UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04612
Name of Fund: BlackRock EuroFund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock EuroFund, 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: 10/31/07
Date of reporting period: 11/01/06 - 04/30/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY
REAL ESTATE
BlackRock EuroFund
SEMI-ANNUAL REPORT
APRIL 30, 2007 (UNAUDITED)
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
This report is transmitted to shareholders only. It is not authorized for
use as an offer of sale or a solicitation of an offer to buy shares of the
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.
Investment in foreign securities involves special risks including fluctuating
foreign exchange rates, foreign government regulations, differing degrees of
liquidity and the possibility of substantial volatility due to adverse
political, economic or other developments.
BlackRock EuroFund
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
It's Fast, Convenient, & Timely!
To sign up today, go to www.blackrock.com/edelivery.
BlackRock EuroFund
Officers and Trustees
Robert C. Doll, Jr., Fund President and Trustee
Ronald W. Forbes, Trustee
Cynthia A. Montgomery, Trustee
Jean Margo Reid, Trustee
Roscoe S. Suddarth, Trustee
Richard R. West, Trustee
Donald C. Burke, Vice President and Treasurer
James A. Macmillan, Vice President
Karen Clark, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
Effective January 1, 2007, Edward D. Zinbarg retired as a Trustee of
BlackRock EuroFund. The Fund's Board of Trustees wishes Mr. Zinbarg well
in his retirement.
BLACKROCK EUROFUND APRIL 30, 2007
A Letter to Shareholders
Dear Shareholder
In its first four months, 2007 could already be termed an eventful year for
investors. For most financial markets, 2007 opened just as 2006 ended - on a
positive trajectory. Then, at the end of February and into March, global
equity markets registered their first significant decline since last summer.
The market jitters were triggered by a significant setback in the Chinese
market and were exacerbated by worries of a weakening economy, escalating
geopolitical concerns and rising delinquencies in the subprime mortgage
market. Still, underlying stock market fundamentals appeared quite sound,
supported by a generally favorable global economic backdrop, tame inflation,
slowing but still positive earnings growth, relatively low interest rates and
attractive valuations. These conditions prevailed later, and the Dow Jones
Industrial Average crossed the 13,000 mark for the first time in its history
in late April.
Not unlike the equity market, the bond market also experienced volatility as
observers attempted to interpret mixed economic signals. A bond market rally
(falling yields and rising prices) late last year reversed itself early in
2007 amid some transitory signs of economic strength. Overall, yields have
fluctuated month to month but ended April little changed from the beginning of
the year. However, compared to one year ago, yields on 30-year Treasury bonds
fell 36 basis points (.36%) and 10-year yields fell 44 basis points, while
prices correspondingly rose.
For its part, the Federal Reserve Board (the Fed) has left the target short-
term interest rate on hold at 5.25% since first pausing in its interest rate-
hiking campaign on August 8, 2006. The central bankers continue to express
concern about potential inflationary pressures, but also acknowledge signs of
economic weakness. Given this relatively "balanced" assessment, most observers
believe the Fed will keep interest rates on hold for now.
Against this backdrop, most major market indexes posted positive returns for
the annual and semi-annual reporting periods ended April 30, 2007:
Total Returns as of April 30, 2007 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) + 8.60% +15.24%
Small cap U.S. equities (Russell 2000 Index) + 6.86 + 7.83
International equities (MSCI Europe, Australasia, Far East Index) +15.46 +19.81
Fixed income (Lehman Brothers Aggregate Bond Index) + 2.64 + 7.36
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.59 + 5.78
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.96 +11.72
If the first four months are any guide, 2007 could be a year of enhanced
market volatility. As you navigate the un-certainties, we encourage you to
review your investment goals with your financial professional and to make
portfolio changes, as needed. For more insight, we invite you to view "What's
Ahead in 2007: An Investment Perspective" and "Are You Prepared for
Volatility?" at www.blackrock.com/funds. We thank you for entrusting BlackRock
with your investment assets, and we look forward to continuing to serve you in
the months and years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Fund President and Trustee
THIS PAGE NOT PART OF YOUR FUND REPORT
BLACKROCK EUROFUND APRIL 30, 2007
A Discussion With Your Fund's Portfolio Manager
The Fund provided strong absolute performance for the period, but lagged the
MSCI Europe Index's return, as its large-cap bias did not allow it to benefit
from the robust merger-and-acquisition activity in European mid- and small-cap
stocks.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended April 30, 2007, BlackRock EuroFund's
Institutional, Institutional 1, Investor A, Investor B, Investor C and Class R
Shares had total returns (in U.S. dollar terms) of +14.53%, +14.53%, +14.44%,
+13.84%, +13.96% and +14.15%, respectively. (Fund results shown do not reflect
sales charges and would be lower if sales charges were included. Complete
performance information can be found on pages 6 - 9 of this report to
shareholders.) For the same period, the benchmark Morgan Stanley Capital
International (MSCI) Europe Index returned +18.17% (net return in U.S. dollar
terms), and the Fund's comparable Lipper category of European Region Funds
posted an average return of +18.46%. (Funds in this Lipper category invest in
equity securities whose primary trading markets or operations are concentrated
in the European region or a single country within this region.)
Equity markets delivered healthy returns for the majority of the period before
suffering an abrupt correction at the end of February. The result was a broad-
based global equity decline, but markets quickly recovered and by period-end
had surpassed their previous highs.
Despite looming concerns of a slowdown in U.S. economic growth and more recent
concerns that a crisis in the U.S. subprime mortgage market could hurt
economic growth, the global economy has remained on track. European companies
have continued to deliver stronger-than-expected earnings growth and record
profits, driven by a combination of robust export demand (especially from the
faster-growing Asian economies) and a pick-up in domestic demand in Europe.
In an environment of positive earnings momentum, central banks have remained
active, with short-term interest rates moving higher in most regions. Both the
European Central Bank (ECB) and Bank of England (BoE) have continued to nudge
short-term rates higher in response to the healthier performance of the main
European economies and a modest rise in consumer price inflation. However,
monetary policy still remains accommodative, with inexpensive debt financing
leading to abundant levels of global liquidity and fueling corporate activity.
Mergers and acquisitions (M&A) have subsequently been a primary driver of
market returns, especially in Europe where record corporate activity has been
seen across a range of sectors.
The oil price, having reached a new high of $77 per barrel in August 2006,
declined to levels as low as $50 per barrel in January, but has since
recovered. This decline was attributed to an exceptionally mild winter,
increased global supply and concerns that a slowdown in global growth could
impact demand.
During the period, the Fund benefited from successful stock selection in the
materials sector, particularly through its exposure to the steel industry,
which has experienced robust global demand and increased pricing power, along
with chemical companies. The Fund's holdings in Arcelor Mittal, Bayer AG and
BASF AG were positive contributors to performance. An underweight position in
the pharmaceuticals sector also aided the Fund's relative returns.
The primary negative performance factor during the period was the Fund's
exposure to the financials sector, especially in the banking subsector where
the portfolio is overweight relative to its benchmark, the MSCI Europe Index.
The sector has fallen amid market concerns about the sustainability of capital-
markets-related revenue in the context of a slowing U.S. economy and subprime
market fallout, along with worries that rising interest rates could impact
retail loan growth. Over the last few months of the reporting period, M&A
activity also was a negative factor in terms of Fund returns. Specifically,
the Fund was negatively influenced by its avoidance of ABN Amro, which rose
sharply after an unexpected bid from Barclays Plc was quickly followed by
another offer from a consortium. This generated considerable speculation in
the sector which has, in general, tended to hold back stock values of
potential acquirers (typically large-cap banks to which the Fund is exposed)
and raise the value of potential targets (mid cap names in which the Fund is
underweight).
BLACKROCK EUROFUND APRIL 30, 2007
Additional performance detractors included disappointing stock selection in
the consumer discretionary sector and an overweight position in the energy
sector. In consumer discretionary, the Fund's lack of ownership of Daimler
Chrysler AG hurt relative results as the automaker's stock rose sharply after
the company announced the sale of its struggling U.S. subsidiary, Chrysler.
The Fund's overweight position in the energy sector also hindered performance
as the sector fell in conjunction with the downward movement in oil prices.
Finally, selected holdings in the telecommunications and retail sectors, along
with a significant underweight in food, beverage & tobacco stocks, negatively
impacted the Fund's relative results.
What changes were made to the portfolio during the period?
During the six-month period, we increased the Fund's exposure to the
pharmaceuticals sector based on our view that valuations have become
attractive after a period of underperformance that was the result of both
political and research & development concerns. We established new positions in
Novartis AG and Sanofi-Aventis, both of which offer strong product pipelines
and good growth prospects. We also added to the food, beverage & tobacco and
capital goods sectors through the purchase of household & personal goods
manufacturer Unilever Plc, tobacco manufacturer British American Tobacco Plc,
industrial conglomerate Siemens AG and construction company CRH Plc.
These transactions were mostly funded by taking profits in telecommunications -
a sector that had underperformed for most of 2005 and then experienced
substantial earnings upgrades in the second half of 2006 as pricing remained
resilient and cost-cutting began to positively impact profitability.
Specifically, the Fund took profits in Teliasonera and reduced its position in
Telecom Italia SpA. Within the financials sector, the Fund made a timely exit
from U.K. bank HSBC Holdings Plc and Dutch bank/insurer ING Groep on concerns
that a downward sloping yield curve would impact profitability, which it did.
The proceeds from these sales were used to establish new positions in Spanish
bank Banco Santander Central Hispano SA, which we believe offers one of the
strongest growth stories in Europe through its exposure to Brazil and Mexico,
along with Societe Generale and Intesa San Paulo.
How would you characterize the Fund's position at the close of the period?
At the end of the period, the Fund was overweight in financials (most notably
banks, insurance companies and diversified financials), capital goods and
utilities. The most significant underweights held in the portfolio were in
media, information technology, hardware & equipment, consumer durables &
apparel and food retail. We maintain our strategy of investing in stocks that
we believe have relatively low valuations.
Business and consumer confidence continues to improve in Europe, pointing to
sustained momentum in economic growth during 2007. Encouragingly, growth has
been driven by improving trends in domestic demand as well as robust export
demand, which has resulted from lower unemployment and tighter labor markets,
especially in the laggard economies such as Germany and Italy. Though we have
seen an increase in interest rate hikes from central banks, the monetary
policy environment remains accommodative and the combination of inexpensive
credit, strong corporate earnings and attractive valuations should allow the
market to make progress against what may be a more challenging international
backdrop.
James A. Macmillan
Vice President and Portfolio Manager
May 18, 2007
BLACKROCK EUROFUND APRIL 30, 2007
Performance Data
About Fund Performance
Effective October 2, 2006, the Fund's Class A, Class B, Class C and Class I
Shares were redesignated Investor A, Investor B, Investor C and Institutional
Shares, respectively. Class R Shares did not change their designation.
Institutional 1 Shares commenced operations on November 6, 2006. As previously
communicated to shareholders, new sales charge schedules came into effect at
the same time for certain of these classes.
The Fund has multiple classes of shares:
* Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only to
eligible investors.
* Institutional 1 Shares are not subject to any sales charge. Institutional 1
Shares bear no ongoing distribution or service fees and are available only to
shareholders of The Europe Fund, Inc. in connection with the reorganization
and for dividend and capital gain reinvestment. These shares automatically
converted to Institutional Shares on May 7, 2007. Prior to inception,
Institutional 1 Share performance results are those of Institutional Shares.
* Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
* Investor B Shares are subject to a maximum contingent deferred sales charge
of 4.50% declining to 0% after six years. In addition, Investor B Shares are
subject to a distribution fee of 0.75% per year and a service fee of 0.25% per
year. These shares automatically convert to Investor A Shares after
approximately eight years. (There is no initial sales charge for automatic
share conversions.) All returns for periods greater than eight years reflect
this conversion.
* Investor C Shares are subject to a distribution fee of 0.75% per year and a
service fee of 0.25% per year. In addition, Investor C Shares are subject to a
1% contingent deferred sales charge if redeemed within one year of purchase.
* Class R Shares do not incur a maximum sales charge (front-end load) or
deferred sales charge. These shares are subject to a distribution fee of 0.25%
per year and a service fee of 0.25% per year. Class R Shares are available
only to certain retirement plans. Prior to inception, Class R Share
performance results are those of Institutional Shares (which have no
distribution or service fees) restated for Class R Share fees.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the
performance data quoted. Refer to www.blackrock.com to obtain performance data
current to the most recent month-end. Performance results do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. 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 each of the
following tables 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 applicable to each class, which are
deducted from the income available to be paid to shareholders.
BLACKROCK EUROFUND APRIL 30, 2007
Performance Data (continued)
Recent Performance Results
6-Month 12-Month 10-Year
As of April 30, 2007 Total Return Total Return Total Return
Institutional Shares* +14.53% +21.84% +248.42%
Institutional 1 Shares* +14.53 +21.84 +248.42
Investor A Shares* +14.44 +21.56 +239.83
Investor B Shares* +13.84 +20.48 +219.17
Investor C Shares* +13.96 +20.61 +214.13
Class R Shares* +14.15 +21.15 +235.36
MSCI Europe Index** +18.17 +26.99 +186.75
* Investment results shown do not reflect sales charges; results shown would be lower if a sales charge
was included. Cumulative total investment returns are based on changes in net asset values for the
periods shown, and assume reinvestment of all dividends and capital gains distributions at net asset
value on the ex-dividend date.
** This unmanaged capitalization-weighted Index is comprised of a representative sampling of large-,
medium- and small-capitalization companies in developed European countries.
BLACKROCK EUROFUND APRIL 30, 2007
Performance Data (continued)
Total Return Based on a $10,000 Investment
A line graph illustrating the growth of a $10,000 investment in Institutional
Shares*++, Institutional 1 Shares*++, Investor A Shares*++, Investor B
Shares*++, Investor C Shares*++, Class R Shares*++ compared to a similar
investment in Morgan Stanley Capital International Europe Index++++. Values
illustrated are as follows:
Institutional Shares*++
Date Value
April 1997 $10,000.00
April 1998 $14,689.00
April 1999 $16,215.00
April 2000 $16,762.00
April 2001 $17,018.00
April 2002 $16,263.00
April 2003 $13,860.00
April 2004 $18,138.00
April 2005 $21,713.00
April 2006 $28,597.00
April 2007 $34,842.00
Institutional 1 Shares*++
Date Value
April 1997 $10,000.00
April 1998 $14,689.00
April 1999 $16,215.00
April 2000 $16,762.00
April 2001 $17,018.00
April 2002 $16,263.00
April 2003 $13,860.00
April 2004 $18,138.00
April 2005 $21,713.00
April 2006 $28,597.00
April 2007 $34,842.00
Investor A Shares*++
Date Value
April 1997 $ 9,475.00
April 1998 $13,885.00
April 1999 $15,279.00
April 2000 $15,759.00
April 2001 $15,960.00
April 2002 $15,216.00
April 2003 $12,941.00
April 2004 $16,879.00
April 2005 $20,166.00
April 2006 $26,489.00
April 2007 $32,198.00
Investor B Shares*++
Date Value
April 1997 $10,000.00
April 1998 $14,536.00
April 1999 $15,875.00
April 2000 $16,242.00
April 2001 $16,326.00
April 2002 $15,444.00
April 2003 $13,028.00
April 2004 $16,865.00
April 2005 $19,990.00
April 2006 $26,257.00
April 2007 $31,917.00
Investor C Shares*++
Date Value
April 1997 $10,000.00
April 1998 $14,533.00
April 1999 $15,877.00
April 2000 $16,250.00
April 2001 $16,328.00
April 2002 $15,445.00
April 2003 $13,029.00
April 2004 $16,860.00
April 2005 $19,988.00
April 2006 $26,045.00
April 2007 $31,413.00
Class R Shares*++
Date Value
April 1997 $10,000.00
April 1998 $14,617.00
April 1999 $16,054.00
April 2000 $16,513.00
April 2001 $16,682.00
April 2002 $15,862.00
April 2003 $13,495.00
April 2004 $17,698.00
April 2005 $21,127.00
April 2006 $27,682.00
April 2007 $33,536.00
Morgan Stanley Capital International Europe Index++++
Date Value
April 1997 $10,000.00
April 1998 $14,549.00
April 1999 $15,371.00
April 2000 $16,905.00
April 2001 $14,644.00
April 2002 $12,854.00
April 2003 $10,905.00
April 2004 $14,671.00
April 2005 $17,356.00
April 2006 $22,580.00
April 2007 $28,675.00
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
++ The Fund invests primarily in equities of corporations domiciled in
European countries. Under normal market conditions, at least 80% of
the Fund's net assets will be invested in European corporate securities,
primarily common stocks and debt and preferred securities convertible
into common stock.
++++ This unmanaged capitalization-weighted Index is comprised of a
representative sampling of large-, medium- and small-capitalization
companies in developed European countries.
Past performance is not indicative of future results.
Average Annual Total Return
Institutional Shares Return
One Year Ended 4/30/07 +21.84%
Five Years Ended 4/30/07 +16.46
Ten Years Ended 4/30/07 +13.29
Institutional 1 Shares Return
One Year Ended 4/30/07 +21.84%
Five Years Ended 4/30/07 +16.46
Ten Years Ended 4/30/07 +13.29
Return Without Return With
Sales Charge Sales Charge*
Investor A Shares
One Year Ended 4/30/07 +21.56% +15.17%
Five Years Ended 4/30/07 +16.17 +14.93
Ten Years Ended 4/30/07 +13.01 +12.40
Return Return
Without CDSC With CDSC++++++
Investor B Shares++
One Year Ended 4/30/07 +20.48% +15.98%
Five Years Ended 4/30/07 +15.25 +15.02
Ten Years Ended 4/30/07 +12.31 +12.31
Return Return
Without CDSC With CDSC++++++
Investor C Shares++++
One Year Ended 4/30/07 +20.61% +19.61%
Five Years Ended 4/30/07 +15.26 +15.26
Ten Years Ended 4/30/07 +12.13 +12.13
Class R Shares Return
One Year Ended 4/30/07 +21.15%
Five Years Ended 4/30/07 +16.15
Ten Years Ended 4/30/07 +12.86
* Assuming maximum sales charge of 5.25%.
++ Maximum contingent deferred sales charge is 4.50% and is
reduced to 0% after six years.
++++ Maximum contingent deferred sales charge is 1% and is reduced
to 0% after one year.
++++++ Assuming payment of applicable contingent deferred sales
charge.
BLACKROCK EUROFUND APRIL 30, 2007
Performance Data (concluded)
MSCI Country index Performance
Total Return for the
6-Month Period Ended
April 30, 2007
In U.S. dollars*
Country Total Return
Norway 31.8%
Sweden 30.4
Denmark 28.5
Finland 27.8
Germany 27.3
Netherlands 25.4
France 19.6
Italy 16.9
Switzerland 15.2
Ireland 15.0
United Kingdom 13.0
Spain 12.5
* For the 6-month period ended April 30, 2007, total investment return for
the MSCI Europe Index was +18.17%.
Past performance is not indicative of future results.
Source: MSCI Europe Index.
BLACKROCK EUROFUND APRIL 30, 2007
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 following example (which is
based on a hypothetical investment of $1,000 invested on November 1, 2006 and
held through April 30, 2007) 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 first table below 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 in the first line under
the heading entitled "Expenses Paid During the Period."
The second table below 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 second 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.
Ending Expenses Paid
Account Value During the Period++++
Beginning April 30, Ended April 30,
Account Value++ 2007 2007
Actual
Institutional $1,000 $1,145.30 $ 5.21
Institutional 1 $1,000 $1,145.30 $ 5.21
Investor A $1,000 $1,144.40 $ 6.33
Investor B $1,000 $1,138.40 $11.72
Investor C $1,000 $1,139.60 $10.66
Class R $1,000 $1,141.50 $ 8.65
Hypothetical (5% annual return before expenses)**
Institutional $1,000 $1,019.93 $ 4.91
Institutional 1 $1,000 $1,019.93 $ 4.91
Investor A $1,000 $1,018.89 $ 5.96
Investor B $1,000 $1,013.83 $11.03
Investor C $1,000 $1,014.82 $10.04
Class R $1,000 $1,016.71 $ 8.15
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class
(.98% for Institutional, .98% for Institutional 1, 1.19% for Investor A, 2.21% for Investor B,
2.01% for Investor C and 1.63% for Class R), multiplied by the average account value over the
period, multiplied by 181/365 for Institutional, Investor A, Investor B, Investor C and Class R
Shares and by 176/365 for Institutional 1 Shares (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days
in the most recent fiscal half year for Institutional, Investor A, Investor B, Investor C and
Class R Shares and the number of days since inception for Institutional 1 Shares, divided by 365.
++ November 1, 2006 for Institutional, Investor A, Investor B, Investor C and Class R Shares.
November 6, 2006 (commencement of operations) for Institutional 1.
++++ The period represents six months ended April 30, 2007 for Institutional, Investor A, Investor B,
Investor C and Class R Shares and from November 6, 2006 (commencement of operations) to
April 30, 2007 for Institutional 1.
BLACKROCK EUROFUND APRIL 30, 2007
Portfolio Information
As of April 30, 2007
Percent of
Ten Largest Equity Holdings Net Assets
Royal Dutch Shell Plc Class B 3.4%
Novartis AG Registered Shares 3.3
GlaxoSmithKline Plc 3.3
Vodafone Group Plc 3.2
Total SA 3.0
Allianz AG Registered Shares 2.8
Siemens AG 2.7
Unilever Plc 2.7
Banco Santander Central Hispano SA 2.6
Bayer AG 2.5
Percent of
Five Largest Industries Net Assets
Commercial Banks 20.7%
Oil, Gas & Consumable Fuels 11.1
Insurance 10.5
Pharmaceuticals 7.6
Electric Utilities 5.2
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.
Geographic Allocation as a Percentage of Total Investments as of April 30, 2007
Belgium--1.0%
Denmark--1.7%
Finland--1.5%
France--15.5%
Germany--19.5%
Hungary--1.1%
Ireland--3.6%
Italy--7.7%
Netherlands--1.6%
Norway--2.2%
Spain--4.9%
Sweden--1.7%
Switzerland--9.9%
United Kingdom--24.4%
Other*--3.7%
* Includes portfolio holdings in short-term investments.
BLACKROCK EUROFUND APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
Belgium--1.0%
Leisure Equipment & Products--1.0%
AGFA-Gevaert NV 413,884 $ 10,008,771
Total Common Stocks in Belgium 10,008,771
Denmark--1.7%
Commercial Banks--1.7%
Danske Bank A/S 367,084 17,142,153
Total Common Stocks in Denmark 17,142,153
Finland--1.5%
Electric Utilities--1.5%
Fortum Oyj 486,735 15,069,871
Total Common Stocks in Finland 15,069,871
France--15.4%
Automobiles--2.0%
Renault SA 151,745 19,698,750
Commercial Banks--4.5%
BNP Paribas SA 191,087 22,168,094
Societe Generale 112,011 23,737,789
--------------
45,905,883
Electric Utilities--1.8%
Electricite de France SA 212,770 18,491,619
Insurance--1.5%
AXA SA 338,812 15,556,084
Machinery--1.6%
Vallourec 60,779 16,553,090
Oil, Gas & Consumable Fuels--3.0%
Total SA 407,617 30,048,751
Pharmaceuticals--1.0%
Sanofi-Aventis 107,867 9,873,803
Total Common Stocks in France 156,127,980
Germany--19.4%
Air Freight & Logistics--1.7%
Deutsche Post AG 492,873 16,967,837
Automobiles--1.6%
Bayerische Motoren Werke AG 260,284 16,010,331
Chemicals--3.9%
BASF AG 123,528 14,738,265
Bayer AG 362,229 24,918,413
--------------
39,656,678
Construction & Engineering--1.4%
Hochtief AG 133,725 14,048,743
Electric Utilities--1.9%
E.ON AG 128,289 19,189,535
Industrial Conglomerates--2.7%
Siemens AG 231,209 27,896,551
Insurance--4.0%
Allianz AG Registered Shares 122,913 27,961,076
Muenchener Rueckversicherungs AG 71,952 12,781,127
--------------
40,742,203
Multi-Utilities--2.2%
RWE AG 209,771 22,110,472
Total Common Stocks in Germany 196,622,350
Shares
Industry Common Stocks Held Value
Hungary--1.1%
Oil, Gas & Consumable Fuels--1.1%
Mol Magyar Olaj-es Gazipari Rt. 93,169 $ 11,341,577
Total Common Stocks in Hungary 11,341,577
Ireland--3.6%
Commercial Banks--1.7%
Allied Irish Banks Plc 553,274 16,756,122
Construction Materials--1.9%
CRH Plc 444,717 19,491,591
Total Common Stocks in Ireland 36,247,713
Italy--7.7%
Commercial Banks--4.3%
Banca Intesa SpA 2,467,663 20,676,661
UniCredito Italiano SpA 2,230,475 22,916,601
--------------
43,593,262
Diversified Telecommunication
Services--1.2%
Telecom Italia SpA (RNC) 4,808,008 11,758,862
Oil, Gas & Consumable Fuels--2.2%
Eni SpA 684,890 22,713,510
Total Common Stocks in Italy 78,065,634
Netherlands--1.6%
Metals & Mining--1.6%
Arcelor Mittal 296,982 15,862,080
Total Common Stocks in the Netherlands 15,862,080
Norway--2.2%
Industrial Conglomerates--0.8%
Orkla ASA 490,520 7,819,577
Oil, Gas & Consumable Fuels--1.4%
Statoil ASA 523,472 14,650,152
Total Common Stocks in Norway 22,469,729
Spain--4.9%
Commercial Banks--4.9%
Banco Bilbao Vizcaya Argentaria SA 961,489 22,989,651
Banco Santander Central Hispano SA 1,476,533 26,577,151
--------------
Total Common Stocks in Spain 49,566,802
Sweden--1.7%
Diversified Financial Services--1.7%
Investor AB 651,132 17,415,117
Total Common Stocks in Sweden 17,415,117
Switzerland--9.8%
Capital Markets--4.7%
Credit Suisse Group 313,735 24,622,797
UBS AG 356,846 23,191,035
--------------
47,813,832
Insurance--1.8%
Swiss Reinsurance Registered Shares 190,086 17,868,077
Pharmaceuticals--3.3%
Novartis AG Registered Shares 582,665 33,850,343
Total Common Stocks in Switzerland 99,532,252
BLACKROCK EUROFUND APRIL 30, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
United Kingdom--24.3%
Aerospace & Defense--2.0%
BAE Systems Plc 2,251,412 $ 20,408,904
Commercial Banks--3.6%
Barclays Plc 1,037,733 14,981,453
HBOS Plc 1,011,195 21,699,857
--------------
36,681,310
Food Products--2.7%
Unilever Plc 860,285 26,915,569
Insurance--3.2%
Aviva Plc 897,059 14,073,806
Prudential Plc 1,207,494 17,942,405
--------------
32,016,211
Oil, Gas & Consumable Fuels--3.4%
Royal Dutch Shell Plc Class B 989,581 34,848,343
Pharmaceuticals--3.3%
GlaxoSmithKline Plc 1,159,525 33,444,477
Specialty Retail--1.1%
Kesa Electricals Plc 1,631,591 10,963,684
Tobacco--1.8%
British American Tobacco Plc 594,835 18,410,456
Shares
Industry Common Stocks Held Value
United Kingdom (concluded)
Wireless Telecommunication
Services--3.2%
Vodafone Group Plc 11,228,664 $ 31,945,056
Total Common Stocks in the
United Kingdom 245,634,010
Total Common Stocks
(Cost--$703,339,021)--95.9% 971,106,039
Beneficial
Short-Term Securities Interest
United States--3.6%
BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.26% (a)(b) $ 37,094,313 37,094,313
Total Short-Term Securities
(Cost--$37,094,313)--3.6% 37,094,313
Total Investments (Cost--$740,433,334*)--99.5% 1,008,200,352
Other Assets Less Liabilities--0.5% 4,649,265
--------------
Net Assets--100.0% $1,012,849,617
==============
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 754,491,229
================
Gross unrealized appreciation $ 255,863,808
Gross unrealized depreciation (2,154,685)
----------------
Net unrealized appreciation $ 253,709,123
================
(a) 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 Interest
Affiliate Activity Income
BlackRock Liquidity Series, LLC
Cash Sweep Series $12,797,639 $526,410
(b) Represents the current yield as of April 30, 2007.
o 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. Industries are shown as a percent of net assets.
o Forward foreign exchange contracts as of April 30, 2007 were as follows:
Foreign Settlement Unrealized
Currency Purchased Date Appreciation
EUR 227,332 May 2007 $ 990
-----------
Total Unrealized Appreciation on Forward Foreign
Exchange Contracts (USD Commitment--$309,265) $ 990
===========
o Currency Abbreviations:
EUR Euro
USD U.S. Dollar
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Statement of Assets and Liabilities
As of April 30, 2007 (Unaudited)
Assets
Investments in unaffiliated securities, at value (identified cost--$703,339,021) $ 971,106,039
Investments in affiliated securities, at value (identified cost--$37,094,313) 37,094,313
Foreign cash (cost--$25,344) 25,347
Unrealized appreciation on forward foreign exchange contracts 990
Receivables:
Dividends $ 6,441,990
Securities sold 4,864,737
Beneficial interest sold 1,002,581
Interest 1,180 12,310,488
---------------
Prepaid expenses 29,507
---------------
Total assets 1,020,566,684
---------------
Liabilities
Payables:
Securities purchased 5,174,965
Beneficial interest redeemed 1,323,594
Investment adviser 614,657
Distributor 201,032
Other affiliates 49,574 7,363,822
---------------
Accrued expenses and other liabilities 353,245
---------------
Total liabilities 7,717,067
---------------
Net Assets
Net assets $ 1,012,849,617
===============
Net Assets Consist of
Institutional Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized $ 1,245,162
Institutional 1 Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized 361,642
Investor A Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized 2,201,134
Investor B Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized 253,026
Investor C Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized 367,951
Class R Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized 15,204
Paid-in capital in excess of par 656,510,656
Accumulated distributions in excess of investment income--net $ (1,300,834)
Undistributed realized capital gains--net 85,239,481
Unrealized appreciation--net 267,956,195
---------------
Total accumulated earnings--net 351,894,842
---------------
Net Assets $ 1,012,849,617
===============
Net Asset Value
Institutional--Based on net assets of $293,275,712 and 12,451,622 shares of
beneficial interest outstanding $ 23.55
===============
Institutional 1--Based on net assets of $85,174,028 and 3,616,420 shares of
beneficial interest outstanding $ 23.55
===============
Investor A--Based on net assets of $511,620,572 and 22,011,344 shares of
beneficial interest outstanding $ 23.24
===============
Investor B--Based on net assets of $50,288,716 and 2,530,256 shares of beneficial
interest outstanding $ 19.87
===============
Investor C--Based on net assets of $69,478,179 and 3,679,507 shares of beneficial
interest outstanding $ 18.88
===============
Class R--Based on net assets of $3,012,410 and 152,041 shares of beneficial
interest outstanding $ 19.81
===============
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Statement of Operations
For the Six Months Ended April 30, 2007 (Unaudited)
Investment Income
Dividends (net of $1,324,411 foreign withholding tax) $ 13,441,900
Interest from affiliates 526,410
---------------
Total income 13,968,310
---------------
Expenses
Investment advisory fees $ 3,748,654
Service fees--Investor A 595,246
Service and distribution fees--Investor C 316,913
Service and distribution fees--Investor B 276,428
Transfer agent fees--Investor A 206,886
Transfer agent fees--Institutional 204,943
Custodian fees 183,329
Accounting services 160,686
Transfer agent fees--Investor B 93,536
Transfer agent fees--Institutional 1 58,307
Transfer agent fees--Investor C 49,766
Printing and shareholder reports 43,052
Registration fees 32,319
Professional fees 31,949
Trustees' fees and expenses 18,613
Service and distribution fees--Class R 5,681
Pricing fees 4,526
Transfer agent fees--Class R 3,111
Other 21,016
---------------
Total expenses 6,054,961
---------------
Investment income--net 7,913,349
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 102,467,672
Foreign currency transactions--net (58,813) 102,408,859
---------------
Change in unrealized appreciation on:
Investments--net 23,939,554
Foreign currency transactions--net 150,615 24,090,169
--------------- ---------------
Total realized and unrealized gain--net 126,499,028
---------------
Net Increase in Net Assets Resulting from Operations $ 134,412,377
===============
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Statements of Changes in Net Assets
For the
Six Months
Ended For the
April 30, 2007 Year Ended
Increase (Decrease) in Net Assets: (Unaudited) October 31, 2006
Operations
Investment income--net $ 7,913,349 $ 19,501,216
Realized gain--net 102,408,859 113,475,099
Change in unrealized appreciation--net 24,090,169 99,480,517
--------------- ---------------
Net increase in net assets resulting from operations 134,412,377 232,456,832
--------------- ---------------
Dividends and Distributions to Shareholders
Investment income--net:
Institutional (10,325,989) (5,788,862)
Institutional 1 (980) --
Investor A (13,410,828) (6,259,841)
Investor B (1,257,875) (1,569,366)
Investor C (1,763,658) (794,429)
Class R (63,672) (28,475)
Realized gain--net:
Institutional (24,978,128) --
Institutional 1 (4,787) --
Investor A (34,649,059) --
Investor B (5,523,034) --
Investor C (5,542,809) --
Class R (171,525) --
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders (97,692,344) (14,440,973)
--------------- ---------------
Beneficial Interest Transactions
Net increase (decrease) in net assets derived from beneficial interest transactions 67,238,667 (33,186,593)
--------------- ---------------
Redemption Fees
Redemption fees 556,865 2,308
--------------- ---------------
Net Assets
Total increase in net assets 104,515,565 184,831,574
Beginning of period 908,334,052 723,502,478
--------------- ---------------
End of period* $ 1,012,849,617 $ 908,334,052
=============== ===============
* Undistributed (accumulated distributions in excess of) investment
income (loss)--net $ (1,300,834) $ 17,761,445
=============== ===============
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Financial Highlights
Institutional
For the Six
The following per share data and ratios Months Ended
have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 23.02 $ 17.54 $ 15.25 $ 13.01 $ 10.80 $ 12.03
----------- ----------- ----------- ----------- ----------- -----------
Investment income--net** .18 .55 .36 .21 .23 .18
Realized and unrealized gain (loss)--net 2.80 5.32 2.15 2.27 2.17 (1.20)
Redemption fee .01 --++++ --++++ --++++ -- --
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 2.99 5.87 2.51 2.48 2.40 (1.02)
----------- ----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.72) (.39) (.22) (.24) (.19) (.21)
Realized gain--net (1.74) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and distributions (2.46) (.39) (.22) (.24) (.19) (.21)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 23.55 $ 23.02 $ 17.54 $ 15.25 $ 13.01 $ 10.80
=========== =========== =========== =========== =========== ===========
Total Investment Return++++++
Based on net asset value per share 14.53%++ 34.03%*** 16.52% 19.26% 22.57% (8.68%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses .98%* .99% .99% 1.05% 1.08% 1.06%
=========== =========== =========== =========== =========== ===========
Investment income--net 1.64%* 2.68% 2.09%* 1.50% 2.00% 1.46%
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 293,276 $ 330,849 $ 261,358 $ 252,580 $ 221,888 $ 189,899
=========== =========== =========== =========== =========== ===========
Portfolio turnover 37.91% 75.97% 72.29% 78.02% 64.01% 39.98%
=========== =========== =========== =========== =========== ===========
* Annualized.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Institutional Shares consisted of a
payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory issue
relating to an investment.
++ Aggregate total investment return.
++++ Amount is less than $.01 per share.
++++++ Total investment returns exclude the effects of any sales charges.
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Financial Highlights (continued)
Institutional 1
For the Period
November 6,
2006*** to
The following per share data and ratios have been derived April 30, 2007
from information provided in the financial statements. (Unaudited)
Per Share Operating Performance
Net asset value, beginning of period $ 20.43
------------
Investment income--net** .19
Realized and unrealized gain--net 2.92
Redemption fee .01
------------
Total from investment operations 3.12
------------
Less dividends distributions:
Investment income--net --++++
Realized gain--net --++++
------------
Total dividends and distributions --++++
------------
Net asset value, end of period $ 23.55
============
Total Investment Return
Based on net asset value per share 15.28%++
============
Ratios to Average Net Assets
Expenses .98%*
============
Investment income--net 1.72%*
============
Supplemental Data
Net assets, end of period (in thousands) $ 85,174
============
Portfolio turnover 37.91%
============
* Annualized.
** Based on average shares outstanding.
*** Commencement of operations.
++ Aggregate total investment return.
++++ Amount is less than $(.01) per share.
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Financial Highlights (continued)
Investor A
For the Six
The following per share data and ratios Months Ended
have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 22.72 $ 17.33 $ 15.07 $ 12.86 $ 10.67 $ 11.89
----------- ----------- ----------- ----------- ----------- -----------
Investment income--net** .19 .50 .31 .18 .20 .16
Realized and unrealized gain (loss)--net 2.73 5.24 2.12 2.24 2.14 (1.20)
Redemption fee .01 --++++++ --++++++ --++++++ -- --
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 2.93 5.74 2.43 2.42 2.34 (1.04)
----------- ----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.67) (.35) (.17) (.21) (.15) (.18)
Realized gain--net (1.74) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and distributions (2.41) (.35) (.17) (.21) (.15) (.18)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 23.24 $ 22.72 $ 17.33 $ 15.07 $ 12.86 $ 10.67
=========== =========== =========== =========== =========== ===========
Total Investment Return*
Based on net asset value per share 14.44%++ 33.64%*** 16.20% 18.98% 22.29% (8.93%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 1.19%++++ 1.24% 1.24% 1.30% 1.33% 1.31%
=========== =========== =========== =========== =========== ===========
Investment income--net 1.72%++++ 2.49% 1.84% 1.24% 1.78% 1.35%
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 511,621 $ 453,104 $ 312,606 $ 296,757 $ 280,223 $ 265,602
=========== =========== =========== =========== =========== ===========
Portfolio turnover 37.91% 75.97% 72.29% 78.02% 64.01% 39.98%
=========== =========== =========== =========== =========== ===========
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Investor A Shares consisted of a
payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory issue
relating to an investment.
++ Aggregate total investment return.
++++ Annualized.
++++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Financial Highlights (continued)
Investor B
For the Six
The following per share data and ratios Months Ended
have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 19.59 $ 14.99 $ 13.08 $ 11.18 $ 9.25 $ 10.25
----------- ----------- ----------- ----------- ----------- -----------
Investment income--net** .05 .30 .16 .03 .10 .03
Realized and unrealized gain (loss)--net 2.36 4.54 1.84 1.99 1.85 (1.00)
Redemption fee .01 --++++++ --++++++ --++++++ -- --
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 2.42 4.84 2.00 2.02 1.95 (.97)
----------- ----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.40) (.24) (.09) (.12) (.02) (.03)
Realized gain--net (1.74) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and distributions (2.14) (.24) (.09) (.12) (.02) (.03)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 19.87 $ 19.59 $ 14.99 $ 13.08 $ 11.18 $ 9.25
=========== =========== =========== =========== =========== ===========
Total Investment Return*
Based on net asset value per share 13.84%++ 32.63%*** 15.28% 18.14% 21.19% (9.51%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 2.21%++++ 2.01% 2.01% 2.09% 2.12% 2.10%
=========== =========== =========== =========== =========== ===========
Investment income--net .55%++++ 1.73% 1.06% .23% .98% .30%
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 50,289 $ 62,273 $ 103,836 $ 132,725 $ 96,395 $ 108,337
=========== =========== =========== =========== =========== ===========
Portfolio turnover 37.91% 75.97% 72.29% 78.02% 64.01% 39.98%
=========== =========== =========== =========== =========== ===========
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Investor B Shares consisted of a
payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory issue
relating to an investment.
++ Aggregate total investment return.
++++ Annualized.
++++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Financial Highlights (continued)
Investor C
For the Six
The following per share data and ratios Months Ended
have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 18.86 $ 14.47 $ 12.64 $ 10.83 $ 9.00 $ 10.03
----------- ----------- ----------- ----------- ----------- -----------
Investment income--net** .08 .29 .15 .02 .09 .05
Realized and unrealized gain (loss)--net 2.22 4.36 1.78 1.92 1.81 (1.00)
Redemption fee .01 --++++++ --++++++ --++++++ -- --
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations 2.31 4.65 1.93 1.94 1.90 (.95)
----------- ----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.55) (.26) (.10) (.13) (.07) (.08)
Realized gain--net (1.74) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and distributions (2.29) (.26) (.10) (.13) (.07) (.08)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 18.88 $ 18.86 $ 14.47 $ 12.64 $ 10.83 $ 9.00
=========== =========== =========== =========== =========== ===========
Total Investment Return*
Based on net asset value per share 13.96%++ 32.57%*** 15.33% 18.06% 21.29% (9.59%)
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 2.01%++++ 2.01% 2.02% 2.08% 2.12% 2.10%
=========== =========== =========== =========== =========== ===========
Investment income--net .92%++++ 1.71% 1.05% .20% .99% .48%
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 69,478 $ 60,160 $ 44,881 $ 44,166 $ 25,134 $ 24,153
=========== =========== =========== =========== =========== ===========
Portfolio turnover 37.91% 75.97% 72.29% 78.02% 64.01% 39.98%
=========== =========== =========== =========== =========== ===========
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Investor C Shares consisted of a
payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory issue
relating to an investment.
++ Aggregate total investment return.
++++ Annualized.
++++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Financial Highlights (concluded)
Class R
For the Six For the Period
Months Ended For the Year Ended January 3, 2003+++
The following per share data and ratios have been derived April 30, 2007 October 31, to October 31,
from information provided in the financial statements. (Unaudited) 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 19.74 $ 15.14 $ 13.23 $ 11.32 $ 9.67
----------- ----------- ----------- ----------- -----------
Investment income--net* .14 .41 .18 .33 .25
Realized and unrealized gain--net 2.31 4.55 1.93 1.82 1.40
Redemption fee .01 --++++++ --++++++ --++++++ --
----------- ----------- ----------- ----------- -----------
Total from investment operations 2.46 4.96 2.11 2.15 1.65
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.65) (.36) (.20) (.24) --
Realized gain--net (1.74) -- -- -- --
----------- ----------- ----------- ----------- -----------
Total dividends and distributions (2.39) (.36) (.20) (.24) --
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 19.81 $ 19.74 $ 15.14 $ 13.23 $ 11.32
=========== =========== =========== =========== ===========
Total Investment Return
Based on net asset value per share 14.15%++ 33.36%*** 16.01% 19.22% 17.06%++
=========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 1.63%++++ 1.49% 1.48% 1.35% 1.58%++++
=========== =========== =========== =========== ===========
Investment income--net 1.51%++++ 2.30% 1.10% 2.51% 1.50%++++
=========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 3,012 $ 1,948 $ 823 $ 104 --**
=========== =========== =========== =========== ===========
Portfolio turnover 37.91% 75.97% 72.29% 78.02% 64.01%
=========== =========== =========== =========== ===========
* Based on average shares outstanding.
** Amount is less than $1,000.
*** In 2006, +.21% of the Fund's total investment return for Class R Shares consisted of a
payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory issue
relating to an investment.
++ Aggregate total investment return.
++++ Annualized.
++++++ Amount is less than $.01 per share.
+++ Commencement of operations.
See Notes to Financial Statements.
BLACKROCK EUROFUND APRIL 30, 2007
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock EuroFund (the "Fund") is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Fund's financial statements are prepared in conformity with U.S. generally
accepted accounting principles, which may require the use of management
accruals and estimates. Actual results may differ from these estimates. These
un-audited financial statements reflect all adjustments, which are, in the
opinion of management, necessary to present a fair statement of the results
for the interim period. All such adjustments are of a normal, recurring
nature. The Fund offers multiple classes of shares. Institutional Shares are
sold without a sales charge and only to certain eligible investors. Investor A
Shares are sold with a front-end sales charge. Shares of Investor B and
Investor C may be subject to a contingent deferred sales charge. Class R
Shares are sold only to certain retirement plans. Institutional 1 Shares were
issued in connection with the Fund's acquisition of The Europe Fund Inc. on
November 6, 2006. Institutional 1 Shares generally will not be available for
purchase except for dividend and capital gain reinvestments for existing
shareholders and automatically converted to Institutional Shares on May 7,
2007. All classes of shares have identical voting, dividend, liquidation and
other rights and the same terms and conditions, except that Investor A,
Investor B, Investor C and Class R Shares bear certain expenses related to the
shareholder servicing of such shares, and Investor B, Investor C and Class R
Shares also bear certain expenses related to the distribution of such shares.
Each class has exclusive voting rights with respect to matters relating to its
shareholder servicing and distribution expenditures (except that Investor B
shareholders may vote on certain changes to the Investor A distribution plan).
Income, expenses (other than expenses attributable to a specific class) and
realized and unrealized gains and losses are allocated daily to each class
based on its relative net assets. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Equity securities held by the Fund that are
traded on stock exchanges or the NASDAQ Global Market are valued at the last
sale price or official close price on the exchange, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price for long positions, and at the last available
asked price for short positions. In cases where equity securities are traded
on more than one exchange, the securities are valued on the exchange
designated as the primary market by or under the authority of the Board of
Trustees of the Fund. Long positions traded in over-the-counter ("OTC")
markets, NASDAQ Capital Market or Bulletin Board are valued at the last
available bid price or yield equivalent obtained from one or more dealers or
pricing services approved by the Board of Trustees of the Fund. Short
positions traded in the OTC markets are valued at the last available asked
price. Portfolio securities that are traded both in the OTC markets and on a
stock exchange are valued according to the broadest and most representative
market.
Options written and purchased are valued at the last sale price in the case of
exchange-traded options. Options traded in the OTC market are valued at the
last asked price (options written) or the last bid price (options purchased).
Swap agreements are valued based upon quoted fair valuations received daily by
the Fund from a pricing service or counterparty. Financial futures contracts
and options thereon, which are traded on exchanges, are valued at their last
sale price as of the close of such exchanges. Obligations with remaining
maturities of 60 days or less are valued at amortized cost unless BlackRock
Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary of
BlackRock Inc., believes that this method no longer produces fair valuations.
Effective April 2, 2007, securities purchased with a maturity of greater than
60 days may be valued at amortized cost. Valuation of other short-term
investment vehicles is generally based on the net asset value of the
underlying investment vehicle or amortized cost.
Repurchase agreements are valued at cost plus accrued interest. The Fund
employs pricing services to provide certain securities prices for the Fund.
Securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the direction
of the Board of Trustees of the Fund, including valuations furnished by the
pricing services retained by the Fund, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are
reviewed by the officers of the Fund under the general supervision of the
Fund's Board of Trustees. Such valuations and procedures will be reviewed
periodically by the Board of Trustees of the Fund.
BLACKROCK EUROFUND APRIL 30, 2007
Notes to Financial Statements (continued)
Generally, trading in foreign securities, as well as U.S. government
securities, money market instruments and certain fixed income 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 asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates will generally 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 asset
value. If events (for example, a company announcement, market volatility or a
natural disaster) occur during such periods that are expected to materially
affect the value of such securities, those securities will be valued at their
fair value as determined in good faith by the Fund's Board of Trustees or by
the Manager using a pricing service and/or procedures approved by the Fund's
Board of Trustees.
(b) Foreign currency transactions--Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized.
Assets and liabilities denominated in foreign currencies are valued at the
exchange rate at the end of the period. Foreign currency transactions are the
result of settling (realized) or valuing (unrealized) assets or liabilities
expressed in foreign currencies into U.S. dollars. Realized and unrealized
gains or losses from investments include the effects of foreign exchange rates
on investments. The Fund invests in foreign securities, which may involve a
number of risk factors and special considerations not present with investments
in securities of U.S. corporations.
(c) Derivative financial instruments--The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the
securities markets. Losses may arise due to changes in the value of the
contract due to an unfavorable change in the price of the underlying security
or if the counterparty does not perform under the contract. The counterparty
for certain instruments may pledge cash or securities as collateral.
* Forward foreign exchange contracts--The Fund may enter into forward foreign
exchange contracts as a hedge against either specific transactions or
portfolio positions. The contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value at the time it was opened and the value at the
time it was closed.
* Options--The Fund may write covered call options and put options and
purchase put and call options. When the Fund writes an option, an amount equal
to the premium received by the Fund is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written. When a security is
purchased or sold through an exercise of an option, the related premium paid
(or received) is added to (or deducted from) the basis of the security
acquired or deducted from (or added to) the proceeds of the security sold.
When an option expires (or the Fund enters into a closing transaction), the
Fund realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the closing
transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Foreign currency options and futures--The Fund may also purchase or sell
listed or OTC foreign currency options, foreign currency futures and related
options on foreign currency futures as a short or long hedge against possible
variations in foreign exchange rates. Such transactions may be effected with
respect to hedges on non-U.S. dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated to be
purchased by the Fund.
(d) Income taxes--It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
(e) Security transactions and investment income--Security transactions are
recorded on the dates the trans-actions 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.
BLACKROCK EUROFUND APRIL 30, 2007
Notes to Financial Statements (continued)
(f) Prepaid registration fees--Prepaid registration fees are charged to
expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(h) Securities lending--The Fund may lend securities to financial institutions
that provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at
least 100% of the current market value of the loaned securities. The market
value of the loaned securities is determined at the close of business of the
Fund and any additional required collateral is delivered to the Fund on the
next business day. Where the Fund receives securities as collateral for the
loaned securities, it collects a fee from the borrower. The Fund typically
receives the income on the loaned securities but does not receive the income
on the collateral. Where the Fund receives cash collateral, it may invest such
collateral and retain the amount earned on such investment, net of any amount
rebated to the borrower. Loans of securities are terminable at any time and
the borrower, after notice, is required to return borrowed securities within
five business days. The Fund may pay reasonable finder's, lending agent,
administrative and custodial fees in connection with its loans. In the event
that the borrower defaults on its obligation to return borrowed securities
because of insolvency or for any other reason, the Fund could experience
delays and costs in gaining access to the collateral. The Fund also could
suffer a loss where the value of the collateral falls below the market value
of the borrowed securities, in the event of borrower default or in the event
of losses on investments made with cash collateral.
(i) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109." FIN 48 prescribes the minimum recognition threshold a tax position must
meet in connection with accounting for uncertainties in income tax positions
taken or expected to be taken by an entity, including mutual funds, before
being measured and recognized in the financial statements. Adoption of FIN 48
is required for the last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after December
15, 2006. The impact on the Fund's financial statements, if any, is currently
being assessed.
In September 2006, "Statement of Financial Accounting Standards No. 157, Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is
evaluating the implications of FAS 159 and its impact on the Fund's financial
statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Investment Advisory Agreement between the Fund and the Manager became
effective on September 29, 2006. Prior to September 29, 2006, Merrill Lynch
Investment Managers, L.P. ("MLIM") was the Fund's manager. The general partner
of MLIM is Princeton Services, Inc. ("PSI"), an indirect, wholly owned
subsidiary of Merrill Lynch & Co. Inc. ("Merrill Lynch"), which is the limited
partner. The Fund has also entered into a 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. Merrill Lynch and The PNC
Financial Services Group, Inc. are the principal owners of BlackRock, Inc.
BLACKROCK EUROFUND APRIL 30, 2007
Notes to Financial Statements (continued)
The Manager is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays a monthly fee at an annual rate of .75% on an annual basis of the average
daily value of the Fund's net assets. In addition, the Manager has entered
into sub-advisory agreements with BlackRock Investment Management, LLC ("BIM")
and BlackRock Asset Management U.K. Limited, both affiliates of the Manager,
under which the Manager pays each Sub-Adviser for services it provides a
monthly fee at an annual rate that is a percentage of the management fee paid
by the Fund to the Manager. Prior to September 29, 2006, MLIM had a Sub-
Advisory Agreement with Merrill Lynch Asset Management U.K. Limited, an
affiliate of MLIM.
Pursuant to the Distribution Plan adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, 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 .25% --
Investor B .25% .75%
Investor C .25% .75%
Class R .25% .25%
Pursuant to sub-agreements with each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch and an affiliate of each of the Distributors,
provide shareholder servicing and distribution services to the Fund. The
ongoing service fee compensates the Distributors and each broker-dealer
(including MLPF&S) for providing shareholder servicing to Investor A, Investor
B, Investor C and Class R shareholders. The ongoing distribution fee
compensates each Distributor and MLPF&S for providing shareholder and
distribution-related services to Investor B, Investor C and Class R
shareholders.
For the six months ended April 30, 2007, FAMD and BDI earned underwriting
discounts and direct commissions and MLPF&S and BDI earned dealer concessions
on sales of the Fund's Institutional and Investor A Shares as follows:
MLPF&S FAMD BDI
Investor A $48,481 $4,293 $787
For the six months ended April 30, 2007, MLPF&S received contingent deferred
sales charges of $3,814 and $1,342 relating to transactions in Investor B and
Investor C Shares, respectively. Furthermore, BDI received contingent deferred
sales charges of $323 relating to transactions in Investor B Shares.
The Manager maintains a call center, which is responsible for providing
certain shareholder services to the Fund, such as responding to shareholder
inquiries and processing transactions based upon instructions from
shareholders with respect to the subscription and redemption of Fund shares.
For the six months ended April 30, 2007, the following amounts have been
accrued by the Fund to reimburse the Manager 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 $ 2,085
Institutional 1 $ --
Investor A $ 5,725
Investor B $ 1,573
Investor C $ 610
Class R $ 18
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S or its
affiliates. Pursuant to that order, the Fund has retained BIM, an affiliate of
the Manager, as the securities lending agent for a fee based on a share of the
returns on investment of cash collateral. Prior to September 29, 2006, BIM was
organized as Merrill Lynch Investment Managers, LLC ("MLIM, LLC"), an
affiliate of MLIM, and MLIM, LLC was the securities lending agent. BIM may, on
behalf of the Fund, invest cash collateral received by the Fund for such
loans, among other things, in a private investment company managed by the
Manager or in registered money market funds advised by the Manager or its
affiliates.
For the six months ended April 30, 2007, the Fund reimbursed the Manager
$7,880 for certain accounting services.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate
of the Manager, is the Fund's transfer agent.
Certain officers and/or directors of the Fund are officers and/or directors
of BlackRock, Inc. or its affiliates.
BLACKROCK EUROFUND APRIL 30, 2007
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 2007 were $367,143,967 and
$510,637,127, respectively.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from transactions in shares of
beneficial interest was $67,238,667 and $(33,186,593) for the six months ended
April 30, 2007 and the year ended October 31, 2006, respectively.
Transactions in shares of beneficial interest for each class were as follows:
Institutional Shares for the
Six Months Ended Dollar
April 30, 2007 Shares Amount
Shares sold 2,566,666 $ 55,519,656
Shares issued to shareholders in
reinvestment of dividends and
distributions 1,537,937 31,589,732
--------------- ---------------
Total issued 4,104,603 87,109,388
Shares redeemed (6,027,080) (131,190,565)
--------------- ---------------
Net decrease (1,922,477) $ (44,081,177)
=============== ===============
Institutional Shares
for the Year Ended Dollar
October 31, 2006 Shares Amount
Shares sold 3,947,538 $ 82,558,508
Shares issued to shareholders in
reinvestment of dividends 268,460 4,939,666
--------------- ---------------
Total issued 4,215,998 87,498,174
Shares redeemed (4,739,170) (97,451,970)
--------------- ---------------
Net decrease (523,172) $ (9,953,796)
=============== ===============
Institutional 1 Shares for the
Period November 6, 2006++ Dollar
to April 30, 2007 Shares Amount
Shares sold 1,492 $ 43,112
Shares issued as a result of
reorganization 5,532,829 113,021,126
Shares issued to shareholders in
reinvestment of dividends and
distributions 169 3,664
--------------- ---------------
Total issued 5,534,490 113,067,902
Shares redeemed (1,918,070) (40,761,195)
--------------- ---------------
Net increase 3,616,420 $ 72,306,707
=============== ===============
++ Commencement of operations.
Investor A Shares for the
Six Months Ended Dollar
April 30, 2007 Shares Amount
Shares sold 1,787,878 $ 38,271,384
Shares issued to shareholders in
reinvestment of dividends and
distributions 1,914,464 38,843,557
--------------- ---------------
Total issued 3,702,342 77,114,941
Shares redeemed (1,630,745) (35,220,445)
--------------- ---------------
Net increase 2,071,597 $ 41,894,496
=============== ===============
Investor A Shares
for the Year Ended Dollar
October 31, 2006 Shares Amount
Shares sold 4,081,551 $ 86,527,639
Automatic conversion of shares 942,880 19,159,408
Shares issued to shareholders in
reinvestment of dividends 289,051 5,263,622
--------------- ---------------
Total issued 5,313,482 110,950,669
Shares redeemed (3,409,756) (68,329,458)
--------------- ---------------
Net increase 1,903,726 $ 42,621,211
=============== ===============
Investor B Shares for the
Six Months Ended Dollar
April 30, 2007 Shares Amount
Shares sold 258,723 $ 4,772,931
Shares issued to shareholders in
reinvestment of dividends and
distributions 336,659 5,871,474
--------------- ---------------
Total issued 595,382 10,644,405
Shares redeemed (1,243,753) (22,750,643)
--------------- ---------------
Net decrease (648,371) $ (12,106,238)
=============== ===============
Investor B Shares
for the Year Ended Dollar
October 31, 2006 Shares Amount
Shares sold 493,747 $ 8,670,988
Shares issued to shareholders in
reinvestment of dividends 82,366 1,301,388
--------------- ---------------
Total issued 576,113 9,972,376
--------------- ---------------
Shares redeemed (3,233,799) (59,191,922)
Automatic conversion of shares (1,090,056) (19,159,408)
--------------- ---------------
Total redeemed (4,323,855) (78,351,330)
--------------- ---------------
Net decrease (3,747,742) $ (68,378,954)
=============== ===============
BLACKROCK EUROFUND APRIL 30, 2007
Notes to Financial Statements (concluded)
Investor C Shares for the
Six Months Ended Dollar
April 30, 2007 Shares Amount
Shares sold 391,617 $ 6,913,980
Shares issued to shareholders in
reinvestment of dividends and
distributions 383,571 6,348,266
--------------- ---------------
Total issued 775,188 13,262,246
Shares redeemed (285,407) (5,024,799)
--------------- ---------------
Net increase 489,781 $ 8,237,447
=============== ===============
Investor C Shares
for the Year Ended Dollar
October 31, 2006 Shares Amount
Shares sold 612,771 $ 10,584,055
Shares issued to shareholders in
reinvestment of dividends 44,392 675,643
--------------- ---------------
Total issued 657,163 11,259,698
Shares redeemed (570,079) (9,495,217)
--------------- ---------------
Net increase 87,084 $ 1,764,481
=============== ===============
Class R Shares for the
Six Months Ended Dollar
April 30, 2007 Shares Amount
Shares sold 62,181 $ 1,166,416
Shares issued to shareholders in
reinvestment of dividends and
distributions 13,571 235,199
--------------- ---------------
Total issued 75,752 1,401,615
Shares redeemed (22,418) (414,183)
--------------- ---------------
Net increase 53,334 $ 987,432
=============== ===============
Class R Shares for the Year Dollar
Ended October 31, 2006 Shares Amount
Shares sold 96,721 $ 1,664,378
Shares issued to shareholders in
reinvestment of dividends 1,796 28,475
--------------- ---------------
Total issued 98,517 1,692,853
Shares redeemed (54,147) (932,388)
--------------- ---------------
Net increase 44,370 $ 760,465
=============== ===============
The Fund charges a 2% redemption fee on the proceeds (calculated at market
value) of a redemption (either by sale or exchange) of Fund shares (except
Institutional 1 Shares) made within 30 days of purchase or exchange. The
redemption fee is paid to the Fund and is intended to offset the trading
costs, market impact and other costs associated with short-term trading into
and out of the Fund.
The Fund charges a 2% redemption fee on redemptions of Institutional 1 Shares
made prior to May 7, 2006. The redemption fee is paid to the Fund and is
intended to offset the trading costs, market impact and other costs associated
with the redemption of Institutional 1 Shares. Institutional 1 Shares convert
to Institutional Shares on May 7, 2007.
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by the Manager and its
affiliates, is a party to a $500,000,000 credit agreement with a group of
lenders. In November 2006, the agreement was renewed for one year under
substantially the same terms. The Fund may borrow under the credit agreement
to fund shareholder redemptions and for other lawful purposes other than for
leverage. 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. The Fund pays a
commitment fee of .07% per annum based on the Fund's pro rata share of the
unused portion of the credit agreement. Amounts borrowed under the credit
agreement bear interest at a rate equal to, at each fund's election, the
federal funds rate plus .35% or a base rate as defined in the credit
agreement. The Fund did not borrow under the credit agreement during the six
months ended April 30, 2007.
6. Capital Loss Carryforward:
On October 31, 2006, the Fund had a net capital loss carryforward of
$12,347,525, of which $1,163,623 expires in 2008 and $11,183,902 expires in
2009. This amount will be available to offset like amounts of any future
taxable gains.
7. Acquisition of The Europe Fund, Inc.
On November 6, 2006, the Fund acquired substantially all of the assets and
assumed substantially all of the liabilities of The Europe Fund, Inc.,
pursuant to a plan of reorganization. The acquisition was accomplished by a
tax-free exchange of 10,066,319 shares of common stock of The Europe Fund,
Inc. for 5,532,829 shares of beneficial interest of the Fund. The Europe Fund,
Inc.'s net assets on that date of $113,021,126, including $152,626 of
distributions in excess of net investment income, $141,913 of distributions in
excess of net realized gains and $8,113,020 of net unrealized appreciation
were combined with those of the Fund. The aggregate net assets immediately
after the acquisition amounted to $1,125,904,035.
BLACKROCK EUROFUND APRIL 30, 2007
BlackRock Funds
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their non-public personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to non-
public personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the non-public personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Fund's Web site or shareholders can signup for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. 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 Web site at
http://www.blackrock.com/edelivery
2) Select eDelivery under the More Information section
3) Log into your account
The Fund will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please contact the Fund at
(800) 441-7762.
BLACKROCK EUROFUND APRIL 30, 2007
BlackRock Funds (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
The Fund has delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Fund's Board of Trustees.
A description of the policies and procedures that BlackRock and its affiliates
use to determine how to vote proxies relating to portfolio securities is
available without charge, upon request, on our Web site at www.blackrock.com,
by calling (800) 441-7762, or on the Web site of the Securities and Exchange
Commission (the "Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Fund's voting securities were voted
(if any) by the Fund's previous manager during the most recent 12-month period
ended June 30 is available, upon request and without charge, on our Web site
at www.blackrock.com, by calling (800) 441-7762 or on the Web site of the
Commission at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Fund files its complete schedule of portfolio holdings for the first and
third quarters of its fiscal year with the Commission on Form N-Q. The Fund's
Forms N-Q are available on the Commission's Web site at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information regarding the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330. The Fund's Forms N-Q may also
be obtained upon request, without charge, by calling (800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM - 6:00 PM EST to get information about your
account balances, recent transactions and share prices. You can also reach us
on the web at www.blackrock.com.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have
$50 or more automatically deducted from their checking or savings account and
invested in any of the BlackRock portfolios.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock portfolios, as
long as their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BLACKROCK EUROFUND APRIL 30, 2007
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 Aurora Portfolio
BlackRock Asset Allocation Portfolio++
BlackRock Balanced Capital Fund++
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Developing Capital Markets Fund
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Twenty Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund++
BlackRock Global Dynamic Equity Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio*
BlackRock Global Science & Technology
Opportunities Portfolio
BlackRock Global SmallCap Fund
BlackRock Global Technology Fund
BlackRock Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio*
BlackRock International Value Fund
BlackRock Investment Trust
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Bond Fund
BlackRock Commodity Strategies Fund
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government
Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Total Return Portfolio
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
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 EUROFUND APRIL 30, 2007
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-
annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
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 Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities and 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 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock EuroFund
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock EuroFund
Date: June 19, 2007
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock EuroFund
Date: June 19, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock EuroFund
Date: June 19, 2007