UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES |
Investment Company Act file number 811-05723 Name of Fund: BlackRock Global Emerging Markets Fund, Inc. Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Global Emerging Markets Fund, Inc., 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: 06/30/2008 Date of reporting period: 07/01/2007 – 06/30/2008 Item 1 – Report to Stockholders |
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EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS BlackRock Global Emerging Markets Fund, Inc. ANNUAL REPORT | JUNE 30, 2008 |
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE |
Table of Contents | ||
Page | ||
A Letter to Shareholders | 3 | |
Annual Report: | ||
Fund Summary | 4 | |
About Fund Performance | 6 | |
Disclosure of Expenses | 6 | |
Portfolio Summary | 7 | |
Financial Statements: | ||
Schedule of Investments | 8 | |
Statement of Assets and Liabilities | 11 | |
Statement of Operations | 12 | |
Statements of Changes in Net Assets | 13 | |
Financial Highlights | 14 | |
Notes to Financial Statements | 16 | |
Report of Indendent Registered Public Accounting Firm | 21 | |
Important Tax Information (Unaudited) | 21 | |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement | 22 | |
Officers and Directors | 26 | |
Additional Information | 29 | |
Mutual Fund Family | 31 |
2 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
A Letter to Shareholders |
Dear Shareholder
Throughout the past year, investors were overwhelmed by lingering credit and financial market troubles, surging oil
prices and more recently, renewed inflation concerns. Healthy nonfinancial corporate profits and robust exporting
activity remained among the few bright spots, helping the economy to grow at a modest, but still positive, pace.
The Federal Reserve Board (the “Fed”) has been aggressive in its attempts to stoke economic growth and ease
financial market instability. In addition to slashing the target federal funds rate 325 basis points (3.25%) between
September 2007 and April 2008, the central bank introduced the new Term Securities Lending Facility, granted broker-
dealers access to the discount window and used its own balance sheet to help negotiate the sale of Bear Stearns.
As widely anticipated, the end of the period saw a pause in Fed action, as the central bank held the target rate steady
at 2.0% amid rising inflationary pressures.
As the Fed’s bold response to the financial crisis helped ease credit turmoil and investor anxiety, U.S. equity markets
sank sharply over the last six months, notwithstanding a brief rally in the spring. International markets were not immune
to the tumult, with most regions also registering declines.
Treasury securities also traded in a volatile fashion, but generally rallied (yields fell as prices correspondingly rose), with
investors continuing to seek safety as part of a broader flight to quality. The yield on 10-year Treasury issues, which fell
to 3.34% in March 2008, climbed up to the 4.20% range in mid-June as investors temporarily shifted out of Treasury
issues in favor of riskier assets (such as stocks and other high-quality fixed income sectors), then reversed course and
declined to 3.99% by period-end when credit fears re-emerged.
Tax-exempt issues eked out gains for the reporting period, but underperformed their taxable counterparts, as the group
continued to be pressured by problems among municipal bond insurers and the breakdown in the market for auction
rate securities.
The major benchmark indexes generated results that largely reflected heightened investor risk aversion:
Total Returns as of June 30, 2008 | 6-month | 12-month | ||
U.S. equities (S&P 500 Index) | (11.91)% | (13.12)% | ||
Small cap U.S. equities (Russell 2000 Index) | (9.37)% | (16.19)% | ||
International equities (MSCI Europe, Australasia, Far East Index) | (10.96)% | (10.61)% | ||
Fixed income (Lehman Brothers U.S. Aggregate Index) | 1.13% | 7.12% | ||
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) | 0.02% | 3.23% | ||
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) | (1.08)% | (1.74)% | ||
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 profes- sional 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. |
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THIS PAGE NOT PART OF YOUR FUND REPORT
3
Fund Summary
Portfolio Management Commentary
How did the Fund perform?
•The Fund generated positive returns, but underperformed its benchmark
for the 12-month period.
What factors influenced performance?
•Asia was the largest source of negative performance. Specifically, the
Fund’s underweight in China during the market’s strong rally in the first
half of the year hindered relative results. However, maintaining the under-
weight as the market fell later in the period proved advantageous. Poor
stock selection in Thailand, particularly in the telecommunication servic-
es sector, also detracted from comparative performance.
•Alternatively, holdings in Argentina had the greatest positive impact on
relative returns. Oil services giant Tenaris SA and steel maker Ternium SA
were notable contributors as both companies posted very strong returns
over the year. Positions in the Middle East also contributed positively,
particularly in the non-benchmarked United Arab Emirates and
Kazakhstan. Strong stock selection in South Africa and an overweight in
Russian energy companies aided relative returns as well.
Describe recent portfolio activity.
•During the annual period, we increased the Fund’s underweight position
in Asia, notably in South Korea and the Southeast Asian markets, which
are more vulnerable to increasing inflation and a U.S. slowdown. We also
reduced the Fund’s allocation to South Africa and Turkey. Weights in Latin
America remained relatively unchanged, although we initiated positions
in Argentina and Peru.
•On a sector basis, we significantly increased exposure to the Russian
energy sector, which was notably undervalued. We broadly trimmed
exposure to financials given the increasingly negative global sentiment.
Describe Fund positioning at period-end.
•At period-end, the Fund’s largest regional exposures were to Brazil
and Russia, which are also its most significant overweight positions.
Commodities are the Fund’s largest sector exposure.
•It is a mixed picture for the global emerging market investor.While the
asset class continues to exhibit a number of strong features, the global
environment remains challenging. Further volatility is to be expected,
particularly in Asia, as the effects of accelerating inflation and tighter
monetary policy play out. Countries with lower gross domestic product
are likely to be the most seriously affected, and we have taken a cau-
tious stance here. It is in an environment such as this that the team’s
strong fundamental research and careful asset allocation can add
significant value.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees.
2 The Fund invests in securities, principally equities, of issuers in countries having smaller capital markets.
3 This unmanaged Index measures the total returns of emerging foreign stock markets in Europe, Asia and the Far East.
Past performance is not indicative of future results.
4 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008 |
Performance Summary for the Period Ended June 30, 2008 |
Average Annual Total Returns1 | ||||||||||||||
1 Year | 5 Years | 10 Years | ||||||||||||
6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | ||||||||
Total Returns | charge | charge | charge | charge | charge | charge | ||||||||
Institutional | (11.72)% | 3.84% | — | 28.14% | — | 13.26% | — | |||||||
Investor A | (11.88) | 3.49 | (1.95)% | 27.78 | 26.41% | 12.97 | 12.36% | |||||||
Investor B | (12.20) | 2.70 | (0.84) | 26.79 | 26.63 | 12.24 | 12.24 | |||||||
Investor C | (12.21) | 2.70 | 1.92 | 26.79 | 26.79 | 12.07 | 12.07 | |||||||
Morgan Stanley Capital International | ||||||||||||||
Emerging Markets Index | (11.64) | 4.89 | — | 30.15 | — | 15.51 | — | |||||||
1 Assuming maximum sales charges. See “About Fund 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 | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
January 1, 2008 | June 30, 2008 | During the Period1 | January 1, 2008 | June 30, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $882.80 | $ 6.79 | $1,000 | $1,017.69 | $ 7.27 | ||||||
Investor A | $1,000 | $881.20 | $ 8.09 | $1,000 | $1,016.30 | $ 8.67 | ||||||
Investor B | $1,000 | $878.00 | $11.81 | $1,000 | $1,012.32 | $12.66 | ||||||
Investor C | $1,000 | $877.90 | $11.77 | $1,000 | $1,012.37 | $12.61 | ||||||
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.45% for Institutional, 1.73% for Investor A, 2.53% for Investor B, and 2.52% for Investor C), multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown). 2 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. |
Fund Profile as of June 30, 2008 |
Ten Largest Holdings | Percent of | |
(Equity Investments) | Net Assets | |
OAO Gazprom | 7% | |
Petroleo Brasileiro SA | 5 | |
Companhia Vale do Rio Doce (Preference ‘A’ Shares) | 5 | |
America Movil, SA de CV | 4 | |
China Mobile Ltd. | 3 | |
CEZ AS | 2 | |
Samsung Electronics Co., Ltd. | 2 | |
Cathay Financial Holding Co., Ltd. | 2 | |
OAO Rosnft Oil Co. | 2 | |
Banco Bradesco SA | 2 |
Five Largest Industries | Percent of | |
(Equity Investments) | Net Assets | |
Oil, Gas & Consumable Fuels | 22% | |
Metals & Mining | 19 | |
Commercial Banks | 11 | |
Wireless Telecommunication Services | 10 | |
Industrial Conglomerates | 6 |
For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008 5
About Fund Performance
•Institutional Sharesare not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available
only to eligible investors.
•Investor A Sharesincur 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 Sharesare subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately eight years. (There is no initial sales charge
for automatic share conversions.) All returns for periods greater than
eight years reflect this conversion.
•Investor C Sharesare subject to a distribution fee of 0.75% and a serv-
ice fee of 0.25% . In addition, Investor C Shares are subject to a 1% con-
tingent deferred sales charge if redeemed within one year of purchase.
Performance information reflects past performance and does not guar- antee 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 share- holder would pay on fund distributions or the redemption of fund shares. The Fund may charge a 2% redemption fee for sales or exchanges of shares within 30 days of purchase or exchange. Performance data does not reflect this potential fee. Figures shown in the performance tables on pages 4 and 5 assume reinvestment of all dividends and capital gain distributions, if any, at net asset value on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applica- ble to each class, which are deducted from the income available to be paid to shareholders. |
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses
related to transactions, including sales charges, redemption fees and
exchange fees; and (b) operating expenses including advisory fees,
distribution fees including 12b-1 fees, and other Fund expenses. The
expense example on page 5 (which is based on a hypothetical invest-
ment of $1,000 invested on January 1, 2008 and held through June 30,
2008) is intended to assist shareholders both in calculating expenses
based on an investment in the Fund and in comparing these expenses
with similar costs of investing in other mutual funds.
The table provides information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account
value by $1,000 and then multiply the result by the number correspon-
ding to their share class under the heading “Expenses Paid During
the Period.”
The table also provides information about hypothetical account values
and hypothetical expenses based on the Fund’s actual expense ratio
and an assumed rate of return of 5% per year before expenses. In
order to assist shareholders in comparing the ongoing expenses of
investing in this Fund and other funds, compare the 5% hypothetical
example with the 5% hypothetical examples that appear in other funds’
shareholder reports.
The expenses shown in the table are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as sales charges, redemption fees or exchange fees. Therefore, the hypo-
thetical table is useful in comparing ongoing expenses only, and will
not help shareholders determine the relative total expenses of owning
different funds. If these transactional expenses were included, shareholder
expenses would have been higher.
6 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Portfolio Summary As of June 30, 2008 |
Percent of | ||
Long-Term | ||
Geographic Allocation | Investments | |
Brazil | 19% | |
Russia | 16 | |
China | 11 | |
South Korea | 10 | |
Taiwan | 9 | |
Mexico | 6 | |
South Africa | 5 | |
India | 4 | |
Argentina | 3 | |
Malaysia | 3 | |
Czech Republic | 3 | |
Thailand | 2 | |
United Arab Emirates | 2 | |
Poland | 1 | |
Kazakhstan | 1 | |
Indonesia | 1 | |
Peru | 1 | |
Turkey | 1 | |
United Kingdom | 1 | |
Hong Kong | 1 | |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
7 |
Schedule of Investments June 30, 2008 (Percentages shown are based on Net Assets) |
Common Stocks | Shares | Value | ||
Argentina — 2.1% | ||||
Energy Equipment & Services — 2.1% | ||||
Tenaris SA (a) | 76,100 | $ 5,669,450 | ||
Metals & Mining — 1.4% | ||||
Ternium SA (a) | 87,000 | 3,654,000 | ||
Total Common Stocks in Argentina | 9,323,450 | |||
Brazil — 18.6% | ||||
Beverages — 1.0% | ||||
Cia de Bebidas das Americas | ||||
(Preference Shares) (a) | 42,389 | 2,685,343 | ||
Commercial Banks — 2.7% | ||||
Banco Bradesco SA (a) | 277,243 | 5,672,392 | ||
Banco Industrial e Comercial SA | ||||
(Preference Shares) | 311,825 | 1,604,738 | ||
7,277,130 | ||||
Household Durables — 1.6% | ||||
Cyrela Brazil Realty SA | 182,500 | 2,518,184 | ||
Rodobens Negocios Imobiliarios SA | 135,455 | 1,664,565 | ||
4,182,749 | ||||
Metals & Mining — 6.1% | ||||
Companhia Vale do Rio Doce | ||||
(Preference ‘A’ Shares) (a) | 427,590 | 12,759,286 | ||
Usinas Siderurgicas de Minas Gerais SA | ||||
(Preference ‘A’ Shares) | 71,850 | 3,534,907 | ||
16,294,193 | ||||
Multiline Retail — 0.7% | ||||
Lojas Renner SA | 91,892 | 1,817,090 | ||
Oil, Gas & Consumable Fuels — 6.5% | ||||
OGX Petroleo e Gas Participacoes SA (b) | 3,800 | 3,003,282 | ||
Petroleo Brasileiro SA (a) | 247,200 | 14,325,240 | ||
17,328,522 | ||||
Total Common Stocks in Brazil | 49,585,027 | |||
China — 10.8% | ||||
Commercial Banks — 1.5% | ||||
China Construction Bank Class H | 4,885,000 | 3,941,808 | ||
Industrial Conglomerates — 1.0% | ||||
Beijing Enterprises Holdings Ltd. | 792,000 | 2,596,052 | ||
Insurance — 1.5% | ||||
China Life Insurance Co. Ltd. | 1,136,000 | 3,957,750 | ||
Metals & Mining — 1.0% | ||||
Angang New Steel Co. Ltd. | 778,300 | 1,567,449 | ||
Zhaojin Mining Industry Co. Ltd. | 837,000 | 1,030,664 | ||
2,598,113�� | ||||
Oil, Gas & Consumable Fuels — 2.4% | ||||
CNOOC Ltd. | 2,334,000 | 4,051,618 | ||
China Petroleum & Chemical Corp. | 2,716,000 | 2,538,698 | ||
6,590,316 | ||||
Wireless Telecommunication | ||||
Services — 3.4% | ||||
China Mobile Ltd. | 680,990 | 9,140,822 | ||
Total Common Stocks in China | 28,824,861 | |||
Common Stocks | Shares | Value | ||
Czech Republic — 2.4% | ||||
Electric Utilities — 2.4% | ||||
CEZ AS | 72,325 | $ 6,418,540 | ||
Total Common Stocks in the Czech Republic | 6,418,540 | |||
Hong Kong — 0.6% | ||||
Metals & Mining — 0.6% | ||||
Zijin Mining Group Co. Ltd. | 1,842,000 | 1,567,803 | ||
Total Common Stocks in Hong Kong | 1,567,803 | |||
India — 1.2% | ||||
Construction & Engineering — 0.7% | ||||
IVRCL Infrastructures & Projects Ltd. | 264,300 | 1,871,653 | ||
Prajay Engineers Syndicate Ltd. | 24,737 | 58,813 | ||
1,930,466 | ||||
Household Durables — 0.2% | ||||
DS Kulkarni Developers Ltd. | 196,700 | 454,978 | ||
Industrial Conglomerates — 0.3% | ||||
Jaiprakash Associates Ltd. | 242,000 | 812,576 | ||
Total Common Stocks in India | 3,198,020 | |||
Indonesia — 0.9% | ||||
Industrial Conglomerates — 0.9% | ||||
Bakrie and Brothers Tbk PT (b) | 43,104,000 | 2,484,154 | ||
Total Common Stocks in Indonesia | 2,484,154 | |||
Kazakhstan — 1.0% | ||||
Metals & Mining — 1.0% | ||||
Eurasian Natural Resources Corp. (b) | 103,084 | 2,716,020 | ||
Total Common Stocks in Kazakhstan | 2,716,020 | |||
Malaysia — 2.4% | ||||
Diversified Financial Services — 0.6% | ||||
AMMB Holdings Bhd | 1,715,400 | 1,672,911 | ||
Industrial Conglomerates — 1.8% | ||||
Malaysian Resources Corp. Bhd | 5,954,800 | 2,010,111 | ||
Sime Darby Bhd | 985,000 | 2,792,585 | ||
4,802,696 | ||||
Total Common Stocks in Malaysia | 6,475,607 | |||
Mexico — 5.7% | ||||
Household Durables — 1.1% | ||||
Desarrolladora Homex SA de CV (a)(b) | 48,600 | 2,846,988 | ||
Metals & Mining — 1.0% | ||||
Grupo Mexico, SA de CV | 1,168,314 | 2,650,856 | ||
Wireless Telecommunication | ||||
Services — 3.6% | ||||
America Movil, SA de CV (a) | 182,500 | 9,626,875 | ||
Total Common Stocks in Mexico | 15,124,719 | |||
Peru — 1.0% | ||||
Metals & Mining — 1.0% | ||||
Cia de Minas Buenaventura SA (a) | 37,000 | 2,418,690 | ||
Total Common Stocks in Peru | 2,418,690 | |||
Poland — 1.1% | ||||
Commercial Banks — 1.1% | ||||
Powszechna Kasa Oszczednosci Bank Polski SA | 133,798 | 2,875,216 | ||
Total Common Stocks in Poland | 2,875,216 | |||
See Notes to Financial Statements. |
8 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets) |
Common Stocks | Shares | Value | ||
Russia — 15.7% | ||||
Commercial Banks — 0.9% | ||||
Sberbank RF (a) | 6,910 | $ 2,521,770 | ||
Metals & Mining — 2.4% | ||||
MMC Norilsk Nickel (a) | 104,138 | 2,634,691 | ||
Novolipetsk Steel (a) | 64,000 | 3,628,800 | ||
6,263,491 | ||||
Oil, Gas & Consumable Fuels — 10.7% | ||||
LUKOIL (a) | 45,268 | 4,463,425 | ||
OAO Gazprom (a) | 308,446 | 17,929,534 | ||
OAO Rosnft Oil Co. (a)(b) | 513,803 | 5,960,115 | ||
28,353,074 | ||||
Software — 0.7% | ||||
AFI Development Plc (a)(b) | 260,703 | 1,996,985 | ||
Wireless Telecommunication | ||||
Services — 1.0% | ||||
Mobile Telesystems (a) | 34,100 | 2,612,401 | ||
Total Common Stocks in Russia | 41,747,721 | |||
South Africa — 5.0% | ||||
Commercial Services & Supplies — 0.4% | ||||
Blue Label Telecoms Ltd. (b) | 1,331,553 | 1,187,437 | ||
Metals & Mining — 1.6% | ||||
Anglo Platinum Ltd. | 25,000 | 4,157,672 | ||
Oil, Gas & Consumable Fuels — 1.6% | ||||
Sasol Ltd. | 71,900 | 4,232,377 | ||
Pharmaceuticals — 0.3% | ||||
Enaleni Pharmaceuticals Ltd. (b) | 2,718,501 | 885,074 | ||
Wireless Telecommunication | ||||
Services — 1.1% | ||||
MTN Group Ltd. | 184,000 | 2,912,537 | ||
Total Common Stocks in South Africa | 13,375,097 | |||
South Korea — 10.1% | ||||
Commercial Banks — 1.7% | ||||
Kookmin Bank | 75,396 | 4,431,206 | ||
Construction & Engineering — 1.9% | ||||
Daelim Industrial Co. | 28,395 | 2,901,777 | ||
Hyundai Development Co. | 44,634 | 2,259,886 | ||
5,161,663 | ||||
Industrial Conglomerates — 0.9% | ||||
CJ Corp. | 42,711 | 2,529,004 | ||
Insurance — 1.0% | ||||
Dongbu Insurance Co., Ltd. | 72,500 | 2,658,912 | ||
Metals & Mining — 1.5% | ||||
POSCO | 7,638 | 3,977,552 | ||
Multiline Retail — 0.8% | ||||
Hyundai Department Store Co. Ltd. | 26,130 | 2,113,243 | ||
Semiconductors & Semiconductor | ||||
Equipment — 2.3% | ||||
Samsung Electronics Co., Ltd. | 10,141 | 6,058,623 | ||
Total Common Stocks in South Korea | 26,930,203 | |||
Common Stocks | Shares | Value | ||
Taiwan — 8.4% | ||||
Electronic Equipment & Instruments — 1.2% | ||||
HON HAI Precision Industry Co., Ltd. | 657,000 | $ 3,230,858 | ||
Industrial Conglomerates — 1.0% | ||||
Far Eastern Textile Co. Ltd. | 2,099,800 | 2,730,622 | ||
Insurance — 2.3% | ||||
Cathay Financial Holding Co., Ltd. | 2,781,000 | 6,041,352 | ||
Metals & Mining — 0.5% | ||||
China Steel Corp. | 879,000 | 1,355,018 | ||
Semiconductors & Semiconductor | ||||
Equipment — 3.4% | ||||
Advanced Semiconductor Engineering Inc. | 2,710,787 | 2,430,002 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 1,166,000 | 2,477,585 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. (a) | 381,226 | 4,159,176 | ||
9,066,763 | ||||
Total Common Stocks in Taiwan | 22,424,613 | |||
Thailand — 2.3% | ||||
Commercial Banks — 1.3% | ||||
Kasikornbank PCL | 1,596,000 | 3,394,374 | ||
Oil, Gas & Consumable Fuels — 1.0% | ||||
PTT PCL (a) | 296,200 | 2,679,249 | ||
Total Common Stocks in Thailand | 6,073,623 | |||
Turkey — 0.9% | ||||
Commercial Banks — 0.9% | ||||
Turkiye Vakiflar Bankasi T.A.O. Class D | 1,777,900 | 2,311,934 | ||
Total Common Stocks in Turkey | 2,311,934 | |||
United Kingdom — 0.8% | ||||
Metals & Mining — 0.8% | ||||
Central African Mining & Exploration Co. Plc (b) | 1,811,687 | 1,994,708 | ||
Total Common Stocks in the United Kingdom | 1,994,708 | |||
Total Common Stocks — 92.4% | 245,870,006 | |||
Structured Notes | ||||
India — 2.6% | ||||
Diversified Financial Services — 1.3% | ||||
Citigroup Global Markets Holdings, Inc. | ||||
(JSW Steel Ltd.), 1/20/10 (b) | 158,363 | 3,312,542 | ||
Wireless Telecommunication Services — 1.3% | ||||
Morgan Stanley Asia Products Ltd. | ||||
(Bharti Airtel Ltd.), 8/01/10 (b) | 205,981 | 3,462,520 | ||
Total Structured Notes in India | 6,775,062 | |||
United Arab Emirates — 2.0% | ||||
Commercial Banks — 1.0% | ||||
HSBC Bank Plc (Abu Dhabi Commercial Bank), | ||||
1/20/2009 (b) | 1,989,088 | 2,767,219 | ||
Total Structured Notes in the United Arab Emirates | 2,767,219 | |||
United States — 1.0% | ||||
Citigroup Global Markets Holdings, Inc. | ||||
(Emaar Properties PJSC), 3/24/09 (b) | 886,032 | 2,617,259 | ||
Total Structured Notes in the United States | 2,617,259 | |||
Total Structured Notes — 4.6% | 12,159,540 | |||
Total Long-Term Investments | ||||
(Cost — $242,560,250) — 97.0% | 258,029,546 | |||
See Notes to Financial Statements. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
9 |
Schedule of Investments (concluded) (Percentages shown are based on Net Assets) |
Beneficial | ||||
Interest | ||||
Short-Term Securities | (000) | Value | ||
BlackRock Liquidity Series, LLC | ||||
Cash Sweep Series, 2.56% (c)(d) | $ 1,127 | $ 1,127,428 | ||
Total Short-Term Securities | ||||
(Cost — $1,127,428) — 0.4% | 1,127,428 | |||
Total Investments (Cost — $243,687,678*) — 97.4% | 259,156,974 | |||
Other Assets Less Liabilities — 2.6% | 6,925,843 | |||
Net Assets — 100.0% | $ 266,082,817 | |||
* The cost and unrealized appreciation (depreciation) of investments as of June
30, 2008, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 245,397,389 | |
Gross unrealized appreciation | $ 38,561,924 | |
Gross unrealized depreciation | (24,802,339) | |
Net unrealized appreciation | $ 13,759,585 | |
(a) Depositary receipts.
(b) Non-income producing security.
(c) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
Net | ||||
Activity | Interest | |||
Affiliate | (000) | Income | ||
BlackRock Liquidity Series, LLC | ||||
Cash Sweep Series | $1,127 | $79,002 | ||
(d) Represents the current yield as of report date.
•For Fund compliance purposes,the Fund's industry classifications refer to any
one or more of the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as defined by Fund
management. This definition may not apply for purposes of this report, which
may combine industry sub-classifications for reporting ease. These industry
classifications are unaudited.
See Notes to Financial Statements. |
10 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Statement of Assets and Liabilities | ||
June 30, 2008 | ||
Assets | ||
Investments at value — unaffiliated (cost — $242,560,250) | $ 258,029,546 | |
Investments at value — affiliated (cost — $1,127,428) | 1,127,428 | |
Foreign currency at value (cost — $7,291,139) | 7,295,064 | |
Investments sold receivable | 1,790,225 | |
Dividends receivable | 745,417 | |
Prepaid expenses | 27,971 | |
Capital shares sold receivable | 25,867 | |
Other assets | 55,534 | |
Total assets | 269,097,052 | |
Liabilities | ||
Bank overdraft | 88,609 | |
Investments purchased payable | 1,559,290 | |
Capital shares redeemed payable | 820,447 | |
Investment advisory fees payable | 229,081 | |
Other affiliates payable | 79,689 | |
Distribution fees payable | 65,838 | |
Officer’s and Directors’ fees payable | 58 | |
Other accrued expenses payable | 171,223 | |
Total liabilities | 3,014,235 | |
Net Assets | ||
Net assets | $ 266,082,817 | |
Net Assets Consist of | ||
Institutional Shares, $0.10 par value, 100,000,000 shares authorized | $ 358,190 | |
Investor A Shares, $0.10 par value, 100,000,000 shares authorized | 668,599 | |
Investor B Shares, $0.10 par value, 100,000,000 shares authorized | 40,061 | |
Investor C Shares, $0.10 par value, 100,000,000 shares authorized | 164,495 | |
Paid-in capital in excess of par | 238,956,650 | |
Undistributed net investment income | 82,388 | |
Accumulated net realized gain | 10,330,931 | |
Net unrealized appreciation/depreciation | 15,481,503 | |
Net assets | $ 266,082,817 | |
Net Asset Value | ||
Insitutional — Based on net assets of $80,398,743 and 3,581,901 shares outstanding | $ 22.45 | |
Investor A — Based on net assets of $145,780,951 and 6,685,990 shares outstanding | $ 21.80 | |
Investor B — Based on net assets of $7,955,007 and 400,614 shares outstanding | $ 19.86 | |
Investor C — Based on net assets of $31,948,116 and 1,644,950 shares outstanding | $ 19.42 | |
See Notes to Financial Statements. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
11 |
Statement of Operations | ||
Year Ended June 30, 2008 | ||
Investment Income | ||
Dividends (net of $480,926 foreign withholding tax) | $ 5,326,914 | |
Interest from affiliates | 79,002 | |
Total income | 5,405,916 | |
Expenses | ||
Investment advisory | 2,967,780 | |
Custodian | 464,069 | |
Service — Investor A | 402,645 | |
Service and distribution — Investor B | 110,591 | |
Service and distribution — Investor C | 353,775 | |
Transfer agent — Institutional | 95,074 | |
Transfer agent — Investor A | 224,386 | |
Transfer agent — Investor B | 20,786 | |
Transfer agent — Investor C | 56,117 | |
Accounting services | 142,174 | |
Printing | 70,428 | |
Professional | 69,965 | |
Registration | 66,389 | |
Officer and Directors | 26,785 | |
Miscellaneous | 35,643 | |
Total expenses | 5,106,607 | |
Less fees waived by advisor | (77,082) | |
Total expenses after waiver | 5,029,525 | |
Net investment income | 376,391 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) from: | ||
Investments (net of $310,064 foreign capital gain tax) | 59,481,900 | |
Foreign currency | (152,219) | |
59,329,681 | ||
Net change in unrealized appreciation/depreciation on: | ||
Investments | (49,226,769) | |
Foreign currency | (2,265) | |
(49,229,034) | ||
Total realized and unrealized gain | 10,100,647 | |
Net Increase in Net Assets Resulting from Operations | $ 10,477,038 | |
See Notes to Financial Statements. |
12 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Statements of Changes in Net Assets | ||||
Year Ended | ||||
June 30, | ||||
Increase (Decrease) in Net Assets: | 2008 | 20071 | ||
Operations | ||||
Net investment income | $ 376,391 | $ 125,781 | ||
Net realized gain | 59,329,681 | 46,929,278 | ||
Net change in unrealized appreciation/depreciation | (49,229,034) | 40,985,034 | ||
Net increase in net assets resulting from operations | 10,477,038 | 88,040,093 | ||
Dividends and Distributions to Shareholders From | ||||
Net investment income: | ||||
Institutional | — | (895,352) | ||
Investor A | — | (1,243,863) | ||
Investor B | — | (89,432) | ||
Investor C | — | (167,642) | ||
Net realized gain: | ||||
Institutional | (21,745,299) | (13,057,383) | ||
Investor A | (39,569,089) | (22,224,912) | ||
Investor B | (2,962,637) | (2,979,300) | ||
Investor C | (9,120,068) | (4,763,109) | ||
Decrease in net assets resulting from dividends and distributions to shareholders | (73,397,093) | (45,420,993) | ||
Capital Share Transactions | ||||
Net increase in net assets derived from capital share transactions | 45,811,401 | 2,399,521 | ||
Redemption Fee | ||||
Redemption fee | 9,593 | 7,377 | ||
Net Assets | ||||
Total increase (decrease) in net assets | (17,099,061) | 45,025,998 | ||
Beginning of year | 283,181,878 | 238,155,880 | ||
End of year | $ 266,082,817 | $ 283,181,878 | ||
End of year undistributed net investment income | $ 82,388 | — | ||
1 Consolidated Statement of Changes in Net Assets. See Note 1 of the Notes to Financial Statements. |
See Notes to Financial Statements. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
13 |
Financial Highlights | ||||||||||||||||||||||
Institutional | Investor A | |||||||||||||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||||||||||||
2008 | 20071 | 20061 | 20051 | 20041 | 2008 | 20071 | 20061 | 20051 | 20041 | |||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||
Net asset value, beginning of year | $ 27.91 | $ 24.14 | $ 17.74 | $ 13.37 | $ 10.42 | $ 27.27 | $ 23.68 | $ 17.41 | $ 13.16 | $ 10.27 | ||||||||||||
Net investment income2 | 0.12 | 0.09 | 0.22 | 0.18 | 0.06 | 0.04 | 0.02 | 0.17 | 0.15 | 0.02 | ||||||||||||
Net realized and unrealized gain | 1.283 | 8.373 | 6.283 | 4.193 | 2.96 | 1.253 | 8.213 | 6.163 | 4.103 | 2.92 | ||||||||||||
Total from investment operations | 1.40 | 8.46 | 6.50 | 4.37 | 3.02 | 1.29 | 8.23 | 6.33 | 4.25 | 2.94 | ||||||||||||
Dividends and distributions from: | ||||||||||||||||||||||
Net investment income | — | (0.28) | (0.10) | — | (0.07) | — | (0.23) | (0.06) | — | (0.05) | ||||||||||||
Net realized gain | (6.86) | (4.41) | — | — | — | (6.76) | (4.41) | — | — | — | ||||||||||||
Total dividends and distributions | (6.86) | (4.69) | (0.10) | — | (0.07) | (6.76) | (4.64) | (0.06) | — | (0.05) | ||||||||||||
Net asset value, end of year | $ 22.45 | $ 27.91 | $ 24.14 | $ 17.74 | $ 13.37 | $ 21.80 | $ 27.27 | $ 23.68 | $ 17.41 | $ 13.16 | ||||||||||||
Total Investment Return4 | ||||||||||||||||||||||
Based on net asset value | 3.84% | 41.99% | 36.80% | 32.69% | 29.11% | 3.49% | 41.66% | 36.46% | 32.29% | 28.71% | ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||||||||||
reorganization expenses | 1.37% | 1.40% | 1.50% | 1.60% | 1.88% | 1.65% | 1.66% | 1.75% | 1.85% | 2.12% | ||||||||||||
Total expenses after waiver | 1.37% | 1.40% | 1.50% | 1.60% | 2.02% | 1.65% | 1.66% | 1.75% | 1.85% | 2.25% | ||||||||||||
Total expenses | 1.40% | 1.44% | 1.50% | 1.63% | 2.02% | 1.68% | 1.71% | 1.75% | 1.88% | 2.25% | ||||||||||||
Net investment income | 0.45% | 0.36% | 0.99% | 1.18% | 0.43% | 0.16% | 0.10% | 0.74% | 0.94% | 0.17% | ||||||||||||
Supplemental Data | ||||||||||||||||||||||
Net assets, end of year (000) | $ 80,399 | $ 86,385 | $ 73,914 | $ 63,018 | $ 63,831 | $145,781 | $151,309 | $122,331 | $ 91,292 | $ 79,383 | ||||||||||||
Portfolio turnover | 163% | 140% | 121% | 110% | 183% | 163% | 140% | 121% | 110% | 183% | ||||||||||||
1 | Consolidated Financial Highlights. See Note 1 of the Notes to Financial Statements. |
2 | Based on average shares outstanding. |
3 | Includes a redemption fee, which is less than $0.01 per share. |
4 | Total investment returns exclude the effect of any sales charges. |
See Notes to Financial Statements. |
14 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Financial Highlights (concluded) | ||||||||||||||||||||||||
Investor B | Investor C | |||||||||||||||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||||||||||||||
2008 | 20071 | 20061 | 20051 | 20041 | 2008 | 20071 | 20061 | 20051 | 20041 | |||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||||
Net asset value, beginning of year | $ 25.20 | $ 22.10 | $ 16.32 | $ 12.44 | $ 9.74 | $ 24.91 | $ 22.01 | $ 16.25 | $ 12.38 | $ 9.70 | ||||||||||||||
Net investment income (loss)2 | (0.14) | (0.15) | —3 | 0.02 | (0.08) | (0.14) | (0.14) | (0.01) | 0.02 | (0.07) | ||||||||||||||
Net realized and unrealized gain | 1.184 | 7.624 | 5.784 | 3.864 | 2.78 | 1.184 | 7.534 | 5.774 | 3.854 | 2.75 | ||||||||||||||
Total from investment operations | 1.04 | 7.47 | 5.78 | 3.88 | 2.70 | 1.04 | 7.39 | 5.76 | 3.87 | 2.68 | ||||||||||||||
Dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.13) | — | — | — | — | (0.13) | — | — | — | ||||||||||||||
Net realized gain | (6.38) | (4.24) | — | — | — | (6.53) | (4.36) | — | — | — | ||||||||||||||
Total dividends and distributions | (6.38) | (4.37) | — | — | — | (6.53) | (4.49) | — | — | — | ||||||||||||||
Net asset value, end of year | $ 19.86 | $ 25.20 | $ 22.10 | $ 16.32 | $ 12.44 | $ 19.42 | $ 24.91 | $ 22.01 | $ 16.25 | $ 12.38 | ||||||||||||||
Total Investment Return5 | ||||||||||||||||||||||||
Based on net asset value | 2.70% | 40.59% | 35.42% | 31.19% | 27.72% | 2.70% | 40.58% | 35.45% | 31.26% | 27.63% | ||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||||||||||||
reorganization expenses | 2.44% | 2.45% | 2.53% | 2.65% | 2.93% | 2.42% | 2.43% | 2.52% | 2.65% | 2.93% | ||||||||||||||
Total expenses after waiver | 2.44% | 2.45% | 2.53% | 2.65% | 3.06% | 2.42% | 2.43% | 2.52% | 2.65% | 3.07% | ||||||||||||||
Total expenses | 2.47% | 2.48% | 2.53% | 2.68% | 3.06% | 2.45% | 2.47% | 2.52% | 2.68% | 3.07% | ||||||||||||||
Net investment income (loss) | (0.60)% | (0.68)% | (0.02)% | 0.11% | (0.66)% | (0.61)% | (0.66)% | (0.05)% | 0.16% | (0.62)% | ||||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of year (000) | $ 7,955 | $ 13,280 | $ 17,238 | $ 24,333 | $ 30,102 | $ 31,948 | $ 32,208 | $ 24,674 | $ 15,956 | $ 14,903 | ||||||||||||||
Portfolio turnover | 163% | 140% | 121% | 110% | 183% | 163% | 140% | 121% | 110% | 183% | ||||||||||||||
1 | Consolidated Financial Highlights. See Note 1 of the Notes to Financial Statements. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | Includes a redemption fee, which is less than $0.01 per share. |
5 | Total investment returns exclude the effect of sales charges. |
See Notes to Financial Statements. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
15 |
Notes to Financial Statements 1. Significant Accounting Policies: On March 17, 2008, BlackRock Developing Capital Markets Fund, Inc. was renamed BlackRock Global Emerging Markets Fund, Inc. (the “Fund”). The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, open-end management investment company. The Fund’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 Fund offers multiple classes of shares. Institutional Shares are sold only to certain eligible investors. Investor A Shares are generally sold with a front-end sales charge. Investor B and Investor C Shares may be sub- ject 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 Investor A, Investor B and Investor C Shares bear certain expenses related to the shareholder servicing of such shares, and Investor B and Investor C Shares also bear certain expenses related to the 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 sharehold- ers may vote on material changes to the Investor A distribution plan). The following is a summary of significant accounting policies followed by the Fund: Valuation of Investments: Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid price. If no bid price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. 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 Directors (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 Fund might reasonably expect to receive from the cur- rent sale of that asset in an arm’s-length transaction. Fair value determi- nations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof. Generally, trading in foreign 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 Fund 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 Fund’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such 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 Fund reports foreign currency related transactions as components of realized gains for financial reporting purposes, whereas such compo- nents are treated as ordinary income for federal income tax purposes. Investment Transactions and Investment Income: Investment trans- actions 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 Fund has determined the ex-dividend date. Interest income is recognized on the accrual basis. Income and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets. |
16 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Notes to Financial Statements (continued) Dividends and Distributions: Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment com- panies 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 December 31, 2007, the Fund implemented Financial Account- ing 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, includ- ing investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the applica- tion of FIN 48 to the Fund, and has determined that the adoption of FIN 48 does not have a material impact on the Fund’s financial statements. The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limita- tions on the Fund’s U.S. federal tax returns remain open for the years ended June 30, 2005 through June 30, 2007. The statutes of limitations on the Fund’s state and local tax returns may remain open for an addi- tional 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 Fund’s financial statement disclo- sures, 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. 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 Fund’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 impact on the Fund’s financial statement dis- closures, if any, is currently being assessed. Basis of Consolidation: The accompanying consolidated Statement of Changes in Net Assets for the year ended June 30, 2007 and the Financial Highlights for each of the years in the four-year period ended June 30, 2007 includes the accounts of Inversiones en Marcado Accionario de Valores Chile Limitada, a wholly owned subsidiary of the Fund. The subsidiary was created for regulatory purposes to invest in Chilean securities. Intercompany accounts and transactions have been eliminated. During the year ended June 30, 2007, Inversiones en Mercado Accionario de Valores Chile Limitada was dissolved. Bank Overdraft: The Fund recorded a bank overdraft which resulted from management estimates of available cash. Other: Expenses directly related to the Fund or its classes are charged to that Fund or class. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets. 2. Investment Advisory Agreement and Other Transactions with Affiliates: The Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC, (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc. to provide investment advisory and administration serv- ices. 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 Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operation of the Fund. For such services, the Fund pays the Advisor a monthly fee at an annual rate of 1.0% of the average daily net assets of the Fund. The Advisor voluntarily agreed to waive 0.10% of its fee for the periods July 1, 2007 to August 31, 2007 and October 1, 2007 to October 31, 2007. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
17 |
Notes to Financial Statements (continued) The Advisor has entered into a separate sub-advisory agreement with BlackRock Investment Management, LLC and BlackRock Asset Management U.K. Limited, both affiliates of the Advisor with respect to the Fund, under which the Advisor pays each sub-advisor for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by the Fund to the Advisor. For the year ended June 30, 2008, the Fund reimbursed the Advisor $5,328, for certain accounting services, which is included in accounting services in the Statement of Operations. The Fund has also entered into separate Distribution Agreements and Distribution Plans with FAM Distributors, Inc. (“FAMD”) and BlackRock Distributors, Inc. and its affiliates (“BDI”) (collectively, the “Distributor”). FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc. and BDI is an affiliate of BlackRock, Inc. Pursuant to the Distribution Plans adopted by the Fund in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Distributor ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the shares as follows: |
Service | Distribution | |||
Fee | Fee | |||
Investor A | 0.25% | — | ||
Investor B | 0.25% | 0.75% | ||
Investor C | 0.25% | 0.75% | ||
Pursuant to sub-agreements with the Distributor, broker-dealers, includ- ing Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, and each Distributor provide shareholder servicing and distribution services to the Fund. The ongoing service fee and/or distribution fee compensates the Distributor and each broker-dealer for providing shareholder servicing and/or distribution related services to Investor A, Investor B and Investor C shareholders. For the year ended June 30, 2008, the Distributor earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares, which totaled $71,624, and affiliates received contingent deferred sales charges of $10,183 and $4,324 relating to transactions in Investor B and Investor C Shares, respectively. Furthermore, affiliates received contingent deferred sales charges of $793 relating to transactions subject to front-end sales charge waivers in Investor A Shares. These amounts include payments to Hilliard Lyons, which was considered an affiliate for a portion of the year. |
In addition, MLPF&S received $1,267 in commissions on the execution of portfolio security transactions for the Fund for the year ended June 30, 2008. Pursuant to written agreements, certain affiliates provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other adminis- trative services with respect to sub-accounts they service. For these services, these affiliates receive an annual fee per shareholder account which will vary depending on share class. For the year ended June 30, 2008, the Fund paid $293,758 in return for these services. PNC Global Investment Servicing (U.S.) Inc., formerly PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the Advisor, serves as transfer agent. Each class of the Fund bears the costs of transfer agent fees associated with such respective classes. Transfer agency fees borne by each class of the Fund are comprised of those fees charged for all shareholder communications including the mailing of 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 Fund, 12b-1 fee calculation, check writing, anti-money laundering services, and customer identification services. The Advisor maintains a call center, which is responsible for providing certain shareholder services to the Fund, such as responding to share- holder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the year ended June 30, 2008 the following amounts have been accrued by the Fund 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. |
Call Center | ||
Fees | ||
Institutional | $2,704 | |
Investor A | $8,228 | |
Investor B | $ 806 | |
Investor C | $1,398 | |
Certain officers and/or directors of the Fund are officers and/or directors of BlackRock, Inc. or its affiliates. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the year ended June 30, 2008 were $475,994,295 and $510,895,100, respectively. |
18 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Notes to Financial Statements (continued) 4. Short-Term Borrowings: The Fund, 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 Fund may borrow under the credit agreement to fund share- holder redemptions and for other lawful purposes other than for lever- age. The Fund may borrow up to the maximum amount allowable under the Fund’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 Fund pays a commitment fee of 0.06% per annum based on the Fund’s pro rata share of the unused portion of the credit agreement, which is included in miscellaneous in the Statement of Operations. Amounts borrowed under the credit agree- ment bear interest at a rate equal to, at each fund’s election, the federal funds rate plus 0.35% or a base rate as defined in the credit agree- ment. The Fund did not borrow under the credit agreement during the year ended June 30, 2008. 5. Commitments: At June 30, 2008, the Fund had entered into foreign exchange con- tracts, under which it had agreed to purchase and sell foreign currencies with approximate values of $1,276,000 and $261,000, respectively. 6. Income Tax Information: Reclassification: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, during the current year, $294,003 has been reclassified between undistributed net investment income and accumu- lated net realized gains as a result of permanent differences attributable to foreign taxes paid, the tax characterization of income recognized from partnerships, and foreign currency transaction gains/losses. This reclas- sification has no effect on net assets or net asset values per share. |
The tax character of distributions paid during the fiscal years ended June 30, 2008 and June 30, 2007 was as follows: |
6/30/2008 | 6/30/2007 | |||
Distributions paid from: | ||||
Ordinary income | $ 25,665,616 | $11,250,348 | ||
Long-term capital gain | 47,731,477 | 34,170,645 | ||
Total taxable distributions | $ 73,397,093 | $45,420,993 | ||
As of June 30, 2008, the components of accumulated earnings on a tax basis were as follows: |
Undistributed ordinary net income | $ 4,293,434 | |
Undistributed long-term net capital gains | 18,684,417 | |
Total undistributed net earnings | 22,977,851 | |
Capital loss carryforward | (10,854,840)* | |
Net unrealized gains | 13,771,811** | |
Total accumulated net earnings | $ 25,894,822 | |
* On June 30, 2008, the Fund had a capital loss carryforward of $10,854,840, of which $7,236,560 expires in 2010 and $3,618,280 expires in 2011. This amount will be available to offset future taxable gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts, and the timing of income recognition on partnership interests. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
19 |
Notes to Financial Statements (concluded) | ||||||||||||
7. Capital Share Transactions: | ||||||||||||
Transactions in capital shares for each class were as follows: | ||||||||||||
Year Ended | Year Ended | |||||||||||
June 30, 2008 | June 30, 2007 | |||||||||||
Shares | Dollar Amount | Shares | Dollar Amount | |||||||||
Institutional | ||||||||||||
Shares sold | 187,837 | $ 4,917,755 | 103,900 | $ 2,445,868 | ||||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends and distributions | 750,174 | 18,866,886 | 560,278 | 11,600,782 | ||||||||
Total issued | 938,011 | 23,784,641 | 664,178 | 14,046,650 | ||||||||
Shares redeemed | (450,698) | (11,679,397) | (631,519) | (15,126,694) | ||||||||
Net increase (decrease) | 487,313 | $12,105,244 | 32,659 | $ (1,080,044) | ||||||||
Investor A | ||||||||||||
Shares sold and the automatic conversion of shares | 782,422 | $20,102,130 | 619,093 | $14,461,982 | ||||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends and distributions | 1,345,076 | 32,946,633 | 909,100 | 18,434,053 | ||||||||
Total issued | 2,127,498 | 53,048,763 | 1,528,193 | 32,896,035 | ||||||||
Shares redeemed | (989,966) | (24,538,895) | (1,145,067) | (26,610,025) | ||||||||
Net increase | 1,137,532 | $28,509,868 | 383,126 | $ 6,286,010 | ||||||||
Investor B | ||||||||||||
Shares sold | 67,969 | $ 1,630,778 | 94,447 | $ 2,022,074 | ||||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends and distributions | 113,412 | 2,552,296 | 134,036 | 2,527,381 | ||||||||
Total issued | 181,381 | 4,183,074 | 228,483 | 4,549,455 | ||||||||
Shares redemed and the automatic conversion of shares | (307,706) | (7,194,172) | (481,390) | (10,403,861) | ||||||||
Net decrease | (126,325) | $ (3,011,098) | (252,907) | $ (5,854,406) | ||||||||
Investor C | ||||||||||||
Shares sold | 401,603 | $ 9,253,606 | 236,875 | $ 5,127,554 | ||||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends and distributions | 360,570 | 7,941,682 | 237,166 | 4,421,388 | ||||||||
Total issued | 762,173 | 17,195,288 | 474,041 | 9,548,942 | ||||||||
Shares redeemed | (410,160) | (8,987,901) | (302,033) | (6,500,981) | ||||||||
Net increase | 352,013 | $ 8,207,387 | 172,008 | $ 3,047,961 | ||||||||
There is a 2% redemption fee on shares redeemed or exchanged that have been held 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.
20 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Report of Independent Registered Public Accounting Firm |
To the Shareholders and Board of Directors of BlackRock Global Emerging Markets Fund, Inc.: We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Global Emerging Markets Fund, Inc. (the “Fund”) (formerly BlackRock Developing Capital Markets Fund, Inc.) as of June 30, 2008, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the finan- cial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assur- ance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over finan- |
cial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our proce- dures included confirmation of securities owned as of June 30, 2008 by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Global Emerging Markets Fund, Inc. as of June 30, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. |
Deloitte & Touche LLP Princeton, New Jersey August 25, 2008 |
Important Tax Information (Unaudited) The following information is provided with respect to the ordinary income distributions paid by the BlackRock Global Emerging Markets Fund, Inc. during the fiscal year ended June 30, 2008: |
Record Date | 9/17/2007 | 12/13/2007 | ||||
Payable Date | 9/19/2007 | 12/17/2007 | ||||
Qualified Dividend Income for Individuals1 | 24.06%3 | 13.57%3 | ||||
Foreign Source Income | 25.73%3 | 20.45%3 | ||||
Foreign Taxes Paid Per Share | $0.041964 | $0.020200 | ||||
Short-Term Capital Gain Dividends for Non-U.S. Residents2 | 100.00% | 100.00% | ||||
1 The Fund hereby designates the percentage indicated above or the maximum amount allowable by law. 2 Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations. 3 Expressed as a percentage of the cash distribution grossed-up for foreign taxes. The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid. Additionally, the Fund distributed long-term capital gains of $2.474258 per share to shareholders of record on September 17, 2007 and $1.914985 to shareholders of record on December 13, 2007. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
21 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement |
The Board of Directors (the “Board,” the members of which are referred to as “Directors”) of BlackRock Global Emerging Markets Fund, Inc. (the “Fund”) met in person in April and June 2008 to consider the approval of the Fund’s investment advisory agreement with its investment adviser, BlackRock Advisors, LLC (the “Adviser”) (the “Advisory Agreement”). The Board also considered the approval of the separate subadvisory agree- ments with respect to the Fund between the Adviser and BlackRock Investment Management, LLC and BlackRock Asset Management U.K. Limited (each, a “Subadviser”) (each, a “Subadvisory Agreement”). The Adviser and the Subadvisers are referred to herein as “BlackRock.” The Advisory Agreement and the Subadvisory Agreements are referred to herein as the “Agreements.” Activities and Composition of the Board The Board of the Fund consists of thirteen individuals, eleven of whom are not “interested persons” of the Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independ- ent Directors”). The Directors are responsible for the oversight of the operations of the Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of the Board are both Independent Directors. The Board established four standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee and a Performance Oversight Committee, each of which is composed of, and chaired by, Independent Directors. The Agreements Upon the consummation of the combination of BlackRock’s investment management business with Merrill Lynch & Co., Inc.’s investment man- agement business, including Merrill Lynch Investment Managers, L. . and certain affiliates (the “Transaction”), the Fund entered into an Advisory Agreement with the Adviser with an initial two-year term and the Adviser entered into a Subadvisory Agreement with each Subadviser with an initial two-year term. Consistent with the 1940 Act, prior to the expiration of each Agreement’s initial two-year term, the Board is required to consider the continuation of the Agreements on an annual basis. In con- nection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to the Fund by the personnel of BlackRock and its affiliates, including investment manage- ment, administrative services, shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting legal and regulatory requirements. The Board also received and assessed information regarding the services provided to the Fund by certain unaffiliated service providers. |
Throughout the year, the Board, acting directly and through its commit- tees, considers at each of its meetings factors that are relevant to its annual consideration of the renewal of the Fund’s Agreements, including the services and support provided to the Fund and its shareholders. Among the matters the Board considered were: (a) investment perform- ance for one, three and five years, as applicable, against peer funds, as well as senior management’s and portfolio managers’ analysis of the reasons for underperformance, if applicable; (b) fees, including advisory, administration, if applicable, and other fees paid to BlackRock and its affiliates by the Fund, such as transfer agency fees and fees for market- ing and distribution; (c) Fund operating expenses; (d) the resources devoted to and compliance reports relating to the Fund’s investment objective, policies and restrictions, (e) the Fund’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting guidelines approved by the Board; (i) the use of brokerage commissions and spread and execution quality; (j) valuation and liquidity procedures; and (k) periodic overview of BlackRock’s business, including BlackRock’s response to the increasing scale of its business. Board Considerations in Approving the Agreements The Approval Process: Prior to the April 16, 2008 meeting at which approval of the Agreements was to be considered, the Board requested and received materials specifically relating to the Agreements. The Board is engaged in an ongoing process with BlackRock to continuously review the nature and scope the information provided to better assist its delib- erations. These materials included (a) information independently com- piled and prepared by Lipper, Inc. (“Lipper”) on the Fund’s fees and expenses and the investment performance of the Fund as compared with a peer group of funds as determined by Lipper (“Peers”); (b) infor- mation on the profitability of the Agreements to BlackRock and certain affiliates, including their other relationships with the Fund, and a discus- sion of fall-out benefits; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional and closed-end funds, under similar investment man- dates, as well as the performance of such other clients; (d) a report on economies of scale; (e) sales and redemption data regarding the Fund’s shares; and (f) an internal comparison of management fees classified by Lipper, if applicable. At the April 16, 2008 meeting, the Board requested and subsequently received from BlackRock (i) com- prehensive analysis of total expenses on a fund-by-fund basis; (ii) further analysis of investment performance; (iii) further data regarding Fund profitability, Fund size and Fund fee levels; and (iv) additional information on sales and redemptions. |
22 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued) |
The Board also considered other matters it deemed important to the approval process, such as payments made to BlackRock or its affiliates relating to the distribution of Fund shares, services related to the valua- tion and pricing of portfolio holdings of the Fund, allocation of Fund brokerage fees (including the benefits of “soft dollars”), and direct and indirect benefits to BlackRock and its affiliates from their relationship with the Fund. The Board did not identify any particular information as controlling, and each Director may have attributed different weights to the various items considered. At an in-person meeting held on April 16, 2008, the Board discussed and considered the materials provided. At an in-person meeting held on June 3 – 4, 2008, the Fund’s Board, including the Independent Directors, unanimously approved the continuation of (a) the Advisory Agreement between the Adviser and the Fund for a one-year term ending June 30, 2009; (b) the Subadvisory Agreement between the Adviser and BlackRock Investment Management, LLC for a one-year term ending June 30, 2009; and (c) the Subadvisory Agreement between the Adviser and BlackRock Asset Management U.K. Limited for a one-year term ending June 30, 2009. In considering the approval of the Agreements, the Board received and discussed various materials provided to it in advance of the April 16, 2008 meeting. As a result of the discussions that occurred during the April 16, 2008 meeting, the Board requested and BlackRock provided additional information, as detailed above, in advance of the June 3 – 4, 2008 Board meeting. The Board considered all factors it believed relevant with respect to the Fund, including, among other factors: (i) the nature, extent and quality of the services provided by BlackRock; (ii) the investment performance of the Fund and BlackRock portfolio management; (iii) the advisory fee and the cost of the services and profits to be realized by BlackRock and certain affiliates from the relationship with the Fund; and (iv) economies of scale. A. Nature, Extent and Quality of the Services: The Board, including the Independent Directors, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Fund. Throughout the year, the Board compared the Fund’s performance — both including and excluding the effects of the Fund’s fees and expenses — to the performance of a com- parable group of mutual funds as classified by Lipper and the perform- ance of at least one relevant index or combination of indices. The Board met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Board also reviewed the materials provided by the Fund’s portfolio man- agement team discussing Fund performance and the Fund’s investment objective, strategies and outlook. |
The Board considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally, and of the Fund’s portfolio management team, BlackRock’s portfolio trading capa- bilities, BlackRock’s use of technology; BlackRock’s commitment to com- pliance; and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also reviewed BlackRock’s compensation structure with respect to the portfolio management team of the Fund and BlackRock’s ability to attract and retain high-quality talent. In addition to advisory services, the Board considered the quality of the administrative and non-investment advisory services provided to the Fund. BlackRock and its affiliates provide the Fund with certain adminis- trative, transfer agency, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In addi- tion to investment advisory services, BlackRock and its affiliates provide the Fund with other services, including (a) preparing disclosure docu- ments, such as the prospectus, the statement of additional information and shareholder reports; (b) assisting with daily accounting and pricing; (c) overseeing and coordinating the activities of other service providers; (d) organizing Board meetings and preparing the materials for such Board meetings; (e) providing legal and compliance support; and (f) performing other administrative functions necessary for the operation of the Fund, such as tax reporting and fulfilling regulatory filing require- ments. The Board reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments. B. The Investment Performance of the Fund and BlackRock: The Board, including the Independent Directors, also reviewed and considered the performance history of the Fund. In preparation for the April 16, 2008 meeting, the Board was provided with reports, independently prepared by Lipper, which included a comprehensive analysis of the Fund’s per- formance. The Board also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with its review, the Board received and reviewed information regarding the investment per- formance of the Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in the Fund’s applicable Lipper category. The Board was provided with a description of the metho- dology used by Lipper to select peer Funds. The Board regularly reviews the performance of the Fund throughout the year. The Board attaches more importance to performance over relatively long periods of time, typically three to five years. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
23 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued) |
The Board noted that although the Fund performed below the median of its peer funds during the three- and five-year periods, the underperfor- mance of the Fund was not significant for any such period. C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from the Relationship with the Fund: The Board, including the Independent Directors, reviewed the Fund’s contractual advisory fee rates compared with the other funds in its Lipper category. It also compared the Fund’s total expenses to those of other comparable funds. The Board consid- ered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts. The Board received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided the Fund. The Board was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock and certain affiliates that provide services to the Fund. The Board reviewed BlackRock’s profitability with respect to the Fund and each fund the Board currently oversees for the year ended December 31, 2007 compared to aggregated profitability data provided for the year ended December 31, 2005. In addition, the Board considered the cost of the services provided to the Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of the Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs to the manage- ment of the Fund and concluded that there was a reasonable basis for the allocation. The Board also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that are expected by the Board. The Board noted that the Fund paid contractual advisory fees, prior to any expense reimbursements, lower than or equal to the median of its Peers. |
D. Economies of Scale: The Board, including the Independent Directors, considered the extent to which economies of scale might be realized as the assets of the Fund increase and whether there should be changes in the advisory fee rate or structure in order to enable the Fund to partici- pate in these economies of scale. The Board, including the Independent Directors, considered whether the shareholders would benefit from economies of scale and whether there was potential for future realization of economies with respect to the Fund. The Board considered that the funds in the BlackRock fund complex share common resources and, as a result, an increase in the overall size of the complex could permit each fund to incur lower expenses than it would otherwise as a stand-alone entity. The Board also considered the anticipated efficiencies in the processes of BlackRock’s overall operations as it continues to add personnel and commit capital to expand the scale of operations. The Board found, based on its review of comparable funds, that the Fund’s management fee is appropriate in light of the scale of the Fund. E. Other Factors: The Board also took into account other ancillary or “fall-out” benefits that BlackRock may derive from its relationship with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals that manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, transfer agency and distribution services. The Board also noted that BlackRock may use third party research, obtained by soft dollars generated by transactions in the Fund, to assist itself in managing all or a number of its other client accounts. In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution throughout the year. |
24 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded) |
Conclusion The Board approved the continuation of (a) the Advisory Agreement between the Adviser and the Fund for a one-year term ending June 30, 2009; (b) the Subadvisory Agreement between the Adviser and BlackRock Investment Management, LLC for a one-year term ending June 30, 2009; and (c) the Subadvisory Agreement between the Adviser and BlackRock Asset Management U.K. Limited for a one-year term ending June 30, 2009. Based upon their evaluation of all these factors in their totality, the Board, including the Independent Directors, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Fund and the Fund’s shareholders. In arriving at a decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but con- sidered all factors together. The Independent Directors were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for the Fund reflect the results of several years of review by the Directors and predecessor Directors, and discussions between the Directors (and predecessor Directors) and BlackRock (and the predecessor advisers). Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Directors’ conclusions may be based in part on their consideration of these arrangements in prior years. |
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
25 |
Officers and Directors | ||||||||||
Number of | ||||||||||
Length of | BlackRock- | |||||||||
Position(s) | Time | Advised Funds | ||||||||
Name, Address | Held with | Served as | and Portfolios | Public | ||||||
and Year of Birth | Fund | a Director2 | Principal Occupation(s) During Past 5 Years | Overseen | Directorships | |||||
Non-Interested Directors1 | ||||||||||
Ronald W. Forbes | Co-Chair of | Since | Professor Emeritus of Finance, School of Business, State University | 35 Funds | None | |||||
40 East 52nd Street | the Board | 2000 | of New York at Albany since 2000. | 81 Portfolios | ||||||
New York, NY 10022 | and Director | |||||||||
1940 | ||||||||||
Rodney D. Johnson | Co-Chair of | Since | President, Fairmount Capital Advisors, Inc. since 1987; Director, Fox | 35 Funds | None | |||||
40 East 52nd Street | the Board | 2007 | Chase Cancer Center since 2002; Member of the Archdiocesan | 81 Portfolios | ||||||
New York, NY 10022 | and Director | Investment Committee of the Archdiocese of Philadelphia since 2003; | ||||||||
1941 | Director, the Committee of Seventy (civic) since 2006. | |||||||||
David O. Beim | Director | Since | Professor of Finance and Economics at the Columbia University | 35 Funds | None | |||||
40 East 52nd Street | 2007 | Graduate School of Business since 1991; Trustee, Phillips Exeter | 81 Portfolios | |||||||
New York, NY 10022 | Academy since 2002; Formerly Chairman, Wave Hill Inc. (public | |||||||||
1940 | garden and cultural center) from 1990 to 2006. | |||||||||
Dr. Matina Horner | Director | Since | Formerly Executive Vice President of Teachers Insurance and Annuity | 35 Funds | NSTAR (electric | |||||
40 East 52nd Street | 2007 | Association and College Retirement Equities Fund from 1989 to 2003. | 81 Portfolios | and gas utility) | ||||||
New York, NY 10022 | ||||||||||
1939 | ||||||||||
Herbert I. London | Director and | Since | Professor Emeritus, New York University since 2005; John M. Olin | 35 Funds | AIMS Worldwide, | |||||
40 East 52nd Street | Member of | 2007 | Professor of Humanities, New York University from 1993 to 2005 | 81 Portfolios | Inc. (marketing) | |||||
New York, NY 10022 | the Audit | and Professor thereof from 1980 to 2005; President, Hudson Institute | ||||||||
1940 | Committee | (policy research organization) since 1997 and Trustee thereof since | ||||||||
1980; Chairman of the Board of Trustees for Grantham University since | ||||||||||
2006; Director, InnoCentive, Inc. (strategic solutions company) since | ||||||||||
2005; Director of Cerego, LLC (software development and design) | ||||||||||
since 2005. | ||||||||||
Cynthia A. Montgomery | Director | Since | Professor, Harvard Business School since 1989; Director, Harvard | 35 Funds | Newell Rubbermaid, | |||||
40 East 52nd Street | 2000 | Business School Publishing since 2005; Director, McLean Hospital | 81 Portfolios | Inc. (manufacturing) | ||||||
New York, NY 10022 | since 2005. | |||||||||
1952 | ||||||||||
Joseph . Platt, Jr. | Director | Since | Director, The West Penn Allegheny Health System (a not-for-profit | 35 Funds | Greenlight Capital | |||||
40 East 52nd Street | 2007 | health system) since 2008; Partner, Amarna Corporation, LLC | 81 Portfolios | Re, Ltd (reinsurance | ||||||
New York, NY 10022 | (private investment company) since 2002; Director, WQED Multimedia | company) | ||||||||
1947 | (PBS and Multimedia, a not-for-profit company) since 2002; Director, | |||||||||
Jones and Brown (Canadian insurance broker) since 1998; General | ||||||||||
Partner, Thorn Partner, LP (private investment) since 1998. | ||||||||||
Robert C. Robb, Jr. | Director | Since | Partner, Lewis, Eckert, Robb and Company (management and | 35 Funds | None | |||||
40 East 52nd Street | 2007 | financial consulting firm) since 1981. | 81 Portfolios | |||||||
New York, NY 10022 | ||||||||||
1945 | ||||||||||
Toby Rosenblatt | Director | Since | President, Founders Investments Ltd. (private investments) since | 35 Funds | A Pharma, Inc. | |||||
40 East 52nd Street | 2007 | 1999; Director of Forward Management, LLC since 2007; Director, | 81 Portfolios | (specialty | ||||||
New York, NY 10022 | The James Irvine Foundation (philanthropic foundation) since 1997; | pharmaceuticals) | ||||||||
1938 | Formerly Trustee, State Street Research Mutual Funds from 1990 | |||||||||
to 2005; Formerly, Trustee, Metropolitan Series Funds, Inc. from | ||||||||||
2001 to 2005. | ||||||||||
26 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Officers and Directors (continued) | ||||||||||
Number of | ||||||||||
Length of | BlackRock- | |||||||||
Position(s) | Time | Advised Funds | ||||||||
Name, Address | Held with | Served as | and Portfolios | Public | ||||||
and Year of Birth | Fund | a Director2 | Principal Occupation(s) During Past 5 Years | Overseen | Directorships | |||||
Non-Interested Directors1 (concluded) | ||||||||||
Kenneth L. Urish | Chair of | Since | Managing Partner, Urish Popeck & Co., LLC (certified public | 35 Funds | None | |||||
40 East 52nd Street | the Audit | 2007 | accountants and consultants) since 1976; Member of External | 81 Portfolios | ||||||
New York, NY 10022 | Committee | Advisory Board, The Pennsylvania State University Accounting | ||||||||
1951 | and Director | Department since 2001; Trustee, The Holy Family Foundation since | ||||||||
2001; Committee Member/Professional Ethics Committee of the | ||||||||||
Pennsylvania Institute of Certified Public Accountants since 2007; | ||||||||||
President and Trustee, Pittsburgh Catholic Publishing Associates | ||||||||||
since 2003; Formerly Director, Inter-Tel from 2006 to 2007. | ||||||||||
Frederick W. Winter | Director and | Since | Professor and Dean Emeritus of the Joseph M. Katz School of | 35 Funds | None | |||||
40 East 52nd Street | Member of | 2007 | Business, University of Pittsburgh since 2005 and Dean thereof | 81 Portfolios | ||||||
New York, NY 10022 | the Audit | from 1997 to 2005. Director, Alkon Corporation (pneumatics) since | ||||||||
1945 | Committee | 1992; Director, Indotronix International (IT services) since 2004; | ||||||||
Director, Tippman Sports (recreation) since 2005. | ||||||||||
1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. | ||||||||||
2 Following the combination of Merrill Lynch Investment Managers, L P(“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the | ||||||||||
various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, | ||||||||||
although the chart shows certain directors as joining the Fund’s board in 2007, each director first became a member of the board of | ||||||||||
directors of other legacy MLIM or legacy BlackRock Funds as follows: David O. Beim since 1998; Ronald W. Forbes since 1977; Matina | ||||||||||
Horner since 2004; Rodney D. Johnson since 1995; Herbert I. London since 1987; Cynthia A. Montgomery since 1994; Joseph . Platt | ||||||||||
since 1999; Robert C. Robb, Jr. since 1999; Toby Rosenblatt since 2005; Kenneth L. Urish since 1999 and Frederick W. Winter since 1999. | ||||||||||
Interested Directors3 | ||||||||||
Richard S. Davis | Director | Since | Managing Director, BlackRock, Inc. since 2005; Formerly Chief | 185 Funds | None | |||||
40 East 52nd Street | 2007 | Executive Officer, State Street Research & Management Company | 295 Portfolios | |||||||
New York, NY 10022 | from 2000 to 2005; Formerly Chairman of the Board of Trustees, | |||||||||
1945 | State Street Research Mutual Funds from 2000 to 2005; Formerly | |||||||||
Chairman, SSR Realty from 2000 to 2004. | ||||||||||
Henry Gabbay | Director | Since | Consultant, BlackRock, Inc. since 2007; Formerly Managing Director, | 184 Funds | None | |||||
40 East 52nd Street | 2007 | BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative | 294 Portfolios | |||||||
New York, NY 10022 | Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President | |||||||||
1947 | of BlackRock Funds and BlackRock Bond Allocation Target Shares from | |||||||||
2005 to 2007 and Treasurer of certain closed-end funds in the | ||||||||||
BlackRock fund complex from 1989 to 2006. |
3 Messrs. Davis and Gabbay are both “interested persons,” as defined in the Investment Company Act of 1940, of the Fund based on their positions with BlackRock, Inc. and its affiliates. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
27 |
Officers and Directors (concluded) | ||||||||||
Position(s) | ||||||||||
Name, Address | Held with | Length of | ||||||||
and Year of Birth | Fund | Time Served | Principal Occupation(s) During Past 5 Years | |||||||
Fund Officers1 | ||||||||||
Donald C. Burke | Fund | Since | Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment | |||||||
40 East 52nd Street | President | 2007 | Managers, LP ("MLIM") and Fund Asset Management, L ("FAM") in 2006; First Vice President thereof from | |||||||
New York, NY 10022 | and Chief | 1997 to 2005; Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997. | ||||||||
1960 | Executive | |||||||||
Officer | ||||||||||
Anne F. Ackerley | Vice | Since | Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRock’s U.S. Retail Group since | |||||||
40 East 52nd Street | President | 2007 | 2006; Head of BlackRock’s Mutual Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 | |||||||
New York, NY 10022 | and from 1988 to 2000, most recently as First Vice President and Operating Officer of the Mergers and | |||||||||
1962 | Acquisitions Group. | |||||||||
Neal J. Andrews | Chief | Since | Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of | |||||||
40 East 52nd Street | Financial | 2007 | Fund Accounting and Administration at PFPC Inc. from 1992 to 2006. | |||||||
New York, NY 10022 | Officer | |||||||||
1966 | ||||||||||
Jay M. Fife | Treasurer | Since | Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the | |||||||
40 East 52nd Street | 2007 | MLIM/FAM advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. | ||||||||
New York, NY 10022 | ||||||||||
1970 | ||||||||||
Brian P. Kindelan | Chief | Since | Chief Compliance Officer of the BlackRock-advised Funds since 2007; Anti-Money Laundering Officer of the | |||||||
40 East 52nd Street | Compliance | 2007 | BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; | |||||||
New York, NY 10022 | Officer of | Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior | ||||||||
1959 | the Fund | Counsel thereof from 1998 to 2000; Formerly Senior Counsel of The PNC Bank Corp. from 1995 to 1998. | ||||||||
Howard Surloff | Secretary | Since | Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly | |||||||
40 East 52nd Street | 2007 | General Counsel (U.S.) of Goldman Sachs Asset Management, L from 1993 to 2006. | ||||||||
New York, NY 10022 | ||||||||||
1965 | ||||||||||
1 Officers of the Fund serve at the pleasure of the Board of Directors. | ||||||||||
Further information about the Fund’s Officers and Directors is available in the Fund’s Statement of Additional Information, which can | ||||||||||
be obtained without charge by calling (800) 441-7762. | ||||||||||
Custodian | Transfer Agent | Accounting Agent | Independent Registered Public | Legal Counsel | ||||||
Brown Brothers | PNC Global Investment | State Street Bank and | Accounting Firm | Sidley Austin LLP | ||||||
Harriman & Co. | Servicing (U.S.) Inc. | Trust Company | Deloitte & Touche LLP | New York, NY 10019 | ||||||
Boston, MA 02109 | Wilmington, DE 19809 | Princeton, NJ 08540 | Princeton, NJ 08540 |
28 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 2008
Additional Information
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and
former fund investors and individual clients (collectively, “Clients”) and
to safeguarding their non-public personal information. The following infor-
mation is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with
those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information
we receive from you or, if applicable, your financial intermediary, on appli-
cations, forms or other documents; (ii) information about your trans-
actions 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 proce-
dures 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
advisers, 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) Select “eDelivery” under the “More Information” section
3) Log into your account
Householding
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.
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 toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s (the “SEC”) website at http://www.sec.gov.
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
29 |
Additional Information (concluded) Availability of Additional Information (concluded) Availability of Proxy Voting Record Information about how the Fund votes proxies relating to securities held in the Fund’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the 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 infor- mation about your account balances, recent transactions and share prices. You can also reach us on the web at www.blackrock.com/funds. Automatic Investment Plans Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds. |
Systematic Withdrawal Plans Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account is at least $10,000. Retirement Plans Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans. |
30 BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. JUNE 30, 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 | 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 Managed Income Portfolio | ||
BlackRock Emerging Market Debt Portfolio | BlackRock Inflation Protected Bond Portfolio | BlackRock Short-Term Bond Fund | ||
BlackRock Enhanced Income Portfolio | BlackRock Intermediate Bond Portfolio II | BlackRock Strategic Income Portfolio | ||
BlackRock GNMA Portfolio | BlackRock Intermediate Government | BlackRock Total Return Fund | ||
BlackRock Government Income Portfolio | Bond Portfolio | BlackRock Total Return Portfolio II | ||
BlackRock High Income Fund | BlackRock International Bond Portfolio | BlackRock World Income Fund | ||
BlackRock High Yield Bond Portfolio | BlackRock Long Duration Bond Portfolio | |||
BlackRock Income Portfolio | BlackRock Low Duration Bond 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.
BLACKROCK GLOBAL EMERGING MARKETS FUND, INC. |
JUNE 30, 2008 |
31 |
![](https://capedge.com/proxy/N-CSR/0000900092-08-000488/globalemergingmarketsarx32x1.jpg)
This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. Investing in emerging market securities involves a number of risk factors and special considerations, including restrictions on foreign investments and on repatriation of capital invested in emerging markets, currency fluctuations, and potential price volatility and less liquidity of securities traded in emerging markets. In addition, there may be less publicly available information about the issuers of securities, and such issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to those to which U.S. companies are subject.Therefore, the Fund is designed as a long- term investment for investors capable of assuming the risks of investing in emerging markets. Please refer to the prospectus for details. BlackRock Global Emerging Markets Fund, Inc. 100 Bellevue Parkway Wilmington, DE 19809 |
#10997-6/08
Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com. Item 3 – Audit Committee Financial Expert – The registrant's board of directors or trustees, as applicable (the “board of directors”) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: Ronald W. Forbes (not reappointed to audit committee, effective November 1, 2007) Kenneth L. Urish (term began, effective November 1, 2007) Richard R. West (term ended, effective November 1, 2007) Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. Item 4 – Principal Accountant Fees and Services |
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||||
Current | Previous | Current | Previous | Current | Previous | Current | Previous | |||||||||
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
Entity Name | End | End | End | End | End | End | End | End | ||||||||
BlackRock Global | ||||||||||||||||
Emerging Markets | $35,300 | $37,700 | $0 | $0 | $7,900 | $6,100 | $1,049 | $1,042 | ||||||||
Fund, Inc. | ||||||||||||||||
1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. 2 The nature of the services include tax compliance, tax advice and tax planning. 3 The nature of the services include a review of compliance procedures and attestation thereto. (e)(1) Audit Committee Pre-Approval Policies and Procedures: The registrant’s audit committee (the “Committee”) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre- approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant’s affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the |
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the
Committee oversees. For this purpose, multiple projects will be aggregated to determine if
they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to one or more of its members the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates’ Aggregate Non-Audit Fees:
Current Fiscal Year | Previous Fiscal Year | |||
Entity Name | End | End | ||
BlackRock Global Emerging | ||||
Markets Fund, Inc. | $296,449 | $2,968,042 | ||
(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. Regulation S-X Rule 2-01(c)(7)(ii) – $287,500, 0% Item 5 – Audit Committee of Listed Registrants – Not Applicable Item 6 – Investments (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing. Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable |
Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures. Item 11 – Controls and Procedures 11(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended. 11(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. Item 12 – Exhibits attached hereto 12(a)(1) – Code of Ethics – See Item 2 12(a)(2) – Certifications – Attached hereto 12(a)(3) – Not Applicable 12(b) – Certifications – Attached hereto |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock Global Emerging Markets Fund, Inc. By: /s/ Donald C. Burke Donald C. Burke Chief Executive Officer of BlackRock Global Emerging Markets Fund, Inc. Date: August 22, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Donald C. Burke Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock Global Emerging Markets Fund, Inc. Date: August 22, 2008 By: /s/ Neal J. Andrews Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock Global Emerging Markets Fund, Inc. Date: August 22, 2008 |