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 811-04612
Name of Fund: BlackRock EuroFund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock EuroFund, 800 Scudders Mill Road, Plainsboro, NJ,
08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 10/31/2007
Date of reporting period: 11/01/2006 - 10/31/2007
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
BlackRock EuroFund
ANNUAL REPORT OCTOBER 31, 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 EuroFund
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
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To sign up today, go to www.blackrock.com/edelivery.
Table of Contents
Page
A Letter to Shareholders 3
Annual Report:
Fund Summary 4
About Fund Performance 6
Disclosure of Expenses 6
Portfolio Summary 7
Proxy Results 7
Financial Statements:
Schedule of Investments 8
Statement of Assets and Liabilities 10
Statement of Operations 11
Statements of Changes in Net Assets 12
Financial Highlights 13
Notes to Financial Statements 16
Report of Independent Registered Public Accounting Firm 22
Officers and Trustees 23
Important Tax Information 24
BlackRock Fund Information 25
Mutual Fund Family 27
BLACKROCK EUROFUND OCTOBER 31, 2007
A Letter to Shareholders
Dear Shareholder
The October reporting period was fairly tumultuous for financial markets, but
culminated in positive performance for most major benchmarks:
Total Returns as of October 31, 2007 6-month 12-month
U.S. equities (S&P 500 Index) +5.49% +14.56%
Small cap U.S. equities (Russell 2000 Index) +2.25% + 9.27%
International equities (MSCI Europe, Australasia, Far East Index) +8.19% +24.91%
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +2.68% + 5.38%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.30% + 2.91%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -0.07% + 6.89%
Past performance is no guarantee of future results. Index performance shown
for illustrative purposes only. You cannot invest directly in an index.
Subprime mortgage woes dominated headlines for much of 2007, but intensified
in the summer and fall, spawning a widespread liquidity and credit crisis with
ramifications across global markets. The Federal Reserve Board (the "Fed") and
other countries' central banks stepped in to inject liquidity into the markets
and bolster investor confidence. The Fed cut the federal funds rate by 0.50%
in September and another 0.25% on the final day of the reporting period,
bringing its target rate to 4.50%. In taking action, the central bankers, who
had long deemed themselves inflation fighters, were seeking to stem the
fallout from the credit crunch and forestall a wider economic unraveling. By
period-end, the Fed had cited the risks between slower economic growth and
faster inflation as equally balanced.
Amid the volatility throughout the past year, equity markets have displayed
surprising resilience. Most recently, the credit turmoil dampened corporate
merger-and-acquisition (M&A) activity, a key source of strength for equity
markets. Still, market fundamentals have held firm, dividend payouts and share
buybacks have continued to grow, and valuations remain attractive. These
tailwinds generally have prevailed over the headwinds created by the slowing
U.S. economy, troubled housing market and, recently, a more difficult
corporate earnings backdrop. International markets fared even better than U.S.
equities, benefiting from robust M&A activity and generally stronger economies.
In fixed income markets, mixed economic signals and the credit woes resulted
in a flight to quality. At the height of the uncertainty, investors shunned
bonds associated with the housing and credit markets in favor of higher-
quality Treasury issues. The yield on 10-year Treasury issues, which touched
5.30% in June (its highest level in five years), fell to 4.48% by period-end,
while prices correspondingly rose. The tax-exempt bond market has been
challenged by a combination of record-setting supply year-to-date, economic
uncertainty and concerns around the credit worthiness of bond insurers. This
has brought municipal bond prices to relatively attractive levels and, as
such, demand generally has remained firm.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as
needed. For more market insight and commentary from BlackRock investment
professionals, we invite you to visit www.blackrock.com/funds. As always, we
thank you for entrusting BlackRock with your investment assets, and we look
forward to continuing to serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
- -----------------------
Robert C. Doll, Jr.
Vice Chairman, BlackRock, Inc.
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary
Portfolio Management Commentary
How did the Fund perform?
* The Fund posted solid absolute returns, but underperformed its benchmark
for the 12-month period.
What factors Influenced performance?
* The main detractor from performance was the Fund's overweight in
financials, especially in banking and diversified financials. We have been
positioned for tougher markets and materially reduced our exposure to the
sector throughout the year, but the extent of liquidity contagion from the
subprime markets and the resulting risk aversion across the sector led to a
broad-based sell-off that affected a number of the Fund's holdings,
including U.K. bank HBOS Plc, Irish bank Allied Irish Banks Plc and Swiss
investment bank UBS AG.
* The Fund's exposure to the automobile industry underperformed on concerns
that a U.S. consumer slowdown, along with a weaker U.S. dollar, would
negatively impact demand. Relative returns also suffered from not owning
Finnish handset maker Nokia Oyj, and from the Fund's holdings in Irish
construction company CRH Plc and Belgium imaging technology company AGFA
Gevaert NV.
* The Fund's large cap bias detracted from performance relative to its
benchmark, especially in the latter part of 2006 and early 2007, when
merger-and-acquisition activity reached record levels and tended to benefit
mid to small cap names. The Fund's value bias also was a relative
disadvantage, as value underperformed growth for the year.
* The Fund benefited from an overweight exposure to oil prices, reflected
through energy holdings such as Statoilhydro ASA and refiner MOL Hungarian
Oil and Gas, and power utilities such as RWE AG, E.ON AG and Electricite de
France SA. Other stocks that contributed positively included German
chemical/pharmaceutical company Bayer AG, steel company Arcelor-Mittal,
construction company Hochtief AG and chemical company BASF AG.
Describe recent portfolio activity.
* We reduced exposure to the financial sector across banks, diversified
financials and insurance, including ING Groep NV CVA, French banks BNP
Paribas and Credit Agricole SA, Banco Bilbao Vizcaya Argentaria SA and
Barclays Plc. We increased our defensive exposure in the food, beverage &
tobacco subsector, with increases in Unilever Plc, Nestle SA and British
American Tobacco Plc. We also added to the materials sector, through Anglo
American Plc and chemical company Akzo Nobel NV. Other new or increased
positions included Deutsche Telekom AG, DaimlerChrysler AG and Banco
Santander SA.
Describe Fund positioning at period-end.
* We remain optimistic on the prospects for European equities. In our view,
the recent equity market sell-off is not the result of any specific issues
in Europe, although some banks may have some moderate exposure to the
credit market crisis. While it is too early to know if the market has hit
bottom, we are actively looking for opportunities among stocks that we
believe are now oversold. In our view, a combination of strong earnings
growth and attractive valuations should allow the market to make progress
against what may be a more challenging international backdrop.
Total Return Based on a $10,000 Investment
A line graph illustrating the growth of a $10,000 investment in Institutional
Shares*++ and Investor A Shares*++ compared to a similar investment in Morgan
Stanley Capital International Europe Index++++. Values illustrated are as
follows:
Institutional Shares*++
Date Value
October 1997 $10,000.00
October 1998 $11,373.00
October 1999 $14,017.00
October 2000 $14,230.00
October 2001 $12,388.00
October 2002 $11,313.00
October 2003 $13,866.00
October 2004 $16,537.00
October 2005 $19,268.00
October 2006 $25,825.00
October 2007 $32,141.00
Investor A Shares*++
Date Value
October 1997 $ 9,475.00
October 1998 $10,753.00
October 1999 $13,214.00
October 2000 $13,388.00
October 2001 $11,623.00
October 2002 $10,585.00
October 2003 $12,945.00
October 2004 $15,402.00
October 2005 $17,898.00
October 2006 $23,919.00
October 2007 $29,729.00
Morgan Stanley Capital International Europe Index++++
Date Value
October 1997 $10,000.00
October 1998 $12,306.00
October 1999 $13,846.00
October 2000 $13,977.00
October 2001 $10,784.00
October 2002 $ 9,287.00
October 2003 $11,531.00
October 2004 $14,056.00
October 2005 $16,346.00
October 2006 $21,527.00
October 2007 $27,547.00
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
++ The Fund invests primarily in equities of corporations domiciled in
European countries. Under normal market conditions, at least 80% of
the Fund's net assets will be invested in European corporate securities,
primarily common stocks and debt and preferred securities convertible
into common stock.
++++ This unmanaged capitalization-weighted Index is comprised of a
representative sampling of large-, medium- and small-capitalization
companies in developed European countries.
BLACKROCK EUROFUND OCTOBER 31, 2007
Performance Summary for the Period Ended October 31, 2007
Average Annual Total Returns*
1 Year 5 Years 10 Years
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
Institutional +8.66% +24.46% -- +23.22% -- +12.38% --
Investor A +8.61 +24.29 +17.76% +22.94 +21.62% +12.11 +11.51%
Investor B +8.15 +23.12 +18.62 +21.93 +21.75 +11.42 +11.42
Investor C +8.16 +23.26 +22.26 +21.96 +21.96 +11.23 +11.23
Class R +8.28 +23.60 -- +22.87 -- +11.94 --
Morgan Stanley Capital International
Europe Index +8.28 +27.96 -- +24.29 -- +10.66 --
* Assuming maximum sales charges. See "About Fund Performance" on page 6 for a detailed description of
share classes, including any related sales charges and fees.
Past performance is not indicative of future results.
Expense Example
Actual Hypothetical**
Beginning Ending Expenses Beginning Ending Expenses
Account Value Account Value Paid During Account Value Account Value Paid During
May 1, 2007 October 31, 2007 the Period* May 1, 2007 October 31, 2007 the Period*
Institutional $1,000 $1,086.60 $ 5.42 $1,000 $1,020.02 $ 5.24
Investor A $1,000 $1,086.10 $ 6.41 $1,000 $1,019.06 $ 6.21
Investor B $1,000 $1,081.50 $10.60 $1,000 $1,015.03 $10.26
Investor C $1,000 $1,081.60 $10.44 $1,000 $1,015.18 $10.11
Class R $1,000 $1,082.80 $ 9.24 $1,000 $1,016.34 $ 8.94
* For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.03% for Institutional,
1.22% for Investor A, 2.02% for Investor B, 1.99% for Investor C and 1.76% for Class R), multiplied by the average
account value over the period, multiplied by 184/365 (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.
See "Disclosure of Expenses" on page 6 for further information on how expenses were calculated.
Fund Profile as of October 31, 2007
Percent of
Ten Largest Equity Holdings Net Assets
Vodafone Group Plc 4.1%
Royal Dutch Shell Plc Class B 4.0
Nestle SA Registered Shares 3.7
DaimlerChrysler AG 3.2
Total SA 3.2
Deutcshe Telekom AG 3.1
Banco Santander SA 2.9
Novartis AG Registered Shares 2.9
Eni SpA 2.8
Siemens AG 2.8
Percent of
Five Largest Industries Net Assets
Commercial Banks 15.1%
Oil, Gas & Comsumable Fuels 12.3
Automobiles 7.2
Insurance 7.1
Food Products 6.4
BLACKROCK EUROFUND OCTOBER 31, 2007
About Fund Performance
* Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only
to eligible investors.
* Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
* Investor B Shares are subject to a maximum contingent deferred sales charge
of 4.50% declining to 0% after six years. In addition, Investor B Shares
are subject to a distribution fee of 0.75% per year and a service fee of
0.25% per year. These shares automatically convert to Investor A Shares
after approximately eight years. (There is no initial sales charge for
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. Prior to inception, Class R
Share performance results are those of the Institutional Shares (which have
no distribution or service fees) restated to reflect Class R Share fees.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the
performance data quoted. Refer to www.blackrock.com/funds to obtain
performance data current to the most recent month-end. Performance results
do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. 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 performance tables on pages 4 and 5 assume reinvestment of all
dividends and capital gain distributions, if any, at net asset value on the
ex-dividend date. Investment return and principal value of shares will
fluctuate so that shares, when redeemed, may be worth more or less than their
original cost. Dividends paid to each class of shares will vary because of the
different levels of service, distribution and transfer agency fees applicable
to each class, which are deducted from the income available to be paid to
shareholders.
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses
related to transactions, including sales charges, redemption fees and
exchange fees; and (b) operating expenses including advisory fees,
distribution fees including 12b-1 fees, and other Fund expenses. The expense
example on page 5 (which is based on a hypothetical investment of $1,000
invested on May 1, 2007 and held through October 31, 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 table provides information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during the
period covered by this report, shareholders can divide their account value by
$1,000 and then multiply the result by the number corresponding to their share
class under the heading entitled "Expenses Paid During the Period."
The table also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses. In order to assist shareholders
in comparing the ongoing expenses of investing in this Fund and other funds,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders'
ongoing costs only and do not reflect any transactional expenses, such as
sales charges, redemption fees or exchange fees. Therefore, the hypothetical
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.
BLACKROCK EUROFUND OCTOBER 31, 2007
Portfolio Summary
Geographic Allocation as a Percentage of Total Investments as of
October 31, 2007
Denmark--1.5%
Finland--1.0%
France--13.6%
Germany--22.6%
Ireland--2.9%
Italy--7.1%
Netherlands--7.0%
Norway--2.3%
Spain--2.9%
Sweden--1.4%
Switzerland--11.6%
United Kingdom--24.0%
Other*--2.1%
* Includes portfolio holdings in short-term investments.
Proxy Results
During the six-month period ended October 31, 2007, the shareholders of
BlackRock EuroFund voted on the following proposal, which was approved at a
special shareholders' meeting on August 23, 2007. This proposal was a part of
the reorganization of the Fund's Board of Trustees to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Board of Trustees: James H. Bodurtha 35,670,188 1,899,662
Bruce R. Bond 35,669,439 1,900,411
Donald W. Burton 35,657,160 1,912,690
Richard S. Davis 35,678,058 1,891,792
Stuart E. Eizenstat 35,651,252 1,918,598
Laurence D. Fink 35,673,518 1,896,332
Kenneth A. Froot 35,664,950 1,904,900
Henry Gabbay 35,661,697 1,908,153
Robert M. Hernandez 35,651,079 1,918,771
John F. O'Brien 35,654,309 1,915,541
Roberta Cooper Ramo 35,671,758 1,898,092
Jean Margo Reid 35,675,530 1,894,320
David H. Walsh 35,673,187 1,896,663
Fred G. Weiss 35,667,026 1,902,824
Richard R. West 35,667,806 1,902,044
BLACKROCK EUROFUND OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007 (in U.S. dollars)
Common Stocks Shares Value
Denmark--1.5%
Commercial Banks--1.5%
Danske Bank A/S 353,531 $ 15,647,811
Total Common Stocks in Denmark 15,647,811
Finland--1.0%
Electric Utilities--1.0%
Fortum Oyj 230,598 10,027,178
Total Common Stocks in Finland 10,027,178
France--13.5%
Automobiles--2.3%
Renault SA 139,649 23,586,651
Commercial Banks--2.0%
Societe Generale SA 126,644 21,395,262
Electric Utilities--2.4%
Electricite de France SA 204,915 24,650,150
Insurance--2.0%
AXA SA 457,268 20,538,762
Machinery--1.6%
Vallourec SA 57,198 16,656,083
Oil, Gas & Consumable Fuels--3.2%
Total SA 408,473 32,962,140
Total Common Stocks in France 139,789,048
Germany--22.5%
Air Freight & Logistics--1.8%
Deutsche Post AG 604,707 18,324,071
Automobiles--4.9%
Bayerische Motoren Werke AG 264,445 17,697,015
DaimlerChrysler AG 306,502 33,531,927
--------------
51,228,942
Chemicals--2.6%
Bayer AG 317,939 26,542,197
Diversified Telecommunication Services--3.1%
Deutsche Telekom AG 1,576,230 32,360,523
Electric Utilities--2.4%
E.ON AG 128,559 25,133,238
Industrial Conglomerates--2.8%
Siemens AG 217,150 29,444,647
Insurance--2.4%
Allianz AG Registered Shares 111,366 25,077,186
Multi-Utilities--2.5%
RWE AG 188,473 25,747,090
Total Common Stocks in Germany 233,857,894
Ireland--2.9%
Commercial Banks--1.3%
Allied Irish Banks Plc 532,846 13,433,979
Construction Materials--1.6%
CRH Plc 428,297 16,511,461
Total Common Stocks in Ireland 29,945,440
Common Stocks Shares Value
Italy--7.0%
Commercial Banks--4.2%
Banca Intesa SpA 2,739,279 $ 21,718,769
UniCredito Italiano SpA 2,533,362 21,756,130
--------------
43,474,899
Oil, Gas & Consumable Fuels--2.8%
Eni SpA 809,104 29,542,863
Total Common Stocks in Italy 73,017,762
Netherlands--7.0%
Chemicals--2.4%
Akzo Nobel NV 304,860 24,571,286
Diversified Financial Services--2.4%
Fortis 766,802 24,636,677
Metals & Mining--2.2%
ArcelorMittal 286,017 22,955,336
Total Common Stocks in the Netherlands 72,163,299
Norway--2.3%
Oil, Gas & Consumable Fuels--2.3%
Statoilhydro ASA 700,618 23,867,626
Total Common Stocks in Norway 23,867,626
Spain--2.9%
Commercial Banks--2.9%
Banco Santander SA 1,375,890 30,090,281
Total Common Stocks in Spain 30,090,281
Sweden--1.4%
Diversified Financial Services--1.4%
Investor AB 575,419 14,299,414
Total Common Stocks in Sweden 14,299,414
Switzerland--11.6%
Capital Markets--3.7%
Credit Suisse Group 290,798 19,651,266
UBS AG 339,986 18,227,450
--------------
37,878,716
Food Products--3.7%
Nestle SA Registered Shares 83,999 38,797,619
Insurance--1.3%
Swiss Reinsurance Co. Registered Shares 147,755 13,891,649
Pharmaceuticals--2.9%
Novartis AG Registered Shares 561,152 29,850,107
Total Common Stocks in Switzerland 120,418,091
BLACKROCK EUROFUND OCTOBER 31, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Common Stocks Shares Value
United Kingdom--23.8%
Aerospace & Defense--2.2%
BAE Systems Plc 2,168,287 $ 22,526,565
Commercial Banks--3.1%
Barclays Plc 941,950 11,921,742
HBOS Plc 1,147,745 20,921,208
--------------
32,842,950
Food Products--2.7%
Unilever Plc 828,521 28,094,707
Insurance--1.4%
Prudential Plc 906,249 14,804,932
Metals & Mining--2.8%
Anglo American Plc 412,598 28,699,510
Oil, Gas & Consumable Fuels--4.0%
Royal Dutch Shell Plc Class B 953,044 41,581,109
Pharmaceuticals--1.4%
GlaxoSmithKline Plc 580,565 14,912,401
Tobacco--2.1%
British American Tobacco Plc 572,873 21,825,114
Common Stocks Shares Value
United Kingdom (concluded)
Wireless Telecommunication Services--4.1%
Vodafone Group Plc 10,814,084 $ 42,613,392
Total Common Stocks in the United Kingdom 247,900,680
Total Common Stocks
(Cost--$736,532,708)--97.4% 1,011,024,524
Beneficial
Short-Term Securities Interest
United States--2.1%
BlackRock Liquidity Series, LLC
Cash Sweep Series, 4.96% (a)(b) $21,842,000 21,842,000
Total Short-Term Securities
(Cost--$21,842,000)--2.1% 21,842,000
Total Investments (Cost--$758,374,708*)--99.5% 1,032,866,524
Other Assets Less Liabilities--0.5% 5,341,285
--------------
Net Assets--100.0% $1,038,207,809
==============
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 769,257,847
================
Gross unrealized appreciation $ 271,271,987
Gross unrealized depreciation (7,663,310)
----------------
Net unrealized appreciation $ 263,608,677
================
(a) Represents the current yield as of October 31, 2007.
See Notes to Financial Statements.
(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 $(2,454,674) $1,146,611
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.
BLACKROCK EUROFUND OCTOBER 31, 2007
Statement of Assets and Liabilities
As of October 31, 2007
Assets
Investments in unaffiliated securities, at value (identified cost--$736,532,708) $ 1,011,024,524
Investments in affiliated securities, at value (identified cost--$21,842,000) 21,842,000
Foreign cash (cost--$27,471) 27,626
Receivables:
Dividends $ 3,383,456
Securities sold 4,052,592
Beneficial interest sold 496,833 7,932,881
---------------
Prepaid expenses and other assets 24,378
---------------
Total assets 1,040,851,409
---------------
Liabilities
Unrealized depreciation on forward foreign exchange contracts 11,443
Payables:
Beneficial interest redeemed 1,297,209
Investment adviser 645,781
Distributor 230,887
Other affiliates 209,505 2,383,382
---------------
Accrued expenses and other liabilities 248,775
---------------
Total liabilities 2,643,600
---------------
Net Assets
Net assets $ 1,038,207,809
===============
Net Assets Consist of
Institutional Shares of beneficial interest, $.10 par value, unlimited number of shares
of beneficial interest authorized $ 1,411,126
Investor A Shares of beneficial interest, $.10 par value, unlimited number of shares
of beneficial interest authorized 2,180,821
Investor B Shares of beneficial interest, $.10 par value, unlimited number of shares
of beneficial interest authorized 199,295
Investor C Shares of beneficial interest, $.10 par value, unlimited number of shares
of beneficial interest authorized 388,624
Class R Shares of beneficial interest, $.10 par value, unlimited number of shares
of beneficial interest authorized 21,019
Paid-in capital in excess of par 599,636,987
Undistributed investment income--net $ 13,415,141
Undistributed realized capital gains--net 146,227,346
Unrealized appreciation--net 274,727,450
---------------
Total accumulated earnings--net 434,369,937
---------------
Net Assets $ 1,038,207,809
===============
Net Asset Value
Institutional--Based on net assets of $361,175,123 and 14,111,256 shares of beneficial
interest outstanding $ 25.59
===============
Investor A--Based on net assets of $550,340,994 and 21,808,215 shares of beneficial
interest outstanding $ 25.24
===============
Investor B--Based on net assets of $42,828,578 and 1,992,948 shares of beneficial
interest outstanding $ 21.49
===============
Investor C--Based on net assets of $79,354,504 and 3,886,239 shares of beneficial
interest outstanding $ 20.42
===============
Class R--Based on net assets of $4,508,610 and 210,187 shares of beneficial
interest outstanding $ 21.45
===============
See Notes to Financial Statements.
BLACKROCK EUROFUND OCTOBER 31, 2007
Statement of Operations
For the Year Ended October 31, 2007
Investment Income
Dividends (net of $3,111,078 foreign withholding tax) $ 29,771,496
Interest from affiliates 1,146,611
---------------
Total income 30,918,107
---------------
Expenses
Investment advisory fees $ 7,526,981
Service fees--Investor A 1,261,297
Service and distribution fees--Investor C 689,438
Service and distribution fees--Investor B 507,763
Transfer agent fees--Institutional 494,272
Transfer agent fees--Investor A 452,455
Custodian fees 390,029
Accounting services 347,629
Transfer agent fees--Investor B 125,344
Printing and shareholder reports 118,047
Transfer agent fees--Investor C 91,344
Registration fees 77,156
Professional fees 73,309
Transfer agent fees--Institutional 1 60,707
Trustees' fees and expenses 40,207
Service and distribution fees--Class R 14,059
Pricing fees 10,166
Transfer agent fees--Class R 9,489
Other 48,068
---------------
Total expenses 12,337,760
---------------
Investment income--net 18,580,347
---------------
Realized and Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 167,475,509
Foreign currency transactions--net (29,807) 167,445,702
---------------
Change in unrealized appreciation on:
Investments--net 30,664,352
Foreign currency transactions--net 197,072 30,861,424
--------------- ---------------
Total realized and unrealized gain--net 198,307,126
---------------
Net Increase in Net Assets Resulting from Operations $ 216,887,473
===============
See Notes to Financial Statements.
BLACKROCK EUROFUND OCTOBER 31, 2007
Statements of Changes in Net Assets
For the
Year Ended
October 31,
Increase (Decrease) in Net Assets: 2007 2006
Operations
Investment income--net $ 18,580,347 $ 19,501,216
Realized gain--net 167,445,702 113,475,099
Change in unrealized appreciation--net 30,861,424 99,480,517
--------------- ---------------
Net increase in net assets resulting from operations 216,887,473 232,456,832
--------------- ---------------
Dividends and Distributions to Shareholders
Investment income--net:
Institutional (10,325,989) (5,788,862)
Institutional 1 (980) --
Investor A (13,410,828) (6,259,841)
Investor B (1,257,875) (1,569,366)
Investor C (1,763,659) (794,429)
Class R (63,672) (28,475)
Realized gain--net:
Institutional (24,978,128) --
Institutional 1 (4,786) --
Investor A (34,649,059) --
Investor B (5,523,034) --
Investor C (5,542,809) --
Class R (171,525) --
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders (97,692,344) (14,440,973)
--------------- ---------------
Beneficial Interest Transactions
Net increase (decrease) in net assets derived from beneficial interest transactions 10,110,593 (33,186,593)
--------------- ---------------
Redemption Fees
Redemption fees 568,035 2,308
--------------- ---------------
Net Assets
Total increase in net assets 129,873,757 184,831,574
Beginning of year 908,334,052 723,502,478
--------------- ---------------
End of year* $ 1,038,207,809 $ 908,334,052
=============== ===============
* Undistributed investment income--net $ 13,415,141 $ 17,761,445
=============== ===============
See Notes to Financial Statements.
BLACKROCK EUROFUND OCTOBER 31, 2007
Financial Highlights
Institutional
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 23.02 $ 17.54 $ 15.25 $ 13.01 $ 10.80
---------- ---------- ---------- ---------- ----------
Investment income--net** .46 .55 .36 .21 .23
Realized and unrealized gain--net 4.56 5.32 2.15 2.27 2.17
---------- ---------- ---------- ---------- ----------
Total from investment operations 5.02 5.87 2.51 2.48 2.40
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.72) (.39) (.22) (.24) (.19)
Realized gain--net (1.74) -- -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (2.46) (.39) (.22) (.24) (.19)
---------- ---------- ---------- ---------- ----------
Redemption fee .01 --++ --++ --++ --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 25.59 $ 23.02 $ 17.54 $ 15.25 $ 13.01
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 24.46% 34.03%*** 16.52% 19.26% 22.57%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses 1.01% .99% .99% 1.05% 1.08%
========== ========== ========== ========== ==========
Investment income--net 2.01% 2.68% 2.09% 1.50% 2.00%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $ 361,175 $ 330,849 $ 261,358 $ 252,580 $ 221,888
========== ========== ========== ========== ==========
Portfolio turnover 63% 76% 72% 78% 64%
========== ========== ========== ========== ==========
* Total investment returns exclude the effects of any sales charges.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Institutional Shares consisted of
a payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory issue
relating to an investment.
++ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK EUROFUND OCTOBER 31, 2007
Financial Highlights (continued)
The following per share
data and ratios have been Investor A Investor B
derived from information
provided in the For the Year Ended October 31, For the Year Ended October 31,
financial statements. 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value,
beginning of year $ 22.72 $ 17.33 $ 15.07 $ 12.86 $ 10.67 $ 19.59 $ 14.99 $ 13.08 $ 11.18 $ 9.25
-------------------------------------------------- -------------------------------------------------
Investment
income--net** .44 .50 .31 .18 .20 .17 .30 .16 .03 .10
Realized and
unrealized
gain--net 4.48 5.24 2.12 2.24 2.14 3.86 4.54 1.84 1.99 1.85
-------------------------------------------------- -------------------------------------------------
Total from investment
operations 4.92 5.74 2.43 2.42 2.34 4.03 4.84 2.00 2.02 1.95
-------------------------------------------------- -------------------------------------------------
Less dividends and
distributions:
Investment income--net (.67) (.35) (.17) (.21) (.15) (.40) (.24) (.09) (.12) (.02)
Realized gain--net (1.74) -- -- -- -- (1.74) -- -- -- --
-------------------------------------------------- -------------------------------------------------
Total dividends and
distributions (2.41) (.35) (.17) (.21) (.15) (2.14) (.24) (.09) (.12) (.02)
-------------------------------------------------- -------------------------------------------------
Redemption fee .01 --++ --++ --++ -- .01 --++ --++ --++ --
-------------------------------------------------- -------------------------------------------------
Net asset value,
end of year $ 25.24 $ 22.72 $ 17.33 $ 15.07 $ 12.86 $ 21.49 $ 19.59 $ 14.99 $ 13.08 $ 11.18
================================================== =================================================
Total Investment Return*
Based on net
asset value
per share 24.29% 33.64%*** 16.20% 18.98% 22.29% 23.12% 32.63%*** 15.28% 18.14% 21.19%
================================================== =================================================
Ratios to Average Net Assets
Expenses 1.20% 1.24% 1.24% 1.30% 1.33% 2.12% 2.01% 2.01% 2.09% 2.12%
================================================== =================================================
Investment
income--net 1.92% 2.49% 1.84% 1.24% 1.78% .98% 1.73% 1.06% 0.23% 0.98%
================================================== =================================================
Supplemental Data
Net assets,
end of year
(in thousands) $550,341 $453,104 $312,606 $296,757 $280,223 $ 42,829 $ 62,273 $103,836 $132,725 $ 96,395
================================================== =================================================
Portfolio turnover 63% 76% 72% 78% 64% 63% 76% 72% 78% 64%
================================================== =================================================
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Investor A Shares and Investor B Shares
consisted of a payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory
issue relating to an investment.
++ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK EUROFUND OCTOBER 31, 2007
Financial Highlights (concluded)
Class R
The following per share Investor C Period
data and ratios have been January 3,
derived from information For the For the 2003+++++
provided inthe financial Year Ended October 31, Year Ended October 31, to October 31,
statements. 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value,
beginning of period $ 18.86 $ 14.47 $ 12.64 $ 10.83 $ 9.00 $ 19.74 $ 15.14 $ 13.23 $ 11.32 $ 9.67
-------------------------------------------------- ----------------------------------------------------
Investment
income--net** .21 .29 .15 .02 .09 .29 .41 .18 .33 .25
Realized and
unrealized
gain--net 3.63 4.36 1.78 1.92 1.81 3.80 4.55 1.93 1.82 1.40
-------------------------------------------------- ----------------------------------------------------
Total from
investment
operations 3.84 4.65 1.93 1.94 1.90 4.09 4.96 2.11 2.15 1.65
-------------------------------------------------- ----------------------------------------------------
Less dividends and
distributions:
Investment
income--net (.55) (.26) (.10) (.13) (.07) (.65) (.36) (.20) (.24) --
Realized
gain--net (1.74) -- -- -- -- (1.74) -- -- -- --
-------------------------------------------------- ----------------------------------------------------
Total dividends and
distributions (2.29) (.26) (.10) (.13) (.07) (2.39) (.36) (.20) (.24) --
-------------------------------------------------- ----------------------------------------------------
Redemption fee .01 --++ --++ --++ -- .01 --++ --++ --++ --
-------------------------------------------------- ----------------------------------------------------
Net asset value,
end of period $ 20.42 $ 18.86 $ 14.47 $ 12.64 $ 10.83 $ 21.45 $ 19.74 $ 15.14 $ 13.23 $ 11.32
================================================== ====================================================
Total Investment Return*
Based on net asset
value per share 23.26% 32.57%*** 15.33% 18.06% 21.29% 23.60% 33.36%*** 16.01% 19.22% 17.06%+++
================================================== ====================================================
Ratios to Average Net Assets
Expenses 2.00% 2.01% 2.02% 2.08% 2.12% 1.71% 1.49% 1.48% 1.35% 1.58%++++++
================================================== ====================================================
Investment
income--net 1.11% 1.71% 1.05% .20% .99% 1.48% 2.30% 1.10% 2.51% 1.50%++++++
================================================== ====================================================
Supplemental Data
Net assets,
end of period
(in thousands) $ 79,355 $ 60,160 $ 44,881 $ 44,166 $ 25,134 $ 4,509 $ 1,948 $ 823 $ 104 --++++
================================================== ====================================================
Portfolio
turnover 63% 76% 72% 78% 64% 63% 76% 72% 78% 64%
================================================== ====================================================
* Total investment returns exclude the effects of any sales charges.
** Based on average shares outstanding.
*** In 2006, +.21% of the Fund's total investment return for Investor C Shares and Class R Shares
consisted of a payment by Merrill Lynch Investment Managers, L.P. in order to resolve a regulatory
issue relating to an investment.
++ Amount is less than $.01 per share.
++++ Amount is less than $1,000.
++++++ Annualized.
+++ Aggregate total investment return.
+++++ Commencement of Operations.
See Notes to Financial Statements.
BLACKROCK EUROFUND OCTOBER 31, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock EuroFund (the "Fund") is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Fund's financial statements are prepared in conformity with U.S. generally
accepted accounting principles, which may require the use of management
accruals and estimates. Actual results may differ from these estimates. The
Fund offers multiple classes of shares. Institutional Shares are sold without
a sales charge and only to certain eligible investors. Investor A Shares are
sold with a front-end sales charge. Shares of Investor B and Investor C may be
subject to a contingent deferred sales charge. Class R Shares are sold only to
certain retirement plans. Institutional 1 Shares were issued in connection
with the Fund's acquisition of The Europe Fund, Inc. on November 6, 2006.
Institutional 1 Shares generally were not available for purchase except for
dividend and capital gain reinvestments for existing shareholders and
automatically converted to Institutional Shares on May 7, 2007. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Investor A, Investor B, Investor C and
Class R Shares bear certain expenses related to the shareholder servicing of
such shares, and Investor B, Investor C and Class R Shares also bear certain
expenses related to the distribution of such shares. Each class has exclusive
voting rights with respect to matters relating to its shareholder servicing
and distribution expenditures (except that Investor B shareholders may vote on
certain changes to the Investor A distribution plan). Income, expenses (other
than expenses attributable to a specific class) and realized and unrealized
gains and losses are allocated daily to each class based on its relative net
assets. The following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of securities--Equity securities held by the Fund that are
traded on stock exchanges or the NASDAQ Global Market are valued at the last
sale price or official close price on the exchange, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price for long positions, and at the last available
asked price for short positions. In cases where equity securities are traded
on more than one exchange, the securities are valued on the exchange
designated as the primary market by or under the authority of the Board of
Trustees of the Fund. Long positions traded in over-the-counter ("OTC")
markets, NASDAQ Capital Market or Bulletin Board are valued at the last
available bid price or yield equivalent obtained from one or more dealers or
pricing services approved by the Board of Trustees of the Fund. Short
positions traded in the OTC markets are valued at the last available asked
price. Portfolio securities that are traded both in the OTC markets and on a
stock exchange are valued according to the broadest and most representative
market.
Effective September 4, 2007, exchange-traded options are valued at the mean
between the last bid and ask prices at the close of the options market in
which the options trade and previously were valued at the last sales price as
of the close of options trading on applicable exchanges. Options traded in the
OTC market are valued at the last asked price (options written) or the last
bid price (options purchased). Swap agreements are valued based upon quoted
fair valuations received daily by the Fund from a pricing service or
counterparty. Financial futures contracts and options thereon, which are
traded on exchanges, are valued at their last sale price as of the close of
such exchanges. Valuation of other short-term investment vehicles is generally
based on the net asset value of the underlying investment vehicle or amortized
cost.
Repurchase agreements are valued at cost plus accrued interest. The Fund
employs pricing services to provide certain securities prices for the Fund.
Securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the direction
of the Board of Trustees of the Fund, including valuations furnished by the
pricing services retained by the Fund, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are
reviewed by the officers of the Fund under the general supervision of the
Fund's Board of Trustees. Such valuations and procedures will be reviewed
periodically by the Board of Trustees of the Fund.
Generally, trading in foreign securities, as well as U.S. government
securities, money market instruments and certain fixed income securities,
is substantially completed each day at various times prior to the close of
business on the New York Stock Exchange ("NYSE"). The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates will generally
be determined as of the close of business on the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of business on
the NYSE that may not be reflected in the computation of the Fund's net asset
value. If events (for example, a company announcement, market volatility or a
natural disaster) occur during such periods that are expected to materially
affect the value of such securities, those securities will be valued at their
fair value as determined in good faith by the Fund's Board of Trustees or by
the Manager using a pricing service and/or procedures approved by the Fund's
Board of Trustees.
(b) Foreign currency transactions--Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized.
Assets and liabilities denominated in foreign currencies are valued at the
exchange rate at the end of the period. Foreign currency transactions are the
result of settling (realized) or valuing (unrealized) assets or liabilities
expressed in foreign currencies into U.S. dollars. Realized and unrealized
gains or losses from investments include the effects of foreign exchange rates
on investments. The Fund invests in foreign securities, which may involve a
number of risk factors and special considerations not present with investments
in securities of U.S. corporations.
BLACKROCK EUROFUND OCTOBER 31, 2007
Notes to Financial Statements (continued)
(c) Derivative financial instruments--The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge,
or protect, its exposure to interest rate movements and movements in the
securities markets. Losses may arise due to changes in the value of the
contract due to an unfavorable change in the price of the underlying security
or if the counterparty does not perform under the contract. The counterparty
for certain instruments may pledge cash or securities as collateral.
* Forward foreign exchange contracts--The Fund may enter into forward foreign
exchange contracts as a hedge against either specific transactions or
portfolio positions. The contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value at the time it was opened and the value at the
time it was closed.
* Options--The Fund may write covered call options and put options and
purchase put and call options. When the Fund writes an option, an amount equal
to the premium received by the Fund is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written. When a security is
purchased or sold through an exercise of an option, the related premium paid
(or received) is added to (or deducted from) the basis of the security
acquired or deducted from (or added to) the proceeds of the security sold.
When an option expires (or the Fund enters into a closing transaction), the
Fund realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the closing
transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Foreign currency options and futures--The Fund may also purchase or sell
listed or OTC foreign currency options, foreign currency futures and related
options on foreign currency futures as a short or long hedge against possible
variations in foreign exchange rates. Such transactions may be effected with
respect to hedges on non-U.S. dollar denominated securities owned by the Fund,
sold by the Fund but not yet delivered, or committed or anticipated to be
purchased by the Fund.
(d) Income taxes--It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
(e) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed
are subsequently recorded when the Fund has determined the ex-dividend date.
Interest income is recognized on the accrual basis.
(f) Prepaid registration fees--Prepaid registration fees are charged to
expense as the related shares are issued.
(g) Dividends and distributions--Dividends and distributions paid by the Fund
are recorded on the ex-dividend dates.
(h) Securities lending--The Fund may lend securities to financial
institutions that provide cash or securities issued or guaranteed by the U.S.
government as collateral, which will be maintained at all times in an amount
equal to at least 100% of the current market value of the loaned securities.
The market value of the loaned securities is determined at the close of
business of the Fund and any additional required collateral is delivered to
the Fund on the next business day. Where the Fund receives securities as
collateral for the loaned securities, it collects a fee from the borrower.
The Fund typically receives the income on the loaned securities but does not
receive the income on the collateral. Where the Fund receives cash
collateral, it may invest such collateral and retain the amount earned on
such investment, net of any amount rebated to the borrower. Loans of
securities are terminable at any time and the borrower, after notice, is
required to return borrowed securities within five business days. The Fund
may pay reasonable finder's, lending agent, administrative and custodial fees
in connection with its loans. In the event that the borrower defaults on its
obligation to return borrowed securities because of insolvency or for any
other reason, the Fund could experience delays and costs in gaining access to
the collateral. The Fund also could suffer a loss where the value of the
collateral falls below the market value of the borrowed securities, in the
event of borrower default or in the event of losses on investments made with
cash collateral.
(i) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes--an interpretation of FASB Statement No.109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet
in connection with accounting for uncertainties in income tax positions taken
or expected to be taken by an entity, including mutual funds, before being
measured and recognized in the financial statements. Adoption of FIN 48 is
required for the last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after December
15, 2006. The impact on the Fund's financial statements, if any, is currently
being assessed.
BLACKROCK EUROFUND OCTOBER 31, 2007
Notes to Financial Statements (continued)
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157") was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards
No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159") was issued and is effective for fiscal years
beginning after November 15, 2007. Early adoption is permitted as of the
beginning of a fiscal year that begins on or before November 15, 2007,
provided the entity also elects to apply the provisions of FAS 157. FAS 159
permits entities to choose to measure many financial instruments and certain
other items at fair value that are not currently required to be measured at
fair value. FAS 159 also establishes presentation and disclosure requirements
designed to facilitate comparisons between entities that choose different
measurement attributes for similar types of assets and liabilities. 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, $4,048,978 has been reclassified between undistributed net
realized capital gains and undistributed net investment income as a result of
gains from the sale of stock of passive foreign investment companies and
foreign currency transactions. These reclassifications have no effect on net
assets or net asset values per share.
2. Investment Advisory Agreements and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with the Manager.
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. Merrill Lynch & Co., Inc.
("Merrill Lynch") and The PNC Financial Services Group, Inc. ("PNC") are the
principal owners of BlackRock, Inc.
The Manager is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays a monthly fee at an annual rate of .75% on an annual basis of the average
daily value of the Fund's net assets.
In addition, the Manager has entered into a Sub-Advisory Agreement with
BlackRock Investment Management, LLC ("BIM"), and BlackRock Asset Management
U.K. Limited, both affiliates of the Manager, under which the Manager pays
each sub-adviser for services it provides a monthly fee at an annual rate that
is a percentage of the management fee paid by the Fund to the Manager.
Pursuant to the Distribution Plan adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor
ongoing service and distribution fees. The fees are accrued daily and paid
monthly at annual rates based upon the average daily net assets of the shares
as follows:
Service Distribution
Fee Fee
Investor A .25% --
Investor B .25% .75%
Investor C .25% .75%
Class R .25% .25%
Pursuant to sub-agreements with each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, provide shareholder servicing and distribution
services to the Fund. The ongoing service fee compensates the Distributor 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 the 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 October 31, 2007, FAMD and BDI earned underwriting
discounts and direct commissions and MLPF&S and BDI earned dealer concessions
on sales of the Fund's Investor A Shares, which totaled $133,533.
For the year ended October 31, 2007, affiliates received contingent deferred
sales charges of $10,709 and $8,752 relating to transactions in Investor B and
Investor C Shares, respectively.
Furthermore, affiliates received contingent deferred sales charges of $607
relating to transactions subject to front-end sales charge waivers in Investor
A Shares.
BLACKROCK EUROFUND OCTOBER 31, 2007
Notes to Financial Statements (continued)
The Manager maintains a call center, which is responsible for providing
certain shareholder services to the Fund, such as responding to shareholder
inquiries and processing transactions based upon instructions from
shareholders with respect to the subscription and redemption of Fund shares.
For the year ended October 31, 2007, the following amounts have been accrued
by the Fund to reimburse the Manager for costs incurred running the call
center, which are a component of the transfer agent fees in the accompanying
Statement of Operations.
Call Center
Fees
Institutional $ 9,660
Investor A $ 10,467
Investor B $ 1,664
Investor C $ 1,474
Class R $ 39
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S or its
affiliates. Pursuant to that order, the Fund has retained BIM, an affiliate
of the Manager, as the securities lending agent for a fee based on a share of
the returns on investment of cash collateral. BIM may, on behalf of the Fund,
invest cash collateral received by the Fund for such loans, among other
things, in a private investment company managed by the Manager or in
registered money market funds advised by the Manager or its affiliates.
For the year ended October 31, 2007, the Fund reimbursed the Manager $18,879
for certain accounting services.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Manager, is the Fund's transfer agent.
Certain officers and/or trustees of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 2007 were $611,040,933 and $786,348,245, respectively.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions was $10,110,593 and $(33,186,593) for the year ended October 31,
2007 and October 31, 2006, respectively.
Transactions in beneficial interest for each class were as follows:
For the For the
Year Ended Year Ended
October 31, 2007 October 31, 2006
Shares Amount Shares Amount
Institutional Shares
Shares sold 7,263,929 $ 168,689,472 3,947,538 $ 82,558,508
Shares issued to shareholders in reinvestment of dividends 1,537,937 31,589,732 268,460 4,939,666
------------------------------- -------------------------------
Total issued 8,801,866 200,279,204 4,215,998 87,498,174
Shares redeemed (9,064,709) (204,000,880) (4,739,170) (97,451,970)
------------------------------- -------------------------------
Net decrease (262,843) $ (3,721,676) (523,172) $ (9,953,796)
=============================== ===============================
For the Period
November 6, 2006++ to
May 7, 2007++++
Institutional 1 Shares
Shares sold 1,493 $ 43,112
Shares issued as a result of reorganization 5,532,829 113,021,126
Shares issued to shareholders in reinvestment of dividends 169 3,664
-------------------------------
Total issued 5,534,491 113,067,902
Shares redeemed (5,534,491) (127,809,960)
-------------------------------
Net decrease -- $ (14,742,058)
===============================
++ Prior to November 6, 2006, (commencement of operations), the Fund issued 5 shares
to BDI for $100.
++++ On May 7, 2007, Institutional 1 Shares converted to Institutional Shares.
BLACKROCK EUROFUND OCTOBER 31, 2007
Notes to Financial Statements (continued)
For the For the
Year Ended Year Ended
October 31, 2007 October 31, 2006
Shares Amount Shares Amount
Investor A Shares
Shares sold and automatic conversion of shares 3,006,721 $ 67,212,029 5,024,431 $ 105,687,047
Shares issued to shareholders in reinvestment of dividends 1,914,464 38,843,557 289,051 5,263,622
------------------------------- -------------------------------
Total issued 4,921,185 106,055,586 5,313,482 110,950,669
Shares redeemed (3,052,717) (68,860,817) (3,409,756) (68,329,458)
------------------------------- -------------------------------
Net increase 1,868,468 $ 37,194,769 1,903,726 $ 42,621,211
=============================== ===============================
Investor B Shares
Shares sold 436,237 $ 8,367,613 493,747 $ 8,670,988
Shares issued to shareholders in reinvestment of dividends 336,659 5,871,474 82,366 1,301,388
------------------------------- -------------------------------
Total issued 772,896 14,239,087 576,113 9,972,376
------------------------------- -------------------------------
Shares redeemed and automatic conversion of shares (1,958,575) (37,244,713) (4,323,855) (78,351,330)
------------------------------- -------------------------------
Net decrease (1,185,679) $ (23,005,626) (3,747,742) $ (68,378,954)
=============================== ===============================
Investor C Shares
Shares sold 911,338 $ 16,922,267 612,771 $ 10,584,055
Shares issued to shareholders in reinvestment of dividends 383,571 6,348,265 44,392 675,643
------------------------------- -------------------------------
Total issued 1,294,909 23,270,532 657,163 11,259,698
Shares redeemed (598,396) (11,062,232) (570,079) (9,495,217)
------------------------------- -------------------------------
Net increase 696,513 $ 12,208,300 87,084 $ 1,764,481
=============================== ===============================
Class R Shares
Shares sold 156,930 $ 3,096,905 96,721 $ 1,664,378
Shares issued to shareholders in reinvestment of dividends 13,571 235,197 1,797 28,475
------------------------------- -------------------------------
Total issued 170,501 3,332,102 98,517 1,692,853
Shares redeemed (59,021) (1,155,218) (54,147) (932,388)
------------------------------- -------------------------------
Net increase 111,480 $ 2,176,884 44,370 $ 760,465
=============================== ===============================
The Fund charges a 2% redemption fee on the proceeds (calculated at market
value) of a redemption (either by sale or exchange) of Fund shares (except
Institutional 1 Shares) made within 30 days of purchase or exchange. The
redemption fee is paid to the Fund and is intended to offset the trading
costs, market impact and other costs associated with short-term trading into
and out of the Fund.
The Fund charges a 2% redemption fee on redemptions of Institutional 1 Shares
made prior to May 7, 2007. The redemption fee is paid to the Fund and is
intended to offset the trading costs, market impact and other costs associated
with the redemption of Institutional 1 Shares. Institutional 1 Shares
converted to Institutional Shares on May 7, 2007.
BLACKROCK EUROFUND OCTOBER 31, 2007
Notes to Financial Statements (concluded)
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by the Manager and its
affiliates, is a party to a $500,000,000 credit agreement with a group of
lenders, which expires November 2007 and was subsequently renewed. The Fund
may borrow under the credit agreement to fund shareholder redemptions and for
other lawful purposes other than for leverage. The Fund may borrow up to the
maximum amount allowable under the Fund's current prospectus and statement of
additional information, subject to various other legal, regulatory or
contractual limits. The Fund pays a commitment fee of .07% per annum based on
the Fund's pro rata share of the unused portion of the credit agreement.
Amounts borrowed under the credit agreement bear interest at a rate equal to,
at each fund's election, the federal funds rate plus .35% or a base rate as
defined in the credit agreement. The Fund did not borrow under the credit
agreement during the year ended October 31, 2007.
6. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended
October 31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Ordinary income $ 26,823,003 $ 14,440,973
Net long-term capital gains $ 70,869,341 --
-------------- --------------
Total distributions $ 97,692,344 $ 14,440,973
============== ==============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed ordinary income--net $ 46,587,353
Undistributed long-term capital gains--net 132,085,236
--------------
Total undistributed earnings--net 178,672,589
Capital loss carryforward (8,158,403)*
Unrealized gains--net 263,855,751**
--------------
Total accumulated earnings--net $ 434,369,937
==============
* On October 31, 2007, the Fund had a net capital loss carryforward
of $8,158,403 all of which expires in 2009. This amount will be
available to offset like amounts of any 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 investments
in passive foreign investment companies and the realization for tax
purposes of unrealized gains (losses) on certain foreign currency
contracts.
7. Commitments:
As of October 31, 2007, the Fund had entered into foreign exchange contracts
under which it had sold various foreign currencies with approximate value of
$4,053,000.
8. Acquisition of The Europe Fund, Inc.
On November 6, 2006, the Fund acquired substantially all of the assets and
assumed substantially all of the liabilities of The Europe Fund, Inc.,
pursuant to a plan of reorganization. The acquisition was accomplished by a
tax-free exchange of 10,066,319 shares of common stock of The Europe Fund,
Inc. for 5,532,829 shares of common stock of the Fund. The Europe Fund, Inc.'s
net assets on that date of $113,021,126, including $152,626 of distributions
in excess of net investment income, $141,914 of accumulated net realized
losses and $8,113,020 of net unrealized appreciation, were combined with those
of the Fund. The Fund's aggregate net assets immediately after the acquisition
amounted to $1,001,508,858.
9. Subsequent Event:
The Fund paid an ordinary income dividend in the amount of $1.170464 per
Institutional Share, $1.126287 per Investor A Share, $.870836 per Investor B
Share, $1.004501 per Investor C Share and $1.095411 per Class R Share on
December 17, 2007 to shareholders of record on December 13, 2007.
The Fund paid a long-term capital gain distribution in the amount of $3.170025
per Institutional Share, $3.170025 per Investor A Share, $3.170025 per
Investor B Share, $3.170025 per Investor C Share and $3.170025 per Class R
Share on December 17, 2007 to shareholders of record on December 13, 2007.
BLACKROCK EUROFUND OCTOBER 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
BlackRock EuroFund:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock EuroFund (the "Fund") as
of October 31, 2007, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable 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
audits included consideration of internal control over financial reporting as
a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over 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 October 31, 2007, by correspondence with the
custodian. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock EuroFund as of October 31, 2007, the results of its operations for
the year then ended, the changes in its net assets for each of the two years
in the period then ended, and its financial highlights for each of the five
years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
December 27, 2007
BLACKROCK EUROFUND OCTOBER 31, 2007
Officers and Trustees as of October 31, 2007
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Name, Address Held with Time Overseen by Held by
and Year of Birth 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., 120 Funds None
P.O. Box 9011 President 2007 Global Chief Investment Officer for Equities, 161 Portfolios
Princeton, NJ and Chairman of the BlackRock Retail Operating
08543-9011 Trustee Committee, and member of the BlackRock Executive
1954 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.
Independent Trustees*
Ronald W. Forbes** Trustee 2000 to Professor Emeritus of Finance, School of 46 Funds None
P.O. Box 9095 2007 Business, State University of New York at 48 Portfolios
Princeton, NJ Albany since 2000 and Professor thereof
08543-9095 from 1989 to 2000; International Consultant,
1940 Urban Institute, Washington, D.C. from 1995
to 1999.
Cynthia A. Montgomery Trustee 2000 to Professor, Harvard Business School since 1989; 46 Funds Newell
P.O. Box 9095 2007 Associate Professor, J.L. Kellogg Graduate 48 Portfolios Rubbermaid, Inc.
Princeton, NJ School of Management, Northwestern University (manufacturing)
08543-9095 from 1985 to 1989; Associate Professor, Graduate
1952 School of Business Administration, University of
Michigan from 1979 to 1985; Director, Harvard
Business School Publishing since 2005; Director,
McLean Hospital since 2005.
Jean Margo Reid Trustee 2004 to Self-employed consultant since 2001; Counsel of 46 Funds None
P.O. Box 9095 2007 Alliance Capital Management (investment adviser) 48 Portfolios
Princeton, NJ in 2000; General Counsel, Director and Secretary
08543-9095 of Sanford C. Bernstein & Co., Inc. (investment
1945 adviser/broker-dealer) from 1997 to 2000; Secretary,
Sanford C. Bernstein Fund, Inc. from 1994 to 2000;
Director and Secretary of SCB, Inc. since 1998;
Director and Secretary of SCB Partners, Inc.
since 2000; and Director of Covenant House from
2001 to 2004.
Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute, from 1995 to 46 Funds None
P.O. Box 9095 2007 2001; Foreign Service Officer, United States 48 Portfolios
Princeton, NJ Foreign Service, from 1961 to 1995 and Career
08543-9095 Minister from 1989 to 1995; Deputy Inspector
1935 General, U.S. Department of State, from 1991
to 1994; U.S. Ambassador to the Hashemite
Kingdom of Jordan from 1987 to 1990.
Richard R. West Trustee 1986 to Professor of Finance from 1984 to 1995, Dean 46 Funds Bowne & Co., Inc.
P.O. Box 9095 2007 from 1984 to 1993 and since 1995 Dean Emeritus 48 Portfolios (financial
Princeton, NJ of New York University's Leonard N. Stern printers);
08543-9095 School of Business Administration. Vornado Realty
1938 Trust (real
estate company);
Alexander's, Inc.
(real estate
company)
* Trustees serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Chairman of the Board of Trustees and the Audit Committee.
BLACKROCK EUROFUND OCTOBER 31, 2007
Officers and Trustees as of October 31, 2007 (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Fund Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 1993 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President 2007 Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
Princeton, NJ and and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
08543-9011 Treasurer 1999 to thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
1960 2007
Karen Clark Chief 2007 Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
08543-9011 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
1965 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.
Howard Surloff Secretary 2007 Managing Director of BlackRock Inc. and General Counsel of U.S. Funds at BlackRock,
P.O. Box 9011 Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset Management from 1993
Princeton, NJ to 2006.
08543-9011
1965
* 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 800-441-7762.
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Sidley Austin LLP
New York, NY 10019
Important Tax Information
The following information is provided with respect to the ordinary income
distributions paid by BlackRock EuroFund during the fiscal year ended October
31, 2007:
Record Date 10/31/2006 12/12/2006
Payable Date 11/02/2006 12/14/2006
Qualified Dividend Income for Individuals 100%* 100%*
Foreign Source Income 79.39%* 79.39%*
Foreign Taxes Paid Per Share $.061959 $.000022
* Expressed as a percentage of the cash distribution grossed-up for foreign
taxes. The Fund hereby designates the percentage indicated above or the
maximum amount allowable by law.
The foreign taxes paid represent taxes incurred by the Fund on income received
by the Fund from foreign sources. Foreign taxes paid are included in taxable
income and may be either deducted from gross income or taken as a credit for
taxes paid to foreign governments. You should consult your tax advisor
regarding the appropriate treatment of foreign taxes paid.
Additionally, the Fund distributed long-term capital gains of $1.736430 per
share and $.001133 per share to shareholders of record on October 31, 2006 and
December 12, 2006, respectively.
BLACKROCK EUROFUND OCTOBER 31, 2007
BlackRock Fund Information
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their nonpublic 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 nonpublic 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 nonaffiliated 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 nonaffiliated 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
nonpublic 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 nonpublic 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 EUROFUND OCTOBER 31, 2007
BlackRock Fund Information (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
The Fund has delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Fund's Board of Trustees.
A description of the policies and procedures that BlackRock and its affiliates
use to determine how to vote proxies relating to portfolio securities is
available without charge, upon request, on our Web site at www.blackrock.com,
by calling (800) 441-7762, or on the Web site of the Securities and Exchange
Commission (the "Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Fund's voting securities were
voted (if any) by 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/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have
$50 or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long
as their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BLACKROCK EUROFUND OCTOBER 31, 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 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 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 Fund
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on
investments in the fund.
++ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should
consider the investment objectives, risks, charges and expenses of the funds
under consideration carefully before investing. Each fund's prospectus
contains this and other information and is available at www.blackrock.com or
by calling 800-882-0052 or from your financial advisor. The prospectus should
be read carefully before investing.
BLACKROCK EUROFUND OCTOBER 31, 2007
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Ronald W. Forbes (term ended, effective November 1, 2007)
Robert M. Hernandez (term began, effective November 1, 2007)
Fred G. Weiss (term began, effective November 1, 2007)
Richard R. West
Edward D. Zinbarg (retired as of December 31, 2006)
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees (b) Audit-Related Fees (1) (c) Tax Fees (2) (d) All Other Fees (3)
Current Previous Current Previous Current Previous Current Previous
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Entity Name End End End End End End End End
BlackRock
EuroFund $38,100 $34,500 $0 $11,800 (4) $6,100 $6,000 $1,042 $0
(1) The nature of the services include assurance and related services reasonably
related to the performance of the audit of financial statements not included
in Audit Fees.
(2) The nature of the services include tax compliance, tax advice and tax planning.
(3) The nature of the services include a review of compliance procedures and
attestation thereto.
(4) Paid by the Adviser.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). 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) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
Current Previous
Fiscal Year Fiscal Year
Entity Name End End
BlackRock EuroFund $291,642 $2,936,383
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 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 and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to
these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities 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)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock EuroFund
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock EuroFund
Date: December 19, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock EuroFund
Date: December 19, 2007
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock EuroFund
Date: December 19, 2007