4/07/08(a)(c)		11,250		11,250,000
Ohio Housing Finance Agency Mortgage RB MERLOTS Trust Receipts Series 2001A-78 DN (Wachovia Bank N.A. LOC),
2.30%, 4/07/08(a)(b)		1,165		1,165,000
Ohio Housing Finance Agency Mortgage RB MERLOTS Trust Receipts Series 2005A-10 AMT DN (Wachovia Bank N.A. SBPA),
2.30%, 4/07/08(a)(b)		535		535,000
Ohio Housing Finance Agency Mortgage RB Various Certificates Series 2001 DN (Bank of America N.A. LOC),
2.27%, 4/07/08(a)(b)		1,105		1,105,000
Ohio Solid Waste RB (Republic Services, Inc. Project) Series 2005 AMT DN,
2.65%, 4/07/08(a)		1,000		1,000,000
Ohio Water Development Authority Pollution Control Facilities RB (First Energy Nuclear Project) Series 2006 AMT DN (Barclays Bank Plc LOC),
2.00%, 4/07/08(a)		125		125,000
Ohio Water Development Authority RB (Water Development Pure Water Project) Series 2002B DN (MBIA Insurance, State Street Bank & Trust Co. SBPA),
5.00%, 4/07/08(a)		2,050		2,050,000
Olmsted Falls School District GO Series 2008 BAN,
3.75%, 12/18/08		150		150,603
3.50%, 1/15/09		300		301,379
Painesville GO Series 2007 BAN,
4.00%, 11/07/08		200		200,580
Parma IDRB (FDC Realty Project) Series 2006 AMT DN (Huntington National Bank LOC),
2.70%, 4/07/08(a)		1,890		1,890,000
Pickerington GO Series 2008 BAN,
2.25%, 2/27/09		750		753,513
Port of Greater Cincinnati RB (Springdale Public Infrastructure Project) Series 2006 MB (U.S. Bank N.A. LOC),
2.25%, 2/01/09		2,800		2,800,000
Portage County IDRB (Action Super Abrasive Project) Series 1996 AMT DN (Huntington National Bank LOC),
2.63%, 4/07/08(a)		630		630,000
Portage County IDRB (Singer Steel Co. Project) Series 2007 AMT DN (Huntington National Bank LOC),
2.70%, 4/07/08(a)		2,090		2,090,000
Putnam County Health Care Facilities RB (Hilty Memorial Home Project) Series 2004 DN (LaSalle Bank N.A. LOC),
2.30%, 4/07/08(a)		3,330		3,330,000
Richland County GO (Correctional Facilities Project) Series 2008 BAN,
3.50%, 1/15/09		1,000		1,004,597
Sandusky GO Series 2007 BAN,
4.25%, 10/22/08		700		702,825
Seneca County GO Series 2007 BAN,
3.80%, 11/13/08		200		200,381
Seven Hills GO (Street Improvement Project) Series 2007 BAN,
3.45%, 12/04/08		500		500,000
Sharonville GO Series 2007 BAN,
4.25%, 7/25/08		380		380,540
Sharonville GO Series 2008 BAN,
3.50%, 1/21/09		170		170,798
Solon GO Series 2007 BAN,
3.75%, 11/20/08		850		851,829
St. Marys GO (Sanitation Improvement Project) Series 2007 BAN,
4.00%, 6/04/08		220		220,074
St. Marys School District GO Series 2007 BAN,
3.75%, 6/10/08		1,000		1,001,261
St. Marys School District GO Series 2008 BAN,
3.62%, 6/10/08		700		701,027
Stark County IDRB (Thakar Properties LLC Project) Series 2002 AMT DN (National City Bank N.A. LOC),
2.55%, 4/07/08(a)		115		115,000
Stark County Port Authority Economic Development RB (Slesnick Iron & Metal Project) Series 2007 AMT DN (Huntington National Bank LOC),
2.70%, 4/07/08(a)		700		700,000
Summit County Civic Facility RB (Akron Area Electric Junction Project) Series 2001 DN (KeyBank N.A. LOC),
2.29%, 4/07/08(a)		170		170,000
Summit County IDRB (Flutes LLC Project) Series 2002 AMT DN (M & I Marshall & Ilsley Bank LOC),
2.57%, 4/07/08(a)		1,670		1,670,000
Summit County IDRB (Jendrisak Properties Project) Series 2001 AMT DN (First Merit Bank N.A. LOC),
2.62%, 4/07/08(a)		1,540		1,540,000
Summit County IDRB (KB Compost Services, Inc. Project) Series 2001 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		1,000		1,000,000
Summit County Port Authority RB (Meadow Lane Building LLC Project) Series 2003A AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		340		340,000
Tipp GO Series 2007 BAN,
4.00%, 4/24/08		205		205,037
Toledo Multi-Family Housing RB (Cherrywood Apartments Project) Series 2001 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		2,420		2,420,000
Trumbull County IDRB (Ellwood Engineered Project) Series 2004 AMT DN (KeyBank N.A. LOC),
2.36%, 4/07/08(a)		3,100		3,100,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 29

Schedule of Investments (concluded) Ohio Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Ohio (Continued)
Trumbull County IDRB (United Steel Service, Inc. Project) Series 2000B AMT DN (Bank One N.A. LOC),
3.60%, 4/07/08(a)	$	165	$	165,000
Union County GO Series 2007 BAN,
3.50%, 12/10/08		345		346,158
University of Cincinnati General Receipts RB Series 2007B DN (MBIA Insurance, Bayerische Landesbank Girozentrale SBPA),
6.00%, 4/07/08(a)		100		100,000
Wapakoneta GO Series 2007 BAN,
3.85%, 12/04/08		255		255,415
Wapakoneta School District GO (School Improvement Project) Series 2007 BAN,
3.50%, 6/26/08		1,300		1,301,443
Warren County GO Series 2007 BAN,
4.15%, 9/05/08		200		200,330
Western Reserve Housing Development Corp. Economic RB (Trumbull Metropolitan Housing Project) Series 2003 DN (KeyBank N.A. LOC),
2.55%, 4/07/08(a)		3,295		3,295,000
Westerville GO Munitops Trust Certificates Series 2001 DN (ABN-AMRO Bank N.V. LOC),
2.26%, 4/07/08(a)(b)		100		100,000
Wilmington GO (Lowes Drive Construction Project) Series 2007 BAN,
4.50%, 7/25/08		255		255,555
Total Investments in Securities — 99.6%
(Cost $159,553,649*)				159,553,649
Other Assets in Excess of Liabilities — 0.4%				602,440
Net Assets — 100.0%			$	160,156,089

* Aggregate cost for federal income tax purposes.

(a) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

(b) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

(c) Investments in companies considered to be an affiliate of the Portfolio were as follows:

Affiliate	Purchase Cost		Sales Cost	Realized Gain	Interest Income
Hamilton County Hospital Facilities RB P-Float Trust Receipts Series 2001 PT-507 DN (FSA Insurance, Svenska Handelsbanken AB SBPA)		—	—	—	$	94,843
Ohio Housing Finance Agency Mortgage RB (Residential Mortgage-Backed Securities Program) Series 2006F AMT DN (Citibank N.A. LOC)		—	—	—	$	21,380
Ohio Housing Finance Agency Mortgage RB (Residential Mortgage-Backed Securities Program) Series 2007B AMT DN (Government National Mortgage Assoc. Insurance, Federal National Mortgage Assoc. Insurance, KBC Bank N.V. SBPA)	$	11,250,000	—	—		—

(d) Restricted security as to resale. As of report date the Portfolio held 0.1% of its net assets, with a current market value of $195,074 and an original cost of $195,349 in these securities.

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) Pennsylvania Municipal Money Market Portfolio
(Percentages shown are based on Net Assets
)

	Par (000)		Value
Municipal Bonds — 97.8%
Pennsylvania — 96.6%
Allegheny County Hospital Development Authority RB (Dialysis Clinic, Inc. Project) Series 2000 DN (Bank of America N.A. LOC),
2.10%, 4/07/08(a)	$	3,400	$	3,400,000
Allegheny County Hospital Development Authority RB (Presbyterian University Hospital Project) Series 1988B-3 DN (Bank One N.A. LOC),
2.07%, 4/07/08(a)		3,275		3,275,000
Allegheny County Hospital Development Authority RB (University of Pittsburgh Medical Center Project) PUTTERS Series 2007-2327 DN (JPMorgan Chase Bank LOC, JPMorgan Chase & Co. Liquidity Facility),
2.29%, 4/07/08(a)(b)		4,000		4,000,000
Allegheny County Hospital Development Authority RB (University of Pittsburgh Medical Center Project) Series 2003B MB,
5.00%, 6/15/08		1,400		1,403,585
Allegheny County IDRB (Carnegie Museums Pittsburgh Project) Series 2005 DN (Citizens Bank of Pennsylvania LOC),
2.24%, 4/07/08(a)		3,600		3,600,000
Allegheny County IDRB (Commonwealth Development Parkway Project) Series 1994A DN (National City Bank N.A. LOC),
2.48%, 4/07/08(a)		1,300		1,300,000
Allegheny County IDRB (UPMC Health System Project) Series 2002C DN (Comerica Bank N.A. LOC),
2.23%, 4/07/08(a)		1,270		1,270,000
Berks County GO Series 2002 DN (MBIA Insurance, Wachovia Bank N.A. SBPA),
6.60%, 4/07/08(a)		5,140		5,140,000
Berks County IDRB (Tray Pak Co. Project) Series 2001A AMT DN (Wachovia Bank N.A. LOC),
2.25%, 4/07/08(a)		1,620		1,620,000
Berks County Municpal Authority RB (Phoebe-Devitt Homes Project) Series 2008A DN (Sovereign Bank & Banco Santander LOC),
2.05%, 4/07/08(a)		3,100		3,100,000
Bermudian Springs School District GO Series 2006 DN (FSA Insurance, Royal Bank of Canada SBPA),
2.24%, 4/07/08(a)		10,495		10,495,000
Bethlehem Area School District GO Series 2007 DN (FSA Insurance, Dexia Credit Local SBPA),
2.25%, 4/07/08(a)		2,800		2,800,000
Blair County IDRB (CCK, Inc. Project) Series 2003 AMT DN (Fulton Bank LOC),
2.41%, 4/07/08(a)		1,885		1,885,000
Bucks County IDRB (Pennswood Village Project) Series 2002B DN (Fleet National Bank LOC),
1.95%, 4/07/08(a)		6,890		6,890,000
Butler County General Authority RB Municipal Securities Trust Receipts Series 2002A DN (FSA Insurance, Societe Generale Liquidity Facililty),
2.30%, 4/07/08(a)(b)		4,350		4,350,000
Butler County General Authority RB Municipal Securities Trust Receipts Series 2007 DN (FSA Insurance, Societe Generale Liquidity Facility),
3.05%, 4/07/08(a)(b)		3,000		3,000,000
Cambria County IDA Resource Recovery RB (Cambria Cogen Co. Project) Series 1998A-2 AMT DN (Bayerische Landesbank Girozentrale LOC),
2.20%, 4/07/08(a)		16,000		16,000,000
Chester County IDA Student Housing RB (University Student Housing LLC Project) Series 2003 DN (Royal Bank of Scotland LOC),
2.31%, 4/07/08(a)		790		790,000
Chester County IDA Student Housing RB (University Student Housing LLC Project) Series 2008A DN (Citizens Bank of Pennsylvania LOC),
2.25%, 4/07/08(a)		4,000		4,000,000
Chester County IDRB (RV Industrial, Inc. Project) Series 2001 AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		2,200		2,200,000
City of Philadelphia TECP,
1.00%, 5/12/08		10,000		10,000,000
Crawford County IDRB (Uniplast International, Inc. Project) Series 2000 AMT DN (National City Bank N.A. LOC),
2.70%, 4/07/08(a)		755		755,000
Cumberland County Municipal Authority RB (Dickinson College Project) Series 1996B DN (Citizens Bank N.A. LOC),
3.45%, 4/07/08(a)		2,295		2,295,000
Dauphin County General Auhtority Health Systems RB (Pinnacle Health Systems Project) Series 2005 DN (FSA Insurance, Wachovia Bank N.A. SBPA),
2.05%, 4/07/08(a)		1,400		1,400,000
Delaware County Authority RB (Dunwoody Village Project) Series 2006 DN (Citizens Bank of Pennsylvania LOC),
2.13%, 4/07/08(a)		2,100		2,100,000
Delaware County IDRB (Scott Paper Co. Project) Series 1984A DN,
2.60%, 4/07/08(a)		100		100,000
Delaware County IDRB (Sunoco, Inc., Project) Series 1998 DN (Bank of America N.A. LOC),
2.10%, 4/07/08(a)		1,260		1,260,000
Delaware Valley Regional Finance Authority Local Government RB Municipal Securities Trust Receipts Series 2007A DN (Societe Generale Liquidity Facility),
2.29%, 4/07/08(a)(b)		5,500		5,500,000
East Hempfield Township IDRB (Herley Industrial, Inc. Project) Series 2001 AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		2,355		2,355,000
East Hempfield Township IDRB (Herley Industrial, Inc. Project) Series 2005 AMT DN (M&T Bank Corp. LOC),
2.45%, 4/07/08(a)		2,700		2,700,000
Emmaus General Authority RB Series 1989A-11 DN (DEPFA Bank Plc LOC),
2.17%, 4/07/08(a)		1,100		1,100,000
Emmaus General Authority RB Series 1989B-29 DN (DEPFA Bank Plc LOC),
2.17%, 4/07/08(a)		8,500		8,500,000
Emmaus General Authority RB Series 1989F-19 DN (State Aid Withholding Insurance, DEPFA Bank Plc LOC),
2.17%, 4/07/08(a)		1,300		1,300,000
Emmaus General Authority RB Series 1989F-24 DN (DEPFA Bank Plc LOC),
2.17%, 4/07/08(a)		1,500		1,500,000
Emmaus General Authority RB Series 1989G-18 DN (DEPFA Bank Plc LOC),
2.17%, 4/07/08(a)		3,000		3,000,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 31

Schedule of Investments (continued) Pennsylvania Municipal Money Market Portfolio
(Percentages shown are based on Net Assets
)

	Par (000)		Value
Municipal Bonds (Continued)
Pennsylvania (Continued)
Emmaus General Authority RB Series 1996 DN (FSA Insurance, Wachovia Bank N.A. SBPA),
2.10%, 4/07/08(a)	$	8,345	$	8,345,000
Erie Water Authority RB Series 2006A DN (FSA Insurance),
2.20%, 4/07/08(a)		1,200		1,200,000
Franklin County IDRB (Precast System Project) Series 2001A AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		1,760		1,760,000
Geisinger Authority Health System RB Series 2007 ROC-RR-II-R-11013 DN (Citibank N.A. Liquidity Facility),
2.24%, 4/07/08(a)(b)		2,020		2,020,000
Horizon Hospital System Authority Health & Housing Facility RB (St. Paul Homes Project) Series 2002 DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)		7,160		7,160,000
Horizon Hospital System Authority Health & Housing Facility RB (St. Paul Homes Project) Series 2005 DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)		7,900		7,900,000
Indiana County IDRB (Conemaugh Project) Series 1997A AMT DN (Bank One N.A. LOC),
3.50%, 4/07/08(a)		3,160		3,160,000
Lackawanna County GO Municipal Trust Receipts Floaters Series 2007-2183 DN (FSA Insurance, Morgan Stanley Municipal Funding Liquidity Facility),
2.80%, 4/07/08(a)(b)		1,065		1,065,000
Lackawanna County IDRB (Herff Jones, Inc. Project) Series 2001 AMT DN (National City Bank N.A. LOC),
2.55%, 4/07/08(a)		2,800		2,800,000
Lancaster County Hospital Authority RB (Health Center Luthercare Project) Series 1999 DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)		4,760		4,760,000
Lancaster County Hospital Authority RB (Landis Homes Retirement Community Project) Series 2002 DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)		8,190		8,190,000
Lancaster County IDRB (Clean Creek Partners Project) Series 2000 AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		4,365		4,365,000
Lancaster County IDRB (D&P Skibo LLC Project) Series 2001 AMT DN (Wachovia Bank N.A. LOC),
2.25%, 4/07/08(a)		1,250		1,250,000
Lancaster County IDRB (John F. Martin & Sons Project) Series 2001 AMT DN (Fulton Bank LOC),
2.46%, 4/07/08(a)		600		600,000
Lancaster County IDRB (Oakfront LP Project) Series 2001 AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		1,875		1,875,000
Lawrence County IDRB (L&N Metallurgical Products Project) Series 1996 AMT DN (Banque Nationale de Paribas LOC),
2.45%, 4/07/08(a)		3,645		3,645,000
Lebanon County Health Facility RB (Evangelican Long Church Retirement Village Project) Series 2000 DN (Northern Trust LOC),
2.26%, 4/07/08(a)		2,730		2,730,000
Montgomery County Higher Education & Health Authority RB (Pennsylvania Higher Education & Health Loan Project) Series 1996A DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)		1,600		1,600,000
Montgomery County IDRB (Apple Fresh Foods Ltd. Project) Series 1996 AMT DN (Wachovia Bank N.A. LOC),
2.22%, 4/07/08(a)		550		550,000
Montgomery County TECP,
2.20%, 4/01/08		6,500		6,500,000
Moon IDRB (Providence Point Project) Series 2007 DN (Bank of Scotland Plc LOC),
2.00%, 4/07/08(a)		13,180		13,180,000
New Garden General Purpose Authority RB (Municipal Pooled Financing Project) Series 2003 II DN (FSA Insurance, Bank of Nova Scotia SPBA),
1.95%, 4/07/08(a)		1,095		1,095,000
Northampton County General Purpose Authority RB (Lafayette College Project) Series 2006 DN (JPMorgan Chase & Co. SBPA),
2.10%, 4/07/08(a)		1,150		1,150,000
Northampton County General Purpose Authority RB (Lafayette College Project) Series 2007 MB,
3.35%, 12/01/08		3,000		3,000,000
Northampton County IDRB (Bethlehem Contracting Project) Series 2001A AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		2,695		2,695,000
Northampton County IDRB (Trent Family Partnership Project) Series 2002 AMT DN (Wachovia Bank N.A. LOC),
2.25%, 4/07/08(a)		1,795		1,795,000
Pennsylvania Economic Development Financing Authority RB (AMC Delancey Traditions Project) Series 2006 AMT DN (Citizens Bank of Pennsylvania LOC),
2.30%, 4/07/08(a)		3,200		3,200,000
Pennsylvania Economic Development Financing Authority RB (Evergreen Community Power Facility Project) Series 2007 AMT DN (Manufacturers & Traders Trust Co. LOC),
2.31%, 4/07/08(a)		3,000		3,000,000
Pennsylvania Economic Development Financing Authority RB (Homewood Retirement Project) Series 1992E DN (M&T Bank Corp. LOC),
2.33%, 4/07/08(a)		3,925		3,925,000
Pennsylvania Economic Development Financing Authority RB (Material Technology Project) Series 2000D AMT DN (Wachovia Bank N.A. LOC),
2.25%, 4/07/08(a)		600		600,000
Pennsylvania Economic Development Financing Authority RB (Penn Waste, Inc. Project) Series 2007 AMT DN (Manufacturers & Traders Trust Co. LOC),
2.31%, 4/07/08(a)		2,000		2,000,000
Pennsylvania Economic Development Financing Authority RB UBS Municipal Certificates Floaters Series 2007-07-15 DN (Landebank Hessen-Thruingen Girozentrale Liquidity Facility),
2.26%, 4/07/08(a)(b)		8,600		8,600,000

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (Continued) Pennsylvania Municipal Money Market Portfolio
(Percentages shown are based on Net Assets
)

	Par (000)		Value
Municipal Bonds (Continued)
Pennsylvania (Continued)
Pennsylvania Economic Development Financing Authority Solid Waste Disposal RB (IESI, Corp. Project) Series 2006V AMT DN (Bank of America N.A. Liquidity Facility),
2.29%, 4/07/08(a)(b)	$	8,700	$	8,700,000
Pennsylvania Economic Development Financing Authority Wastewater Treatment RB (Sunoco, Inc. Project) Series 2004A AMT DN (Sunoco, Inc. Guaranty),
2.56%, 4/07/08(a)		4,700		4,700,000
Pennsylvania Energy Development Authority RB (B&W Ebensburg Project) Series 1986 AMT DN (Landesbank Hessen-Thueringen Girozentrale LOC),
2.14%, 4/07/08(a)		1,125		1,125,000
Pennsylvania Energy Development Authority RB (B&W Ebensburg Project) Series 1988 AMT DN (Landesbank Hessen-Thuringen Girozentrale LOC),
2.14%, 4/07/08(a)		2,000		2,000,000
Pennsylvania GO PUTTERS Series 2006-1382 DN (JPMorgan Chase Bank Liquidity Facility),
2.29%, 4/07/08(a)(b)		2,115		2,115,000
Pennsylvania GO Series 1999 MB,
5.25%, 10/01/08		675		680,413
Pennsylvania GO Series 2004 MB,
5.00%, 7/01/08		2,450		2,458,691
Pennsylvania GO Series 2006 MB,
4.75%, 9/01/08		1,170		1,179,348
Pennsylvania GO Series 2007 ROC-RR-II-R-11056 DN (Citibank N.A. Liquidity Facility),
2.24%, 4/07/08(a)(b)		2,000		2,000,000
Pennsylvania Higher Educational Facilities Authority RB (Assoc. of Independent Colleges & Universities Project) Series 1998 DN (Banque Nationale de Paribas LOC),
2.42%, 4/07/08(a)		2,600		2,600,000
Pennsylvania Higher Educational Facilities Authority RB (Honeysuckle Student Holding Project) Series 2004A DN (Allied Irish Bank Plc LOC),
2.21%, 4/07/08(a)		4,200		4,200,000
Pennsylvania Higher Educational Facilities Authority RB (Rosemont College Project) Series 2004O DN (Wachovia Bank N.A. LOC),
3.42%, 11/01/08(a)		900		900,000
Pennsylvania Higher Educational Facilities Authority RB (St. Joesph’s University Project) Series 1998C-4 DN (Allied Irish Bank Plc LOC),
2.08%, 4/07/08(a)		6,900		6,900,000
Pennsylvania Higher Educational Facilities Authority RB (Student Assoc. Housing, Inc. Project) Series 2006A DN (Citizens Bank of Pennsylvania LOC),
2.21%, 4/07/08(a)		7,895		7,895,000
Pennsylvania Higher Educational Facilities Authority RB (University of Pennsylvania Financing Project) Series 2004-N2 DN (National City Bank LOC),
2.50%, 4/07/08(a)		1,600		1,600,000
Pennsylvania Higher Educational Facilities Authority RB PUTTERS Series 2006-1271 DN (JPMorgan Chase Bank Liquidity Facility),
2.29%, 4/07/08(a)(b)		4,870		4,870,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Municipal Trust Receipts Floaters Series 2006K-57 AMT DN (Lehman Liquidity Co. Liquidity Facility),
2.48%, 4/07/08(a)(b)		2,500		2,500,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Municipal Trust Receipts Floaters Series 2007-2158 AMT DN (Morgan Stanley Municipal Funding Liquidity Facility),
2.33%, 4/07/08(a)(b)		750		750,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Municipal Trust Receipts Floaters Series 2008-2380 AMT DN (Morgan Stanley Municipal Funding Liquidity Facility),
2.33%, 4/07/08(a)(b)		2,600		2,600,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Municipal Trust Receipts Floaters Series 2008-2494 AMT DN (Morgan Stanley Municipal Funding Liquidity Facility),
2.33%, 4/07/08(a)(b)		1,600		1,600,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB PUTTERS Series 2006-1592 AMT DN (JPMorgan Chase Bank Liquidity Facility),
2.39%, 4/07/08(a)(b)		4,945		4,945,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB PUTTERS Series 2007-1213B AMT DN (JPMorgan Chase & Co. Liquidity Facility),
2.39%, 4/07/08(a)(b)		1,600		1,600,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-83B AMT DN (Landesbank Hessen-Thuringen Girozentrale SBPA),
2.25%, 4/07/08(a)		2,020		2,020,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-83C AMT DN (Landesbank Hessen-Thuringen Girozentrale SBPA),
2.25%, 4/07/08(a)		1,400		1,400,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-85B AMT DN (Landesbank Hessen-Thuringen Girozentrale SBPA),
2.25%, 4/07/08(a)		3,300		3,300,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-85C AMT DN (Landesbank Hessen-Thuringen Girozentrale SBPA),
2.25%, 4/07/08(a)		7,145		7,145,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-86B AMT DN (DEPFA Bank Plc SBPA),
2.15%, 4/07/08(a)		6,000		6,000,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-86C AMT DN (GO of Agency Insurance, DEPFA Bank Plc SBPA),
2.15%, 4/07/08(a)		2,400		2,400,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2005-87C AMT DN (Depfa Bank Plc SBPA),
2.25%, 4/07/08(a)		23,500		23,500,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 33

Schedule of Investments (continued) Pennsylvania Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Pennsylvania (Continued)
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2005-89 AMT DN (GO of Agency Insurance, DEPFA Bank Plc SBPA),
2.15%, 4/07/08(a)	$	7,500	$	7,500,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2005-91B AMT DN (GO of Agency Insurance, DEPFA Bank Plc SBPA),
2.15%, 4/07/08(a)		2,000		2,000,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2006-92B AMT DN (Landesbank Hessen-Thueringen Girozentrale SBPA),
2.25%, 4/07/08(a)		17,270		17,270,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2006-95C AMT DN (Dexia Bank SBPA),
2.25%, 4/07/08(a)		8,000		8,000,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2007-99C AMT DN (Dexia Credit Local SBPA),
2.15%, 4/07/08(a)		2,400		2,400,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2008-101A AMT MB,
2.35%, 3/01/09		1,300		1,300,000
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2008-101B MB,
2.15%, 3/01/09		1,600		1,600,000
Pennsylvania Public School Building Authority RB (Philadelphia School District Project) PUTTERS Series 2007-1970 DN (FSA Insurance, State Aid Withholding Insurance, JPMorgan Chase Bank Liquidity Facility),
2.29%, 4/07/08(a)(b)		3,330		3,330,000
Pennsylvania Turnpike Commission RB Munitops Trust Certificates Series 2004-9 DN (AMBAC Insurance, ABN-AMRO Bank N.V. SBPA),
2.31%, 4/07/08(a)(b)		10,335		10,335,000
Pennsylvania Turnpike Commission RB Series 2001U DN (Dexia Credit Local SBPA),
1.90%, 4/07/08(a)		6,800		6,800,000
Pennsylvania Turnpike Commission RB Series 2002A-1 DN (WestLB SBPA),
2.05%, 4/07/08(a)		7,225		7,225,000
Pennsylvania Turnpike Commission RB Series 2002B DN (Dexia Credit Local SBPA),
2.21%, 4/07/08(a)		440		440,000
Pennsylvania Turnpike Commission RB Series 2005B DN (FSA Insurance, JPMorgan Chase Bank SBPA),
1.95%, 4/07/08(a)		675		675,000
Philadelphia Airport RB Floaters Series 2007-2157 AMT DN (FSA Insurance, Morgan Stanley Municipal Funding Liquidity Facility),
2.24%, 4/07/08(a)(b)		1,700		1,700,000
Philadelphia Airport RB Series 2008DB-495 DN (FSA Insurance, Deutsche Bank A.G. Liquidity Facility),
2.30%, 4/07/08(a)(b)		2,885		2,885,000
Philadelphia Airport RB Series 2008DB-558 AMT DN (FSA Insurance, Deutsche Bank A.G. Liquidity Facility),
2.30%, 4/07/08(a)(b)		655		655,000
Philadelphia Authority IDRB (Evangelical Manor Project) Series 2008 DN (Citizens Bank N.A. LOC),
2.28%, 4/07/08(a)		2,600		2,600,000
Philadelphia Authority IDRB (Gift of Life Donor Program Project) Series 2003 DN (Commerce Bank N.A. LOC),
2.24%, 4/07/08(a)		995		995,000
Philadelphia Authority IDRB (Greater Philadelphia Health System Project) Series 2003 DN (Commerce Bank N.A. Liquidity Facility),
2.24%, 4/07/08(a)		2,600		2,600,000
Philadelphia Authority IDRB (Settlement Music School Project) Series 2004 DN (Allied Irish Bank Plc),
2.15%, 4/07/08(a)		1,000		1,000,000
Philadelphia Authority IDRB (Universal Community Homes Project) Series 2003 DN (Wachovia Bank N.A. LOC),
2.20%, 4/07/08(a)		1,930		1,930,000
Philadelphia Hospitals & Higher Education Facilities Authority RB (Philadelphia Protestant Home Project) Series 2002 DN (Bank of America N.A. LOC),
2.10%, 4/07/08(a)		7,070		7,070,000
Philadelphia Redevelopment Authority Multi-Family Housing RB Municipal Trust Receipts Floaters Series 2006G-1 AMT DN (The Goldman Sachs Group, Inc. Guaranty, The Goldman Sachs Group, Inc. SBPA),
2.30%, 4/07/08(a)(b)		20,395		20,395,000
Philadelphia School District GO Series 2007A TRAN (Bank of America N.A. LOC),
4.50%, 6/27/08		13,675		13,699,528
Philadelphia Water & Wastewater RB Series 2003 DN (FSA Insurance, Dexia Credit Local SBPA),
2.05%, 4/07/08(a)		990		990,000
Philadelphia Water & Wastewater RB Series 2005B DN (FSA Insurance, DEFPA Bank Plc SBPA),
2.05%, 4/07/08(a)		1,000		1,000,000
Philadelphia Water RB Munitops Trust Certificates Series 2005-15 DN (FSA Insurance, ABN-AMRO Bank N.V. SBPA),
2.24%, 4/07/08(a)(b)		5,395		5,395,000
Pittsburgh Water & Sewer System RB Series 2007B-1 DN (FSA Insurance, JPMorgan Chase Bank SBPA),
1.78%, 4/07/08(a)		1,000		1,000,000
Schuylkill County IDRB (KP-Tamaqua LP Project) Series 2007 AMT DN (Citizens Bank of Pennsylvania LOC),
2.38%, 4/07/08(a)		1,535		1,535,000
Shippensburg Borough Authority RB (Bethlehem School District Project) Series 2007 DN (FSA Insurance, Dexia Credit Local SBPA),
2.25%, 4/07/08(a)		5,600		5,600,000
Southcentral General Authority RB (Homewood Hanover Project) Series 2003 DN (M&T Bank Corp. LOC),
2.21%, 4/07/08(a)		18,500		18,500,000
Southcentral General Authority RB (York Cerebral Palsy Home Project) Series 2000 DN (Fulton Bank LOC),
2.31%, 4/07/08(a)		3,300		3,300,000

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (continued) Pennsylvania Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Pennsylvania (Continued)
St. Mary Hospital Authority Bucks County RB (Catholic Health Initiatives Project) Series 2004B DN (Landesbank Hessen-Thuringen Girozentrale SBPA),
2.15%, 4/07/08(a)	$	1,100	$	1,100,000
St. Mary Hospital Authority Bucks County RB (Catholic Health Initiatives Project) Series 2004C DN,
2.05%, 4/07/08(a)		10,050		10,050,000
State Public School Building Authority RB (Philadelphia School District Project) ROC-RR-II- R-11268 DN (FSA State Aid Withholding Insurance, Citibank N.A. Liquidity Facility),
2.29%, 4/07/08(a)(b)		2,415		2,415,000
Stroudsburg Area School District GO Series 2007 TRAN,
4.50%, 6/30/08		1,333		1,334,955
Union County IDRB (Stabler Cos., Inc. Project) Series 2001 AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		6,365		6,365,000
University of Pittsburgh of the Commonwealth System of Higher Education RB (University Capital Project) Series 2000B DN (GO of University Insurance, Lloyds TSB Bank Plc SBPA),
2.08%, 4/07/08(a)		2,500		2,500,000
University of Pittsburgh of the Commonwealth System of Higher Education RB (University Capital Project) Series 2006C DN (Lloyds TSB Bank Plc SBPA),
2.08%, 4/07/08(a)		800		800,000
University of Pittsburgh of the Commonwealth System of Higher Education RB (University Capital Project) Series 2007A DN (Fortis Bank SBPA, Banco Bilbao Vizcaya Argentaria S.A. SBPA),
2.08%, 4/07/08(a)		24,750		24,750,000
Upper Merion General Authority Lease RB Series 2003 DN (Commerce Bank N.A. LOC),
2.24%, 4/07/08(a)		2,205		2,205,000
Upper Merion Municipal Utility Authority RB (Sewer Project) Series 2003 DN (Commerce Bank N.A. LOC),
2.24%, 4/07/08(a)		2,095		2,095,000
Upper St. Clair Township GO Munitops Trust Certificates Series 2002 DN (FSA Insurance, ABN-AMRO Bank N.V. SBPA),
2.23%, 4/07/08(a)(b)		2,640		2,640,000
Venango AMT TECP (Dexia Credit Local LOC),
2.00%, 5/07/08-5/08/08		30,028		30,028,000
Washington County Authority RB (Girard Estate Refunding Project) Series 1999 DN (Chase Manhattan LOC),
2.20%, 4/07/08(a)		1,000		1,000,000
West Cornwall Township Municipal Authority RB (General Government Loan Program) Series 2003A DN (FSA Insurance, Dexia Credit Local SBPA),
2.25%, 4/07/08(a)		1,670		1,670,000
Westmoreland County IDRB (Industrial Development McCutcheon Enterprise Project) Series 1999 AMT DN (National City Bank N.A. LOC),
2.70%, 4/07/08(a)		1,490		1,490,000
York County GO Series 2008 TRAN,
3.50%, 6/30/08		1,980		1,983,523
York County Hospital Authority RB (Homewood Retirement Centers of The United Church of Christ, Inc. Project) Series 1990 DN (M&T Bank Corp. LOC),
2.33%, 4/07/08(a)		3,600		3,600,000
York County IDRB (Allied-Signal, Inc. Project) Series 1993 DN,
3.50%, 4/07/08(a)		1,000		1,000,000
York County IDRB (Interstate Holdings Co. Project) Series 2003 AMT DN (Wachovia Bank N.A. Liquidity Facility),
2.25%, 4/07/08(a)		1,195		1,195,000
York County IDRB (Raich Family Ltd. Partner Project) Series 2000 AMT DN (M&T Bank Corp. LOC),
2.36%, 4/07/08(a)		1,880		1,880,000
York County IDRB (York Sheet Metal, Inc. Project) Series 1998 DN (Wachovia Bank N.A. LOC),
2.48%, 4/07/08(a)		2,165		2,165,000
York General Authority RB (Strand Capital Performing Arts Center Project) Series 2002 DN (M&T Bank Corp. LOC),
2.26%, 4/07/08(a)		5,410		5,410,000
				623,183,043
Puerto Rico — 1.2%
Commonwealth of Puerto Rico GO Series 2007 TRAN (Bank of Nova Scotia, Banque Nationale de Paribas, Dexia Credit Local, Fortis Bank, Banco Bilbao Vizcaya Argentaria S.A., KBC Bank N.V. and Banco Santander Central Hisapano LOC),
4.25%, 7/30/08		7,500		7,520,481
Total Investments in Securities — 97.8%
(Cost $630,703,524*)				630,703,524
Other Assets in Excess of Liabilities — 2.2%				14,435,903
Net Assets — 100.0%			$	645,139,427

* Aggregate cost for federal income tax purposes.

(a) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 35

Schedule of Investments (concluded) Pennsylvania Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

(b) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

• Investments in companies considered to be an affiliate of the Portfolio were as follows:

Affiliate	Purchase Cost	Sales Cost		Realized Gain	Interest Income
Pennsylvania Economic Development Financing Authority RB P-Float Trust Receipts Series 2004-1282 AMT DN (Merrill Lynch & Co. Guaranty, Merrill Lynch Capital Services SBPA)	—	$	5,000,000	—	$	18,945
Pennsylvania Higher Educational Facilities Authority RB P-Float Trust Receipts Series 2004 MT-042 DN (Lloyds TSB Bank Plc LOC, Merrill Lynch Capital Services SBPA)	—	$	19,225,000	—	$	72,017
Pennsylvania Housing Finance Agency Single Family Mortgage RB Series 2004-82B AMT DN (Landesbank Hessen-Thuringen Girozentrale SBPA)	—	$	10,835,000	—	$	41,025
Philadelphia Redevelopment Authority RB Spear DB-134 Series 2005 AMT DN (FGIC Insurance, Deutsche Bank Liquidity Facility)	—	$	10,295,000	—	$	70,548

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments March 31, 2008 (Unaudited) Virginia Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds — 99.7%
Puerto Rico — 11.0%
Commonwealth of Puerto Rico Aqueduct & Sewer Authority RB Series 2007R-1001CE DN (Citigroup Financial Products Liquidity Facility, Citigroup Global Markets Holdings, Inc. Guaranty),
2.27%, 4/07/08(a)(b)	$	1,500	$	1,500,000
Commonwealth of Puerto Rico GO Series 2007 TRAN (Bank of Nova Scotia, Banque Nationale de Paribas, Dexia Credit Local, Fortis Bank, Banco Bilbao Vizcaya Argentaria S.A., KBC Bank N.V. and Banco Santander Central Hisapano LOC),
4.25%, 7/30/08		4,000		4,010,923
Puerto Rico Electric Power Authority RB Series 2007 SGB-69 DN (FSA Insurance, Societe General Group LOC),
3.00%, 4/01/08(a)(b)		1,000		1,000,000
Puerto Rico Electric Power Authority RB Series 2007 SGC-19 DN (FSA Insurance, Societe General Group Liquidity Facility),
2.24%, 4/07/08(a)(b)		1,780		1,780,000
Puerto Rico Sales Tax Financing Corp. RB Municipal Trust Receipts Floaters Series 2007-2006-1991 DN (Morgan Stanley Municipal Funding Guaranty, Morgan Stanley Municipal Funding Liquidity Facility),
2.27%, 4/07/08(a)(b)		3,900		3,900,000
				12,190,923
Virginia — 88.7%
Albemarle County IDRB (Jefferson Scholars Foundation Project) Series 2007 DN (SunTrust Bank LOC),
2.09%, 4/07/08(b)		2,400		2,400,000
Alexandria IDRB (Goodwin House Project) Series 2005 DN (Wachovia Bank N.A. LOC),
1.10%, 4/01/08(b)		100		100,000
Alexandria IDRB (YMCA of Billings Project) Series 1998 DN (M&T Bank Corp. LOC),
2.38%, 4/07/08(b)		3,350		3,350,000
Arlington County IDRB (Woodbury Park Project) Series 2005A DN (Federal Home Loan Mortgage Liquidity Facility),
2.21%, 4/07/08(b)		1,420		1,420,000
Charlottesville IDA Educational Facilities RB (University of Virginia Foundation Project) Series 2006B DN (Wachovia Bank N.A. LOC),
2.05%, 4/07/08(b)		2,400		2,400,000
Chesapeake Bay Bridge & Tunnel District RB (General Resolution Project) Series 2008A DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		2,250		2,250,000
Clarke County IDA Hospital Facilities RB (Winchester Medical Center, Inc. Project) Series 2000 DN (FSA Insurance, Morgan Guaranty Trust SBPA),
2.05%, 4/07/08(b)		925		925,000
Fairfax County Economic Development Authority RB (National Industries for Severe Handicap Project) Series 2002 DN (SunTrust Bank LOC),
2.09%, 4/07/08(b)		450		450,000
Fairfax County Economic Development Authority RB (Smithsonian Institute Project) Series 2006A DN (Bank of America N.A. LOC),
1.80%, 4/07/08(b)		1,350		1,350,000
Fairfax County Economic Development Authority RB Munitops Trust Certificates (Route 28 Project) Series 2003 DN (MBIA Insurance, ABN-AMRO Bank SBPA),
2.26%, 4/07/08(a)(b)		2,500		2,500,000
Fairfax County GO Series 2000A MB,
5.00%, 6/01/08		350		357,878
Fairfax County IDRB (Inova Health Systems Project) Series 2005A-1 DN,
2.10%, 4/07/08(b)		3,205		3,205,000
Fairfax County IDRB (Inova Health Systems Project) Series 2005A-2 DN,
2.05%, 4/07/08(b)		1,800		1,800,000
Fairfax County IDRB (Inova Health Systems Project) Series 2005C-1 DN,
2.05%, 4/07/08(b)		5,945		5,945,000
Farmville IDA Educational Facilities RB (Longwood Student Housing Projects) Series 2007 DN (Assured Guaranty Ltd., Bank of America N.A. SBPA),
2.10%, 4/07/08(b)		3,000		3,000,000
Hampton Redevelopment & Housing Authority RB (Multi-Family Housing Project) Series 1998 DN (Federal National Mortgage Assoc. Credit Support & LOC),
2.25%, 4/07/08(b)		400		400,000
Hampton Roads Regional Jail Authority Facilities RB Series 2004 ROC-RR-II-R-2156 DN (MBIA Insurance, Citibank N.A. Liquidity Facility),
2.60%, 4/07/08(a)(b)		1,370		1,370,000
Hanover County IDA Residential Care Facility RB (Covenent Woods Project) Series 1999 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		350		350,000
Henrico County Economic Development Authority RB (Bon Secours Health Systems Project) Series 2008B-1 DN (Assured Guaranty Ltd., Dexia Credit Local SBPA),
2.07%, 4/07/08(b)		5,000		5,000,000
Henrico County Public Improvement GO Series 2008 MB,
5.00%, 12/01/08		1,190		1,212,732
Loudoun County GO (Public Improvement Project) Series 2002A MB,
5.00%, 5/01/08		850		850,908
Loudoun County IDRB (Hill School Project) Series 2002 DN (SunTrust Bank LOC),
2.09%, 4/07/08(b)		2,490		2,490,000
Loudoun County IDRB (Howard Hughes Medical Institute Project) Series 2003A DN,
2.00%, 4/07/08(b)		1,300		1,300,000
Loudoun County IDRB (Howard Hughes Medical Institute Project) Series 2003D DN,
1.50%, 4/07/08(b)		900		900,000
Loudoun County IDRB (Howard Hughes Medical Institute Project) Series 2003E DN,
1.95%, 4/01/08(b)		1,000		1,000,000
Loudoun County IDRB (Howard Hughes Medical Institute Project) Series 2003F DN,
1.95%, 4/07/08(b)		2,295		2,295,000
Louisa County IDRB (Pooled Financing Project) Series 1995 DN (Bank of America N.A. LOC),
2.10%, 4/07/08(b)		165		165,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 37

Schedule of Investments (continued) Virginia Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

	Par (000)		Value
Municipal Bonds (Continued)
Virginia (Continued)
Louisa IDA PCRB (Virginia Electric & Power Co. Project) Series 2008 TECP,
2.60%, 4/08/08	$	1,100	$	1,100,000
Madison County IDRB (Woodberry Forest School Project) Series 2007 DN (SunTrust Bank LOC),
1.25%, 4/01/08(b)		2,700		2,700,000
Montgomery County IDRB (Virginia Technical Foundation Project) Series 2005 DN (Bank of America N.A. LOC),
1.35%, 4/01/08(b)		100		100,000
Newport News IDRB (CNU Warwick LLC Student Apartments Project) Series 2004 DN (Bank of America N.A. LOC),
2.10%, 4/07/08(b)		200		200,000
Norfolk Redevelopment & Housing Authority RB (Harbor’s Edge Project) Series 2004B DN (HSH Nordbank AG LOC),
2.12%, 4/07/08(b)		3,700		3,700,000
Richmond IDRB (Diocese of Virginia Church School Project) Series 2001 DN (SunTrust Bank LOC),
1.40%, 4/01/08(b)		210		210,000
Richmond IDRB (Diocese of Virginia Church School Project) Series 2005 DN (SunTrust Bank LOC),
1.40%, 4/01/08(b)		1,500		1,500,000
Roanoke Public Improvement GO Series 2008 MB (State Aid Withholding Insurance),
3.25%, 2/01/09		1,660		1,674,327
University of Virginia GO Series 2008 TECP,
1.00%, 6/25/08		4,600		4,600,000
University of Virginia RB Munitops Trust Certificates Series 2005-48 DN (ABN-AMRO Bank N.V. SBPA),
2.23%, 4/07/08(a)(b)		3,500		3,500,000
Upper Occoquan Sewer Authority RB Munitops Trust Certificates Series 2007-30 DN (ABN-AMRO Bank N.V. SBPA),
2.24%, 4/07/08(a)(b)		1,600		1,600,000
Virginia Beach Development Authority IDRB (Ocean Ranch Motel Corp. Project) Series 1998 DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		700		700,000
Virginia Beach GO MERLOTS Trust Receipts Series 2007D-11 DN (Wachovia Bank N.A. LOC),
2.25%, 4/07/08(a)(b)		1,470		1,470,000
Virginia Biotechnology Research Partnership Authority RB (Virginia Blood Services Project) Series 2006 DN (SunTrust Bank LOC),
2.09%, 4/07/08(b)		600		600,000
Virginia College Building Authority Educational Facilities RB (Shenandoah University Project) Series 2006 DN (Branch Banking & Trust Co. LOC),
1.42%, 4/01/08(b)		400		400,000
Virginia College Building Authority Educational Facilities RB (University of Richmond Project) Series 2006 DN (SunTrust Bank SBPA),
1.35%, 4/01/08(b)		500		500,000
Virginia College Building Authority Educational Facilities RB PUTTERS Series 2007-1958 DN (JPMorgan Chase Bank Liquidity Facility),
2.29%, 4/07/08(a)(b)		1,100		1,100,000
Virginia College Building Authority Educational Facilities RB Series 2003-379 DN (JPMorgan Chase & Co. LOC),
2.29%, 4/07/08(a)(b)		4,605		4,605,000
Virginia Commonwealth Transportation Board RB Series 2007-1807B DN (JPMorgan Chase & Co. LOC),
2.29%, 4/07/08(a)(b)		1,115		1,115,000
Virginia Commonwealth Transportation Board RB Series 2007 ROC-RR-II-R-10076 DN (Citibank N.A. Liquidity Facility),
2.24%, 4/07/08(a)(b)		1,200		1,200,000
Virginia Commonwealth University Health Systems Authority RB Series 2008B DN (Branch Banking & Trust Co. LOC),
1.20%, 4/01/08(b)		1,200		1,200,000
Virginia Public Building Authority RB Series 2003A MB,
4.00%, 8/01/08		500		501,986
Virginia Public Building Authority RB Series 2005D DN (Dexia Bank SBPA),
2.00%, 4/07/08(b)		2,200		2,200,000
Virginia Public School Authority RB (School Financing Project) Series 2004A MB (State Aid Withholding Insurance),
5.00%, 8/01/08		620		623,488
Virginia Public School Authority RB Series 2003 ROC-RR-II-R-4050 DN (Citigroup, Inc. Liquidity Facility),
2.24%, 4/07/08(a)(b)		1,840		1,840,000
Virginia Resources Authority Clean Water RB Municipal Trust Receipts Floaters Series 2007-1860 DN (Wells Fargo Bank N.A. LOC),
2.16%, 4/07/08(a)(b)		3,600		3,600,000
Virginia Resources Authority Clean Water RB UBS Municipal Certificates Floaters (Clean Water State Revolving Project) Series 2007 DN (Bank of New York LOC),
2.27%, 4/07/08(a)(b)		2,700		2,700,000
Virginia Small Business Financing Authority RB (Children’s Hospital-Kings Project) Series 2006 DN (Wachovia Bank N.A. LOC),
2.08%, 4/07/08(b)		2,180		2,180,000
Winchester Authority Residential Care Facility IDRB (Westminster-Canterbury Project) Series 2005B DN (Branch Banking & Trust Co. LOC),
2.28%, 4/07/08(b)		1,500		1,500,000
				97,706,319
Total Investments in Securities — 99.7%
(Cost $109,897,242*)				109,897,242
Other Assets in Excess of Liabilities — 0.3%				301,050
Net Assets — 100.0%			$	110,198,292

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT MARCH 31, 2008

Schedule of Investments (concluded) Virginia Municipal Money Market Portfolio (Percentages shown are based on Net Assets)

* Aggregate cost for federal income tax purposes.

(a) 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. Unless otherwise indicated, these securities are not considered to be illiquid.

(b) Rate shown is as of report date and maturities shown are the next interest readjustment date or the date the principal owed can be recovered through demand.

• Investments in companies considered to be an affiliate of the Portfolio were as follows:

Affiliate	Purchase Cost	Sales Cost		Realized Gain	Interest Income
Virginia Commonwealth University RB Series 2006A DN (AMBAC Insurance, Wachovia Bank N.A. Liquidity Facility)	—	$	2,400,000	—	$	21,709
Virginia Resources Authority Clean Water RB P-Float Trust Receipts Series 2000 PA-790 DN (Merrill Lynch & Co. Guaranty, Merrill Lynch Captial Services SBPA)	—	$	505,000	—	$	1,916

• For Portfolio compliance purposes, the Portfolio’s sector and industry classifications refer to any one or more of the Standard Industry Codes as defined by the SEC. This definition may not apply for purposes of this report, which may combine sector and industry sub-classifications for reporting ease.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 39

Statements of Assets and Liabilities

March 31, 2008 (Unaudited)	Money Market Portfolio		U.S. Treasury Money Market Portfolio			Municipal Money Market Portfolio		New Jersey Municipal Money Market Portfolio
Assets
Investments at value - unaffiliated1	$	1,752,349,994	$	—		$	324,219,411	$	166,348,390
Investments at value - affiliated2		—		—			—		6,795,000
Repurchase agreements3		—		575,132,000			—		—
Cash		166		984			91,177		22,719,682
Interest receivable		4,815,413		941,763			2,449,628		1,080,168
Interest receivable - affiliated		—		—			—		53,429
Investments sold receivable		3,160,220		—			—		—
Receivable from advisor		2,224		218			45		195
Capital shares sold receivable		26,685,874		526,850			2,547,842		305,840
Prepaid expenses		141,475		58,680			55,661		22,954
Total assets		1,787,155,366		576,660,495			329,363,764		197,325,658
Liabilities
Investments purchased payable		—		—			2,000,000		400,980
Income dividends payable		2,893,774		684,954			234,983		312,855
Capital shares redeemed payable		2,532,247		—			1,200		—
Investment advisory fees payable		472,816		147,478			79,915		37,489
Transfer agent fees payable		166,781		14,011			11,551		2,286
Administration fees payable		117,580		42,562			26,898		14,072
Officer and Trustees fees payable		43,842		9,775			5,369		3,226
Custodian fees payable		23,497		6,947			2,916		3,415
Service and distribution fees payable		14,334		—			—		—
Other accrued expenses payable		512,018		110,847			86,433		62,251
Total liabilities		6,776,889		1,016,574			2,449,265		836,574
Net Assets
Net Assets	$	1,780,378,477	$	575,643,921		$	326,914,499	$	196,489,084
Net Assets Consist of
Paid-in capital	$	1,780,298,769	$	575,647,909		$	326,902,396	$	196,484,359
Undistributed net investment income		64,239		46,591			8,019		13
Accumulated net realized gain (loss)		15,469		(50,579	)		4,084		4,712
Net Assets	$	1,780,378,477	$	575,643,921		$	326,914,499	$	196,489,084
1 Investments at cost - unaffiliated	$	1,752,349,994	$	—		$	324,219,411	$	166,348,390
2 Investments at cost - affiliated		—		—			—		6,795,000
3 Cost of repurchase agreements		—		575,132,000			—		—

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Assets and Liabilities (continued)

March 31, 2008 (Unaudited)	Money Market Portfolio		U.S. Treasury Money Market Portfolio		Municipal Money Market Portfolio		New Jersey Municipal Money Market Portfolio
Institutional
Net Assets	$	633,734,619	$	306,433,524	$	58,695,085	$	127,521,627
Shares outstanding, unlimited number of shares authorized, $0.001 par value		633,758,298		306,460,658		58,629,823		127,509,508
Net Asset Value	$	1.00	$	1.00	$	1.00	$	1.00
Service
Net Assets	$	512,792,383	$	224,513,965	$	72,329,856	$	33,643,014
Shares outstanding, unlimited number of shares authorized, $0.001 par value		512,772,709		224,568,280		72,354,582		33,659,317
Net Asset Value	$	1.00	$	1.00	$	1.00	$	1.00
Hilliard Lyons
Net Assets	$	150,076,810	$	—	$	189,793,258	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		150,063,539		—		189,786,384		—
Net Asset Value	$	1.00	$	—	$	1.00	$	—
Investor A
Net Assets	$	461,734,469	$	44,696,432	$	6,096,300	$	35,324,443
Shares outstanding, unlimited number of shares authorized, $0.001 par value		461,719,710		44,684,635		6,095,794		35,316,653
Net Asset Value	$	1.00	$	1.00	$	1.00	$	1.00
Investor B
Net Assets	$	14,098,302	$	—	$	—	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		14,096,111		—		—		—
Net Asset Value	$	1.00	$	—	$	—	$	—
Investor C
Net Assets	$	7,941,894	$	—	$	—	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		7,941,641		—		—		—
Net Asset Value	$	1.00	$	—	$	—	$	—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 41

Statements of Assets and Liabilities (continued)

March 31, 2008 (Unaudited)	North Carolina Municipal Money Market Portfolio			Ohio Municipal Money Market Portfolio			Pennsylvania Municipal Money Market Portfolio		Virginia Municipal Money Market Portfolio
Assets
Investments at value - unaffiliated1	$	91,123,831		$	142,048,649		$	630,703,524	$	109,897,242
Investments at value - affiliated2		—			17,505,000			—		—
Cash		12,475			17,450			80,525		33,023
Interest receivable		427,196			971,206			3,575,330		524,614
Interest receivable - affiliated		—			69,462			—		—
Investments sold receivable		—			—			10,975,000		—
Receivable from advisor		269			88			723		674
Capital shares sold receivable		—			808,939			1,211,041		—
Prepaid expenses		15,179			16,011			38,627		17,472
Total assets		91,578,950			161,436,805			646,584,770		110,473,025
Liabilities
Investments purchased payable		—			902,441			—		—
Income dividends payable		100,087			290,365			1,098,676		218,776
Administration fees payable		5,660			10,463			42,559		7,497
Investment advisory fees payable		5,043			29,262			176,094		11,117
Custodian fees payable		2,785			4,090			4,653		2,504
Transfer agent fees payable		1,476			1,813			7,838		2,304
Officer and Trustees fees payable		1,387			2,519			13,510		1,619
Other accrued expenses payable		36,934			39,763			102,013		30,916
Total liabilities		153,372			1,280,716			1,445,343		274,733
Net Assets
Net Assets	$	91,425,578		$	160,156,089		$	645,139,427	$	110,198,292
Net Assets Consist of
Paid-in capital	$	91,433,029		$	160,159,630		$	645,123,386	$	110,197,605
Undistributed net investment income		4			—			—		52
Accumulated net realized gain (loss)		(7,455	)		(3,541	)		16,041		635
Net Assets	$	91,425,578		$	160,156,089		$	645,139,427	$	110,198,292
1 Investments at cost - unaffiliated	$	91,123,831		$	142,048,649		$	630,703,524	$	109,897,242
2 Investments at cost - affiliated		—			17,505,000			—		—

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Assets and Liabilities (concluded)

March 31, 2008 (Unaudited)	North Carolina Municipal Money Market Portfolio		Ohio Municipal Money Market Portfolio		Pennsylvania Municipal Money Market Portfolio		Virginia Municipal Money Market Portfolio
Institutional
Net Assets	$	86,319,218	$	125,868,290	$	547,912,802	$	109,856,499
Shares outstanding, unlimited number of shares authorized, $0.001 par value		86,322,260		125,862,328		547,885,252		109,855,492
Net Asset Value	$	1.00	$	1.00	$	1.00	$	1.00
Service
Net Assets	$	4,978,671	$	7,681,540	$	53,881,220	$	341,793
Shares outstanding, unlimited number of shares authorized, $0.001 par value		4,978,453		7,683,266		53,888,352		341,772
Net Asset Value	$	1.00	$	1.00	$	1.00	$	1.00
Investor A
Net Assets	$	127,689	$	26,606,259	$	43,345,405	$	—
Shares outstanding, unlimited number of shares authorized, $0.001 par value		127,705		26,612,989		43,345,213		—
Net Asset Value	$	1.00	$	1.00	$	1.00	$	—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 43

Statements of Operations

Six Months Ended March 31, 2008 (Unaudited)	Money Market Portfolio			U.S. Treasury Money Market Portfolio			Municipal Money Market Portfolio
Investment Income
Interest	$	40,847,698		$	9,705,807		$	5,421,449
Interest from affiliates		1,482			27			16,923
Total investment income		40,849,180			9,705,834			5,438,372
Expenses
Investment advisory		3,668,694			1,270,541			766,406
Service - class specific		1,323,062			333,099			337,417
Administration		545,071			208,349			127,734
Administration - class specific		205,652			70,586			42,578
Transfer agent - class specific		194,694			5,814			2,442
Printing		150,694			26,547			18,319
Distribution - class specific		67,213			—			—
Professional		66,903			29,196			29,206
Officer and Trustees		48,361			16,862			11,692
Custodian		47,857			20,221			15,182
Registration		30,988			17,875			21,023
Miscellaneous		20,021			11,327			5,414
Total expenses		6,369,210			2,010,417			1,377,413
Less investment advisory fees waived		(989,176	)		(443,263	)		(278,834	)
Less administration fees waived - class specific		(76,171	)		(37,276	)		(8,847	)
Less transfer agent fees waived - class specific		(4,627	)		(985	)		(127	)
Less transfer agent fees reimbursed - class specific		(18,903	)		(1,762	)		(370	)
Less service fees waived - class specific		(18,078	)		—			(230,374	)
Less fees paid indirectly		(509	)		(6	)		(1	)
Total expenses after waivers and reimbursement		5,261,746			1,527,125			858,860
Net investment income		35,587,434			8,178,709			4,579,512
Realized Gain (Loss)
Net realized gain (loss) from investments		88,849			—			18,418
Net Increase in Net Assets Resulting from Operations	$	35,676,283		$	8,178,709		$	4,597,930

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Operations (concluded)

New Jersey Municipal Money Market Portfolio			North Carolina Municipal Money Market Portfolio			Ohio Municipal Money Market Portfolio			Pennsylvania Municipal Money Market Portfolio			Virginia Municipal Money Market Portfolio
$	2,916,114		$	1,230,308		$	2,213,274		$	9,411,516		$	1,741,956
	218,945			4			217,196			202,546			23,628
	3,135,059			1,230,312			2,430,470			9,614,062			1,765,584
	446,212			180,584			331,502			1,416,264			266,782
	87,053			6,037			41,382			115,415			845
	74,369			30,097			55,250			229,572			44,464
	24,789			10,032			18,418			76,832			14,821
	2,397			2,047			1,365			8,776			4,226
	9,352			3,406			6,642			26,453			4,476
	—			—			—			—			—
	24,212			20,846			18,564			33,680			16,539
	9,996			8,072			9,037			19,455			8,467
	10,194			5,819			9,768			21,028			6,376
	6,111			5,130			4,281			6,576			6,214
	4,189			2,994			3,702			7,783			2,772
	698,874			275,064			499,911			1,961,834			375,982
	(197,999	)		(136,558	)		(152,173	)		(439,599	)		(178,233	)
	(16,084	)		(9,429	)		(14,280	)		(65,290	)		(14,746	)
	(482	)		(197	)		(275	)		(1,723	)		(301	)
	(1,180	)		(1,674	)		(842	)		(6,150	)		(3,876	)
	—			—			—			—			—
	(2	)		—			(10	)		(2	)		—
	483,127			127,206			332,331			1,449,070			178,826
	2,651,932			1,103,106			2,098,139			8,164,992			1,586,758
	587			132			(4,000	)		68,155			1,119
$	2,652,519		$	1,103,238		$	2,094,139		$	8,233,147		$	1,587,877

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 45

Statements of Changes in Net Assets

	Money Market Portfolio						U.S.Treasury Money Market Portfolio						Municipal Money Market Portfolio
Increase (Decrease) in Net Assets:	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
Operations
Net investment income	$	35,587,434		$	76,741,208		$	8,178,709		$	20,415,039		$	4,579,512		$	10,444,956
Net realized gain (loss)		88,849			(2,848	)		—			—			18,418			(14,334	)
Net increase in net assets resulting from operations		35,676,283			76,738,360			8,178,709			20,415,039			4,597,930			10,430,622
Dividends to Shareholders from
Net investment income:
Institutional		(14,287,433	)		(30,926,483	)		(4,421,764	)		(8,825,939	)		(952,210	)		(2,027,791	)
Service		(9,863,985	)		(20,365,498	)		(3,255,590	)		(10,219,151	)		(1,021,509	)		(3,260,720	)
Hilliard Lyons		(2,930,276	)		(6,327,437	)		—			—			(2,541,333	)		(5,026,924	)
Investor A		(8,198,805	)		(18,353,476	)		(501,355	)		(1,369,949	)		(64,460	)		(129,599	)
Investor B		(201,412	)		(570,502	)		—			—			—			—
Investor C		(105,523	)		(197,812	)		—			—			—			—
Decrease in net assets resulting from dividends to shareholders		(35,587,434	)		(76,741,208	)		(8,178,709	)		(20,415,039	)		(4,579,512	)		(10,445,034	)
Capital Share Transactions
Net increase (decrease) in net assets resulting from capital share transactions		87,101,788			127,891,591			(14,914,816	)		103,487,944			13,582,653			(23,588,224	)
Net Assets
Total increase (decrease) in net assets		87,190,637			127,888,743			(14,914,816	)		103,487,944			13,601,071			(23,602,636	)
Beginning of period		1,693,187,840			1,565,299,097			590,558,737			487,070,793			313,313,428			336,916,064
End of period	$	1,780,378,477		$	1,693,187,840		$	575,643,921		$	590,558,737		$	326,914,499		$	313,313,428
End of period undistributed net investment income	$	64,239		$	64,239		$	46,591		$	46,591		$	8,019		$	8,019

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT MARCH 31, 2008

Statements of Changes in Net Assets (concluded)

New Jersey Municipal Money Market Portfolio						North Carolina Municipal Money Market Portfolio						Ohio Municipal Money Market Portfolio						Pennsylvania Municipal Money Market Portfolio						Virginia Municipal Money Market Portfolio
Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007
$	2,651,932		$	5,664,183		$	1,103,106		$	2,545,427		$	2,098,139		$	5,097,354		$	8,164,992		$	19,110,199		$	1,586,758		$	2,602,675
	587			7,366			132			38			(4,000	)		28,703			68,155			(28,946	)		1,119			(484	)
	2,652,519			5,671,549			1,103,238			2,545,465			2,094,139			5,126,057			8,233,147			19,081,253			1,587,877			2,602,191
	(1,788,066	)		(3,456,093	)		(1,043,698	)		(2,506,251	)		(1,659,530	)		(4,205,016	)		(7,073,515	)		(16,495,727	)		(1,577,653	)		(2,583,685	)
	(459,938	)		(1,493,271	)		(57,804	)		(30,289	)		(106,846	)		(190,290	)		(668,471	)		(1,573,883	)		(9,105	)		(18,990	)
	—			—			—			—			—			—			—			—			—			—
	(403,928	)		(714,819	)		(1,600	)		(8,895	)		(331,763	)		(702,048	)		(423,006	)		(1,040,589	)		—			—
	—			—			—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—			—			—
	(2,651,932	)		(5,664,183	)		(1,103,102	)		(2,545,435	)		(2,098,139	)		(5,097,354	)		(8,164,992	)		(19,110,199	)		(1,586,758	)		(2,602,675	)
	(32,779,296	)		55,470,254			23,695,575			5,671,615			28,434,666			(25,233,037	)		55,245,554			52,198,539			27,519,726			11,160,010
	(32,778,709	)		55,477,620			23,695,711			5,671,645			28,430,666			(25,204,334	)		55,313,709			52,169,593			27,520,845			11,159,526
	229,267,793			173,790,173			67,729,867			62,058,222			131,725,423			156,929,757			589,825,718			537,656,125			82,677,447			71,517,921
$	196,489,084		$	229,267,793		$	91,425,578		$	67,729,867		$	160,156,089		$	131,725,423		$	645,139,427		$	589,825,718		$	110,198,292		$	82,677,447
$	13		$	13		$	4		$	—		$	—		$	—		$	—		$	—		$	52		$	52

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 47

Financial Highlights Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)																		Six Months Ended March 31, 2008 (Unaudited)
				Year Ended September 30,																		Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0217			0.0498			0.0436			0.0233			0.0083			0.0103			0.0204			0.0469			0.0407			0.0203			0.0054			0.0073
Dividends from net investment income		(0.0217	)		(0.0498	)		(0.0436	)		(0.0233	)		(0.0083	)		(0.0103	)		(0.0204	)		(0.0469	)		(0.0407	)		(0.0203	)		(0.0054	)		(0.0073	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		2.20	%2		5.10	%		4.44	%		2.36	%		0.84	%		1.04	%		2.06	%2		4.80	%		4.14	%		2.05	%		0.54	%		0.74	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.42	%3		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.70	%3		0.71	%		0.71	%		0.72	%		0.71	%		0.72	%
Total expenses		0.56	%3		0.58	%		0.63	%		0.71	%		0.63	%		0.62	%		0.81	%3		0.84	%		0.89	%		0.96	%		0.93	%		0.94	%
Net investment income		4.40	%3		4.99	%		4.36	%		2.30	%		0.78	%		1.04	%		4.06	%3		4.69	%		4.09	%		2.02	%		0.54	%		0.74	%
Supplemental Data
Net assets, end of period (000)	$	633,735		$	745,726		$	568,058		$	574,473		$	593,380		$	2,006,202		$	512,792		$	405,701		$	448,015		$	411,831		$	374,441		$	431,854
	Hilliard Lyons																		Investor A
	Six Months Ended March 31, 2008 (Unaudited)																		Six Months Ended March 31, 2008 (Unaudited)
				Year Ended September 30,																		Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0204			0.0471			0.0406			0.0198			0.0043			0.0056			0.0200			0.0461			0.0399			0.0199			0.0044			0.0056
Dividends from net investment income		(0.0204	)		(0.0471	)		(0.0406	)		(0.0198	)		(0.0043	)		(0.0056	)		(0.0200	)		(0.0461	)		(0.0399	)		(0.0199	)		(0.0044	)		(0.0056	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		2.06	%2		4.81	%		4.13	%		2.00	%		0.43	%		0.57	%		2.02	%2		4.71	%		4.07	%		2.01	%		0.44	%		0.57	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.70	%3		0.70	%		0.72	%		0.77	%		0.82	%		0.89	%		0.77	%3		0.79	%		0.79	%		0.76	%		0.82	%		0.89	%
Total expenses		0.81	%3		0.82	%		0.98	%		1.07	%		1.13	%		1.10	%		0.89	%3		0.92	%		1.05	%		1.06	%		1.13	%		1.11	%
Net investment income		4.08	%3		4.70	%		4.06	%		1.98	%		0.42	%		0.56	%		3.98	%3		4.61	%		3.98	%		2.04	%		0.43	%		0.57	%
Supplemental Data
Net assets, end of period (000)	$	150,077		$	131,720		$	121,243		$	116,066		$	116,254		$	148,277		$	461,734		$	393,399		$	399,656		$	433,609		$	362,495		$	451,676

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Money Market Portfolio

	Investor B																		Investor C
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0175			0.0418			0.0354			0.0151			0.0015			0.0014			0.0175			0.0417			0.0354			0.0151			0.0014			0.0014
Dividends from net investment income		(0.0175	)		(0.0418	)		(0.0354	)		(0.0151	)		(0.0015	)		(0.0014	)		(0.0175	)		(0.0417	)		(0.0354	)		(0.0151	)		(0.0014	)		(0.0014	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.77	%2		4.27	%		3.60	%		1.52	%		0.15	%		0.14	%		1.77	%2		4.25	%		3.60	%		1.52	%		0.15	%		0.14	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		1.29	%3		1.22	%		1.24	%		1.24	%		1.10	%		1.34	%		1.29	%3		1.24	%		1.24	%		1.24	%		1.10	%		1.35	%
Total expenses		1.82	%3		1.83	%		1.83	%		1.74	%		1.79	%		1.86	%		1.71	%3		1.79	%		1.78	%		1.73	%		1.79	%		1.86	%
Net investment income		3.41	%3		4.18	%		3.54	%		1.66	%		0.14	%		0.15	%		3.38	%3		4.16	%		3.59	%		1.79	%		0.14	%		0.15	%
Supplemental Data
Net assets, end of period (000)	$	14,098		$	11,532		$	19,462		$	18,716		$	8,924		$	13,490		$	7,942		$	5,109		$	8,866		$	5,043		$	884		$	2,197

¹ Audited by other auditors.

² Aggregate total investment return.

³ Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 49

Financial Highlights (continued) U.S. Treasury Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0155			0.0478			0.0422			0.0221			0.0072			0.0091			0.0141			0.0450			0.0393			0.0190			0.0042			0.0061
Dividends from net investment income		(0.0155	)		(0.0478	)		(0.0422	)		(0.0221	)		(0.0072	)		(0.0091	)		(0.0141	)		(0.0450	)		(0.0393	)		(0.0190	)		(0.0042	)		(0.0061	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.56	%2		4.89	%		4.30	%		2.23	%		0.72	%		0.92	%		1.42	%2		4.60	%		4.00	%		1.93	%		0.42	%		0.62	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.41	%3		0.41	%		0.41	%		0.41	%		0.41	%		0.41	%		0.69	%3		0.69	%		0.70	%		0.71	%		0.71	%		0.71	%
Total expenses		0.59	%3		0.61	%		0.65	%		0.73	%		0.70	%		0.70	%		0.84	%3		0.86	%		0.90	%		0.98	%		0.99	%		1.00	%
Net investment income		2.97	%3		4.75	%		4.26	%		2.18	%		0.68	%		0.93	%		2.84	%3		4.50	%		3.94	%		1.99	%		0.41	%		0.61	%
Supplemental Data
Net assets, end of period (000)	$	306,434		$	312,979		$	211,960		$	164,905		$	176,136		$	379,240		$	224,514		$	245,609		$	246,517		$	257,187		$	219,788		$	250,314

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0140			0.0450			0.0388			0.0186			0.0031			0.0044
Dividends from net investment income		(0.0140	)		(0.0450	)		(0.0388	)		(0.0186	)		(0.0031	)		(0.0044	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.41	%2		4.59	%		3.95	%		1.88	%		0.31	%		0.44	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.69	%3		0.70	%		0.75	%		0.75	%		0.82	%		0.88	%
Total expenses		0.85	%3		0.86	%		1.04	%		1.07	%		1.19	%		1.17	%
Net investment income		2.70	%3		4.49	%		3.86	%		1.83	%		0.31	%		0.47	%
Supplemental Data
Net assets, end of period (000)	$	44,696		$	31,970		$	28,593		$	31,990		$	41,283		$	49,906

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Municipal Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0139			0.0331			0.0289			0.0172			0.0073			0.0092			0.0126			0.0301			0.0260			0.0143			0.0043			0.0062
Dividends from net investment income		(0.0139	)		(0.0331	)		(0.0289	)		(0.0172	)		(0.0073	)		(0.0092	)		(0.0126	)		(0.0301	)		(0.0260	)		(0.0143	)		(0.0043	)		(0.0062	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.41	%2		3.36	%		2.93	%		1.74	%		0.73	%		0.92	%		1.27	%2		3.05	%		2.63	%		1.44	%		0.43	%		0.62	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.42	%3		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.70	%3		0.72	%		0.71	%		0.72	%		0.72	%		0.72	%
Total expenses		0.61	%3		0.63	%		0.67	%		0.74	%		0.71	%		0.71	%		0.86	%3		0.91	%		0.91	%		0.99	%		1.00	%		1.01	%
Net investment income		2.69	%3		3.29	%		2.88	%		1.69	%		0.69	%		0.92	%		2.54	%3		3.00	%		2.64	%		1.45	%		0.42	%		0.63	%
Supplemental Data
Net assets, end of period (000)	$	58,695		$	42,083		$	61,154		$	75,789		$	126,534		$	437,613		$	72,330		$	100,454		$	132,523		$	93,844		$	70,344		$	88,769
	Hilliard Lyons																		Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0139			0.0328			0.0284			0.0163			0.0056			0.0070			0.0125			0.0302			0.0258			0.0136			0.0042			0.0048
Dividends from net investment income		(0.0139	)		(0.0328	)		(0.0284	)		(0.0163	)		(0.0056	)		(0.0070	)		(0.0125	)		(0.0302	)		(0.0258	)		(0.0136	)		(0.0042	)		(0.0048	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00 $		$	1.00			1.00		$	1.00
Total Investment Return
Based on net asset value		1.40	%2		3.33	%		2.87	%		1.64	%		0.57	%		0.70	%		1.27	%2		3.06	%		2.61	%		1.37	%		0.43	%		0.49	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.45	%3		0.45	%		0.47	%		0.52	%		0.59	%		0.64	%		0.71	%3		0.71	%		0.73	%		0.79	%		0.72	%		0.85	%
Total expenses		0.86	%3		0.88	%		1.02	%		1.09	%		1.13	%		0.93	%		0.87	%3		0.89	%		1.03	%		1.11	%		1.19	%		1.18	%
Net investment income		2.76	%3		3.28	%		2.84	%		1.62	%		0.56	%		0.70	%		2.48	%3		3.01	%		2.53	%		1.29	%		0.42	%		0.47	%
Supplemental Data
Net assets, end of period (000)	$	189,793		$	166,999		$	140,409		$	126,397		$	127,151		$	143,305		$	6,096		$	3,776		$	2,830		$	4,262		$	7,322		$	9,019

1 Audited by other auditors.

2 Aggregate total investment return.

3 Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 51

Financial Highlights (continued) New Jersey Municipal
Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0137			0.0326			0.0285			0.0175			0.0074			0.0089			0.0124			0.0298			0.0256			0.0145			0.0044			0.0059
Dividends from net investment income		(0.0137	)		(0.0326	)		(0.0285	)		(0.0175	)		(0.0074	)		(0.0089	)		(0.0124	)		(0.0298	)		(0.0256	)		(0.0145	)		(0.0044	)		(0.0059	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.38	%2		3.31	%		2.89	%		1.76	%		0.74	%		0.89	%		1.24	%2		3.03	%		2.60	%		1.46	%		0.44	%		0.59	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.39	%3		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%		0.67	%3		0.67	%		0.68	%		0.69	%		0.69	%		0.69	%
Total expenses		0.62	%3		0.62	%		0.66	%		0.74	%		0.72	%		0.72	%		0.87	%3		0.88	%		0.92	%		0.99	%		1.01	%		1.02	%
Net investment income		2.78	%3		3.26	%		2.88	%		1.73	%		0.74	%		0.89	%		2.50	%3		2.98	%		2.57	%		1.45	%		0.44	%		0.59	%
Supplemental Data
Net assets, end of period (000)	$	127,522		$	156,005		$	99,173		$	74,329		$	80,530		$	77,267		$	33,643		$	43,013		$	56,955		$	59,794		$	59,899		$	64,313

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0123			0.0298			0.0255			0.0138			0.0044			0.0045
Dividends from net investment income		(0.0123	)		(0.0298	)		(0.0255	)		(0.0138	)		(0.0044	)		(0.0045	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.24	%2		3.03	%		2.58	%		1.39	%		0.44	%		0.45	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.67	%3		0.67	%		0.69	%		0.75	%		0.69	%		0.82	%
Total expenses		0.87	%3		0.87	%		1.02	%		1.11	%		1.21	%		1.19	%
Net investment income		2.46	%3		2.99	%		2.56	%		1.40	%		0.43	%		0.44	%
Supplemental Data
Net assets, end of period (000)	$	35,324		$	30,250		$	17,662		$	15,027		$	12,821		$	17,783

See Notes to Financial Statements.

52 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) North Carolina Municipal
Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0139			0.0336			0.0299			0.0185			0.0084			0.0097			0.0125			0.0307			0.0270			0.0155			0.0054			0.0067
Dividends from net investment income		(0.0139	)		(0.0336	)		(0.0299	)		(0.0185	)		(0.0084	)		(0.0097	)		(0.0125	)		(0.0307	)		(0.0270	)		(0.0155	)		(0.0054	)		(0.0067	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.40	%2		3.42	%		3.04	%		1.87	%		0.85	%		0.97	%		1.26	%2		3.12	%		2.73	%		1.56	%		0.54	%		0.67	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.30	%3		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%		0.58	%3		0.58	%		0.60	%		0.60	%		0.60	%		0.60	%
Total expenses		0.67	%3		0.68	%		0.70	%		0.80	%		0.74	%		0.74	%		0.92	%3		0.94	%		0.98	%		1.07	%		1.03	%		1.04	%
Net investment income		2.77	%3		3.36	%		3.00	%		1.84	%		0.84	%		0.96	%		2.46	%3		3.10	%		2.61	%		1.69	%		0.55	%		0.63	%
Supplemental Data
Net assets, end of period (000)	$	86,319		$	66,246		$	61,086		$	56,017		$	58,168		$	162,465		$	4,979		$	1,295		$	656		$	6,923		$	160		$	227

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0115			0.0298			0.0264			0.0151			0.0054			0.0053
Dividends from net investment income		(0.0115	)		(0.0298	)		(0.0264	)		(0.0151	)		(0.0054	)		(0.0053	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.16	%2		3.03	%		2.67	%		1.52	%		0.55	%		0.53	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.77	%3		0.67	%		0.66	%		0.64	%		0.60	%		0.74	%
Total expenses		1.11	%3		1.02	%		1.10	%		1.15	%		1.23	%		1.21	%
Net investment income		2.30	%3		2.98	%		2.64	%		1.51	%		0.54	%		0.53	%
Supplemental Data
Net assets, end of period (000)	$	128		$	189		$	316		$	321		$	319		$	338

¹ Audited by other auditors.

² Aggregate total investment return.

³ Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 53

Financial Highlights (continued) Ohio Municipal
Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004				20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00			$	1.00
Net investment income		0.0145			0.0336			0.0297			0.0182			0.0087			0.0105			0.0131			0.0308			0.0268			0.0152			0.0057				0.0075
Dividends from net investment income		(0.0145	)		(0.0336	)		(0.0297	)		(0.0182	)		(0.0087	)		(0.0105	)		(0.0131	)		(0.0308	)		(0.0268	)		(0.0152	)		(0.0057	)			(0.0075	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00			$	1.00
Total Investment Return
Based on net asset value		1.47	%2		3.41	%		3.01	%		1.83	%		0.87	%		1.06	%		1.33	%2		3.13	%		2.72	%		1.53	%		0.57	%			0.75	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.39	%3		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%		0.67	%3		0.67	%		0.68	%		0.69	%		0.69	%			0.69	%
Total expenses		0.62	%3		0.62	%		0.67	%		0.73	%		0.72	%		0.72	%		0.87	%3		0.87	%		0.92	%		0.98	%		1.01	%			1.03	%
Net investment income		2.91	%3		3.35	%		2.99	%		1.79	%		0.87	%		1.05	%		2.64	%3		3.09	%		2.65	%		1.50	%		0.56	%			0.75	%
Supplemental Data																																		��
Net assets, end of period (000)	$	125,868		$	101,325		$	131,016		$	88,697		$	122,030		$	94,936		$	7,682		$	8,199		$	5,647		$	10,224		$	15,311			$	13,061

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0131			0.0308			0.0267			0.0150			0.0046			0.0058
Dividends from net investment income		(0.0131	)		(0.0308	)		(0.0267	)		(0.0150	)		(0.0046	)		(0.0058	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.33	%2		3.13	%		2.70	%		1.51	%		0.46	%		0.58	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.67	%3		0.67	%		0.69	%		0.71	%		0.80	%		0.86	%
Total expenses		0.87	%3		0.87	%		1.01	%		1.06	%		1.20	%		1.19	%
Net investment income		2.65	%3		3.08	%		2.67	%		1.47	%		0.46	%		0.59	%
Supplemental Data
Net assets, end of period (000)	$	26,606		$	22,201		$	20,267		$	20,893		$	32,171		$	26,154

See Notes to Financial Statements.

54 SEMI-ANNUAL REPORT MARCH 31, 2008

Financial Highlights (continued) Pennsylvania Municipal Money Market Portfolio

	Institutional																		Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,															Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031						2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0132			0.0329			0.0290			0.0178			0.0073			0.0093			0.0119			0.0301			0.0261			0.0148			0.0043			0.0063
Dividends from net investment income		(0.0132	)		(0.0329	)		(0.0290	)		(0.0178	)		(0.0073	)		(0.0093	)		(0.0119	)		(0.0301	)		(0.0261	)		(0.0148	)		(0.0043	)		(0.0063	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.34	%2		3.34	%		2.94	%		1.79	%		0.73	%		0.93	%		1.20	%2		3.06	%		2.65	%		1.49	%		0.43	%		0.63	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.42	%3		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.70	%3		0.70	%		0.71	%		0.72	%		0.72	%		0.72	%
Total expenses		0.59	%3		0.59	%		0.64	%		0.72	%		0.71	%		0.71	%		0.84	%3		0.84	%		0.89	%		0.97	%		0.99	%		1.01	%
Net investment income		2.63	%3		3.29	%		2.92	%		1.78	%		0.73	%		0.93	%		2.39	%3		3.01	%		2.63	%		1.47	%		0.43	%		0.64	%
Supplemental Data
Net assets, end of period (000)	$	547,913		$	500,402		$	464,708		$	430,376		$	426,130		$	416,412		$	53,881		$	55,934		$	44,406		$	34,219		$	32,866		$	44,164

	Investor A
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0118			0.0300			0.0259			0.0155			0.0045			0.0049
Dividends from net investment income		(0.0118	)		(0.0300	)		(0.0259	)		(0.0155	)		(0.0045	)		(0.0049	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.20	%2		3.05	%		2.62	%		1.56	%		0.45	%		0.49	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.70	%3		0.71	%		0.73	%		0.65	%		0.70	%		0.87	%
Total expenses		0.84	%3		0.85	%		1.01	%		0.96	%		1.17	%		1.18	%
Net investment income		2.32	%3		3.00	%		2.49	%		1.64	%		0.44	%		0.51	%
Supplemental Data
Net assets, end of period (000)	$	43,345		$	33,490		$	28,542		$	72,079		$	29,647		$	33,726

¹ Audited by other auditors.

² Aggregate total investment return.

³ Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT MARCH 31, 2008 55

Financial Highlights (concluded) Virginia Municipal Money Market Portfolio

	Institutional
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30,
				2007			2006			2005			2004			20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0136			0.0336			0.0295			0.0181			0.0082			0.0094
Dividends from net investment income		(0.0136	)		(0.0336	)		(0.0295	)		(0.0181	)		(0.0082	)		(0.0094	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.36	%2		3.42	%		2.99	%		1.83	%		0.82	%		0.95	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.30	%3		0.30	%		0.29	%		0.30	%		0.30	%		0.30	%
Total expenses		0.63	%3		0.67	%		0.75	%		0.92	%		0.89	%		0.75	%
Net investment income		2.68	%3		3.37	%		3.03	%		1.84	%		0.83	%		0.93	%
Supplemental Data
Net assets, end of period (000)	$	109,856		$	81,190		$	71,518		$	24,169		$	17,857		$	21,963
	Service
	Six Months Ended March 31, 2008 (Unaudited)			Year Ended September 30, 2007			4/24/064- 9/30/065			05/13/054 - 06/27/056			10/01/03 - 10/07/031,7			Year Ended September 30, 20031
Per Share Operating Performance
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0121			0.0307			0.0104			0.0023			0.0001			0.0084
Dividends from net investment income		(0.0121	)		(0.0307	)		(0.0104	)		(0.0023	)		(0.0001	)		(0.0084	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Investment Return
Based on net asset value		1.22	%2		3.11	%		1.05	%2		0.23	%2		0.01	%2		0.85	%
Ratios to Average Net Assets
Total expenses, net of waivers and reimbursement		0.59	%3		0.58	%		0.58	%3		0.60	%3		0.40	%3		0.40	%
Total expenses		0.89	%3		0.91	%		1.09	%3		1.18	%3		1.06	%3		1.05	%
Net investment income		2.69	%3		3.14	%		3.11	%3		1.96	%3		0.71	%3		0.85	%
Supplemental Data
Net assets, end of period (000)	$	342		$	1,488		$	—	8	$	—	6	$	—	7	$	41,011

¹ Audited by other auditors.

² Aggregate total investment return.

³ Annualized.

⁴ Reissuance of shares.

⁵ There were no Service shares outstanding during the period May 3, 2006 to June 1, 2006.

⁶ There were no Service shares outstanding as of September 30, 2005.

⁷ There were no Service shares outstanding as of September 30, 2004.

⁸ Net assets end of period are less than $500.

See Notes to Financial Statements.

56 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

BlackRock Funds^SM (the “Fund”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of March 31, 2008, the Fund had 26 registered portfolios and 8 of which, BlackRock Money Market Portfolio (“Money Market”), BlackRock U.S. Treasury Money Market Portfolio (“U.S. Treasury”), BlackRock Municipal Money Market Portfolio (“Municipal”), BlackRock New Jersey Municipal Money Market Portfolio (“New Jersey Municipal”), BlackRock North Carolina Municipal Money Market Portfolio (“North Carolina Municipal”), BlackRock Ohio Municipal Money Market Portfolio (“Ohio Municipal”), BlackRock Pennsylvania Municipal Money Market Portfolio (“Pennsylvania Municipal”) and BlackRock Virginia Municipal Money Market Portfolio (“Virginia Municipal”), are included in these financial statements (the “Portfolios”). Each Portfolio is authorized to issue an unlimited number of shares with a par value of $0.001. The Portfolios’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. Each Portfolio of the Fund offers multiple classes of shares. Each Portfolio may offer Shares of Institutional, Service, Investor A, Investor B and Investor C classes. In addition, the Money Market and Municipal Portfolios may offer Hilliard Lyons Shares. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Service, Hilliard Lyons, Investor A, Investor B and Investor C Shares bear certain expenses related to the shareholder service and/or distribution of such shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor B shareholders may vote on material changes to the Investor A distribution plan).

The following is a summary of significant accounting policies followed by the Portfolios:

Valuation of Investments: Portfolio securities are valued under the amortized cost method which approximates current market value in accordance with Rule 2a-7 of the 1940 Act. Under this method, securities are valued at cost when purchased and thereafter, a constant proportionate amortization of any discount or premium is recorded until the maturity of the security. Regular review and monitoring of the valuation is performed in an attempt to avoid dilution or other unfair results to shareholders. Each Portfolio seeks to maintain the net asset value per share at $1.00, although there is no assurance that it will be able to do so on a continuing basis.

Repurchase Agreements: The Portfolios may invest in U.S. government and agency securities pursuant to repurchase agreements. Under such agreements, the counterparty agrees to repurchase the security at a mutually agreed upon time and price. The counterparty will be required on a daily basis to maintain the value of the securities subject to the agreement at no less than the repurchase price. The agreements are conditioned upon the collateral being deposited under the Federal Reserve book entry system or held in a segregated account by the Portfolio’s custodian. If the counterparty defaults and the fair value of the collateral declines, liquidation of the collateral by the Fund may be delayed or limited.

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Interest income is recognized on the accrual basis. The Portfolios amortize all premiums and discounts on debt securities. Income, realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Dividends and Distributions to Shareholders: Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates.

Income Taxes: It is the Portfolios’ policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

Effective March 31, 2008, the Portfolios implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to the Portfolios, and has determined that the adoption of FIN 48 did not have a material impact on the Portfolios’ financial statements. The Portfolios file U.S. and various state tax returns. No income tax returns are currently under examination. The statute of limitations on the Portfolios’ tax returns remains open for the years ended September 30, 2004 through September 30, 2006. The statute of limitations on the Portfolios’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The impact on the Portfolios’ financial statement disclosures, if any, is currently being assessed.

In addition, in February 2007, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS

SEMI-ANNUAL REPORT MARCH 31, 2008 57

Notes to Financial Statements (continued)

159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on the Portfolios’ financial statement disclosures, if any, is currently being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133” (“FAS 161”) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. The investment advisor is currently evaluating the implications of FAS 161 and the impact on the Portfolios’ financial statement disclosures, if any, is currently being assessed.

Other: Expenses directly related to one of the Portfolios or classes are charged to that Portfolio or class. Other operating expenses shared by several Portfolios are pro-rated among those Portfolios on the basis of relative net assets or other appropriate methods. Other expenses of a Portfolio are allocated daily to each class based on its relative net assets.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

The Fund on behalf of the Portfolios have entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect wholly-owned subsidiary of BlackRock, Inc., to provide investment advisory services. BlackRock Institutional Management Corporation (“BIMC”), an indirect wholly-owned subsidiary of BlackRock, Inc., serves as sub-advisor for all of the Portfolios. Merrill Lynch & Co., Inc.(“Merrill Lynch”) and The PNC Financial Services Group, Inc. (“PNC”) are principal owners of BlackRock, Inc. The Advisor is responsible for the management of each Portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Portfolios. For such services, each Portfolio pays the Advisor a monthly fee based on the average daily value of the Portfolio’s net assets, at the following annual rates: 0.45% of the first $1 billion, 0.40% of the next $1 billion, 0.375% of the next $1 billion and 0.35% of net assets in excess of $3 billion.

In addition, the Advisor has entered into a sub-advisory agreement with BIMC, an affiliate of the Advisor, pursuant to when BIMC serves as subadvisor for all of the Portfolios. The Advisor pays the sub-advisor, for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by the Portfolios to the Advisor.

PFPC Trust Company (“PTC”), an indirect wholly-owned subsidiary of PNC, serves as custodian for each Portfolio. For these services, the cus- todian receives a fee computed daily and payable monthly, based on a percentage of the average daily gross assets of each Portfolio.

Prior to January 1, 2008, the fee was paid at the following annual rates: 0.0073% of the first $250 million, 0.006% of the next $250 million, 0.0056% of the next $250 million, 0.0048% of the next $250 million and 0.004% of average daily gross assets in excess of $1 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of each Portfolio.

Effective January 1, 2008, the fee is paid at the following annual rates: 0.0025% of the first $2 billion and 0.002% of average daily gross assets in excess of $2 billion; plus per transaction charges and other miscellaneous fees incurred on behalf of each Portfolio.

PFPC Inc. (“PFPC”), an indirect wholly-owned subsidiary of PNC, serves as transfer and dividend disbursing agent. Each class of each Portfolio bears the costs of transfer agent fees associated with such respective class. Transfer agency fees borne by each class of each Portfolio are comprised of those fees charged for all shareholder communications including shareholder reports, dividend and distribution notices, and proxy materials for shareholders meetings, as well as per account and per transaction fees related to servicing and maintenance of shareholder accounts, including the issuing, redeeming and transferring of shares of each class of each Portfolio, 12b-1 fee calculation, check writing, antimoney laundering services, and customer identification services.

Pursuant to written agreements, certain affiliates provide certain Portfolios with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, affiliates receive an annual fee per shareholder account which will vary depending on share class. For the six months ended March 31, 2008, the Portfolios paid the following fees in return for these services:

Money Market	$	4,855
U.S. Treasury		7
Municipal		1,192
New Jersey Municipal		7
Pennsylvania Municipal		63

PFPC and the Advisor act as co-administrators for the Portfolios. For these services, the co-administrators receive a combined administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of each Portfolio. The combined administration fee is paid at the following annual rates: 0.075% of the first $500 million, 0.065% of the next $500 million and 0.055% of average of daily net assets in excess of $1 billion. In addition, each of the share classes is charged an administration fee based on the following percentages of average daily net assets of each respective class: 0.025% of the first $500 million, 0.015% of the next $500 million and 0.005% of average of daily net assets in excess of $1 billion. In addition, PFPC and the Advisor may have, at their discretion, voluntarily waived all or any portion of their administration fees for the Portfolio or a share class.

58 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

The Fund, on behalf of the Portfolios, has entered into a Distribution Agreement with BlackRock Distributors, Inc. (“BDI”). BDI is an affiliate of BlackRock, Inc. The Fund has also adopted a Distribution Plan on behalf of each Portfolio in accordance with Rule 12b-1 under the 1940 Act. Pursuant to the Distribution Plan the Portfolios pay the BDI ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows:

Class Specific Fee Arrangement
Portfolio	Share Classes
	Institutional		Service				Hilliard Lyons				Investor A				Investor B				Investor C
	Contractual Fees	Actual Fees (3)	Contractual Fees (1)		Actual Fees (3)		Contractual Fees (1)		Actual Fees (3)		Contractual Fees (1)		Actual Fees (3)		Contractual Fees (2)		Actual Fees (3)		Contractual Fees (2)		Actual Fees (3)
Money Market	None	None	0.25	%	0.25	%	0.25	%	0.25	%	0.25	%	0.25	%	1.00	%	0.80	%	1.00	%	0.80	%
U.S. Treasury	None	None	0.25	%	0.25	%	N/A		N/A		0.25	%	0.25	%	1.00	%	N/A		1.00	%	N/A
Municipal	None	None	0.25	%	0.25	%	0.25	%	None		0.25	%	0.25	%	1.00	%	N/A		1.00	%	N/A
New Jersey Municipal	None	None	0.25	%	0.25	%	N/A		N/A		0.25	%	0.25	%	1.00	%	N/A		1.00	%	N/A
North Carolina Municipal	None	None	0.25	%	0.25	%	N/A		N/A		0.25	%	0.25	%	1.00	%	N/A		1.00	%	N/A
Ohio Municipal	None	None	0.25	%	0.25	%	N/A		N/A		0.25	%	0.25	%	1.00	%	N/A		1.00	%	N/A
Pennsylvania Municipal	None	None	0.25	%	0.25	%	N/A		N/A		0.25	%	0.25	%	1.00	%	N/A		1.00	%	N/A
Virginia Municipal	None	None	0.25	%	0.25	%	N/A		N/A		0.25	%	N/A		1.00	%	N/A		1.00	%	N/A

(1) the maximum annual contractual fees are comprised of a 0.25% service fee.

(2) the maximum annual contractual fees are comprised of a 0.75% distribution fee and a 0.25% service fee.

(3) annualized; the actual fees are for the six months ended March 31, 2008.

For the six months ended March 31, 2008, the Portfolios paid to affiliates the following fees in return for distribution and sales support services:

Money Market	$	1,141,153
U.S. Treasury		255,012
Municipal		106,874
New Jersey Municipal		86,853
North Carolina Municipal		609
Ohio Municipal		41,340
Pennsylvania Municipal		115,081

The Advisor maintains a call center, which is responsible for providing certain shareholder services to the Portfolios, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Portfolio shares. During the six months ended March 31, 2008, the following amounts have been accrued by the Portfolios to reimburse the Advisor for costs incurred running the call center, which are a component of the transfer agent fees in the accompanying Statements of Operations.

Call Center

	Share Classes
	Institutional		Service		Hilliard Lyons		Investor A		Investor B		Investor C		Total
Money Market	$	1,826	$	1,993	$	570	$	16,236	$	1,360	$	387	$	22,372
U.S. Treasury		698		1,143		—		241		—		—		2,082
Municipal		106		477		689		41		—		—		1,313
New Jersey Municipal		344		228		—		138		—		—		710
North Carolina Municipal		162		7		—		14		—		—		183
Ohio Municipal		227		36		—		111		—		—		374
Pennsylvania Municipal		1,237		250		—		194		—		—		1,681
Virginia Municipal		214		8		—		—		—		—		222

SEMI-ANNUAL REPORT MARCH 31, 2008 59

Notes to Financial Statements (continued)

For the six months ended March 31, 2008, the following charts show the various types of class-specific expenses borne directly by each class of each Portfolio and any associated waivers of those expenses.

Administration Fees

	Share Classes
	Institutional		Service		Hilliard Lyons		Investor A		Investor B		Investor C		Total
Money Market	$	73,728	$	60,302	$	17,973	$	51,408	$	1,465	$	776	$	205,652
U.S. Treasury		37,277		28,669		—		4,640		—		—		70,586
Municipal		8,835		10,055		23,037		651		—		—		42,578
New Jersey Municipal		16,084		4,598		—		4,107		—		—		24,789
North Carolina Municipal		9,429		586		—		17		—		—		10,032
Ohio Municipal		14,280		1,011		—		3,127		—		—		18,418
Pennsylvania Municipal		65,290		6,987		—		4,555		—		—		76,832
Virginia Municipal		14,736		85		—		—		—		—		14,821

Administration Fees Waived

	Share Classes
	Institutional		Service		Investor B		Investor C		Total
Money Market	$	73,729	$	210	$	1,457	$	775	$	76,171
U.S. Treasury		37,276		—		—		—		37,276
Municipal		8,836		11		—		—		8,847
New Jersey Municipal		16,084		—		—		—		16,084
North Carolina Municipal		9,429		—		—		—		9,429
Ohio Municipal		14,280		—		—		—		14,280
Pennsylvania Municipal		65,290		—		—		—		65,290
Virginia Municipal		14,736		10		—		—		14,746

Transfer Agent Fees

	Share Classes
	Institutional		Service		Hilliard Lyons		Investor A		Investor B		Investor C		Total
Money Market	$	10,440	$	4,263	$	723	$	159,761	$	15,106	$	4,401	$	194,694
U.S. Treasury		2,748		1,698		—		1,368		—		—		5,814
Municipal		497		754		914		277		—		—		2,442
New Jersey Municipal		1,662		428		—		307		—		—		2,397
North Carolina Municipal		1,871		42		—		134		—		—		2,047
Ohio Municipal		1,119		64		—		179		2		1		1,365
Pennsylvania Municipal		7,874		394		—		508		—		—		8,776
Virginia Municipal		4,178		48		—		—		—		—		4,226

Transfer Agent Fees Waived

	Share Classes
	Institutional		Investor B		Investor C		Total
Money Market	$	2,444	$	1,687	$	496	$	4,627
U.S. Treasury		985		—		—		985
Municipal		127		—		—		127
New Jersey Municipal		482		—		—		482
North Carolina Municipal		197		—		—		197
Ohio Municipal		275		—		—		275
Pennsylvania Municipal		1,723		—		—		1,723
Virginia Municipal		301		—		—		301

Transfer Agent Fees Reimbursed

	Share Classes
	Institutional		Investor B		Investor C		Total
Money Market	$	7,968	$	9,218	$	1,717	$	18,903
U.S. Treasury		1,762		—		—		1,762
Municipal		370		—		—		370
New Jersey Municipal		1,180		—		—		1,180
North Carolina Municipal		1,674		—		—		1,674
Ohio Municipal		842		—		—		842
Pennsylvania Municipal		6,150		—		—		6,150
Virginia Municipal		3,876		—		—		3,876

60 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

Service Fees	Share Classes
	Service		Hilliard Lyons		Investor A		Investor B		Investor C		Total
Money Market	$	607,700	$	179,741	$	513,271	$	14,624	$	7,726	$	1,323,062
U.S. Treasury		286,694		—		46,405		—		—		333,099
Municipal		100,536		230,375		6,506		—		—		337,417
New Jersey Municipal		45,985		—		41,068		—		—		87,053
North Carolina Municipal		5,863		—		174		—		—		6,037
Ohio Municipal		10,110		—		31,272		—		—		41,382
Pennsylvania Municipal		69,866		—		45,549		—		—		115,415
Virginia Municipal		845		—		—		—		—		845

Service Fees Waived	Share Classes
	Hilliard Lyons		Investor B		Investor C		Total
Money Market	$	—	$	11,856	$	6,222	$	18,078
Municipal		230,374		—		—		230,374

Distribution Fees	Share Classes
	Investor B		Investor C		Total
Money Market	$	43,949	$	23,264	$	67,213

The Advisor contractually agreed to waive or reimburse fees or expenses until February 1, 2009, in order to limit expenses. These expense limits apply to the aggregate expenses incurred on a share class (excluding; interest, taxes, brokerage commissions, expenses incurred as a result of investments in other funds and other expenses attributable to, and incurred as a result of, a Portfolio’s investments and other extraordinary expenses). This agreement is reviewed annually by the Board. The current expense limitations as a percentage of net assets are as follows:

	Share Classes
	Institutional		Service		Hilliard Lyons		Investor A		Investor B		Investor C
Money Market	0.42	%	0.72	%	0.91	%	0.89	%	1.49	%	1.49	%
U.S. Treasury	0.41	%	0.71	%	N/A		0.88	%	1.48	%1	1.48	%1
Municipal	0.42	%	0.72	%	0.66	%	0.89	%	1.49	%1	1.49	%1
New Jersey Municipal	0.39	%	0.69	%	N/A		0.96	%	1.46	%1	1.46	%1
North Carolina Municipal	0.30	%	0.60	%	N/A		0.87	%	1.37	%1	1.37	%1
Ohio Municipal	0.39	%	0.69	%	N/A		0.96	%	1.46	%1	1.46	%1
Pennsylvania Municipal	0.42	%	0.72	%	N/A		0.99	%	1.49	%1	1.49	%1
Virginia Municipal	0.30	%	0.60	%	N/A		0.87	%1	1.37	%1	1.37	%1

¹ There were no shares outstanding as of March 31, 2008.

If operating expenses within two years following a waiver or reimbursement of the operating expenses of a share class that previously received a waiver or reimbursement from the Advisor, are less than the expense limit for that share class, the share class is required to repay the Advisor up to the amount of fees waived or expenses reimbursed under the agreement if: (1) the Portfolio has more than $50 million in assets, (2) the Advisor or an affiliate continues to be the Portfolio’s investment advisor or administrator and (3) the Board has approved the payments to the Advisor at the previous quarterly meeting.

At March 31, 2008, the amounts subject to possible future reimbursement under the expense limitation agreement are as follows:

	Expiring January 31,
	2009		2010		2011
Money Market	$	1,638,585	$	1,599,658	$	220,573
U.S. Treasury		772,301		707,285		150,558
Municipal		334,488		294,144		43,547
New Jersey Municipal		356,460		344,675		53,913
North Carolina Municipal		246,782		293,900		52,876
Ohio Municipal		311,945		279,571		48,705
Pennsylvania Municipal		968,214		913,386		159,862
Virginia Municipal		224,221		317,929		70,894

The following waivers previously recorded by the Portfolios, which were subject to recoupment by the Advisor expired on January 31, 2008:

U.S. Treasury	$	1,194,807
Municipal		630,099
New Jersey Municipal		456,571
North Carolina Municipal		304,943
Ohio Municipal		413,974
Pennsylvania Municipal		1,359,479
Virginia Municipal		142,461

SEMI-ANNUAL REPORT MARCH 31, 2008 61

Notes to Financial Statements (continued)

For the six months ended March 31, 2008, affiliates received the following contingent deferred sales charges relating to transactions in Investor B shares and Investor C shares:

	Investor B		Investor C
Money Market	$	33,784	$	8,979

The Portfolios may earn income on positive cash balances in demand deposit accounts that are maintained by PFPC on behalf of the Portfolios. The income earned for the six months ended March 31, 2008, was as follows:

Money Market	$	1,027
U.S. Treasury		17
Municipal		5
New Jersey Municipal		6
North Carolina Municipal		3
Ohio Municipal		2
Pennsylvania Municipal		7
Virginia Municipal		2

The Portfolios may also receive earnings credits related to cash balances with PFPC which are shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or trustees of the Portfolios are officers and/or trustees/directors of BlackRock, Inc. or its affiliates.

3. Capital Shares:

Because the Portfolios have each sold and redeemed shares only at a constant net asset value of $1.00 per share, the number of shares represented by such sales, reinvestments and redemptions is the same as the dollar amounts shown on the following pages for such transactions.

Transactions in capital shares for each period were as follows:

	Money Market
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	713,310,132		$	1,537,243,468
Service		969,544,911			1,813,995,747
Hilliard Lyons		57,572,065			109,753,956
Investor A		206,894,856			331,708,848
Investor B		9,460,330			11,373,692
Investor C		7,824,425			6,280,041
Shares issued in reinvestment of dividends:
Institutional		350,199			1,155,114
Service		993,159			2,713,337
Hilliard Lyons		2,930,338			6,327,179
Investor A		7,986,201			17,601,711
Investor B		175,305			470,652
Investor C		87,793			161,325
Shares redeemed:
Institutional		(825,682,709	)		(1,360,729,536	)
Service		(863,473,596	)		(1,859,021,649	)
Hilliard Lyons		(42,153,133	)		(105,603,555	)
Investor A		(146,568,750	)		(355,566,796	)
Investor B		(7,069,722	)		(19,774,296	)
Investor C		(5,080,016	)		(10,197,647	)
Net increase	$	87,101,788		$	127,891,591
	U.S. Treasury
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	386,369,214		$	559,564,732
Service		434,993,692			984,280,361
Investor A		31,154,908			33,270,755
Shares issued in reinvestment of dividends:
Institutional		3,382			9,207
Service		725,398			826,713
Investor A		499,619			1,368,800
Shares redeemed:
Institutional		(392,918,421	)		(458,556,613	)
Service		(456,814,231	)		(986,012,985	)
Investor A		(18,928,377	)		(31,263,026	)
Net increase (decrease)	$	(14,914,816	)	$	103,487,944
	Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	161,743,286		$	172,961,952
Service		143,638,597			229,353,268
Hilliard Lyons		104,609,823			192,779,882
Investor A		17,122,834			23,757,807
Shares issued in reinvestment of dividends:
Institutional		2,127			880
Service		225,928			650,526
Hilliard Lyons		2,541,182			5,026,924
Investor A		64,152			129,475
Shares redeemed:
Institutional		(145,138,359	)		(192,031,540	)
Service		(171,992,995	)		(262,065,852	)
Hilliard Lyons		(84,366,657	)		(171,211,126	)
Investor A		(14,867,265	)		(22,940,420	)
Net increase (decrease)	$	13,582,653		$	(23,588,224	)
	New Jersey Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	168,473,244		$	350,149,665
Service		3,267,759			37,401,353
Investor A		29,101,001			68,757,860
Shares issued in reinvestment of dividends:
Institutional		43,237			69,990

62 SEMI-ANNUAL REPORT MARCH 31, 2008

Notes to Financial Statements (continued)

	New Jersey Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Service	$	51,874		$	122,086
Investor A		404,043			714,819
Shares redeemed:
Institutional		(196,999,954	)		(293,392,912	)
Service		(12,689,895	)		(51,467,194	)
Investor A		(24,430,605	)		(56,885,413	)
Net increase (decrease)	$	(32,779,296	)	$	55,470,254
	North Carolina Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	150,712,032		$	291,128,975
Service		8,033,829			3,789,948
Investor A		42,400			177,265
Shares issued in reinvestment of dividends:
Institutional		491,564			1,422,320
Service		42,339			5,113
Investor A		1,593			8,697
Shares redeemed:
Institutional		(131,130,570	)		(287,390,964	)
Service		(4,392,155	)		(3,156,724	)
Investor A		(105,457	)		(313,015	)
Net increase	$	23,695,575		$	5,671,615
	Ohio Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	221,877,792		$	396,071,177
Service		7,092,481			16,516,784
Investor A		68,883,779			67,412,683
Shares issued in reinvestment of dividends:
Institutional		28,667			106,237
Service		42,330			65,484
Investor A		332,162			702,048
Shares redeemed:
Institutional		(197,359,650	)		(425,892,956	)
Service		(7,652,423	)		(14,031,016	)
Investor A		(64,810,472	)		(66,183,478	)
Net increase (decrease)	$	28,434,666		$	(25,233,037	)
	Pennsylvania Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	384,634,484		$	731,049,582
Service		50,862,065			142,840,710
Investor A		50,589,444			79,731,765
Shares issued in reinvestment of dividends:
Institutional		167,871			313,748
Service		315,874			660,793
Investor A		422,602			1,040,155
Shares redeemed:
Institutional		(337,349,755	)		(695,644,721	)
Service		(53,236,017	)		(131,971,718	)
Investor A		(41,161,014	)		(75,821,775	)
Net increase	$	55,245,554		$	52,198,539
	Virginia Municipal
	Six Months Ended March 31, 2008			Year Ended September 30, 2007
Shares sold:
Institutional	$	159,870,017		$	175,563,494
Service		1,068,838			15,761,266
Shares issued in reinvestment of dividends:
Institutional		69,712			115,113
Service		9,105			18,429
Shares redeemed:
Institutional		(131,274,151	)		(166,005,984	)
Service		(2,223,795	)		(14,292,308	)
Net increase	$	27,519,726		$	11,160,010

4. Capital Loss Carryforward:

As of September 30, 2007, the Portfolios had a capital loss carryforward available to offset future realized capital gains through the indicated expiration dates:

	Expiring September 30,
	2009		2010		2011		2014		2015		Total
Money Market	$	—	$	—	$	66,446	$	—	$	—	$	66,446
U.S. Treasury		13,150		11,911		12,380		13,138		—		50,579
Municipal		—		—		—		—		14,334		14,334
North Carolina Municipal		—		—		—		—		7,587		7,587
Pennsylvania Municipal		—		—		—		23,168		—		23,168

SEMI-ANNUAL REPORT MARCH 31, 2008 63

Officers and Trustees

David O. Beim, Trustee

Richard S. Davis, Trustee

Ronald W. Forbes, Trustee

Henry Gabbay, Trustee

Dr. Matina Horner, Trustee

Rodney D. Johnson, Trustee

Herbert I. London, Trustee

Cynthia A. Montgomery, Trustee

Joseph P. Platt, Jr., Trustee

Robert C. Robb, Jr., Trustee

Toby Rosenblatt, Trustee

Kenneth L. Urish, Trustee

Frederick W. Winter, Trustee

Donald C. Burke, President and Chief Executive Officer

Anne F. Ackerley, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Brian P. Kindelan, Chief Compliance Officer

Howard Surloff, Secretary

Investment Advisor and Co-Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor

BlackRock Institutional Management Corporation

Wilmington, DE 19809

Custodian

PFPC Trust Company

Philadelphia, PA 19153

Co-Administrator and Transfer Agent

PFPC Inc.

Wilmington, DE 19809

Distributor

BlackRock Distributors, Inc.

King of Prussia, PA 19406

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Philadelphia, PA 19103

Electronic copies of most financial reports and prospectuses are available on the Funds’ website.

The Trust has delegated proxy voting responsibilities to BlackRock, subject to the general oversight of the Trust’s Board of Trustees. A description of the policies and procedures that BlackRock uses to determine how to vote proxies relating to Fund securities is available without charge, upon request, by calling 1-800-821-7432, or on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.

Information on how proxies relating to the Trust’s voting securities (if any) were voted by BlackRock during the most recent 12-month period ended June 30th is available, upon request and without charge, by calling 1-800-821-7432 or on the website of the Commission at http://www.sec.gov.

The Trust files its complete schedule of Fund holdings for the first and third quarters of its fiscal year with the Commission on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Trust’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Trust’s Forms N-Q may also be obtained, upon request, by calling 1-800-821-7432.

This report is submitted for the general information of the shareholders of the Trust. It is not authorized for distribution to prospective investors unless accompanied or preceded by effective prospectuses for each Fund of the Trust, which contain information concerning the investment policies of the Funds as well as other pertinent information. Statements and other information contained in this report are as dated and subject to change.

64 SEMI-ANNUAL REPORT MARCH 31, 2008

Additional Information (Unaudited)

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 information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal 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 applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to 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 procedures relating to the proper storage and disposal of such information.

Availability of Additional Information

Electronic copies of most financial reports and prospectuses are available on the Fund’s website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund’s electronic delivery program.

To enroll:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly With BlackRock

1) Access the BlackRock website at http://www.blackrock.com/edelivery

2) Click on the applicable link and follow the steps to sign up

3) Log into your account

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Fund at (800) 441-7762.

SEMI-ANNUAL REPORT MARCH 31, 2008 65

Additional Information (concluded)

Availability of Additional Information (concluded)

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request by calling (800) 441-7762; (2) at www.blackrock.com; (3) on the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Availability of Proxy Voting Record

Information (if any) on how proxies relating to the Fund’s voting securities were voted by BlackRock during the most recent 12-month period ended June 30th is available, upon request and without charge on our website at www.blackrock.com, by calling (800) 441-7762 or on the SEC’s website at http://www.sec.gov.

Availability of Quarterly Portfolio Schedule

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock portfolios.

Systematic Withdrawal Plan

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock portfolios, as long as their account is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRA’s, SEP IRA’s and 403(b) Plans.

66 SEMI-ANNUAL REPORT MARCH 31, 2008

A World-Class Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.

Equity Funds
BlackRock All-Cap Global Resources Portfolio	BlackRock Global Opportunities Portfolio	BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Asset Allocation Portfolio†	BlackRock Global Resources Portfolio	BlackRock Mid-Cap Value Equity Portfolio
BlackRock Aurora Portfolio	BlackRock Global Science & Technology Opportunities Portfolio	BlackRock Mid Cap Value Opportunities Fund
BlackRock Balanced Capital Fund†		BlackRock Natural Resources Trust
BlackRock Basic Value Fund	BlackRock Global SmallCap Fund	BlackRock Pacific Fund
BlackRock Capital Appreciation Portfolio	BlackRock Health Sciences Opportunities Portfolio*	BlackRock Small Cap Core Equity Portfolio
BlackRock Equity Dividend Fund	BlackRock Healthcare Fund	BlackRock Small Cap Growth Equity Portfolio
BlackRock EuroFund	BlackRock Index Equity Portfolio*	BlackRock Small Cap Growth Fund II
BlackRock Focus Growth Fund	BlackRock International Fund	BlackRock Small Cap Index Fund
BlackRock Focus Value Fund	BlackRock International Index Fund	BlackRock Small Cap Value Equity Portfolio*
BlackRock Fundamental Growth Fund	BlackRock International Opportunities Portfolio	BlackRock Small/Mid-Cap Growth Portfolio
BlackRock Global Allocation Fund†	BlackRock International Value Fund	BlackRock S&P 500 Index Fund
BlackRock Global Dynamic Equity Fund	BlackRock Large Cap Core Fund	BlackRock Technology Fund
BlackRock Global Emerging Markets Fund	BlackRock Large Cap Growth Fund	BlackRock U.S. Opportunities Portfolio
BlackRock Global Financial Services Fund	BlackRock Large Cap Value Fund	BlackRock Utilities and Telecommunications Fund
BlackRock Global Growth Fund	BlackRock Latin America Fund	BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Commodity Strategies Fund	BlackRock Income Builder Portfolio	BlackRock Low Duration Bond Portfolio
BlackRock Emerging Market Debt Portfolio	BlackRock Inflation Protected Bond Portfolio	BlackRock Managed Income Portfolio
BlackRock Enhanced Income Portfolio	BlackRock Intermediate Bond Portfolio II	BlackRock Short-Term Bond Fund
BlackRock GNMA Portfolio	BlackRock Intermediate Government	BlackRock Strategic Income Portfolio
BlackRock Government Income Portfolio	Bond Portfolio	BlackRock Total Return Fund
BlackRock High Income Fund	BlackRock International Bond Portfolio	BlackRock Total Return Portfolio II
BlackRock High Yield Bond Portfolio	BlackRock Long Duration Bond Portfolio	BlackRock World Income Fund
BlackRock Income Portfolio
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio	BlackRock Intermediate Municipal Fund	BlackRock New York Municipal Bond Fund
BlackRock California Insured Municipal Bond Fund	BlackRock Kentucky Municipal Bond Portfolio	BlackRock Ohio Municipal Bond Portfolio
BlackRock Delaware Municipal Bond Portfolio	BlackRock Municipal Insured Fund	BlackRock Pennsylvania Municipal Bond Fund
BlackRock Florida Municipal Bond Fund	BlackRock National Municipal Fund	BlackRock Short-Term Municipal Fund
BlackRock High Yield Municipal Fund	BlackRock New Jersey Municipal Bond Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios	BlackRock Lifecycle Prepared Portfolios
Conservative Prepared Portfolio	Prepared Portfolio 2010	Prepared Portfolio 2030
Moderate Prepared Portfolio	Prepared Portfolio 2015	Prepared Portfolio 2035
Growth Prepared Portfolio	Prepared Portfolio 2020	Prepared Portfolio 2040
Aggressive Growth Prepared Portfolio	Prepared Portfolio 2025	Prepared Portfolio 2045
		Prepared Portfolio 2050

* See the prospectus for information on specific limitations on investments in the fund.

† Mixed asset fund.

BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and certain funds are also distributed by FAM Distributors, Inc. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing.

SEMI-ANNUAL REPORT MARCH 31, 2008 67

This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a Portfolio unless accompanied or preceded by a Portfolio’s current prospectus. An investment in a Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolios seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a Portfolio. Performance data quoted represents past performance and does not guarantee future results. Total return information assumes reinvestment of all distributions. Current performance may be higher or lower than the performance data quoted. For current month-end performance information, call (800) 441-7762. The Portfolios’ current 7-day yield more closely reflects the current earnings of a Portfolio than the total returns quoted. Statements and other information herein are as dated and are subject to change.

BlackRock Funds

100 Bellevue Parkway

Wilmington, DE 19809

MM-3/08-SAR

Item 2	–	Code of Ethics – Not Applicable to this semi-annual report
Item 3	–	Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4	–	Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5	–	Audit Committee of Listed Registrants – Not Applicable
Item 6	–	Investments (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7	–	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8	–	Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9	–	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10	–	Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the Board recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
Item 11	–	Controls and Procedures
11(a)	–	The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 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 – Not Applicable to this semi-annual report
12(a)(2)	–	Certifications – Attached hereto
12(a)(3)	–	Not Applicable

12(b) – Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Funds
By:	/s/ Donald C. Burke
	Donald C. Burke
	Chief Executive Officer of
	BlackRock Funds

Date: July 2, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Donald C. Burke
	Donald C. Burke
	Chief Executive Officer (principal executive officer) of
	BlackRock Funds

Date: July 2, 2008

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Funds

Date: July 2, 2008