UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04182
Name of Fund: BlackRock International Value Fund of
BlackRock International Value Trust
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 International Value Fund of BlackRock International
Value Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing
address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 06/30/07
Date of reporting period: 07/01/06 - 06/30/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
BlackRock International
Value Fund
OF BLACKROCK INTERNATIONAL VALUE TRUST
ANNUAL REPORT JUNE 30, 2007
(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 International Value Fund
Of BlackRock International Value Trust
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 International Value Fund
Portfolio Information as of June 30, 2007
Percent of
Ten Largest Equity Holdings Net Assets
Royal Dutch Shell Plc Class B 3.1%
Vodafone Group Plc 2.8
Siemens AG 2.3
Total SA 2.3
Eni SpA 2.1
Toyota Motor Corp. 2.1
Allianz AG Registered Shares 2.0
Bayer AG 2.0
Unilever Plc 1.9
Renault SA 1.9
Percent of
Five Largest Industries Net Assets
Commercial Banks 16.1%
Oil, Gas & Consumable Fuels 11.9
Automobiles 8.7
Insurance 8.1
Metals & Mining 5.5
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.
Percent of
Long-Term
Geographic Allocation Investments
Japan 18.3%
United Kingdom 17.6
Germany 15.4
France 11.2
Switzerland 7.2
Italy 5.1
Australia 4.7
Spain 3.4
Ireland 2.5
Norway 2.3
Taiwan 1.7
Finland 1.4
Sweden 1.3
Netherlands 1.3
Hungary 1.2
Denmark 1.1
South Korea 1.1
Hong Kong 1.0
China 0.8
Belgium 0.7
Singapore 0.7
Change in Fund's Independent Registered Public Accounting Firm
On August 28, 2006, Ernst & Young LLP ("E&Y") resigned as the Independent
Registered Public Accounting Firm of BlackRock International Value Fund
(the "Fund").
E&Y's reports on the financial statements of the Fund for the past two fiscal
years did not contain an adverse opinion or a disclaimer of opinion and were
not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the two most recent fiscal years and through
August 28, 2006 (1) there were no disagreements with E&Y on any matter of
accounting principle or practice, financial statement disclosure or auditing
scope or procedure, whereby such disagreements, if not resolved to the
satisfaction of E&Y, would have caused them to make reference to the subject
matter of the disagreements in connection with their report on the financial
statements for such years; and (2) there have been no reportable events (as
defined in item 304(a)(1)(v) of Regulation S-K).
The Audit Committee of the Fund's Board of Trustees approved the engagement of
Deloitte & Touche llp as the Fund's Independent Registered Public Accounting
Firm for the fiscal year ended June 30, 2007.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
A Letter to Shareholders
Dear Shareholder
At the mid-point of 2007, investor sentiment appeared quite buoyant,
notwithstanding some undertones of caution. For equity markets, positive
momentum as the year began was interrupted by a notable but transitory
set-back at the end of February. Markets resumed their ascent through May,
but entered a trading range in June as investors began to question the
sustainability of the rally. For the most part, equities found support in
robust merger-and-acquisition activity, healthy global economies, tame
inflation, relatively low interest rates, still-positive earnings growth
and attractive valuations. These tailwinds prevailed over such headwinds
as a weakening U.S. economy, slowing housing market, credit-related lending
problems, escalating geopolitical concerns and high energy prices, leading
the Standard & Poor's (S&P) 500 Index to a new record high in May.
Meanwhile, turmoil in the subprime mortgage market and generally mixed
economic signals weighed on bonds. In June, bond prices dropped precipitously
as long-term yields rose to their highest levels in five years. The 10-year
Treasury yield, which began 2007 at 4.68%, reached nearly 5.30% in mid-June
before retracing to 5.03% by month's end. Notably, this year has brought some
re-steepening of the yield curve, which had been flat to inverted throughout
2006. Still, at the end of June, yields along the curve remained below the
federal funds rate of 5.25%, the level at which the Federal Reserve Board (the
Fed) has left it since first pausing in August 2006. While first-quarter gross
domestic product growth of 0.7% represented the slowest rate of expansion
since 2002, the Fed reiterated that inflation, not a slowing economy, remains
its primary concern. Many observers interpreted the Fed's reaction to mean
that the economy has hit its low and is bound for renewed strength, thereby
reducing the likelihood of an interest rate cut in the near future.
Against this backdrop, the major equity market indexes posted strong returns
for the annual and semi-annual periods ended June 30, 2007, while fixed income
assets were more mixed:
Total Returns as of June 30, 2007 6-month 12-month
U.S. equities (S&P 500 Index) + 6.96% +20.59%
Small cap U.S. equities (Russell 2000 Index) + 6.45 +16.43
International equities (MSCI Europe, Australasia, Far East Index) +10.74 +27.00
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) + 0.98 + 6.12
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.14 + 4.69
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 2.96 +11.22
We expect market volatility to linger throughout the second half of 2007. As
you navigate the uncertainties, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as
needed. For more market insight, we invite you to view "What's Ahead in 2007:
The Second-Quarter Update" 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 INTERNATIONAL VALUE FUND JUNE 30, 2007
A Discussion With Your Fund's Portfolio Managers
We remain positive on the prospects for European and Asian equities for the
remainder of 2007, based on attractive valuations, robust earnings growth and
strong underlying economies.
How did the Fund perform during the fiscal year in light of the existing
market conditions?
For the 12-month period ended June 30, 2007, BlackRock International Value
Fund's Institutional, Investor A, Investor B, Investor C and Class R Shares had
total returns of +24.20%,+23.84%, +22.78%, +22.82% and +23.53%, 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 - 8 of this report to shareholders.) Fund results trailed the +27.00% return
of the benchmark Morgan Stanley Capital International Europe, Australasia,
Far East (MSCI EAFE) Index and the +27.24% average return of the Lipper
International Multi-Cap Value Funds category for the same period. (Funds in
this Lipper category invest in a variety of market-capitalization ranges
without concentrating 75% of their equity assets in any one market-cap range
over an extended period of time. International multi-cap funds typically have
a certain percentage of their assets invested in companies strictly outside
the United States.)
International equity markets delivered healthy returns for the majority of the
period, notwithstanding an abrupt correction at the end of February that
resulted in a broad-based global equity decline. However, markets quickly
recovered to surpass their previous highs and end the period firmly in
positive territory.
Despite concerns of an economic slowdown in the United States, and more recent
fears that a crisis in the U.S. subprime mortgage market could further impede
growth, the global economy has remained on track. Generally speaking, European
and Asian 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 such as China.
In an environment of positive earnings momentum, central banks have remained
on the front foot, with short-term interest rates moving higher in most
regions. However, global monetary policy still remains accommodative with
abundant levels of global liquidity. This in turn has propel-led merger-and-
acquisition (M&A) activity to record levels, especially in Europe and Asia
ex-Japan, where it has been a primary driver of returns.
Oil prices, having reached new highs of $77 per barrel in summer 2006, declined
to a low of $51 per barrel in January on concerns that an exceptionally mild
winter would increase global supply. However, oil recovered sharply to finish
the period back above $70 per barrel.
What factors most influenced Fund performance?
During the period, the Fund enjoyed strong performance from cyclically
oriented sectors, such as capital goods and materials. Within the materials
sector, the Fund benefited from its exposure to the steel industry, which has
experienced robust global demand and increased pricing power, especially in
the more profitable high-grade steel. The Fund's holdings in Mittal Steel,
Vallourec SA and POSCO all contributed positively to performance. The Fund's
overweight position in the energy sector also boosted returns against a
backdrop of rising oil prices, especially in the first half of 2007, when
crude oil prices rose more than 50% from their January lows. Elsewhere, the
Fund's holdings of German construction company Hochtief AG, U.K. mobile
operator Vodafone Group Plc and Australian real estate company Multiplex Group
proved favorable.
In terms of regional allocations, the Fund benefited from its underweight
position in Japan, which continued to lag other Asian as well as European
markets. Within Europe, the Fund's overweight position and successful stock
selection in Germany and France benefited results.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Detracting from performance during the period was the Fund's exposure to the
financials sector, especially diversified financials, but also insurance
companies and banks. The sector underperformed the wider market due to
concerns about the sustainability of capital markets-related revenue amid
slowing U.S. economic growth and subprime mortgage fears. In Europe, an
environment of rising interest rates sparked concerns that retail loan growth
could slow and subsequently impact profits, whereas in Japan, interest rates
did not rise as much as expected and banks failed to pass on higher borrowing
costs to their customers. Also in Japan, the consumer finance sector suffered
due to an adverse regulatory change that resulted in a lower maximum lending
rate chargeable on loans. In Europe, M&A activity has been an important driver
of returns, which has generated speculation in the financials sector. This has
tended to hold back potential acquirers (typically large cap banks to which
the Fund is exposed) while pushing up potential targets (mid caps in which the
Fund is underweight). The Fund's holdings in Japanese bank Mitsubishi UFJ
Financial Group, Inc. and consumer finance company Takefuji Corp., along with
Continental European banks Banco Santander Central Hispano, SA, Danske Bank
A/S and UBS AG, all detracted from performance, as did an underweight position
in ABN-Amro Holding N.V. In other sectors, the Fund suffered from
disappointing stock selection within the automobile industry, primarily
through names it did not own, such as DaimlerChrysler AG, which rose sharply
on M&A activity.
What changes were made to the portfolio during the year?
Our main transactions during the period resulted from "bottom-up" stock
picking, based on our evaluation of companies' individual share price
appreciation prospects. As such, the portfolio increased its exposure to more
defensive sectors, such as food, beverage & tobacco and pharmaceuticals
through the purchase of Unilever Plc, Nestle SA, Novartis AG and British
American Tobacco Plc.
In response to a more challenging outlook for financials, the Fund reduced its
exposure to the sector, predominately in banks and diversified financials. Key
transactions included a timely exit from U.K. bank HSBC Holdings Plc ahead of
a profit warning in its U.S. mortgage business, along with the reduction of
French banks BNP Paribas and Credit Agricole and Singapore-based bank DBS
Group Holdings Ltd. Within diversified financials, the Fund sold Dutch
bank/insurance company ING Groep N.V. and consumer finance company Takefuji
Corp. Currently, the Fund's financials exposure favors holdings that trade at
low valuations, offer exposure to strong structural growth (both domestically
and in underpenetrated markets) and restructuring potential through capital
management or M&A.
The Fund also took profits in the telecommunications sector through the sale
of KDDI Corp., TeliaSonera and Taiwan Mobile and selected cyclical holdings
such as German construction company Hochtief AG, German chemical company BASF
AG and Singapore-based offshore rig maker Keppel.
How would you characterize the Fund's position at the close of the period?
At the end of the period, the Fund was overweight relative to the MSCI EAFE
Index in automobiles & components, insurance, energy and food, beverage &
tobacco. The most significant underweights were in consumer durables and
apparel, food & staples retailing, media and real estate.
In terms of regional and country allocations, the Fund ended the period with
underweight positions in Japan and the U.K., as we are finding more attractive
opportunities in Asia and Continental Europe. The Fund continues to maintain a
significant large cap bias in Japan as well as in Europe's largest economies,
such as Germany, France and Italy, where valuations offer a significant
discount to the market and we see many opportunities to deliver above-average
earnings growth.
Within the Asian segment of the portfolio, the Fund ended the period with
positions in Singapore, South Korea, Taiwan and Hong Kong, where key exposures
include technology, banks, real estate and steel. We have exposure to
Australia predominately through construction and resources stocks.
We are positive on the prospects for European and Asian equities for the
remainder of 2007, given what we view as attractive valuations, robust
earnings growth and strong underlying domestic economies. We intend to
continue our strategy of investing in low valuation shares, and believe the
Fund is well positioned to maximize investor returns against what could be a
more volatile backdrop for international equity markets.
James A. Macmillan
Senior Portfolio Manager
Rob Weatherston
Portfolio Manager
July 18, 2007
BLACKROCK INTERNATIONAL VALUE FUND JUNE 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. 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.
* 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 initial sales charge (front-end load)
or deferred sales charge. These shares are subject to a distribution fee of
0.25% per year and a service fee of 0.25% per year. Class R Shares are
available only to certain retirement plans.
The returns for Investor A, Investor B, Investor C and Class R Shares, prior
to their respective inception dates (June 2, 1999, October 6, 2000, October 6,
2000 and January 3, 2003), are based upon performance of the Fund's
Institutional Shares. The returns for Investor A, Investor B, Investor C and
Class R Shares, however, are adjusted to reflect the distribution and service
(12b-1) fees applicable to each class of shares.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the
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 the classes, which are
deducted from the income available to be paid to shareholders.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Performance Data (continued)
Recent Performance Results
6-Month 12-Month 10-Year
As of June 30, 2007 Total Return Total Return Total Return
Institutional Shares* +10.83% +24.20% +151.54%
Investor A Shares* +10.63 +23.84 +145.31
Investor B Shares* +10.16 +22.78 +128.18
Investor C Shares* +10.14 +22.82 +128.03
Class R Shares* +10.51 +23.53 +140.56
MSCI EAFE Index** +10.74 +27.00 +109.20
* 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 the
Fund's 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 Index measures the total returns of developed foreign stock markets in Europe,
Australasia and the Far East (in U.S. dollars).
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Performance Data (concluded)
Total Return Based on a $10,000 Investment
A line graph illustrating the growth of a $10,000 investment in Institutional
Shares*++, Investor A Shares*++, Investor B Shares*++, Investor C Shares*++
and Class R Shares*++ compared to a similar investment in MSCI EAFE Index++++.
Values illustrated are as follows:
Institutional Shares*++
Date Value
June 1997 $10,000.00
June 1998 $10,777.00
June 1999 $11,232.00
June 2000 $12,985.00
June 2001 $11,974.00
June 2002 $11,838.00
June 2003 $10,372.00
June 2004 $13,898.00
June 2005 $15,926.00
June 2006 $20,254.00
June 2007 $25,154.00
Investor A Shares*++
Date Value
June 1997 $ 9,475.00
June 1998 $10,186.00
June 1999 $10,587.00
June 2000 $12,212.00
June 2001 $11,235.00
June 2002 $11,076.00
June 2003 $ 9,686.00
June 2004 $12,947.00
June 2005 $14,797.00
June 2006 $18,768.00
June 2007 $23,243.00
Investor B Shares*++
Date Value
June 1997 $10,000.00
June 1998 $10,670.00
June 1999 $11,009.00
June 2000 $12,601.00
June 2001 $11,558.00
June 2002 $11,315.00
June 2003 $ 9,813.00
June 2004 $13,018.00
June 2005 $14,768.00
June 2006 $18,585.00
June 2007 $22,818.00
Investor C Shares*++
Date Value
June 1997 $10,000.00
June 1998 $10,670.00
June 1999 $11,009.00
June 2000 $12,601.00
June 2001 $11,545.00
June 2002 $11,303.00
June 2003 $ 9,811.00
June 2004 $13,008.00
June 2005 $14,752.00
June 2006 $18,566.00
June 2007 $22,803.00
Class R Shares*++
Date Value
June 1997 $10,000.00
June 1998 $10,724.00
June 1999 $11,120.00
June 2000 $12,792.00
June 2001 $11,737.00
June 2002 $11,545.00
June 2003 $10,116.00
June 2004 $13,498.00
June 2005 $15,391.00
June 2006 $19,473.00
June 2007 $24,056.00
MSCI EAFE Index++++
Date Value
June 1997 $10,000.00
June 1998 $10,610.00
June 1999 $11,418.00
June 2000 $13,377.00
June 2001 $10,220.00
June 2002 $ 9,249.00
June 2003 $ 8,652.00
June 2004 $11,452.00
June 2005 $13,016.00
June 2006 $16,472.00
June 2007 $20,920.00
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
++ The Fund invests primarily in stocks of companies located outside of the
United States.
++++ This unmanaged Index measures the total returns of developed foreign
stock markets in Europe, Australasia and the Far East (in U.S. dollars).
Past performance is not indicative of future results.
Average Annual Total Return
Return
Institutional Shares
One Year Ended 6/30/07 +24.20%
Five Years Ended 6/30/07 +16.27
Ten Years Ended 6/30/07 + 9.66
Return Without Return With
Sales Charge Sales Charge*
Investor A Shares
One Year Ended 6/30/07 +23.84% +17.34%
Five Years Ended 6/30/07 +15.98 +14.74
Ten Years Ended 6/30/07 + 9.39 + 8.80
Return Return
Without CDSC With CDSC++++++
Investor B Shares++
One Year Ended 6/30/07 +22.78% +18.28%
Five Years Ended 6/30/07 +15.06 +14.83
Ten Years Ended 6/30/07 + 8.60 + 8.60
Return Return
Without CDSC With CDSC++++++
Investor C Shares++++
One Year Ended 6/30/07 +22.82% +21.82%
Five Years Ended 6/30/07 +15.07 +15.07
Ten Years Ended 6/30/07 + 8.59 + 8.59
Return
Class R Shares
One Year Ended 6/30/07 +23.53%
Five Years Ended 6/30/07 +15.81
Ten Years Ended 6/30/07 + 9.17
* 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 INTERNATIONAL VALUE FUND JUNE 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 January 1, 2007 and
held through June 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.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value January 1, 2007
January 1, 2007 June 30, 2007 to June 30, 2007
Actual
Institutional $1,000 $1,108.30 $ 5.31
Investor A $1,000 $1,106.30 $ 6.98
Investor B $1,000 $1,101.60 $11.68
Investor C $1,000 $1,101.40 $11.74
Class R $1,000 $1,105.10 $ 8.50
Hypothetical (5% annual return before expenses)**
Institutional $1,000 $1,019.86 $ 5.09
Investor A $1,000 $1,018.27 $ 6.69
Investor B $1,000 $1,013.78 $11.20
Investor C $1,000 $1,013.73 $11.25
Class R $1,000 $1,016.82 $ 8.15
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class
(1.01% for Institutional, 1.33% for Investor A, 2.23% for Investor B, 2.24% for Investor C and
1.62% for Class R), multiplied by the average account value over the period, multiplied by 182/365
(to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in
the most recent fiscal half year divided by 365.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Schedule of Investments as of June 30, 2007 (in U.S. dollars)
Shares
Industry Common Stocks Held Value
Australia--4.6%
Commercial Banks--1.1%
Australia & New Zealand Banking
Group Ltd. 930,337 $ 22,850,181
Industrial Conglomerates--0.6%
CSR Ltd. 4,694,624 13,817,203
Metals & Mining--2.4%
BHP Billiton Ltd. 751,319 22,449,963
Iluka Resources Ltd. 2,377,291 12,390,840
Rio Tinto Ltd. 188,169 15,696,628
----------------
50,537,431
Real Estate Investment Trusts
(REITs)--0.5%
Multiplex Group 2,570,361 10,700,310
Total Common Stocks in Australia 97,905,125
Belgium--0.7%
Health Care Technology--0.7%
AGFA-Gevaert NV 573,664 14,797,849
Total Common Stocks in Belgium 14,797,849
China--0.8%
Oil, Gas & Consumable
Fuels--0.8%
PetroChina Co. Ltd. 11,164,000 16,582,385
Total Common Stocks in China 16,582,385
Denmark--1.1%
Commercial Banks--1.1%
Danske Bank A/S 565,893 23,140,604
Total Common Stocks in Denmark 23,140,604
Finland--1.3%
Electric Utilities--1.3%
Fortum Oyj 901,462 28,168,422
Total Common Stocks in Finland 28,168,422
France--10.9%
Automobiles--1.9%
Renault SA 247,469 39,691,331
Commercial Banks--1.7%
Societe Generale SA 194,494 36,035,541
Electric Utilities--1.6%
Electricite de France SA 314,623 34,005,436
Insurance--1.4%
AXA SA 702,250 30,186,682
Machinery--1.4%
Vallourec SA 92,156 29,464,665
Oil, Gas & Consumable
Fuels--2.3%
Total SA 604,735 49,030,840
Pharmaceuticals--0.6%
Sanofi-Aventis 161,900 13,079,464
Total Common Stocks in France 231,493,959
Germany--15.0%
Air Freight & Logistics--1.4%
Deutsche Post AG 923,915 30,020,514
Automobiles--2.8%
Bayerische Motoren Werke AG 431,604 27,981,142
DaimlerChrysler AG 337,236 31,198,378
----------------
59,179,520
Shares
Industry Common Stocks Held Value
Germany (concluded)
Chemicals--2.0%
Bayer AG 556,662 $ 42,149,168
Diversified Telecommunication
Services--1.4%
Deutsche Telekom AG 1,615,690 29,866,060
Electric Utilities--1.5%
E.ON AG 193,003 32,406,808
Industrial Conglomerates--2.3%
Siemens AG 346,695 49,890,748
Insurance--2.0%
Allianz AG Registered Shares 181,282 42,516,965
Multi-Utilities--1.6%
RWE AG 313,568 33,466,725
Total Common Stocks in Germany 319,496,508
Hong Kong--1.0%
Real Estate Management &
Development--1.0%
New World Development Ltd. 8,379,000 20,969,062
Total Common Stocks in Hong Kong 20,969,062
Hungary--1.1%
Oil, Gas & Consumable
Fuels--1.1%
Mol Magyar Olaj-es Gazipari Rt. 160,750 24,221,337
Total Common Stocks in Hungary 24,221,337
Ireland--2.5%
Commercial Banks--1.0%
Allied Irish Banks Plc 770,493 21,047,500
Construction Materials--1.5%
CRH Plc 631,694 31,217,813
Total Common Stocks in Ireland 52,265,313
Italy--5.0%
Commercial Banks--2.9%
Banca Intesa SpA 3,944,892 29,412,080
UniCredito Italiano SpA 3,525,021 31,479,345
----------------
60,891,425
Oil, Gas & Consumable
Fuels--2.1%
Eni SpA 1,216,745 44,116,022
Total Common Stocks in Italy 105,007,447
Japan--17.8%
Auto Components--0.8%
NOK Corp. 786,000 16,589,720
Automobiles--4.0%
Honda Motor Co., Ltd. 514,000 18,664,494
Nissan Motor Co., Ltd. 2,071,000 22,171,910
Toyota Motor Corp. 699,000 44,083,409
----------------
84,919,813
Beverages--1.3%
Asahi Breweries Ltd. 1,823,100 28,273,115
Capital Markets--0.8%
Mitsubishi UFJ Securities Co. 1,434,000 16,067,700
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Schedule of Investments (continued) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
Japan (concluded)
Commercial Banks--2.0%
Mitsubishi UFJ Financial Group, Inc. 1,222 $ 13,467,280
Sumitomo Mitsui Financial Group, Inc. 3,300 30,763,942
----------------
44,231,222
Household Durables--0.3%
Sekisui House Ltd. 425,000 5,665,053
Insurance--1.4%
Sompo Japan Insurance, Inc. 2,467,000 30,173,193
Leisure Equipment &
Products--0.4%
Namco Bandai Holdings, Inc. 559,000 8,830,102
Metals & Mining--0.8%
Sumitomo Metal Industries Ltd. 2,954,000 17,367,051
Office Electronics--2.4%
Canon, Inc. 553,000 32,429,596
Ricoh Co., Ltd. 850,000 19,665,911
----------------
52,095,507
Oil, Gas & Consumable
Fuels--0.9%
Nippon Mining Holdings, Inc. 1,901,000 18,186,330
Pharmaceuticals--1.0%
Takeda Pharmaceutical Co., Ltd. 331,000 21,383,079
Trading Companies
& Distributors--1.7%
Itochu Corp. 1,792,000 20,750,310
Sojitz Corp. 3,232,000 14,445,840
----------------
35,196,150
Total Common Stocks in Japan 378,978,035
Netherlands--1.3%
Metals & Mining--1.3%
Arcelor Mittal 443,933 27,724,817
Total Common Stocks in the Netherlands 27,724,817
Norway--2.3%
Industrial Conglomerates--0.7%
Orkla ASA 764,696 14,418,256
Oil, Gas & Consumable
Fuels--1.6%
Statoil ASA 1,069,594 33,185,000
Total Common Stocks in Norway 47,603,256
Singapore--0.6%
Commercial Banks--0.6%
United Overseas Bank Ltd. 959,000 13,786,146
Total Common Stocks in Singapore 13,786,146
South Korea--1.0%
Metals & Mining--1.0%
POSCO 46,547 22,346,467
Total Common Stocks in South Korea 22,346,467
Spain--3.3%
Commercial Banks--3.3%
Banco Bilbao Vizcaya Argentaria SA 1,302,024 31,840,870
Banco Santander Central Hispano SA 2,064,940 37,957,697
Total Common Stocks in Spain 69,798,567
Shares
Industry Common Stocks Held Value
Sweden--1.3%
Diversified Financial Services--1.3%
Investor AB 1,078,249 $ 27,833,033
Total Common Stocks in Sweden 27,833,033
Switzerland--7.0%
Capital Markets--3.1%
Credit Suisse Group 470,991 33,436,156
UBS AG 548,032 32,774,680
----------------
66,210,836
Food Products--1.3%
Nestle SA Registered Shares 74,812 28,426,580
Insurance--1.0%
Swiss Reinsurance Registered Shares 219,903 20,055,178
Pharmaceuticals--1.6%
Novartis AG Registered Shares 616,450 34,607,864
Total Common Stocks in Switzerland 149,300,458
Taiwan--1.6%
Semiconductors & Semiconductor
Equipment--1.6%
Advanced Semiconductor Engineering
Inc. (c) 15,758,000 21,433,019
Vanguard International Semiconductor
Corp. 12,950,442 12,942,242
Total Common Stocks in Taiwan 34,375,261
United Kingdom--17.1%
Aerospace & Defense--1.4%
BAE Systems Plc 3,704,501 29,893,441
Commercial Banks--2.4%
Barclays Plc 1,541,148 21,441,855
HBOS Plc 1,542,721 30,344,270
----------------
51,786,125
Food Products--1.9%
Unilever Plc 1,275,615 41,189,424
Insurance--2.3%
Aviva Plc 1,404,190 20,844,814
Prudential Plc 2,028,882 28,879,714
----------------
49,724,528
Oil, Gas & Consumable
Fuels--3.1%
Royal Dutch Shell Plc Class B 1,569,696 65,434,362
Pharmaceuticals--1.6%
GlaxoSmithKline Plc 1,306,184 34,026,092
Tobacco--1.6%
British American Tobacco Plc 974,458 33,234,353
Wireless Telecommunication
Services--2.8%
Vodafone Group Plc 17,635,106 59,091,916
Total Common Stocks in the
United Kingdom 364,380,241
Total Common Stocks
(Cost--$1,580,159,443)--97.3% 2,070,174,292
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Shares
Industry Rights Held Value
Hong Kong--0.0%
Real Estate Management
& Development--0.0%
New World Development Ltd. (c)(e) 46,038 $ 0
Total Rights (Cost--$0)--0.0% 0
Beneficial
Other Interests (d) Interest
United Kingdom--0.0%
Electric Utilities--0.0%
British Energy Plc Deferred Shares $ 70,000 0
Total Other Interests (Cost--$0)--0.0% 0
Short-Term Beneficial
Securities Interest Value
BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.33% (a)(b) $39,701,497 $ 39,701,497
Total Short-Term Securities
(Cost--$39,701,497)--1.9% 39,701,497
Total Investments (Cost--$1,619,860,940*)--99.2% 2,109,875,789
Other Assets Less Liabilities--0.8% 18,041,501
----------------
Net Assets--100.0% $ 2,127,917,290
================
* The cost and unrealized appreciation (depreciation) of investments
as of June 30, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 1,647,053,860
================
Gross unrealized appreciation $ 473,451,245
Gross unrealized depreciation (10,629,316)
----------------
Net unrealized appreciation $ 462,821,929
================
(a) Represents the current yield as of June 30, 2007.
(b) 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 $(8,204,348) $1,877,036
(c) Non-income producing security.
(d) Other interests represent beneficial interest in liquidation trusts
and other reorganization entities and are non-income producing.
(e) The rights may be exercised until July 6, 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 such industry
sub-classifications for reporting ease. Industries are shown as a
percent of net assets. These industry classifications are unaudited.
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Statement of Assets and Liabilities
As of June 30, 2007
Assets
Investments in unaffiliated securities, at value (identified cost--$1,580,159,443) $ 2,070,174,292
Investments in affiliated securities, at value (identified cost--$39,701,497) 39,701,497
Cash 245
Receivables:
Securities sold $ 40,733,522
Dividends 10,018,424
Capital shares sold 2,280,782 53,032,728
---------------
Prepaid expenses 22,338
---------------
Total assets 2,162,931,100
---------------
Liabilities
Payables:
Securities purchased 28,472,043
Capital shares redeemed 3,471,175
Investment adviser 1,255,658
Other affiliates 610,386
Distributor 436,153 34,245,415
---------------
Accrued expenses and other liabilities 768,395
---------------
Total liabilities 35,013,810
---------------
Net Assets
Net assets $ 2,127,917,290
===============
Net Assets Consist of
Paid-in capital $ 1,487,243,070
Undistributed investment income--net $ 16,366,217
Undistributed realized capital gains--net 134,139,651
Unrealized appreciation--net 490,168,352
---------------
Total accumulated earnings--net 640,674,220
---------------
Net Assets $ 2,127,917,290
===============
Net Asset Value
Institutional--Based on net assets of $1,253,724,395 and 36,362,476 shares outstanding* $ 34.48
===============
Investor A--Based on net assets of $390,547,029 and 11,375,038 shares outstanding* $ 34.33
===============
Investor B--Based on net assets of $90,447,392 and 2,691,917 shares outstanding* $ 33.60
===============
Investor C--Based on net assets of $332,940,319 and 10,016,639 shares outstanding* $ 33.24
===============
Class R--Based on net assets of $60,258,155 and 1,769,273 shares outstanding* $ 34.06
===============
* Unlimited shares of no par value authorized.
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Statement of Operations
For the Year Ended June 30, 2007
Investment Income
Dividends (net of $5,652,727 foreign withholding tax) $ 59,057,063
Interest (including $1,877,036 from affiliates) 1,899,225
---------------
Total income 60,956,288
---------------
Expenses
Investment advisory fees $ 13,901,634
Service and distribution fees--Investor C 2,853,513
Transfer agent fees--Institutional 1,500,875
Transfer agent fees--Investor C 1,140,915
Service and distribution fees--Investor B 855,921
Service fees--Investor A 851,378
Custodian fees 728,494
Transfer agent fees--Investor A 722,464
Accounting services 519,968
Transfer agent fees--Investor B 331,110
Service and distribution fees--Class R 229,407
Printing and shareholder reports 130,910
Transfer agent fees--Class R 123,198
Registration fees 98,534
Professional fees 72,048
Trustees' fees and expenses 58,441
Pricing fees 15,558
Other 62,856
---------------
Total expenses 24,197,224
---------------
Investment income--net 36,759,064
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 204,598,237
Foreign currency transactions--net (281,304) 204,316,933
---------------
Change in unrealized appreciation/depreciation on:
Investments--net 163,320,045
Foreign currency transactions--net 43,257 163,363,302
--------------- ---------------
Total realized and unrealized gain--net 367,680,235
---------------
Net Increase in Net Assets Resulting from Operations $ 404,439,299
===============
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Statements of Changes in Net Assets
For the Year Ended
June 30,
Increase (Decrease) in Net Assets: 2007 2006
Operations
Investment income--net $ 36,759,064 $ 25,542,303
Realized gain--net 204,316,933 153,809,270
Change in unrealized appreciation/depreciation--net 163,363,302 162,900,635
--------------- ---------------
Net increase in net assets resulting from operations 404,439,299 342,252,208
--------------- ---------------
Dividends & Distributions to Shareholders
Investment income--net:
Institutional (29,815,327) (18,492,514)
Investor A (8,496,598) (5,324,212)
Investor B (1,632,772) (943,196)
Investor C (5,402,216) (2,745,185)
Class R (1,030,544) (343,070)
Realized gain--net:
Institutional (64,289,079) (59,837,586)
Investor A (19,979,543) (19,528,047)
Investor B (5,329,305) (4,826,983)
Investor C (17,097,391) (13,774,731)
Class R (2,572,250) (1,455,288)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (155,645,025) (127,270,812)
--------------- ---------------
Capital Share Transactions
Net increase in net assets derived from capital share transactions 236,827,075 128,563,673
--------------- ---------------
Redemption Fee
Redemption fee 19,006 4,791
--------------- ---------------
Net Assets
Total increase in net assets 485,640,355 343,549,860
Beginning of year 1,642,276,935 1,298,727,075
--------------- ---------------
End of year* $ 2,127,917,290 $ 1,642,276,935
=============== ===============
* Undistributed investment income--net $ 16,366,217 $ 20,090,434
=============== ===============
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Financial Highlights
The following per
share data and
ratios have been Institutional Investor A
derived from
information provided in For the Year Ended June 30, For the Year Ended June 30,
the financial statements. 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value,
beginning of year $ 30.55 $ 26.41 $ 23.54 $ 18.03 $ 20.63 $ 30.44 $ 26.33 $ 23.48 $ 17.98 $ 20.55
--------------------------------------------------- -------------------------------------------------
Investment income--net** .71 .56 .52 .31 .30 .62 .49 .50 .25 .39
Realized and unrealized
gain (loss)--net 6.10* 6.19* 2.83* 5.71 (2.85) 6.08* 6.16* 2.77* 5.70 (2.96)
--------------------------------------------------- -------------------------------------------------
Total from investment
operations 6.81 6.75 3.35 6.02 (2.55) 6.70 6.65 3.27 5.95 (2.57)
--------------------------------------------------- -------------------------------------------------
Less dividends and
distributions:
Investment income--net (.90) (.62) (.48) (.51) (.05) (.83) (.55) (.42) (.45) --
Realized gain--net (1.98) (1.99) -- -- -- (1.98) (1.99) -- -- --
--------------------------------------------------- -------------------------------------------------
Total dividends and
distributions (2.88) (2.61) (.48) (.51) (.05) (2.81) (2.54) (.42) (.45) --
--------------------------------------------------- -------------------------------------------------
Net asset value,
end of year $ 34.48 $ 30.55 $ 26.41 $ 23.54 $ 18.03 $ 34.33 $ 30.44 $ 26.33 $ 23.48 $ 17.98
=================================================== =================================================
Total Investment Return++
Based on net asset
value per share 24.20% 27.18%++++ 14.59% 34.00% (12.38%) 23.84% 26.84%++++ 14.29% 33.67% (12.55%)
=================================================== =================================================
Ratios to Average Net Assets
Expenses 1.01% 1.02% 1.08% 1.08% 1.07% 1.30% 1.27% 1.33% 1.33% 1.32%
=================================================== =================================================
Investment income--net 2.27% 1.97% 2.07% 1.47% 1.78% 1.98% 1.75% 1.94% 1.20% 2.30%
=================================================== =================================================
Supplemental Data
Net assets, end of year
(in thousands) $1,253,724 $ 961,207 $ 800,990 $ 559,530 $ 463,071 $390,547 $ 320,926 $ 254,207 $ 42,238 $ 49,395
=================================================== =================================================
Portfolio turnover 65% 81% 70% 75% 89% 65% 81% 70% 75% 89%
=================================================== =================================================
* Includes a redemption fee, which is less than $.01 per share.
** Based on average shares outstanding.
++ Total investment returns exclude the effect of sales charges.
++++ In 2006, approximately .21% of the Fund's Institutional Shares and +.17% Investor A Shares
total investment return consisted of a payment by the Fund's previous manager in order to
resolve a regulatory issue relating to an investment.
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Financial Highlights (continued)
The following per
share data and
ratios have been Investor B Investor C
derived from
information provided in For the Year Ended June 30, For the Year Ended June 30,
the financial statements. 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value,
beginning of year $ 29.88 $ 25.94 $ 23.24 $ 17.84 $ 20.57 $ 29.59 $ 25.72 $ 23.09 $ 17.70 $ 20.39
------------------------------------------------- -------------------------------------------------
Investment income--net** .34 .26 .32 .17 .29 .35 .28 .37 .29 .17
Realized and unrealized
gain (loss)--net 5.96* 6.07* 2.74* 5.57 (3.02) 5.90* 5.99* 2.65* 5.41 (2.86)
------------------------------------------------- -------------------------------------------------
Total from investment
operations 6.30 6.33 3.06 5.74 (2.73) 6.25 6.27 3.02 5.70 (2.69)
------------------------------------------------- -------------------------------------------------
Less dividends and
distributions:
Investment income--net (.60) (.40) (.36) (.34) -- (.62) (.41) (.39) (.31) --
Realized gain--net (1.98) (1.99) -- -- -- (1.98) (1.99) -- -- --
------------------------------------------------- -------------------------------------------------
Total dividends and
distributions (2.58) (2.39) (.36) (.34) -- (2.60) (2.40) (.39) (.31) --
------------------------------------------------- -------------------------------------------------
Net asset value,
end of year $ 33.60 $ 29.88 $ 25.94 $ 23.24 $ 17.84 $ 33.24 $ 29.59 $ 25.72 $ 23.09 $ 17.70
================================================= =================================================
Total Investment Return++
Based on net asset
value per share 22.78% 25.84%++++ 13.45% 32.65% (13.27%) 22.82% 25.86%++++ 13.41% 32.58% (13.19%)
================================================= =================================================
Ratios to Average Net Assets
Expenses 2.15% 2.06% 2.12% 2.11% 2.06% 2.15% 2.06% 2.12% 2.14% 2.07%
================================================= =================================================
Investment income--net 1.11% .95% 1.27% .81% 1.74% 1.15% 1.01% 1.45% 1.38% 1.02%
================================================= =================================================
Supplemental Data
Net assets, end of year
(in thousands) $ 90,447 $ 79,165 $ 62,261 $ 19,852 $ 5,343 $332,940 $244,931 $164,317 $ 38,608 $ 2,672
================================================= =================================================
Portfolio turnover 65% 81% 70% 75% 89% 65% 81% 70% 75% 89%
================================================= =================================================
* Includes a redemption fee, which is less than $.01 per share.
** Based on average shares outstanding.
++ Total investment returns exclude the effect of sales charges.
++++ In 2006, approximately .21% of the Fund's Investor B Shares and +.17% Investor C Shares
total investment return consisted of a payment by the Fund's previous manager in order to
resolve a regulatory issue relating to an investment.
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Financial Highlights (concluded)
Class R
For the Period
January 3, 2003++
The following per share data and ratios have been derived For the Year Ended June 30, to June 30,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 30.24 $ 26.19 $ 23.39 $ 17.98 $ 16.79
----------- ----------- ----------- ----------- -----------
Investment income--net** .55 .50 .50 .52 .32
Realized and unrealized gain--net 6.02+++++ 6.04+++++ 2.70+++++ 5.38 .87
----------- ----------- ----------- ----------- -----------
Total from investment operations 6.57 6.54 3.20 5.90 1.19
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net (.77) (.50) (.40) (.49) --
Realized gain--net (1.98) (1.99) -- -- --
----------- ----------- ----------- ----------- -----------
Total dividends and distributions (2.75) (2.49) (.40) (.49) --
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 34.06 $ 30.24 $ 26.19 $ 23.39 $ 17.98
=========== =========== =========== =========== ===========
Total Investment Return
Based on net asset value per share 23.53% 26.52%*** 14.03% 33.43% 7.09%+++
=========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses 1.57% 1.52% 1.58% 1.60% 1.55%*
=========== =========== =========== =========== ===========
Investment income--net 1.78% 1.76% 1.96% 2.34% 3.04%*
=========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 60,258 $ 36,048 $ 16,951 $ 5,905 --++++++++
=========== =========== =========== =========== ===========
Portfolio turnover 65% 81% 70% 75% 89%
=========== =========== =========== =========== ===========
* Annualized.
** Based on average shares outstanding.
*** In 2006, approximately +.16% of the Fund's Class R Shares total investment return consisted of a
payment by the Fund's previous manager in order to resolve a regulatory issue relating to an investment.
++ Commencement of operations.
+++ Aggregate total investment return.
+++++ Includes a redemption fee, which is less than $.01 per share.
++++++++ Amount is less than $1,000.
See Notes to Financial Statements.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
On September 29, 2006, Merrill Lynch International Value Fund was renamed
BlackRock International Value Fund (the "Fund"). The Fund is a series of
Mercury Funds II, which was renamed BlackRock Funds II on September 29, 2006
and BlackRock International Value Trust on May 18, 2007 (the "Trust"). The
Trust is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company, which is organized as a
Massachusetts business trust. 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. The Fund offers multiple classes of shares.
Effective October 2, 2006, Class I, Class A, Class B and Class C shares were
redesignated Institutional, Investor A, Investor B and Investor C shares,
respectively. Class R shares did not change their designation. Institutional
Shares are sold only to certain eligible investors. Investor A Shares are sold
with a front-end sales charge. Investor B and Investor C may be subject to a
contingent deferred sales charge. Class R Shares are sold only to certain
retirement plans. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that
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 Trust. 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 Trust. Short
positions traded in OTC markets are valued at the last available asked price.
Portfolio securities that are traded both in OTC markets and on a stock
exchange are valued according to the broadest and most representative market.
Options written or purchased are valued at the last sale price in the case of
exchange-traded options. Options traded in OTC markets 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. Valuation of 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 Trust, 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 Trust under the general supervision of the
Trust's Board of Trustees. Such valuations and procedures will be reviewed
periodically by the Board of Trustees of the Trust.
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 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 Trust's Board of Trustees or by
BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary
of BlackRock, Inc., using a pricing service and/or procedures approved by the
Trust's Board of Trustees.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Notes to Financial Statements (continued)
(b) 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 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.
(c) 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.
(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, withholding taxes 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.
(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.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Notes to Financial Statements (continued)
(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 each of 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 each Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards
Board No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), was issued and is effective for fiscal years
beginning after November 15, 2007. Early adoption is permitted as of the
beginning of a fiscal year that begins on or before November 15, 2007,
provided the ntity 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.
(j) Reclassification--U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the
current year, $5,894,176 has been reclassified between undistributed net
realized capital gains and undistributed net investment income as a result of
permanent differences attributable to gains from the sale of stock of passive
foreign investment companies and foreign currency transaction losses. This
reclassification has no effect on net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers L.P. ("MLIM") and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc. ("PNC"),
has approximately a 34% economic and voting interest. The new company operates
under the BlackRock name and is governed by a board of directors with a
majority of independent members.
On August 15, 2006, shareholders of the Fund approved a new Investment
Advisory Agreement with BlackRock Advisors, Inc. BlackRock Advisors, Inc. was
reorganized into a limited liability company and renamed BlackRock Advisors,
LLC. The new Investment Advisory Agreement between the Fund and the Manager
became effective on September 29, 2006. Prior to September 29, 2006, FAM was
the Fund's manager. The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch, which is the
limited partner. The Fund has also entered into separate Distribution
Agreements and Distribution Plans with FAM Distributors, Inc. ("FAMD") and
BlackRock Distributors, Inc. and its affiliates ("BDI") (collectively, the
"Distributor"). FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc.
and BDI is an affiliate of BlackRock, Inc.
The Manager is responsible for the management of the Fund's investments 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% of the average daily value
of the Fund's net assets not exceeding $2 billion, .70% of the average daily
value of the Fund's net assets in excess of $2 billion but not exceeding
$4 billion and .65% of the average daily value of the Fund's net assets in
excess of $4 billion.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Notes to Financial Statements (continued)
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management International Limited, an affiliate of the
Manager, under which the Manager pays the Sub-Adviser for services it provides
a monthly fee at an annual rate equal to a percentage of the management fee
paid by the Fund to the Manager. Prior to September 29, 2006, FAM had Sub-
Advisory Agreements with Merrill Lynch Investment Managers International
Limited ("MLIMIL") and Merrill Lynch Asset Management U.K. Limited, affiliated
advisers that are indirect subsidiaries of Merrill Lynch.
Pursuant to the Distribution Plans adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Fund pays each Distributor
ongoing service and distribution fees. The fees are accrued daily and paid
monthly at the 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, provides 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 the broker-dealers for
providing shareholder servicing and distribution-related services to Investor
B, Investor C and Class R shareholders.
For the year ended June 30, 2007, FAMD, the Fund's sole Distributor until
September 29, 2006, and BDI earned underwriting discounts and direct
commissions and MLPF&S earned dealer concessions on sales of the Fund's
Investor A Shares as follows:
FAMD MLPF&S BDI
Investor A $ 24,102 $ 296,005 $ 2,233
For the year ended June 30, 2007, MLPF&S received contingent deferred sales
charges of $29,103 and $17,773 relating to transactions in Investor B and
Investor C Shares, respectively. In addition, MLPF&S received contingent
deferred sales charges of $334 relating to transactions subject to front-end
sales charge waivers in Investor A Shares. Furthermore, BDI received
contingent deferred sales charges of $82 relating to transactions in Investor
C Shares.
In addition, MLPF&S received $15,576 in commissions on the execution of
portfolio security transactions for the Fund for the year ended June 30, 2007.
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.
During the period ended September 29, 2006 to June 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 Statements of Operations.
Call Center
Fees
Institutional $12,615
Investor A $ 4,666
Investor B $ 1,174
Investor C $ 3,202
Class R $ 202
Effective September 29, 2006, PFPC Inc., an indirect, wholly owned subsidiary
of PNC and an affiliate of the Manager, became the Fund's transfer agent.
Prior to September 29, 2006, the Fund's transfer agent was Financial Data
Services, Inc. ("FDS"), a wholly owned subsidiary of Merrill Lynch.
For the year ended June 30, 2007, the Fund reimbursed MLIM and the Manager
$10,544 and $27,668, respectively, for certain accounting services.
Prior to September 29, 2006, certain officers and/or trustees of the Trust
were officers and/or directors of FAM, PSI, FAMD, FDS, Merrill Lynch, MLIM,
MLIMIL, and/or MLIM, LLC.
Commencing September 29, 2006, certain officers and/or trustees of the Trust
are officers and/or directors of BlackRock, Inc. or its affiliates.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended June 30, 2007 were $1,282,080,405 and $1,190,636,897, respectively.
4. Capital Share Transactions:
Net increase in net assets derived from capital share transactions was
$236,827,075 and $128,563,673 for the years ended June 30, 2007 and June 30,
2006, respectively.
Transactions in capital shares for each class were as follows:
Institutional Shares for the Dollar
Year Ended June 30, 2007 Shares Amount
Shares sold 10,090,109 $ 314,260,801
Shares issued to shareholders in
reinvestment of dividends and
distributions 3,129,877 91,240,177
-------------- ---------------
Total issued 13,219,986 405,500,978
Shares redeemed (8,320,422) (261,125,245)
-------------- ---------------
Net increase 4,899,564 $ 144,375,733
============== ===============
Institutional Shares for the Dollar
Year Ended June 30, 2006 Shares Amount
Shares sold 7,769,376 $ 223,022,198
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,828,499 75,709,098
-------------- ---------------
Total issued 10,597,875 298,731,296
Shares redeemed (9,460,879) (267,112,761)
-------------- ---------------
Net increase 1,136,996 $ 31,618,535
============== ===============
Investor A Shares for the Dollar
Year Ended June 30, 2007 Shares Amount
Shares sold 2,529,194 $ 78,835,811
Automatic conversion of shares 68,920 2,109,010
Shares issued to shareholders in
reinvestment of dividends and
distributions 927,989 26,958,673
-------------- ---------------
Total issued 3,526,103 107,903,494
Shares redeemed (2,692,517) (84,105,783)
-------------- ---------------
Net increase 833,586 $ 23,797,711
============== ===============
Investor A Shares for the Dollar
Year Ended June 30, 2006 Shares Amount
Shares sold 2,343,423 $ 65,898,332
Automatic conversion of shares 262,948 7,296,422
Shares issued to shareholders in
reinvestment of dividends and
distributions 884,011 23,605,077
-------------- ---------------
Total issued 3,490,382 96,799,831
Shares redeemed (2,602,866) (72,617,918)
-------------- ---------------
Net increase 887,516 $ 24,181,913
============== ===============
Investor B Shares for the Dollar
Year Ended June 30, 2007 Shares Amount
Shares sold 1,299,077 $ 39,527,983
Shares issued to shareholders in
reinvestment of dividends and
distributions 232,791 6,626,874
-------------- ---------------
Total issued 1,531,868 46,154,857
-------------- ---------------
Automatic conversion of shares (70,298) (2,109,010)
Shares redeemed (1,419,455) (43,556,120)
-------------- ---------------
Total redeemed (1,489,753) (45,665,130)
-------------- ---------------
Net increase 42,115 $ 489,727
============== ===============
Investor B Shares for the Dollar
Year Ended June 30, 2006 Shares Amount
Shares sold 1,288,052 $ 35,806,069
Shares issued to shareholders in
reinvestment of dividends and
distributions 205,987 5,424,023
-------------- ---------------
Total issued 1,494,039 41,230,092
-------------- ---------------
Automatic conversion of shares (267,121) (7,296,422)
Shares redeemed (977,725) (27,177,426)
-------------- ---------------
Total redeemed (1,244,846) (34,473,848)
-------------- ---------------
Net increase 249,193 $ 6,756,244
============== ===============
Investor C Shares for the Dollar
Year Ended June 30, 2007 Shares Amount
Shares sold 3,633,693 $ 109,853,250
Shares issued to shareholders in
reinvestment of dividends and
distributions 758,236 21,372,941
-------------- ---------------
Total issued 4,391,929 131,226,191
Shares redeemed (2,651,790) (80,724,606)
-------------- ---------------
Net increase 1,740,139 $ 50,501,585
============== ===============
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Notes to Financial Statements (concluded)
Investor C Shares for the Dollar
Year Ended June 30, 2006 Shares Amount
Shares sold 3,395,024 $ 93,383,656
Shares issued to shareholders in
reinvestment of dividends and
distributions 587,241 15,322,598
-------------- ---------------
Total issued 3,982,265 108,706,254
Shares redeemed (2,093,364) (58,042,166)
-------------- ---------------
Net increase 1,888,901 $ 50,664,088
============== ===============
Class R Shares for the Dollar
Year Ended June 30, 2007 Shares Amount
Shares sold 1,014,122 $ 31,492,453
Shares issued to shareholders in
reinvestment of dividends and
distributions 124,847 3,602,794
-------------- ---------------
Total issued 1,138,969 35,095,247
Shares redeemed (561,630) (17,432,928)
-------------- ---------------
Net increase 577,339 $ 17,662,319
============== ===============
Class R Shares for the Dollar
Year Ended June 30, 2006 Shares Amount
Shares sold 788,684 $ 22,354,493
Shares issued to shareholders in
reinvestment of dividends and
distributions 67,457 1,792,621
-------------- ---------------
Total issued 856,141 24,147,114
Shares redeemed (311,421) (8,804,221)
-------------- ---------------
Net increase 544,720 $ 15,342,893
============== ===============
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 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.
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by the Manager and its
affiliates, is party to a $500,000,000 credit agreement with a group of
lenders, which expires November 2007. 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 .06% 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 year
ended June 30, 2007.
6. Commitments:
At June 30, 2007, the Fund had entered into foreign exchange contracts under
which it had agreed to purchase and sell various foreign currencies with
approximate values of $25,125,000 and $37,425,000, respectively.
7. Distribution to Shareholders:
The tax character of distributions paid during the fiscal years ended June 30,
2007 and June 30, 2006 was as follows:
6/30/2007 6/30/2006
Distributions paid from:
Ordinary income $ 87,189,119 $ 27,848,177
Net long-term capital gain 68,455,906 99,422,635
-------------- ---------------
Total taxable distributions $ 155,645,025 $ 127,270,812
============== ===============
As of June 30, 2007, the components of accumulated earnings on a tax
basis were as follows:
Undistributed ordinary income--net $ 60,683,970
Undistributed long-term capital gains--net 143,605,359
---------------
Total undistributed earnings--net 204,289,329
Capital loss carryforward (26,631,773)*
Unrealized gains--net 463,016,664**
---------------
Total accumulated earnings--net $ 640,674,220
===============
* On June 30, 2007, the Fund had a net capital loss carryforward
of $26,631,773, all of which expires in 2010. Subject to limitations,
this amount will be available to offset like amounts of future
taxable gains.
** The difference between book-basis and tax-basis net unrealized
gains is attributable primarily to the tax deferral of losses on
wash sales, the realization for tax purposes of unrealized gains
on certain foreign currency contracts, and the realization for tax
purposes of unrealized gains on investments in passive foreign
investment companies.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
BlackRock International Value Trust:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock International Value Fund
(formerly Merrill Lynch International Value Fund) (the "Fund") one of the
funds constituting BlackRock International Value Trust (formerly Mercury Funds
II and BlackRock Funds II) as of June 30, 2007, the related statement of
operations, statement of changes in net assets, and the financial highlights
for the year then ended. These financial statements and the financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audit. The financial statements of the Fund for the
year ended June 30, 2006 and the financial highlights for each of the four
years in the period ended June 30, 2006 were audited by other auditors whose
report, dated August 9, 2006, expressed an unqualified opinion on those
financial statements and financial highlights.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Fund's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of June 30, 2007, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock International Value Fund of BlackRock International Value Trust as
of June 30, 2007, the results of its operations, the changes in its net
assets, and its financial highlights for the year then ended, in conformity
with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
August 23, 2007
Important Tax Information (unaudited)
The following information is provided with respect to the ordinary income
distributions paid by BlackRock International Value Fund of BlackRock
International Value Trust during the fiscal year ended June 30, 2007:
Record Date: September 13, 2006 December 12, 2006
Payable Date: September 19, 2006 December 14, 2006
Qualified Dividend Income for
Individuals 53.70%* 96.11%*
Foreign Source Income 47.28%* 70.95%*
Foreign Taxes Paid Per Share $.061383 $.019819
Short-Term Capital Gain Dividends
for Non-U.S. Residents 57.38%** N/A
* Expressed as a percentage of the cash distribution grossed-up for
foreign taxes.
** Represents the portion of the taxable ordinary income dividends
eligible for exemption from U.S. withholding tax for nonresident
aliens and foreign corporations.
The foreign taxes paid represent taxes incurred by the Fund on income received
by the Fund from foreign sources. Foreign taxes paid may be included in
taxable income with an offsetting deduction from gross income or may be taken
as a credit for taxes paid to foreign governments. You should consult your tax
adviser regarding the appropriate treatment of foreign taxes paid.
Additionally, the Fund paid long-term capital gain distributions of $.975457
and $.255812 per share to shareholders of record on September 13, 2006 and
December 12, 2006, respectively.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Officers and Trustees
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Interested Trustee
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, Inc., 121 Funds None
P.O. Box 9011 President present Global Chief Investment Officer for Equities, 161 Portfolios
Princeton, and Chairman of the BlackRock Retail Operating
NJ 08543-9011 Trustee Committee, and member of the BlackRock
Age: 52 Executive Committee since 2006; President
of the funds advised by Merrill Lynch Investment
Managers, L.P. ("MLIM") and its affiliates
("MLIM/FAM-advised funds") from 2005 to
2006 and Chief Investment Officer thereof
from 2001 to 2006; President of MLIM and
Fund Asset Management, L.P. ("FAM") from
2001 to 2006; Co-Head (Americas Region)
thereof from 2000 to 2001 and Senior Vice
President from 1999 to 2001; President and
Director of Princeton Services, Inc. ("Princeton
Services") and President of Princeton
Administrators, L.P. ("Princeton Administrators")
from 2001 to 2006; Chief Investment Officer
of OppenheimerFunds, Inc. in 1999 and Executive
Vice President thereof from 1991 to 1999.
* Mr. Doll is a director, trustee or member of an advisory board of certain other
investment companies for which BlackRock Advisors, LLC, and its affiliates, act as
investment adviser. Mr. Doll is an "interested person," as defined in the Investment
Company Act, of the Fund based on his positions with BlackRock, Inc. and its
affiliates. Trustees serve until their resignation, removal or death, or until
December 31 of the year in which they turn 72. As Fund President, Mr. Doll serves at
the pleasure of the Board of Trustees.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Officers and Trustees (continued)
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Trustees*
James H. Bodurtha** Trustee 2002 to Director, The China Business Group, Inc. since 37 Funds None
P.O. Box 9095 present 1996 and Executive Vice President thereof from 57 Portfolios
Princeton, 1996 to 2003; Chairman of the Board, Berkshire
NJ 08543-9095 Holding Corporation since 1980; Partner, Squire,
Age: 63 Sanders & Dempsey from 1980 to 1993.
Kenneth A. Froot Trustee 2005 to Professor, Harvard University since 1992; 37 Funds None
P.O. Box 9095 present Professor, Massachusetts Institute of 57 Portfolios
Princeton, Technology from 1986 to 1992.
NJ 08543-9095
Age: 49
Joe Grills** Trustee 1996 to Member of the Committee of Investment of 37 Funds Kimco Realty
P.O. Box 9095 present Employee Benefit Assets of the Association 57 Portfolios Corporation
Princeton, of Financial Professionals ("CIEBA") since
NJ 08543-9095 1986; Member of CIEBA's Executive Committee
Age: 72 since 1988 and its Chairman from 1991 to
1992; Assistant Treasurer of International
Business Machines Corporation ("IBM") and
Chief Investment Officer of IBM Retirement
Funds from 1986 to 1993; Member of the
Investment Advisory Committee of the State
of New York Common Retirement Fund from
1989 to 2006; Member of the Investment
Advisory Committee of the Howard Hughes
Medical Institute from 1997 to 2000; Director,
Duke University Management Company from
1992 to 2004, Vice Chairman thereof from
1998 to 2004, and Director Emeritus thereof
since 2004; Director, LaSalle Street Fund from
1995 to 2001; Director, Kimco Realty Corporation
since 1997; Member of the Investment Advisory
Committee of the Virginia Retirement System
since 1998, Vice Chairman thereof from 2002
to 2005, and Chairman thereof since 2005;
Director, Montpelier Foundation since 1998,
its Vice Chairman from 2000 to 2006, and
Chairman, thereof, since 2006; Member of the
Investment Committee of the Woodberry Forest
School since 2000; Member of the Investment
Committee of the National Trust for Historic
Preservation since 2000.
Herbert I. London Trustee 2002 to Professor Emeritus, New York University since 37 Funds None
P.O. Box 9095 present 2005; John M. Olin Professor of Humanities, 57 Portfolios
Princeton, New York University from 1993 to 2005; and
NJ 08543-9095 Professor thereof from 1980 to 2005; President,
Age: 68 Hudson Institute since 1997 and Trustee thereof
since 1980; Dean, Gallatin Division of New York
University from 1976 to 1993; Distinguished
Fellow, Herman Kahn Chair, Hudson Institute
from 1984 to 1985; Chairman of the Board of
Directors of Vigilant Research, Inc. since 2006;
Member of the Board of Directors for Grantham
University since 2006; Director of AIMS since
2006; Director of Reflex Security since 2006;
Director of InnoCentive, Inc. since 2006; Director
of Cerego, LLC since 2005; Director, Damon Corp.
from 1991 to 1995; Overseer, Center for Naval
Analyses from 1983 to 1993.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 30, 2007
Officers and Trustees (concluded)
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Trustees* (concluded)
Roberta Cooper Ramo Trustee 2002 to Shareholder, Modrall, Sperling, Roehl, Harris & 37 Funds None
P.O. Box 9095 present Sisk, P.A. since 1993; President, American Bar 57 Portfolios
Princeton, Association from 1995 to 1996 and Member of
NJ 08543-9095 the Board of Governors thereof from 1994 to
Age: 64 1997; Shareholder, Poole, Kelly and Ramo,
Attorneys at Law P.C. from 1977 to 1993;
Director of ECMC Group (service provider to
students, schools and lenders) since 2001;
Director, United New Mexico Bank (now Wells
Fargo) from 1983 to 1988; Director, First National
Bank of New Mexico (now Wells Fargo) from
1975 to 1976; Vice President, American Law
Institute since 2004.
Robert S. Salomon, Jr. Trustee 2002 to Principal of STI Management (investment adviser) 37 Funds None
P.O. Box 9095 present from 1994 to 2005; Chairman and CEO of 57 Portfolios
Princeton, Salomon Brothers Asset Management Inc. from
NJ 08543-9095 1992 to 1995; Chairman of Salomon Brothers
Age: 70 Equity Mutual Funds from 1992 to 1995; regular
columnist with Forbes Magazine from 1992 to
2002; Director of Stock Research and U.S. Equity
Strategist at Salomon Brothers Inc. from 1975 to
1991; Trustee, Commonfund from 1980 to 2001.
* Trustees serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Co-Chairman of the Board of Trustees and the Audit Committee.
Position(s) Length of
Held with Time
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 1996 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P.
Princeton, and and ("FAM") in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and
NJ 08543-9011 Treasurer 1999 to Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990
Age: 47 present to 1997.
Karen Clark Fund Chief 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
NJ 08543-9011 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
Age: 42 to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
Alice A. Pellegrino Secretary 2004 to Director of BlackRock, Inc. since 2006; Director (Legal Advisory) of MLIM from
P.O. Box 9011 present 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated
Princeton, with MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc.
NJ 08543-9011 and Princeton Services from 2004 to 2006.
Age: 47
* Officers of the Fund serve at the pleasure of the Board of Trustees.
Further information about the Fund's Officers and Trustees is available in
the Fund's Statement of Additional Information, which can be obtained without
charge by calling 1-800-441-7762.
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
BLACKROCK INTERNATIONAL VALUE FUND JUNE 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 sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisers, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock 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 INTERNATIONAL VALUE FUND JUNE 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/Trust's voting securities
were voted (if any) by BlackRock 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 funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long
as their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BLACKROCK INTERNATIONAL VALUE FUND JUNE 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 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 Technology 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 INTERNATIONAL VALUE FUND JUNE 30, 2007
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1) Joe
Grills and (2) Robert S. Salomon, Jr.
Item 4 - Principal Accountant Fees and Services
Note: The Fund changed auditors effective August, 28, 2006. Prior
to that date, Ernst & Young LLP provided services as the Fund's
independent registered public accountant.
(a) Audit Fees - Fiscal Year Ended June 30, 2007 - $36,500
Fiscal Year Ended June 30, 2006 - $36,000
(b) Audit-Related Fees - Fiscal Year Ended June 30, 2007 - $0
Fiscal Year Ended June 30, 2006 - $0
(c) Tax Fees - Fiscal Year Ended June 30, 2007 - $6,100
Fiscal Year Ended June 30, 2006 - $6,000
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ended June 30, 2007 - $0
Fiscal Year Ended June 30, 2006 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be
deemed pre-approved provided that any individual project does not
exceed $5,000 attributable to the registrant or $50,000 for all of
the registrants the Committee oversees. Any proposed services
exceeding the pre-approved cost levels will require specific pre-
approval by the Committee, as will any other services not subject to
general pre-approval (e.g., unanticipated but permissible services).
The Committee is informed of each service approved subject to
general pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ended June 30, 2007 - $2,967,000
Fiscal Year Ended June 30, 2006 - $0
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation
S-X is compatible with maintaining the principal accountant's
independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $1,735,000, 0%
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 1940 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 - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock International Value Fund of BlackRock International Value Trust
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock International Value Fund of
BlackRock International Value Trust
Date: August 20, 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 International Value Fund of
BlackRock International Value Trust
Date: August 20, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock International Value Fund of
BlackRock International Value Trust
Date: August 20, 2007