UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-06180
Name of Fund: BlackRock Utilities and Telecommunications Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Utilities and Telecommunications Fund, Inc., 800
Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011,
Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 11/30/07
Date of reporting period: 12/01/06 - 05/31/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES
FIXED INCOME LIQUIDITY REAL ESTATE
BlackRock Utilities and BLACKROCK
Telecommunications Fund, Inc.
SEMI-ANNUAL REPORT
MAY 31, 2007 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Utilities and Telecommunications Fund, Inc.
Industry Classification as a Percentage of Total Investments as of May 31, 2007
Below is a pie chart showing the Industry Classification as a Percentage of
Total Investments as of May 31, 2007
Electric Utilities 34.7%
Diversified Telecommunication Services 15.3%
Multi-Utilities 13.3%
Independent Power Producers & Energy Traders 11.8%
Wireless Telecommunication Services 10.9%
Gas Utilities 4.1%
Oil, Gas & Consumable Fuels 3.7%
Media 1.4%
Water Utilities 0.9%
Energy Equipment & Services 0.7%
Construction & Engineering 0.5%
Electrical Equipment 0.3%
Other* 2.4%
* Includes portfolio holdings in short-term investments.
For Fund compliance purposes, the Fund's industry classifications refer to any
one or more of the industry sub-classifications used by one or more widely
recognized market indexes or ratings group indexes, and/or as defined by Fund
management. This definition may not apply for purposes of this report, which may
combine industry sub-classifications for reporting ease.
Portfolio Information as of May 31, 2007
Percent of
Geographic Allocation Equities
- --------------------------------------------------------------------------------
United States .......................................................... 76.7%
United Kingdom ......................................................... 5.2
France ................................................................. 3.6
Brazil ................................................................. 2.8
Spain .................................................................. 2.7
Germany ................................................................ 2.0
Canada ................................................................. 1.8
Mexico ................................................................. 1.7
Finland ................................................................ 1.0
Norway ................................................................. 0.7
Czech Republic ......................................................... 0.5
Luxembourg ............................................................. 0.5
Greece ................................................................. 0.5
Italy .................................................................. 0.3
- --------------------------------------------------------------------------------
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
AT&T Inc. .............................................................. 5.3%
NRG Energy, Inc. ....................................................... 3.4
Exelon Corp. ........................................................... 3.4
Entergy Corp. .......................................................... 3.2
Verizon ................................................................ 2.9
Constellation Energy Group, Inc. ....................................... 2.8
PPL Corp. .............................................................. 2.6
Public Service Enterprise Group, Inc. .................................. 2.3
FPL Group, Inc. ........................................................ 2.2
Edison International ................................................... 2.2
- --------------------------------------------------------------------------------
2 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
A Letter to Shareholders
Dear Shareholder
The 12 months from May 2006 to May 2007 took global equities on an extraordinary
ride. A sharp correction at the start, the first in almost four years, gave way
to strength in the latter half of 2006 and early 2007. This rally was
interrupted by another set-back at the end of February, before markets resumed
their upward march through May 31. Ultimately, the tailwinds of a generally
favorable global economic backdrop, tame inflation, relatively low interest
rates, still positive earnings growth and attractive valuations prevailed over
the headwinds of a weakening U.S. economy, slowing housing market, escalating
geopolitical concerns and high energy prices. In fact, both the Dow Jones
Industrial Average and the Standard & Poor's 500 Index touched new record highs
following the most recent correction.
Mixed economic signals led to volatile behavior in fixed income markets as well.
However, from the beginning of 2007 through May 31, short-term bond yields
generally fell while longer-term yields increased. This resulted in some
re-steepening of the yield curve, which had been flat to inverted throughout
2006. On a year-over-year basis, yields on 30-year Treasury bonds fell 20 basis
points (.20%) and 10-year yields fell 22 basis points, while bond prices
correspondingly rose. Meanwhile, the Federal Reserve Board (the Fed) has left
the federal funds rate at 5.25% since first pausing in August 2006. While
first-quarter gross domestic product growth of 0.6% represented the slowest rate
of expansion since 2002, the Fed reiterated its view that inflation, not a
slowing economy, remains its primary concern. Many observers interpreted the
Fed's reaction to mean that the economy has hit its low and is bound for renewed
strength, therefore reducing the likelihood of an interest rate cut in the near
future.
Against this backdrop, most major market indexes posted positive returns for the
annual and semi-annual reporting periods ended May 31, 2007, with equities
exhibiting particular strength:
Total Returns as of May 31, 2007 6-month 12-month
=====================================================================================================
U.S. equities (Standard & Poor's 500 Index) +10.29% +22.79%
- -----------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) + 8.39 +18.92
- -----------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +14.08 +26.84
- -----------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 0.69 + 6.66
- -----------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.30 + 4.84
- -----------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.02 +12.64
- -----------------------------------------------------------------------------------------------------
We expect market volatility to linger throughout the remainder of 2007. As you
navigate the uncertainties, we encourage you to review your investment goals
with your financial professional and to make portfolio changes, as needed. For
more insight, we invite you to view "What's Ahead in 2007: An Investment
Perspective" and "Are You Prepared for Volatility?" at www.blackrock.com/funds.
We thank you for entrusting BlackRock with your investment assets, and we look
forward to continuing to serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Director
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 3
A Discussion With Your Fund's Portfolio Manager
The Fund outperformed its benchmarks and its comparable Lipper category average
for the period, benefiting from favorable stock selection across key industries.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended May 31, 2007, BlackRock Utilities and
Telecommunications Fund, Inc.'s Institutional, Investor A, Investor B, Investor
B1, Investor C and Investor C1 Shares had total returns of +19.68%, +19.61%,
+19.13%, +19.24%, +19.14% and +19.26%, respectively. (Fund results shown do not
reflect sales charges and would be lower if sales charges were included.
Complete performance information can be found on pages 6 - 9 of this report to
shareholders.) The Fund outpaced the +10.29% return of the broad-market Standard
& Poor's (S&P) 500 Index and the +15.98% return of the S&P Utilities Index for
the same six-month period. Fund performance also compared favorably to the
+17.23% average return of the Lipper Utility Funds category for the period.
(Funds in this Lipper category invest primarily in the equity securities of
domestic and foreign companies providing utilities. The Fund also invests in
telecommunication services stocks, in which many funds in the Lipper group have
no position.)
U.S. equity markets enjoyed positive returns during the past six months, with
much of the advance realized in the second half of this semi-annual reporting
period. A near 5% retreat in the broad market (as measured by the S&P 500 Index)
in late February was triggered by fears of an overheating in China's stock
market and concerns over slowing economic growth in the United States. The
investor jitters generally proved short-lived, as equities embarked on a
recovery in early March that lasted through period-end. More defensive sectors
fared well amid the volatile backdrop, as evidenced by the S&P Utilities Index's
outperformance of the broader market.
The Fund's performance for the period was positively affected by above-average
returns from its holdings in electric utilities and independent power producers,
as well as strong results among our holdings in wireless telecommunications. In
particular, performance in the latter industry was driven by companies such as
MetroPCS Communications, Inc., America Movil, S.A. de C.V., Rogers
Communications, Inc. and Leap Wireless International, Inc. Among independent
power producers, the two most significant contributors to performance for the
period were NRG Energy, Inc. and Mirant Corp.
What changes were made to the portfolio during the period?
During the six-month period, the Fund's weighting in the telecommunications
sector declined by nearly 3%, utilities increased close to 4% and energy
exposure was relatively unchanged at roughly 4.5%. Drilling down to the
sub-sector level, the portfolio's holdings in wireless telecommunications
increased, as did its position in independent power producers (IPPs).
Conversely, our position in multi-utilities declined slightly.
We continued adding to the Fund's weighting in IPPs in 2007, a move we discussed
in our annual report to shareholders dated November 2006. We expect the IPPs and
unregulated merchant power companies to benefit from the lack of new capacity to
come to the market, while growth in demand for electric power continues at a
pace that, on average, is consistent with the rate of gross domestic product
(GDP) growth.
In the telecommunications sector, the Fund maintained significant weightings in
AT&T Inc. and Verizon Communications Inc., the leaders in the wireless
telecommunications industry. These two companies have the ability to bundle
their products to provide a more complete package for consumers (wireline phone,
wireless, broadband and video). We also maintained positions in Leap Wireless
International and MetroPCS Communications, both of which provide wireless
communication services to more credit-challenged consumers and lower-income
users. The cost to acquire these customers is relatively low, and the customers
pay upfront for the wireless access, which typically is their only phone
service. Sprint, another Fund holding, has entered this lower-end market,
although neither AT&T nor Verizon have done so as yet. We believe growth in this
market should continue for some time and, eventually, we expect that we may see
some consolidation among the smaller providers.
How would you characterize the Fund's position at the close of the period?
At May 31, 2007, the Fund was comprised of approximately 100 holdings and was
diversified across 14 countries. Utilities remained the most heavily weighted
sector at period-end, at 64% of net assets, followed by telecommunication
services at 26%. Energy represented the next highest weighting at just under 5%
of net assets. This was followed by consumer
4 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
discretionary (cable and satellite television) and industrials (power generation
equipment/services).
The electric utility industry is entering a higher capital expenditure cycle.
This historically has been a positive development for the integrated utilities
since regulators allow the companies a set return on equity for the dollars
spent on equipment, thereby growing the companies' rate base. As a result, the
stock prices of these companies ran up earlier in the year to trade at valuation
multiples that we perceived to be at or close to fair value. We have since
trimmed these holdings, while maintaining an investment focus on the unregulated
power-generation and transmission/distribution companies. We believe the
unregulated power-generation companies (that is, the IPPs) will be better
positioned to take advantage of rising power prices given the potential
demand/supply imbalance. Meanwhile, the transmission/distribution companies
benefit from the need for better infrastructure and from the fact that they are
regulated on a federal level rather than based on decisions made at the state
level.
As mentioned earlier, we see improving trends in the telecommunications sector.
While the decline in the number of wireline access lines persists, the rate of
decline is slowing. The bundling of products is reducing customer churn, and
wireless penetration continues to grow. Companies offering prepaid wireless
service have an opportunity to capture a wider customer base. The enterprise
business also is showing signs of improvement as the pricing environment becomes
more rational.
Overall, we remain optimistic about the trends we are seeing in the United
States, Europe and Latin America for both the utilities and telecommunications
sectors.
Kathleen M. Anderson
Portfolio Manager
June 18, 2007
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 5
Performance Data
About Fund Performance
Effective October 2, 2006, the Fund's Class A, Class B, Class C and Class I
Shares were redesignated Investor A, Investor B1, Investor C1 and Institutional
Shares, respectively. Also, effective October 2, 2006, the Fund's Investor B and
Investor C Shares commenced operations. As previously communicated to
shareholders, new sales charge schedules came into effect at the same time for
certain of these classes.
The Fund has multiple classes of shares:
o 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.
o 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).
o 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. Prior to October 2, 2006, Investor B
Share performance results are those of Institutional Shares (which have no
distribution or service fees) restated to reflect the Investor B Share
fees.
o Investor B1 Shares are subject to a maximum contingent deferred sales
charge of 4% declining to 0% after six years. In addition, Investor B1
Shares are subject to a distribution fee of 0.50% 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.
o 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. Prior to October 2, 2006, Investor C Share performance
results are those of Institutional Shares (which have no distribution or
service fees) restated to reflect the Investor C Share fees.
o Investor C1 Shares are subject to a distribution fee of 0.55% per year and
a service fee of 0.25% per year. In addition, Investor C1 Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
Performance information reflects past performance and does not guarantee future
results. Current performance may be lower or higher than the performance data
quoted. Refer to www.blackrock.com to obtain performance data current to the
most recent month-end. Performance results do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Figures shown in each of the following tables assume reinvestment of all
dividends and capital gain distributions, if any, at net asset value on the
ex-dividend date. Investment return and principal value of shares will fluctuate
so that shares, when redeemed, may be worth more or less than their original
cost. Dividends paid to each class of shares will vary because of the different
levels of service, distribution and transfer agency fees applicable to each
class, which are deducted from the income available to be paid to shareholders.
6 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Performance Data (continued)
Recent Performance Results
6-Month 12-Month 10-Year Standardized
As of May 31, 2007 Total Return Total Return Total Return 30-day Yield
==================================================================================================
Institutional Shares* +19.68% +40.42% +192.37% 1.16%
- --------------------------------------------------------------------------------------------------
Investor A Shares* +19.61 +40.06 +184.99 0.90
- --------------------------------------------------------------------------------------------------
Investor B Shares* +19.13 +38.96 +164.48 0.16
- --------------------------------------------------------------------------------------------------
Investor B1 Shares* +19.24 +39.31 +173.59 0.37
- --------------------------------------------------------------------------------------------------
Investor C Shares* +19.14 +39.04 +164.64 0.21
- --------------------------------------------------------------------------------------------------
Investor C1 Shares* +19.26 +39.23 +170.11 0.37
- --------------------------------------------------------------------------------------------------
S&P 500(R) Index** +10.29 +22.79 +111.50 --
- --------------------------------------------------------------------------------------------------
S&P Utilities Index*** +15.98 +36.02 +155.33 --
- --------------------------------------------------------------------------------------------------
* Investment results shown do not reflect sales charges; results shown would
be lower if a sales charge was included. Cumulative total investment
returns are based on changes in net asset values for the periods shown,
and assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date.
** The S&P 500 Index covers 500 industrial, utility, transportation and
financial companies of the U.S. markets (mostly NYSE issues). The
unmanaged Index represents about 75% of NYSE market capitalization and 30%
of NYSE issues.
*** This unmanaged capitalization Index is comprised of all stocks designed to
measure the performance of electric and natural gas utilities within the
S&P 500 Index.
S&P 500 is a registered trademark of the McGraw-Hill Companies.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 7
Performance Data (continued)
Total Return Based on a $10,000 Investment
Below is a line graph depicting the growth of an investment in the Fund's
Institutional, Investor A and Investor B Shares compared to growth of an
investment in the S&P 500 Index and the S&P Utilities Index. Values are from May
1997 to May 2007:
Institutional Investor A Investor B S&P 500 S&P Utilities
Shares*+ Shares*+ Shares*+ Index++ Index+++
5/97 $10,000 $9,475 $10,000 $10,000 $10,000
5/98 $12,810 $12,100 $12,683 $13,069 $12,929
5/99 $14,332 $13,506 $14,049 $15,816 $15,085
5/00 $15,880 $14,925 $15,411 $17,473 $15,855
5/01 $16,637 $15,600 $15,986 $15,629 $19,624
5/02 $13,648 $12,754 $12,982 $13,465 $13,256
5/03 $12,597 $11,756 $11,864 $12,379 $11,666
5/04 $14,084 $13,112 $13,133 $14,648 $12,954
5/05 $18,158 $16,843 $16,765 $15,855 $17,151
5/06 $20,821 $19,280 $19,033 $17,224 $18,772
5/07 $29,237 $27,003 $26,448 $21,150 $25,533
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests at least 80% of its total assets in equity and debt
securities issued by domestic and foreign companies that are, in the
opinion of the Manager, primarily engaged in the ownership or operation of
facilities used to generate, transmit or distribute electricity,
telecommunications, gas or water.
++ The S&P 500 Index covers 500 industrial, utility, transportation and
financial companies of the U.S. markets (mostly NYSE issues). The
unmanaged Index represents about 75% of NYSE market capitalization and 30%
of NYSE issues.
+++ This unmanaged capitalization Index is comprised of all stocks designed to
measure the performance of electric and natural gas utilities within the
S&P 500 Index.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 5/31/07 +40.42%
- --------------------------------------------------------------------------------
Five Years Ended 5/31/07 +16.46
- --------------------------------------------------------------------------------
Ten Years Ended 5/31/07 +11.33
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 5/31/07 +40.06% +32.70%
- --------------------------------------------------------------------------------
Five Years Ended 5/31/07 +16.18 +14.94
- --------------------------------------------------------------------------------
Ten Years Ended 5/31/07 +11.04 +10.44
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor B Shares+
================================================================================
One Year Ended 5/31/07 +38.96% +34.46%
- --------------------------------------------------------------------------------
Five Years Ended 5/31/07 +15.29 +15.07
- --------------------------------------------------------------------------------
Ten Years Ended 5/31/07 +10.21 +10.21
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
++ Assuming payment of applicable contingent deferred sales charge.
8 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Performance Data (concluded)
Total Return Based on a $10,000 Investment
Below is a line graph depicting the growth of an investment in the Fund's
Investor B1, Investor C and Investor C1 Shares compared to growth of an
investment in the S&P 500 Index and the S&P Utilities Index. Values are from May
1997 to May 2007:
Investor B1 Investor C Investor C1 S&P 500 S&P Utilities
Shares*+ Shares*+ Shares*+ Index++ Index+++
5/97 $10,000 $10,000 $10,000 $10,000 $10,000
5/98 $12,709 $12,683 $12,704 $13,069 $12,929
5/99 $14,115 $14,049 $14,099 $15,816 $15,085
5/00 $15,520 $15,411 $15,497 $17,473 $15,855
5/01 $16,134 $15,986 $16,152 $15,629 $19,624
5/02 $13,124 $12,982 $13,137 $13,465 $13,256
5/03 $12,026 $11,864 $12,031 $12,379 $11,666
5/04 $13,348 $13,133 $13,339 $14,648 $12,954
5/05 $17,065 $16,765 $17,042 $15,855 $17,151
5/06 $19,535 $19,033 $19,400 $17,224 $18,772
5/07 $27,359 $26,464 $27,011 $21,150 $25,533
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests at least 80% of its total assets in equity and debt
securities issued by domestic and foreign companies that are, in the
opinion of the Manager, primarily engaged in the ownership or operation of
facilities used to generate, transmit or distribute electricity,
telecommunications, gas or water.
++ The S&P 500 Index covers 500 industrial, utility, transportation and
financial companies of the U.S. markets (mostly NYSE issues). The
unmanaged Index represents about 75% of NYSE market capitalization and 30%
of NYSE issues. +++ This unmanaged capitalization Index is comprised of
all stocks designed to measure the performance of electric and natural gas
utilities within the S&P 500 Index.
Past performance is not indicative of future results.
Average Annual Total Return
Return Return
Without CDSC With CDSC++
================================================================================
Investor B1 Shares+
================================================================================
One Year Ended 5/31/07 +39.31% +35.31%
- --------------------------------------------------------------------------------
Five Years Ended 5/31/07 +15.56 +15.34
- --------------------------------------------------------------------------------
Ten Years Ended 5/31/07 +10.59 +10.59
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor C Shares+++
================================================================================
One Year Ended 5/31/07 +39.04% +38.04%
- --------------------------------------------------------------------------------
Five Years Ended 5/31/07 +15.31 +15.31
- --------------------------------------------------------------------------------
Ten Years Ended 5/31/07 +10.22 +10.22
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor C1 Shares+++
================================================================================
One Year Ended 5/31/07 +39.23% +38.23%
- --------------------------------------------------------------------------------
Five Years Ended 5/31/07 +15.51 +15.51
- --------------------------------------------------------------------------------
Ten Years Ended 5/31/07 +10.45 +10.45
- --------------------------------------------------------------------------------
+ Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
++ Assuming payment of applicable contingent deferred sales charge.
+++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 9
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses related
to transactions, including sales charges, redemption fees and exchange fees; and
(b) operating expenses including advisory fees, distribution fees including
12b-1 fees, and other Fund expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on December 1, 2006 and held through
May 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 first table below provides information about actual account values and
actual expenses. In order to estimate the expenses a shareholder paid during the
period covered by this report, shareholders can divide their account value by
$1,000 and then multiply the result by the number in the first line under the
heading entitled "Expenses Paid During the Period."
The second table below provides information about hypothetical account values
and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in this Fund and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the second table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value Dec. 1, 2006 to
December 1, 2006 May 31, 2007 May 31, 2007
================================================================================
Actual
================================================================================
Institutional $1,000 $1,196.80 $ 5.20
Investor A $1,000 $1,196.10 $ 6.52
Investor B $1,000 $1,191.30 $10.71
Investor B1 $1,000 $1,192.40 $ 9.46
Investor C $1,000 $1,191.40 $10.49
Investor C1 $1,000 $1,192.60 $ 9.62
================================================================================
Hypothetical (5% annual return before expenses)**
================================================================================
Institutional $1,000 $1,020.16 $ 4.78
Investor A $1,000 $1,018.97 $ 5.99
Investor B $1,000 $1,015.13 $ 9.85
Investor B1 $1,000 $1,016.27 $ 8.70
Investor C $1,000 $1,015.33 $ 9.65
Investor C1 $1,000 $1,016.12 $ 8.85
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.95% for Institutional, 1.19% for Investor A, 1.96%
for Investor B, 1.73% for Investor B1, 1.92% for Investor C and 1.76% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half-year divided by 365.
10 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Schedule of Investments as of May 31, 2007 (Unaudited) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
===============================================================================
Brazil -- 2.7%
Diversified Telecommunication
Services -- 0.0%
GVT Holding SA (a) 5,400 $ 78,512
----------------------------------------------------------------------
Electric Utilities -- 1.6%
CPFL Energia SA (b) 23,700 1,326,015
Cia Energetica de Minas Gerais (b) 23,500 926,605
EDP -- Energias do Brasil SA 33,200 589,857
-------------
2,842,477
----------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.6%
Cia Energetica de Sao Paulo
(Preference Shares) (a) 60,000,000 1,063,509
----------------------------------------------------------------------
Water Utilities -- 0.5%
Cia de Saneamento Basico do
Estado de Sao Paulo 2,600,000 422,294
Companhia de Saneamento de
Minas Gerais 32,000 503,904
-------------
926,198
----------------------------------------------------------------------
Total Common Stocks in Brazil 4,910,696
===============================================================================
Canada -- 1.7%
Diversified Telecommunication
Services -- 0.8%
Manitoba Telecom Services, Inc. 30,000 1,375,748
----------------------------------------------------------------------
Wireless Telecommunication
Services -- 0.9%
Rogers Communications, Inc. Class B 41,000 1,701,090
----------------------------------------------------------------------
Total Common Stocks in Canada 3,076,838
===============================================================================
Czech Republic -- 0.5%
Electric Utilities -- 0.5%
CEZ 17,700 908,690
----------------------------------------------------------------------
Total Common Stocks in the Czech Republic 908,690
===============================================================================
Finland -- 1.0%
Electric Utilities -- 1.0%
Fortum Oyj 53,000 1,742,919
----------------------------------------------------------------------
Total Common Stocks in Finland 1,742,919
===============================================================================
France -- 3.5%
Diversified Telecommunication
Services -- 0.8%
France Telecom SA 30,000 921,568
Neuf Cegetel (a) 14,500 567,755
-------------
1,489,323
----------------------------------------------------------------------
Electric Utilities -- 0.8%
Electricite de France SA 14,500 1,344,858
----------------------------------------------------------------------
Multi-Utilities -- 1.9%
Suez SA (a) 33,200 1,909,740
Veolia Environnement SA 18,800 1,573,433
-------------
3,483,173
----------------------------------------------------------------------
Total Common Stocks in France 6,317,354
===============================================================================
Germany -- 2.0%
Electric Utilities -- 1.7%
E.ON AG 18,300 3,008,509
----------------------------------------------------------------------
Multi-Utilities -- 0.3%
RWE AG 4,900 555,147
----------------------------------------------------------------------
Total Common Stocks in Germany 3,563,656
===============================================================================
Greece -- 0.5%
Diversified Telecommunication
Services -- 0.5%
Hellenic Telecommunications
Organization SA (a) 26,500 845,073
----------------------------------------------------------------------
Total Common Stocks in Greece 845,073
===============================================================================
Italy -- 0.3%
Electric Utilities -- 0.3%
Enel SpA 41,000 466,442
----------------------------------------------------------------------
Total Common Stocks in Italy 466,442
===============================================================================
Luxembourg -- 0.5%
Wireless Telecommunication
Services -- 0.5%
Millicom International Cellular SA (a) 10,000 850,800
----------------------------------------------------------------------
Total Common Stocks in Luxembourg 850,800
===============================================================================
Mexico -- 1.7%
Wireless Telecommunication
Services -- 1.7%
America Movil, SA de CV (b) 49,000 2,966,950
----------------------------------------------------------------------
Total Common Stocks in Mexico 2,966,950
===============================================================================
Norway -- 0.7%
Diversified Telecommunication
Services -- 0.7%
Telenor ASA 67,600 1,314,194
----------------------------------------------------------------------
Total Common Stocks in Norway 1,314,194
===============================================================================
Spain -- 2.6%
Diversified Telecommunication
Services -- 1.0%
Telefonica SA 79,448 1,805,563
----------------------------------------------------------------------
Electric Utilities -- 1.3%
Endesa SA 15,600 839,834
Iberdrola SA 26,500 1,529,690
-------------
2,369,524
----------------------------------------------------------------------
Electrical Equipment -- 0.3%
Gamesa Corp. Tecnologica SA 14,600 538,471
----------------------------------------------------------------------
Total Common Stocks in Spain 4,713,558
===============================================================================
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 11
Schedule of Investments (continued) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
===============================================================================
United Kingdom -- 5.2%
Diversified Telecommunication
Services -- 0.4%
BT Group Plc 109,900 $ 717,042
----------------------------------------------------------------------
Electric Utilities -- 0.7%
Scottish & Southern Energy Plc 41,400 1,248,509
----------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 1.0%
International Power Plc 196,900 1,769,106
----------------------------------------------------------------------
Multi-Utilities -- 1.2%
Centrica Plc 133,600 1,013,865
National Grid Plc 69,918 1,084,032
-------------
2,097,897
----------------------------------------------------------------------
Water Utilities -- 0.4%
Northumbrian Water Group Plc 100,000 687,102
----------------------------------------------------------------------
Wireless Telecommunication
Services -- 1.5%
Vodafone Group Plc (b) 84,512 2,656,212
----------------------------------------------------------------------
Total Common Stocks in the United Kingdom 9,175,868
===============================================================================
United States -- 74.9%
Construction &
Engineering -- 0.5%
InfraSource Services, Inc. (a) 25,000 905,000
----------------------------------------------------------------------
Diversified Telecommunication
Services -- 11.2%
AT&T Inc. 228,062 9,428,083
Citizens Communications Co. 80,700 1,279,095
Embarq Corp. 10,500 674,730
Level 3 Communications, Inc. (a)(f) 271,000 1,577,220
Qwest Communications
International Inc. (a) 123,000 1,265,670
Verizon Communications Inc. 119,400 5,197,482
Windstream Corp. 39,141 587,898
-------------
20,010,178
----------------------------------------------------------------------
Electric Utilities -- 27.1%
Allegheny Energy, Inc. (a) 50,800 2,712,212
American Electric Power Co., Inc. 44,700 2,129,061
DPL, Inc. 75,000 2,288,250
Duke Energy Corp. 135,732 2,652,203
Edison International 66,700 3,886,609
Entergy Corp. 51,300 5,791,770
Exelon Corp. 77,500 6,045,000
FPL Group, Inc. 62,800 4,014,804
FirstEnergy Corp. 51,900 3,593,037
ITC Holdings Corp. 49,500 2,148,300
Mirant Corp. (a) 72,400 3,359,360
Northeast Utilities Inc. 36,600 1,113,006
PPL Corp. 101,800 4,678,728
Pepco Holdings, Inc. 30,500 910,730
Progress Energy, Inc. 15,800 791,422
Reliant Energy, Inc. (a) 37,300 955,626
The Southern Co. 43,800 1,577,238
-------------
48,647,356
----------------------------------------------------------------------
Energy Equipment &
Services -- 0.7%
Grant Prideco, Inc. (a) 14,000 795,060
Transocean, Inc. (a) 4,600 451,904
-------------
1,246,964
----------------------------------------------------------------------
Gas Utilities -- 4.1%
Energen Corp. 23,500 1,384,620
Equitable Resources, Inc. 25,200 1,310,904
New Jersey Resources Corp. 13,600 745,008
Questar Corp. 21,500 2,322,215
Spectra Energy Corp. 26,416 703,458
UGI Corp. 32,200 927,360
-------------
7,393,565
----------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 9.7%
The AES Corp. (a) 52,700 1,250,571
Constellation Energy Group, Inc. 54,500 5,001,465
Dynegy, Inc. Class A (a) 98,264 951,196
NRG Energy, Inc. (a) 69,000 6,064,410
Ormat Technologies, Inc. 25,300 920,920
TXU Corp. 47,900 3,230,855
-------------
17,419,417
----------------------------------------------------------------------
Media -- 1.3%
Comcast Corp. Special Class A (a) 55,800 1,516,644
EchoStar Communications Corp.
Class A (a) 19,700 907,382
-------------
2,424,026
----------------------------------------------------------------------
Multi-Utilities -- 10.0%
CMS Energy Corp. 132,500 2,418,125
DTE Energy Co. 17,600 930,688
Dominion Resources, Inc. 34,237 3,033,056
MDU Resources Group, Inc. 22,050 668,336
NSTAR 41,700 1,452,411
PG&E Corp. 55,000 2,709,300
Public Service Enterprise Group, Inc. 45,500 4,046,770
Sempra Energy 19,900 1,220,268
Wisconsin Energy Corp. 19,100 925,013
Xcel Energy, Inc. 19,300 442,935
-------------
17,846,902
----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 3.8%
Devon Energy Corp. 13,500 1,036,530
EOG Resources, Inc. 15,500 1,191,950
12 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
===============================================================================
United States (concluded)
Oil, Gas & Consumable
Fuels (concluded)
Holly Corp. 13,000 $ 911,170
Range Resources Corp. 18,900 732,186
Southwestern Energy Co. (a) 21,700 1,032,920
Williams Cos., Inc. 58,800 1,867,488
-------------
6,772,244
----------------------------------------------------------------------
Wireless Telecommunication
Services -- 6.5%
Alltel Corp. 13,345 914,399
American Tower Corp. Class A (a) 32,100 1,386,078
Crown Castle International Corp. (a) 40,502 1,491,284
Dobson Communications Corp.
Class A (a) 60,000 637,200
Leap Wireless International, Inc. (a) 11,000 940,060
MetroPCS Communications, Inc. (a) 85,000 3,031,100
SBA Communications Corp. Class A (a) 42,900 1,378,377
Sprint Nextel Corp. 79,000 1,805,150
-------------
11,583,648
----------------------------------------------------------------------
Total Common Stocks in the United States 134,249,300
----------------------------------------------------------------------
Total Common Stocks
(Cost -- $102,774,165) -- 97.8% 175,102,338
Face
Trust Preferred Amount Value
===============================================================================
United States -- 0.6%
Independent Power Producers & Energy
Traders -- 0.6%
AES Trust III, 6.75%
due 10/15/2029 (g) $ 1,092,450 $ 1,082,120
----------------------------------------------------------------------
Total Trust Preferred
(Cost -- $667,885) -- 0.6% 1,082,120
===============================================================================
Short-Term Beneficial
Securities Interest
===============================================================================
United States -- 2.4%
BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.26% (c)(d) $ 3,437,796 3,437,796
BlackRock Liquidity Series, LLC
Money Market Series, 5.33% (c)(d)(e) 980,000 980,000
----------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $4,417,796) -- 2.4% 4,417,796
===============================================================================
Total Investments
(Cost -- $107,859,846*) -- 100.8% 180,602,254
Liabilities in Excess of Other Assets -- (0.8%) (1,477,709)
-------------
Net Assets -- 100.0% $ 179,124,545
=============
* The cost and unrealized appreciation of investments as of May 31, 2007, as
computed for federal income tax purposes, were as follows:
Aggregate cost ............................................... $ 107,859,846
=============
Gross unrealized appreciation ................................ $ 72,742,408
Gross unrealized depreciation ................................ --
-------------
Net unrealized appreciation .................................. $ 72,742,408
=============
(a) Non-income producing security.
(b) Depositary receipts.
(c) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
- --------------------------------------------------------------------------------
Net Interest
Affiliate Activity Income
- --------------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series $(3,287,957) $ 95,053
BlackRock Liquidity Series, LLC
Money Market Series $ 140,000 $ 390
- --------------------------------------------------------------------------------
(d) Represents the current yield as of May 31, 2007.
(e) Security was purchased with the cash proceeds from securities loans.
(f) Security, or a portion of the security, is on loan.
(g) Convertible security.
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease. Industries are shown as a percent of net assets.
See Notes to Financial Statements.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 13
Statement of Assets and Liabilities
As of May 31, 2007 (Unaudited)
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (including securities loaned of $814,800)
(identified cost -- $103,442,050) ................................................. $ 176,184,458
Investments in affiliated securities, at value (identified cost -- $4,417,796) ...... 4,417,796
Foreign cash (cost -- $30,228) ...................................................... 30,106
Receivables:
Capital shares sold .............................................................. $ 428,892
Dividends ........................................................................ 351,968
Interest ......................................................................... 10,534
Securities lending ............................................................... 113 791,507
-------------
Prepaid expenses and other assets ................................................... 27,307
-------------
Total assets ........................................................................ 181,451,174
-------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value ........................................... 980,000
Payables:
Securities purchased ............................................................. 693,259
Capital shares redeemed .......................................................... 440,204
Investment adviser ............................................................... 89,954
Distributor ...................................................................... 47,645
Other affiliates ................................................................. 32,994 1,304,056
-------------
Accrued expenses .................................................................... 42,573
-------------
Total liabilities ................................................................... 2,326,629
-------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets .......................................................................... $ 179,124,545
=============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares of Common Stock, $.10 par value, 100,000,000 shares authorized . $ 184,772
Investor A Shares of Common Stock, $.10 par value, 100,000,000 shares authorized .... 650,072
Investor B Shares of Common Stock, $.10 par value, 100,000,000 shares authorized .... 6,806
Investor B1 Shares of Common Stock, $.10 par value, 100,000,000 shares authorized ... 94,354
Investor C Shares of Common Stock, $.10 par value, 100,000,000 shares authorized .... 11,520
Investor C1 Shares of Common Stock, $.10 par value, 100,000,000 shares authorized ... 103,331
Paid-in capital in excess of par .................................................... 97,773,527
Undistributed investment income -- net .............................................. $ 373,014
Undistributed realized capital gains -- net ......................................... 7,184,589
Unrealized appreciation -- net ...................................................... 72,742,560
-------------
Total accumulated earnings -- net ................................................... 80,300,163
-------------
Net assets .......................................................................... $ 179,124,545
=============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional -- Based on net assets of $31,540,226 and 1,847,722 shares outstanding $ 17.07
=============
Investor A -- Based on net assets of $111,017,219 and 6,500,718 shares outstanding .. $ 17.08
=============
Investor B -- Based on net assets of $1,152,927 and 68,055 shares outstanding ....... $ 16.94
=============
Investor B1 -- Based on net assets of $16,071,893 and 943,535 shares outstanding .... $ 17.03
=============
Investor C -- Based on net assets of $1,931,453 and 115,198 shares outstanding ...... $ 16.77
=============
Investor C1 -- Based on net assets of $17,410,827 and 1,033,311 shares outstanding .. $ 16.85
=============
See Notes to Financial Statements.
14 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Statement of Operations
For the Six Months Ended May 31, 2007 (Unaudited)
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends (net of $75,595 foreign withholding tax) .................................. $ 1,872,955
Interest (including $95,053 from affiliates) ........................................ 134,006
Securities lending -- net ........................................................... 390
-------------
Total income ........................................................................ 2,007,351
-------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ............................................................ $ 489,089
Service fees -- Investor A .......................................................... 124,450
Service and distribution fees -- Investor C1 ........................................ 65,469
Service and distribution fees -- Investor B1 ........................................ 63,696
Accounting services ................................................................. 61,227
Printing and shareholder reports .................................................... 40,667
Professional fees ................................................................... 34,761
Transfer agent fees -- Investor A ................................................... 34,545
Registration fees ................................................................... 28,038
Directors' fees and expenses ........................................................ 21,428
Custodian fees ...................................................................... 12,467
Transfer agent fees -- Institutional ................................................ 11,866
Transfer agent fees -- Investor B1 .................................................. 9,075
Transfer agent fees -- Investor C1 .................................................. 7,357
Service and distribution fees -- Investor C ......................................... 4,930
Service and distribution fees -- Investor B ......................................... 3,237
Pricing fees ........................................................................ 1,968
Transfer agent fees -- Investor C ................................................... 427
Transfer agent fees -- Investor B ................................................... 373
Other ............................................................................... 15,961
-------------
Total expenses ...................................................................... 1,031,031
-------------
Investment income -- net ............................................................ 976,320
-------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net ............................................................... 8,474,695
Foreign currency transactions -- net ............................................. (854) 8,473,841
-------------
Change in unrealized appreciation on:
Investments -- net ............................................................... 20,117,305
Foreign currency transactions -- net ............................................. (776) 20,116,529
------------------------------
Total realized and unrealized gain -- net ........................................... 28,590,370
-------------
Net Increase in Net Assets Resulting from Operations ................................ $ 29,566,690
=============
See Notes to Financial Statements.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 15
Statements of Changes in Net Assets
For the Six
Months Ended For the
May 31, Year Ended
2007 November 30,
Increase (Decrease) in Net Assets: (Unaudited) 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ............................................................ $ 976,320 $ 3,565,766
Realized gain -- net ................................................................ 8,473,841 21,869,811
Change in unrealized appreciation -- net ............................................ 20,116,529 6,411,317
------------------------------
Net increase in net assets resulting from operations ................................ 29,566,690 31,846,894
------------------------------
===================================================================================================================================
Dividends to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional .................................................................... (216,715) (688,635)
Investor A ....................................................................... (635,549) (2,013,568)
Investor B ....................................................................... (3,377) (868)
Investor B1 ...................................................................... (57,398) (484,766)
Investor C ....................................................................... (5,220) (446)
Investor C1 ...................................................................... (60,162) (294,095)
------------------------------
Net decrease in net assets resulting from dividends to shareholders ................. (978,421) (3,482,378)
------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from capital share transactions .................. (5,793,956) (19,253,290)
------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ........................................................ 22,794,313 9,111,226
Beginning of period ................................................................. 156,330,232 147,219,006
------------------------------
End of period* ...................................................................... $ 179,124,545 $ 156,330,232
==============================
* Undistributed investment income -- net ......................................... $ 373,014 $ 375,115
==============================
See Notes to Financial Statements.
16 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Financial Highlights
Institutional
---------------------------------------------------------------------------
For the Six
Months Ended
The following per share data and ratios May 31, For the Year Ended November 30,
have been derived from information 2007 ------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 14.37 $ 11.87 $ 10.37 $ 8.22 $ 7.39 $ 9.66
--------------------------------------------------------------------------
Investment income -- net** ............... .12 .35 .26 .22 .21 .29
Realized and unrealized gain (loss) -- net 2.70 2.50 1.51 2.14 .84 (2.15)
--------------------------------------------------------------------------
Total from investment operations ......... 2.82 2.85 1.77 2.36 1.05 (1.86)
--------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .............. (.12) (.35) (.27) (.21) (.22) (.30)
Realized gain -- net .................. -- -- -- -- -- (.11)
--------------------------------------------------------------------------
Total dividends and distributions ........ (.12) (.35) (.27) (.21) (.22) (.41)
--------------------------------------------------------------------------
Net asset value, end of period ........... $ 17.07 $ 14.37 $ 11.87 $ 10.37 $ 8.22 $ 7.39
==========================================================================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....... 19.68%@ 24.45% 17.25% 29.16% 14.54% (19.64%)
==========================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. .95%+ .97% .98% 1.03% 1.07% 1.00%
==========================================================================
Investment income -- net ................. 1.52%+ 2.77% 2.32% 2.36% 2.77% 3.39%
==========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 31,540 $ 27,255 $ 25,125 $ 23,677 $ 22,514 $ 20,342
==========================================================================
Portfolio turnover ....................... 21.01% 44.32% 25.48% 10.89% 21.20% 31.16%
==========================================================================
* Total investment returns exclude the effects of any sales charges.
** Based on average shares outstanding.
+ Annualized.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 17
Financial Highlights (continued)
Investor A
---------------------------------------------------------------------------
For the Six
Months Ended
The following per share data and ratios May 31, For the Year Ended November 30,
have been derived from information 2007 ------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 14.37 $ 11.88 $ 10.38 $ 8.23 $ 7.40 $ 9.67
--------------------------------------------------------------------------
Investment income -- net** ............... .10 .32 .24 .20 .19 .26
Realized and unrealized gain (loss) -- net 2.71 2.47 1.51 2.14 .85 (2.14)
--------------------------------------------------------------------------
Total from investment operations ......... 2.81 2.79 1.75 2.34 1.04 (1.88)
--------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .............. (.10) (.30) (.25) (.19) (.21) (.28)
Realized gain -- net .................. -- -- -- -- -- (.11)
--------------------------------------------------------------------------
Total dividends and distributions ........ (.10) (.30) (.25) (.19) (.21) (.39)
--------------------------------------------------------------------------
Net asset value, end of period ........... $ 17.08 $ 14.37 $ 11.88 $ 10.38 $ 8.23 $ 7.40
==========================================================================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....... 19.61%@ 24.04% 16.95% 28.82% 14.26% (19.83%)
==========================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. 1.19%+ 1.22% 1.23% 1.28% 1.33% 1.26%
==========================================================================
Investment income -- net ................. 1.28%+ 2.52% 2.07% 2.11% 2.42% 3.13%
==========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $111,017 $ 93,670 $ 79,008 $ 73,286 $ 60,142 $ 34,038
==========================================================================
Portfolio turnover ....................... 21.01% 44.32% 25.48% 10.89% 21.20% 31.16%
==========================================================================
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
+ Annualized.
@ Aggregate total investment return.
See Notes to Financial Statements.
18 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Financial Highlights (continued)
Investor B
-----------------------------
For the
For the Six Period
Months Ended October 2,
May 31, 2006@@ to
The following per share data and ratios have been derived 2007 Nov. 30,
from information provided in the financial statements. (Unaudited) 2006
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................ $ 14.29 $ 13.58
-----------------------------
Investment income -- net** .......................................................... .05 .02
Realized and unrealized gain -- net ................................................. 2.68 .80
-----------------------------
Total from investment operations .................................................... 2.73 .82
-----------------------------
Less dividends from investment income -- net ........................................ (.08) (.11)
-----------------------------
Net asset value, end of period ...................................................... $ 16.94 $ 14.29
=============================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................................................. 19.13%@ 6.05%@
=============================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ............................................................................ 1.96%+ 1.96%+
=============================
Investment income -- net ............................................................ .59%+ 1.00%+
=============================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............................................ $ 1,153 $ 238
=============================
Portfolio turnover .................................................................. 21.01% 44.32%
=============================
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
+ Annualized.
@ Aggregate total investment return.
@@ Commencement of operations.
See Notes to Financial Statements.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 19
Financial Highlights (continued)
Investor B1
---------------------------------------------------------------------------
For the Six
Months Ended
The following per share data and ratios May 31, For the Year Ended November 30,
have been derived from information 2007 ------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 14.33 $ 11.84 $ 10.35 $ 8.19 $ 7.37 $ 9.61
--------------------------------------------------------------------------
Investment income -- net** ............... .06 .26 .18 .14 .16 .22
Realized and unrealized gain (loss) -- net 2.69 2.48 1.49 2.16 .82 (2.13)
--------------------------------------------------------------------------
Total from investment operations ......... 2.75 2.74 1.67 2.30 .98 (1.91)
--------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .............. (.05) (.25) (.18) (.14) (.16) (.22)
Realized gain -- net .................. -- -- -- -- -- (.11)
--------------------------------------------------------------------------
Total dividends and distributions ........ (.05) (.25) (.18) (.14) (.16) (.33)
--------------------------------------------------------------------------
Net asset value, end of period ........... $ 17.03 $ 14.33 $ 11.84 $ 10.35 $ 8.19 $ 7.37
==========================================================================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....... 19.24%@ 23.43% 16.26% 28.30% 13.47% (20.16%)
==========================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. 1.73%+ 1.75% 1.75% 1.81% 1.86% 1.77%
==========================================================================
Investment income -- net ................. .73%+ 2.02% 1.56% 1.58% 2.08% 2.63%
==========================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 16,072 $ 18,347 $ 28,298 $ 31,935 $ 41,317 $ 74,822
==========================================================================
Portfolio turnover ....................... 21.01% 44.32% 25.48% 10.89% 21.20% 31.16%
==========================================================================
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
+ Annualized.
@ Aggregate total investment return.
See Notes to Financial Statements.
20 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Financial Highlights (continued)
Investor C
-----------------------------
For the
For the Six Period
Months Ended October 2,
May 31, 2006@@ to
The following per share data and ratios have been derived 2007 Nov. 30,
from information provided in the financial statements. (Unaudited) 2006
Per Share Operating Performance
Net asset value, beginning of period ................................................ $ 14.15 $ 13.44
-----------------------------
Investment income -- net** .......................................................... .05 .02
Realized and unrealized gain -- net ................................................. 2.65 .80
-----------------------------
Total from investment operations .................................................... 2.70 .82
-----------------------------
Less dividends from investment income -- net ........................................ (.08) (.11)
-----------------------------
Net asset value, end of period ...................................................... $ 16.77 $ 14.15
=============================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................................................. 19.14%@ 6.11%@
=============================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ............................................................................ 1.92%+ 1.97%+
=============================
Investment income -- net ............................................................ .64%+ .98%+
=============================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............................................ $ 1,931 $ 292
Portfolio turnover .................................................................. 21.01% 44.32%
=============================
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
+ Annualized.
@ Aggregate total investment return.
@@ Commencement of operations.
See Notes to Financial Statements.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 21
Financial Highlights (concluded)
Investor C1
---------------------------------------------------------------------------
For the Six
Months Ended
The following per share data and ratios May 31, For the Year Ended November 30,
have been derived from information 2007 ------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 14.18 $ 11.73 $ 10.25 $ 8.13 $ 7.31 $ 9.55
--------------------------------------------------------------------------
Investment income -- net** ............... .05 .25 .17 .14 .15 .21
Realized and unrealized gain (loss) -- net 2.68 2.45 1.50 2.12 .83 (2.11)
--------------------------------------------------------------------------
Total from investment operations ......... 2.73 2.70 1.67 2.26 .98 (1.90)
--------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .............. (.06) (.25) (.19) (.14) (.16) (.23)
Realized gain -- net .................. -- -- -- -- -- (.11)
--------------------------------------------------------------------------
Total dividends and distributions ........ (.06) (.25) (.19) (.14) (.16) (.34)
--------------------------------------------------------------------------
Net asset value, end of period ........... $ 16.85 $ 14.18 $ 11.73 $ 10.25 $ 8.13 $ 7.31
==========================================================================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....... 19.26%@ 23.30% 16.34% 28.03% 13.62% (20.27%)
--------------------------------------------------------------------------
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. 1.76%+ 1.79% 1.80% 1.85% 1.91% 1.84%
--------------------------------------------------------------------------
Investment income -- net ................. .70%+ 1.94% 1.49% 1.53% 1.93% 2.55%
--------------------------------------------------------------------------
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 17,411 $ 16,527 $ 14,789 $ 11,898 $ 10,994 $ 10,545
--------------------------------------------------------------------------
Portfolio turnover ....................... 21.01% 44.32% 25.48% 10.89% 21.20% 31.16%
--------------------------------------------------------------------------
* Total investment returns exclude the effects of sales charges.
** Based on average shares outstanding.
+ Annualized.
@ Aggregate total investment return.
See Notes to Financial Statements.
22 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock Utilities and Telecommunications Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. These unaudited financial statements reflect all adjustments,
which are, in the opinion of management, necessary to present a fair statement
of the results for the interim period. All such adjustments are of a normal,
recurring nature. The Fund offers multiple classes of shares. Institutional
Shares are sold only to certain eligible investors. Investor A Shares are sold
with a front-end sales charge. Shares of Investor B, Investor B1, Investor C and
Investor C1 may be subject to a contingent deferred sales charge. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Investor A, Investor B, Investor B1,
Investor C and Investor C1 Shares bear certain expenses related to the
shareholder servicing of such shares, and Investor B, Investor B1, Investor C
and Investor C1 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 and Investor B1 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 Directors of the Fund.
Long positions traded in the 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 Directors of the Fund. Short positions traded in the OTC markets are
valued at the last available asked price. Portfolio securities that are traded
both in the OTC markets and on a stock exchange are valued according to the
broadest and most representative market.
Options written or purchased are valued at the last sale price in the case of
exchange-traded options. Options traded in the OTC market are valued at the last
asked price (options written) or the last bid price (options purchased). Swap
agreements are valued based upon quoted fair valuations received daily by the
Fund from a pricing service or counterparty. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their last sale
price as of the close of such exchanges. 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
Directors 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 Directors. Such
valuations and procedures will be reviewed periodically by the Board of
Directors 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
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 23
Notes to Financial Statements (continued)
their fair value as determined in good faith by the Fund's Board of Directors or
by BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary
of BlackRock, Inc., using a pricing service and/or procedures approved by the
Fund's Board of Directors.
(b) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on investments.
The Fund invests in foreign securities, which may involve a number of risk
factors and special considerations not present with investments in securities of
U.S. corporations.
(c) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract due to an
unfavorable change in the price of the underlying security or index or if the
counterparty does not perform under the contract. The counterparty for certain
instruments may pledge cash or securities as collateral.
o Options -- The Fund may purchase and write call options and put 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.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits, and maintains, as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o 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.
o Forward 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
24 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Notes to Financial Statements (continued)
recorded when the Fund has determined the ex-dividend dates. 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 released FASB Interpretation No. 48 ("FIN 48"), "Accounting for
Uncertainty in Income Taxes." FIN 48 provides guidance for how uncertain tax
positions should be recognized, measured, presented and disclosed in financial
statements. FIN 48 requires the evaluation of tax positions taken in the course
of preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
benefits of positions not deemed to meet the more-likely-than-not threshold
would be booked as a tax expense in the current year and recognized as: a
liability for unrecognized tax benefits; a reduction of an income tax refund
receivable; a reduction of deferred tax asset; an increase in deferred tax
liability; or a combination thereof. Adoption of FIN 48 is required for the last
net asset value calculation in the first required financial statement reporting
period for fiscal years beginning after December 15, 2006. The impact on the
Fund's financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implication of FAS 157
and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued Statement of Financial Accounting
Standards No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Fund's financial statements,
if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The 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 operation of the Fund. For such services, the Fund
pays a monthly fee of .60%, on an annual basis, of the average daily
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 25
Notes to Financial Statements (continued)
value of the Fund's net assets. In addition, the Manager has entered into a
sub-advisory agreement with BlackRock Investment Management, LLC ("BIM"), an
affiliate of the Manager, under which the Manager pays the 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 Plans adopted by the Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Fund pays the Distributor
ongoing service fees 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 B1 .............................. .25% .50%
Investor C ............................... .25% .75%
Investor C1 .............................. .25% .55%
- --------------------------------------------------------------------------------
Pursuant to sub-agreements with each Distributor, broker-dealers, inclding
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and an affiliate of each Distributor, provide
shareholder servicing and distribution services to the Fund. The ongoing service
fee compensates each Distributor and each broker-dealer (including MLPF&S) for
providing shareholder servicing to Investor A, Investor B, Investor B1, Investor
C and Investor C1 shareholders. The ongoing distribution fee compensates each
Distributor and broker-dealers for providing shareholder servicing and
distribution-related services to Investor B, Investor B1, Investor C and
Investor C1 shareholders.
For the six months ended May 31, 2007, FAMD and BDI earned underwriting
discounts and direct commissions and MLPF&S earned dealer concessions on sales
of the Fund's Investor A Shares as follows:
- --------------------------------------------------------------------------------
FAMD MLPF&S BDI
- --------------------------------------------------------------------------------
Investor A .......................... $1,196 $12,450 $960
- --------------------------------------------------------------------------------
For the six months ended May 31, 2007, MLPF&S received contingent deferred sales
charges of $106, $12,365, $101 and $976 relating to transactions in Investor B
Shares, Investor B1 Shares, Investor C Shares and Investor C1 Shares,
respectively.
The Manager maintains a call center, which is responsible for providing certain
shareholder services to the Fund, such as responding to shareholder inquiries
and processing transactions based upon instructions from shareholders with
respect to the subscription and redemption of Fund shares. During the six months
ended May 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 .......................................... $ 204
Investor A ............................................. $1,205
Investor B ............................................. $ 395
Investor B1 ............................................ --
Investor C ............................................. $ 195
Investor C1 ............................................ --
- --------------------------------------------------------------------------------
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 six months ended May 31,
2007, BIM received $171 in securities lending agent fees.
In addition, MLPF&S received $13,364 in commissions on the execution of
portfolio security transactions for the Fund for the six months ended May 31,
2007.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Manager, is the Fund's transfer agent.
For the six months ended May 31, 2007, the Fund reimbursed the Manager $1,631
for certain accounting services.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
26 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended May 31, 2007 were $33,554,308 and $35,958,019, respectively.
4. Capital Share Transactions:
Net decrease in net assets derived from capital share transactions was
$5,793,956 and $19,253,290 for the six months ended May 31, 2007 and the year
ended November 30, 2006, respectively.
Transactions in capital shares for each class were as follows:
- -------------------------------------------------------------------------------
Institutional Shares for Six Dollar
Months Ended May 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 126,895 $ 1,961,820
Shares issued to shareholders in
reinvestment of dividends ............ 12,180 189,440
---------------------------------
Total issued ........................... 139,075 2,151,260
Shares redeemed ........................ (188,452) (2,894,100)
---------------------------------
Net decrease ........................... (49,377) $ (742,840)
=================================
- -------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended November 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 191,231 $ 2,481,454
Shares issued to shareholders in
reinvestment of dividends ............ 34,464 425,158
---------------------------------
Total issued ........................... 225,695 2,906,612
Shares redeemed ........................ (444,397) (5,674,752)
---------------------------------
Net decrease ........................... (218,702) $ (2,768,140)
=================================
- -------------------------------------------------------------------------------
Investor A Shares for the Six Dollar
Months Ended May 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 467,337 $ 7,246,818
Shares issued to shareholders in
reinvestment of dividends ............ 31,790 494,474
---------------------------------
Total issued ........................... 499,127 7,741,292
Shares redeemed ........................ (515,196) (7,929,469)
---------------------------------
Net decrease ........................... (16,069) $ (188,177)
=================================
- -------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended November 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 752,525 $ 10,267,785
Automatic conversion of shares ......... 214,681 2,677,349
Shares issued to shareholders in
reinvestment of dividends ............ 92,142 1,140,520
---------------------------------
Total issued ........................... 1,059,348 14,085,654
Shares redeemed ........................ (1,192,638) (15,249,824)
---------------------------------
Net decrease ........................... (133,290) $ (1,164,170)
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the Six Dollar
Months Ended May 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 57,815 $ 881,173
Shares issued to shareholders in
reinvestment of dividends ............ 183 2,897
---------------------------------
Total issued ........................... 57,998 884,070
Shares redeemed ........................ (6,597) (100,187)
---------------------------------
Net increase ........................... 51,401 $ 783,883
=================================
- -------------------------------------------------------------------------------
Investor B Shares for the
Period October 2, 2006* Dollar
to November 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 16,659 $ 230,574
Shares redeemed ........................ (5) (70)
---------------------------------
Net increase ........................... 16,654 $ 230,504
=================================
* Commencement of operations.
- -------------------------------------------------------------------------------
Investor B1 Shares for the Six Dollar
Months Ended May 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 39,584 $ 609,810
Shares issued to shareholders in
reinvestment of dividends ............ 2,675 41,245
---------------------------------
Total issued ........................... 42,259 651,055
Shares redeemed ........................ (378,841) (5,797,954)
---------------------------------
Net decrease ........................... (336,582) $ (5,146,899)
=================================
- -------------------------------------------------------------------------------
Investor B1 Shares for the Year Dollar
Ended November 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 181,883 $ 2,354,000
Shares issued to shareholders in
reinvestment of dividends ............ 20,090 247,890
---------------------------------
Total issued ........................... 201,973 2,601,890
---------------------------------
Automatic conversion of shares ......... (215,375) (2,677,349)
Shares redeemed ........................ (1,095,896) (14,568,848)
---------------------------------
Total redeemed ......................... (1,311,271) (17,246,197)
---------------------------------
Net decrease ........................... (1,109,298) $ (14,644,307)
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the Six Dollar
Months Ended May 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 105,892 $ 1,618,258
Shares issued to shareholders in
reinvestment of dividends ............ 300 4,723
---------------------------------
Total issued ........................... 106,192 1,622,981
Shares redeemed ........................ (11,664) (187,561)
---------------------------------
Net increase ........................... 94,528 $ 1,435,420
=================================
- -------------------------------------------------------------------------------
Investor C Shares for the
Period October 2, 2006* Dollar
to November 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 20,675 $ 283,796
Shares redeemed ........................ (5) (70)
---------------------------------
Net increase ........................... 20,670 $ 283,726
=================================
* Commencement of operations.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 27
Notes to Financial Statements (concluded)
- -------------------------------------------------------------------------------
Investor C1 Shares for the Six Dollar
Months Ended May 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 24,125 $ 359,458
Shares issued to shareholders in
reinvestment of dividends ............ 3,213 49,016
---------------------------------
Total issued ........................... 27,338 408,474
Shares redeemed ........................ (159,205) (2,343,817)
---------------------------------
Net decrease ........................... (131,867) $ (1,935,343)
=================================
- -------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended November 30, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 168,923 $ 2,139,280
Shares issued to shareholders in
reinvestment of dividends ............ 13,384 163,401
---------------------------------
Total issued ........................... 182,307 2,302,681
Shares redeemed ........................ (278,090) (3,493,584)
---------------------------------
Net decrease ........................... (95,783) $ (1,190,903)
=================================
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by the Manager and its
affiliates, is party to a $500,000,000 credit agreement with a group of lenders.
The Fund may borrow under the credit agreement to fund shareholder redemptions
and for other lawful purposes other than for leverage. The Fund may borrow up to
the maximum amount allowable under the Fund's current prospectus and statement
of additional information, subject to various other legal, regulatory or
contractual limits. The Fund pays a commitment fee of .06% per annum based on
the Fund's pro rata share of the unused portion of the credit agreement. Amounts
borrowed under the credit agreement bear interest at a rate equal to, at each
fund's election, the federal funds rate plus .35% or a base rate as defined in
the credit agreement. The Fund did not borrow under the credit agreement during
the six months ended May 31, 2007.
6. Capital Loss Carryforward:
On November 30, 2006, the Fund had a net capital loss carryforward of
$1,289,252, all of which expires in 2011. This amount will be available to
offset like amounts of any future taxable gains.
28 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007
BlackRock Funds
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 29
BlackRock Funds (concluded)
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.
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 Directors. 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.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long as
their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
30 BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 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 Investment Trust
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Bond Fund
BlackRock Commodity Strategies Fund
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Total Return Portfolio
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on investments
in the fund.
+ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should consider
the investment objectives, risks, charges and expenses of the funds under
consideration carefully before investing. Each fund's prospectus contains this
and other information and is available at www.blackrock.com or by calling
800-882-0052 or from your financial advisor. The prospectus should be read
carefully before investing.
BLACKROCK UTILITIES AND TELECOMMUNICATIONS FUND, INC. MAY 31, 2007 31
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 returns and principal value of shares will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are subject to change.
BlackRock Utilities and
Telecommunications Fund, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#11693-5/07
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - The registrant's Schedule of Investments is
included as part of the Report to Stockholders filed under Item 1 of
this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not
Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The registrant's
Nominating Committee will consider nominees to the Board recommended
by shareholders when a vacancy becomes available. Shareholders who
wish to recommend a nominee should send nominations which include
biographical information and set forth the qualifications of the
proposed nominee to the registrant's Secretary. There have been no
material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial officers
or persons performing similar functions have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act")) are effective as of a date within 90 days of the filing
of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected, or
are reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Utilities and Telecommunications Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Utilities and Telecommunications Fund, Inc.
Date: July 24, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Utilities and Telecommunications Fund, Inc.
Date: July 24, 2007
By: /s/ Donald C. Burke
-----------------------------------------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock Utilities and Telecommunications Fund, Inc.
Date: July 24, 2007