UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04282
Name of Fund: BlackRock Natural Resources Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer (principal executive officer), BlackRock Natural Resources Trust,
800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box
9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 07/31/07
Date of reporting period: 08/01/06 - 07/31/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock BLACKROCK
Natural Resources Trust
ANNUAL REPORT | JULY 31, 2007
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Natural Resources Trust
Portfolio Information as of July 31, 2007
Percent of
Ten Largest Equity Holdings Net Assets
- --------------------------------------------------------------------------------
Murphy Oil Corp. ................................................. 3.4%
EOG Resources, Inc. .............................................. 3.2
Devon Energy Corp. ............................................... 3.2
National Oilwell Varco, Inc. ..................................... 2.9
Transocean, Inc. ................................................. 2.7
Chevron Corp. .................................................... 2.6
Talisman Energy, Inc. ............................................ 2.4
Exxon Mobil Corp. ................................................ 2.4
GlobalSantaFe Corp. .............................................. 2.3
Apache Corp. ..................................................... 2.2
- --------------------------------------------------------------------------------
Percent of
Geographic Allocation Long-Term Investments
- --------------------------------------------------------------------------------
United States .................................................... 66.8%
Canada ........................................................... 21.6
France ........................................................... 2.8
China ............................................................ 2.2
Italy ............................................................ 1.6
Brazil ........................................................... 1.5
Australia ........................................................ 1.2
Hong Kong ........................................................ 0.8
United Kingdom ................................................... 0.8
Greece ........................................................... 0.4
Cayman Islands ................................................... 0.3
- --------------------------------------------------------------------------------
Important Tax Information
The following information is provided with respect to the ordinary income
distribution paid by BlackRock Natural Resources Trust during the fiscal year
ended July 31, 2007:
================================================================================
Record Date October 10, 2006
Payable Date October 12, 2006
================================================================================
Qualified Dividend Income for Individuals 100%
- --------------------------------------------------------------------------------
Dividends Qualifying for the Dividends
Received Deduction for Corporations 100%
- --------------------------------------------------------------------------------
Short-Term Capital Gain Dividends for
Non-U.S. Residents 100%*
- --------------------------------------------------------------------------------
* Represents the portion of the taxable ordinary income dividends eligible
for exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.
Additionally, the Trust distributed long-term capital gains of $1.777791 per
share to shareholders of record on October 10, 2006 and $.904625 per share to
shareholders of record on December 4, 2006.
2 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
A Letter to Shareholders
Dear Shareholder
As the July reporting period closed, financial markets were rattled by ongoing
problems in the credit markets, particularly those associated with the subprime
mortgage industry. While this has been an issue for much of 2007, recent
headlines and some high-profile credit collapses reignited concerns that credit
problems could spill over into the broader economy and derail global financial
markets. Although volatility has reared its head throughout the year, the
fundamental market and economic backdrop has been little changed. U.S. economic
activity has decelerated, led by a slowdown in the housing market, but economies
outside the United States remain robust, which has been a boon for U.S. exports.
Through July, the Federal Reserve Board had kept the target short-term interest
rate on hold at 5.25%.
For the most part, equities continued to find support in robust
merger-and-acquisition activity, a healthy global economy, tame inflation,
relatively low interest rates, still-positive earnings growth and attractive
valuations. These tailwinds generally prevailed over such headwinds as the
weakening U.S. economy, slowing housing market, escalating geopolitical concerns
and high energy prices, leading the Standard & Poor's (S&P) 500 Index and the
Dow Jones Industrial Average to post new record highs in mid-July before
succumbing to the latest market correction.
Meanwhile, mixed economic signals and the credit market debacle have made for a
volatile backdrop for fixed income, with investors fleeing from bonds associated
with the housing and credit markets in favor of higher-quality Treasury bonds.
As a result, the 10-year Treasury yield, which touched 5.30% in June (its
highest level in five years), fell to nearly 4.75% by period-end. Prices
correspondingly rose, reflecting the investor flight to quality. Against this
backdrop, financial markets posted mixed results for the six-month period ended
July 31, 2007, but continued to exhibit relative strength when measured over the
past year:
Total Returns as of July 31, 2007 6-month 12-month
==============================================================================================================
U.S. equities (S&P 500 Index) +2.10% +16.13%
- --------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -2.47 +12.12
- --------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +8.38 +23.91
- --------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +1.86 + 5.58
- --------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.17 + 4.27
- --------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -1.75 + 6.44
- --------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only.
You cannot invest directly in an index.
We expect market volatility to linger through 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 market insight, we invite you to visit 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 Trustee
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 3
A Discussion With Your Fund's Portfolio Manager
The Fund outperformed the broad-market S&P 500 Index for the fiscal year,
reflecting strong performance from energy and natural resources sectors in the
index, as well as changes made to the portfolio.
How did the Trust perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended July 31, 2007, BlackRock Natural Resources Trust's
Institutional, Investor A, Investor B and Investor C Shares had total returns of
+20.98%, +20.66%, +19.74% and +19.72%, respectively. (Trust 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 and 7 of this report to
shareholders.) For the same period, the broad market Standard & Poor's 500 (S&P
500) Index returned +16.13%, while the Trust's comparable Lipper category of
Natural Resources Funds posted an average return of +22.18%. (Funds in this
Lipper category invest their equity assets primarily in natural resources
stocks.)
After a slow start to the fiscal year, the Trust enjoyed improved performance in
the second half of the period. For the six months ended July 31, 2007, the
Trust's Institutional, Investor A, Investor B and Investor C Shares had total
returns of +23.94%, +23.78%, +23.30% and +23.28%, respectively, while the S&P
500 Index returned +2.10% and the Lipper Natural Resources Funds category posted
an average return of +21.01%.
When viewed relative to the S&P 500 Index, this reflects broader market trends,
in that energy and natural resources stocks posted strong returns in 2007 as oil
prices strengthened from low levels in mid-January. As such, the very nature of
our investments proved advantageous during this time. However, the improved
performance in the second half and the outperformance for the full year also
reflects adjustments that we made to the portfolio.
In the first half of the fiscal period, our investments in companies with
exposure to natural gas drilling -- specifically, North American natural gas
production and oil service companies -- underperformed the broader market and
the energy sector. This was attributed largely to warm winter weather and
surplus supplies of natural gas. During the course of the fiscal year, we
shifted the portfolio out of some gas-leveraged names and into companies that
are leveraged to the production of oil, such as Occidental Petroleum Corp. and
Hess Corp. This proved advantageous given supply/demand constraints for oil. In
addition, we enjoyed good performance from our investments in deep-water
drillers, which have seen day rates (the prices charged daily for the use of
their rigs) more than triple over the past three years to rates above $500,000 a
day. Also helping the portfolio were our investments in companies that
manufacture equipment for the oil industry, led by National Oilwell Varco, Inc.
and Tesco Corp.
Select mining companies in the portfolio also generated strong returns during
the fiscal year, with healthy gains by Aluminum Corporation of China and
Southern Copper Corp. Companhia Vale do Rio Doce (CVRD), the world's leading
iron ore miner, also did well.
Detracting slightly from Trust results was our lack of exposure to paper and
forest products, which performed well in the benchmark S&P 500 Index. Within the
index, metals and mining performed best during the 12-month period, followed by
large integrated oil companies.
What changes were made to the portfolio during the period?
As mentioned earlier, we reduced the portfolio's exposure to North American
natural gas producers and increased exposure to the oil service sector,
especially deep-water drillers such as Diamond Offshore Drilling, Inc. We began
this shift as it became clear that natural gas storage would surpass historic
levels, whereas oil supplies were limited and prices elevated.
After falling to roughly $50 per barrel in January, oil prices touched their
all-time high of $78 per barrel this summer before ending the period at nearly
$72 per barrel -- still high on a historical basis. In recognition of the strong
backdrop for the oil industry, we increased exposure to oil producers, including
Hess, a position we introduced to the portfolio in the first six months and
augmented over the course of the period. Late in the year, we initiated a
position in UTS Energy Corp., a Canadian company having exposure to the
Athabasca Oil Sands region.
Our reduced exposure to gas production was achieved by trimming BJ Services Co.
and eliminating our holdings in Calfrac Well Services Ltd. and Ensign Resource
Service Group. We also reduced positions in natural gas companies Compton
Petroleum Corp., EnCana Corp. and Rider Resources Ltd., and liquidated our
position in Atlas Energy Ltd.
4 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Other sales during the period included PHI Inc., a provider of air
transportation for the oil industry; Mission Oil & Gas, Inc., which we sold
following its acquisition by Crescent Point Energy Trust; and Lonestar
Technologies, Inc., which was acquired by U.S. Steel. We also reduced holdings
in shallow-water jack-up drilling companies, such as Hercules Offshore, Inc. and
TODCO, and to small refiners, including Western Lakota Energy Services, Inc. and
Elan USA Energy.
How would you characterize the Trust's position at the close of the period?
At fiscal year-end, approximately 84% of the portfolio's net assets was invested
in energy-related companies, compared to 88% six months ago. The Trust's
remaining equity holdings were invested in metals & mining, utilities, paper &
forest products and chemicals companies.
The Trust remains focused on three key areas of the global energy market --
North American natural gas, deep-water drilling and international oil services,
although we have made shifts out of gas-leveraged names in favor of companies
leveraged to oil production. We believe that supply/demand fundamentals for oil
are now superior to those offered by North American natural gas. In the oil
markets, 2007 was expected to be a year in which production would exceed demand.
At the start of the year, the International Energy Agency had predicted an
increase in non-OPEC oil production amounting to 1.7 million barrels per day.
Over the course of the first seven months of 2007, however, the Agency revised
that down to 700,000 barrels per day, which is not enough to meet rising demand
this year. Given the limited labor and equipment in the oil industry, we
continue to believe that the ability to increase production to meet rising
demand is going to be constrained. This should continue to support high oil
prices, with a bias to the upside, particularly if political instability in the
Middle East and countries such as Venezuela and Nigeria cause a disruption in
supplies.
We continue to like oil service companies with strong international franchises.
As national oil companies become more independent from international majors, oil
service companies are stepping in to fill the need for expertise. We believe
that oil prices should remain high as demand continues to increase amid the
limits of available world production capacity.
Robert M. Shearer
Portfolio Manager
August 13, 2007
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 5
Performance Data
About Fund Performance
Effective October 2, 2006, the Trust's Class A, Class B, Class C and Class I
Shares were redesignated Investor A, Investor B, Investor C and Institutional
Shares, respectively. As previously communicated to shareholders, new sales
charge schedules came into effect at the same time for certain of these classes.
The Trust 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.
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.
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.
Recent Performance Results
6-Month 12-Month 10-Year
As of July 31, 2007 Total Return Total Return Total Return
================================================================================
Institutional Shares* +23.94% +20.98% +294.30%
- --------------------------------------------------------------------------------
Investor A Shares* +23.78 +20.66 +284.62
- --------------------------------------------------------------------------------
Investor B Shares* +23.30 +19.74 +261.14
- --------------------------------------------------------------------------------
Investor C Shares* +23.28 +19.72 +255.64
- --------------------------------------------------------------------------------
S&P 500(R) Index** + 2.10 +16.13 + 78.68
- --------------------------------------------------------------------------------
* Investment results shown do not reflect sales charges; results would be
lower if a sales charge was included. Cumulative total investment returns
are based on changes in net asset values for the periods shown, and assume
reinvestment of all dividends and capital gains distributions at net asset
value on the ex-dividend date.
** This unmanaged Index covers the 500 industrial, utility, transportation
and financial companies of the U.S. markets (mostly NYSE issues),
representing about 75% of NYSE market capitalization and 30% of NYSE
issues.
S&P 500 is a registered trademark of the McGraw-Hill Companies.
6 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Performance Data (concluded)
Natural Resources Trust
BlackRock Natural Resources Trust --Edgar
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Trust's Institutional,
Investor A, Investor B & Investor C Shares compared to growth of an investment
in the S&P 500 Index. Values are from July 1997 to July 2007:
BR Natural BR Natural BR Natural BR Natural
Resources Resources Resources Resources
Trust Trust Trust Trust
Institutional Investor A Investor B Investor C S&P 500
Shares*+ Shares*+ Shares*+ Shares*+ Index++
7/97 $10,000 $ 9,475 $10,000 $10,000 $10,000
7/98 $ 7,300 $ 6,903 $ 7,224 $ 7,222 $11,929
7/99 $ 8,973 $ 8,460 $ 8,789 $ 8,787 $14,338
7/00 $ 9,869 $ 9,285 $ 9,562 $ 9,565 $15,625
7/01 $11,260 $10,569 $10,799 $10,801 $13,386
7/02 $10,634 $ 9,951 $10,093 $10,097 $10,223
7/03 $12,321 $11,503 $11,573 $11,573 $11,311
7/04 $16,943 $15,779 $15,758 $15,761 $12,801
7/05 $26,052 $24,207 $23,988 $23,988 $14,600
7/06 $32,591 $30,202 $29,929 $29,706 $15,386
7/07 $39,430 $36,443 $36,114 $35,564 $17,868
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Trust invests primarily in equity securities of domestic and foreign
companies with substantial natural resource assets.
++ This unmanaged Index covers the 500 industrial, utility, transportation
and financial companies of the U.S. markets (mostly NYSE issues),
representing about 75% of NYSE market capitalization and 30% of NYSE
issues.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 7/31/07 +20.98%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +29.96
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +14.71
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 7/31/07 +20.66% +14.33%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +29.64 +28.25
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +14.42 +13.81
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor B Shares+
================================================================================
One Year Ended 7/31/07 +19.74% +15.24%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +28.65 +28.50
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +13.70 +13.70
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC+++
================================================================================
Investor C Shares++
================================================================================
One Year Ended 7/31/07 +19.72% +18.72%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +28.64 +28.64
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +13.53 +13.53
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 5.25%.
+ Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
++ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
+++ Assuming payment of applicable contingent deferred sales charge.
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 7
Disclosure of Expenses
Shareholders of this Trust 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 Trust expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on February 1, 2007 and held through
July 31, 2007) is intended to assist shareholders both in calculating expenses
based on an investment in the Trust 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 Trust'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 Trust and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the second table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $1,239.40 $ 4.55
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,237.80 $ 6.05
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,233.00 $10.30
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,232.80 $10.35
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $1,020.73 $ 4.11
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $1,019.39 $ 5.46
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $1,015.58 $ 9.30
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $1,015.53 $ 9.35
- ------------------------------------------------------------------------------------------------------------------------
* For each class of shares of the Trust, expenses are equal to the
annualized expense ratio for the class (.82% for Institutional, 1.09% for
Investor A, 1.86% for Investor B and 1.87% for Investor C), multiplied by
the average account value over the period, multiplied by 181/365 (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.
8 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Schedule of Investments as of July 31, 2007 (in U.S. dollars)
Shares
Industry Common Stocks Held Value
===============================================================================
Australia -- 1.2%
Metals & Mining -- 1.2%
Alumina Ltd. 153,800 $ 951,341
BHP Billiton Ltd. 60,500 1,927,031
Newcrest Mining Ltd. 120,000 2,507,452
-----------------------------------------------------------------------
Total Common Stocks in Australia 5,385,824
===============================================================================
Brazil -- 1.4%
Metals & Mining -- 0.9%
Companhia Vale do Rio Doce
(Common Shares) (a) 87,000 4,263,870
-----------------------------------------------------------------------
Paper & Forest Products -- 0.5%
Votorantim Celulose e Papel SA 100,000 2,377,000
-----------------------------------------------------------------------
Total Common Stocks in Brazil 6,640,870
===============================================================================
Canada -- 21.1%
Canadian Independents -- 14.7%
Canadian Natural Resources Ltd. 119,700 8,214,508
Compton Petroleum Corp. (c) 208,100 2,067,735
Crew Energy, Inc. (c) 270,700 2,078,209
Cyries Energy, Inc. (c) 88,928 765,241
Ember Resources, Inc. (c) 74,288 170,609
EnCana Corp. 123,622 7,567,038
Husky Energy, Inc. 106,400 4,211,916
Kereco Energy Ltd. (c) 116,068 544,001
MGM Energy Corp. (c) 3,000 7,733
Nexen, Inc. 118,600 3,677,623
Niko Resources Ltd. 21,800 1,976,877
Oilexco, Inc. (c) 82,000 986,183
Pan Orient Energy Corp. (c) 224,000 902,887
Paramount Resources Ltd. (c) 75,000 1,255,624
Petro-Canada Inc. 126,000 6,872,835
ProEx Energy Ltd. (c) 140,653 1,820,789
Real Resources, Inc. (c) 90,100 774,482
Rider Resources Ltd. (c) 116,918 728,820
Suncor Energy, Inc. 101,300 9,158,591
TUSK Energy Corp. (c) 633,096 919,852
TUSK Energy Corp. (c)(g) 40,000 58,118
Talisman Energy, Inc. 601,800 11,005,922
TriStar Oil & Gas Ltd. (c) 279,000 1,135,039
-----------
66,900,632
-----------------------------------------------------------------------
Energy Equipment &
Services -- 0.3%
Sikanni Services Ltd. (c) 1,430,000 723,847
Trican Well Service Ltd. 42,500 801,158
-----------
1,525,005
-----------------------------------------------------------------------
Gold -- 0.8%
Barrick Gold Corp. 51,800 1,701,417
Eldorado Gold Corp. (c) 404,500 1,838,981
-----------
3,540,398
-----------------------------------------------------------------------
Metals & Mining -- 3.8%
Alcan, Inc. 30,200 2,941,480
Aur Resources Inc. 50,000 1,907,105
Goldcorp, Inc. 124,682 3,167,306
HudBay Minerals, Inc. (c) 195,000 4,778,121
Teck Cominco Ltd. Class B 99,000 4,389,483
-----------
17,183,495
-----------------------------------------------------------------------
Oil & Gas Equipment &
Services -- 0.8%
Tesco Corp. (c) 106,300 3,553,298
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 0.7%
UTS Energy Corp. (c) 282,500 1,633,882
Uranium One, Inc. (c) 120,000 1,391,451
-----------
3,025,333
-----------------------------------------------------------------------
Total Common Stocks in Canada 95,728,161
===============================================================================
Cayman Islands -- 0.3%
Oil, Gas & Consumable
Fuels -- 0.3%
Coastal Energy Co. (c)(g) 2,000,000 1,406,074
-----------------------------------------------------------------------
Total Common Stocks in the Cayman Islands 1,406,074
===============================================================================
China -- 2.1%
Metals & Mining -- 2.1%
Aluminum Corp. of China Ltd. (a) 188,500 9,492,860
-----------------------------------------------------------------------
Total Common Stocks in China 9,492,860
===============================================================================
France -- 2.7%
Integrated Oil & Gas -- 1.6%
Total SA (a) 90,800 7,137,788
-----------------------------------------------------------------------
Oil & Gas Equipment &
Services -- 1.1%
Technip SA (a) 64,975 5,295,463
-----------------------------------------------------------------------
Total Common Stocks in France 12,433,251
===============================================================================
Greece -- 0.3%
Marine -- 0.3%
Aegean Marine Petroleum Network, Inc. 72,300 1,514,685
-----------------------------------------------------------------------
Total Common Stocks in Greece 1,514,685
===============================================================================
Hong Kong -- 0.8%
Oil & Gas Exploration &
Production -- 0.8%
CNOOC Ltd. (a) 31,400 3,724,040
-----------------------------------------------------------------------
Total Common Stocks in Hong Kong 3,724,040
===============================================================================
Italy -- 1.6%
Integrated Oil & Gas -- 0.3%
ENI SpA (a) 19,250 1,342,880
-----------------------------------------------------------------------
Oil & Gas Drilling -- 1.3%
Saipem SpA 164,500 5,871,221
-----------------------------------------------------------------------
Total Common Stocks in Italy 7,214,101
===============================================================================
United Kingdom -- 0.8%
Energy Equipment &
Services -- 0.5%
Acergy SA (a) 85,000 2,252,500
-----------------------------------------------------------------------
Integrated Oil & Gas -- 0.3%
BP Plc (a) 18,600 1,290,840
-----------------------------------------------------------------------
Total Common Stocks in the United Kingdom 3,543,340
===============================================================================
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 9
Schedule of Investments (continued) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
===============================================================================
United States -- 64.8%
Chemicals -- 0.7%
E.I. du Pont de Nemours & Co. 33,400 $ 1,560,782
Praxair, Inc. 18,000 1,379,160
Tronox, Inc. Class B 2,478 30,479
-----------
2,970,421
-----------------------------------------------------------------------
Energy Equipment &
Services -- 6.5%
Cameron International Corp. (c) 93,100 7,261,800
Dresser-Rand Group, Inc. (c) 179,800 6,670,580
Dril-Quip, Inc. (c) 56,000 2,687,440
Hanover Compressor Co. (c) 1,605 38,247
National Oilwell Varco, Inc. (c)(f) 109,433 13,143,998
-----------
29,802,065
-----------------------------------------------------------------------
Independent Power Producers
& Energy Traders -- 0.0%
Dynegy, Inc. Class A (c) 2,656 23,665
-----------------------------------------------------------------------
Integrated Oil & Gas -- 13.4%
Chevron Corp. 139,591 11,901,529
ConocoPhillips 112,475 9,092,479
Exxon Mobil Corp. 129,328 11,009,693
Hess Corp. 64,800 3,965,760
Marathon Oil Corp. 142,400 7,860,480
Murphy Oil Corp. 247,400 15,348,696
Williams Cos., Inc. 67,200 2,167,200
-----------
61,345,837
-----------------------------------------------------------------------
Metals & Mining -- 1.4%
Alcoa, Inc. 22,900 874,780
Newmont Mining Corp. 9,100 379,925
Southern Copper Corp. 45,800 5,162,118
-----------
6,416,823
-----------------------------------------------------------------------
Oil & Gas Drilling -- 11.0%
Diamond Offshore Drilling, Inc. 46,600 4,808,188
ENSCO International, Inc. 61,300 3,743,591
GlobalSantaFe Corp. 145,022 10,399,528
Helmerich & Payne, Inc. 95,200 3,081,624
Hercules Offshore, Inc. (c) 61,300 1,840,226
Nabors Industries Ltd. (c) 67,600 1,976,624
Noble Corp. 70,900 7,264,414
Pride International, Inc. (c) 70,700 2,478,035
Rowan Cos., Inc. 50,000 2,109,500
Transocean, Inc. (c) 117,100 12,582,395
-----------
50,284,125
-----------------------------------------------------------------------
Oil & Gas Equipment &
Services -- 11.3%
BJ Services Co. 96,000 2,510,400
Baker Hughes, Inc. 105,000 8,300,250
Complete Production Services, Inc. (c) 39,100 906,729
FMC Technologies, Inc. (c) 71,300 6,525,376
Grant Prideco, Inc. (c) 34,000 1,907,400
Halliburton Co. 145,400 5,237,308
Oil States International, Inc. (c) 73,400 3,210,516
Schlumberger Ltd. 75,800 7,179,776
Smith International, Inc. 97,400 5,981,334
Weatherford International Ltd. (c) 174,726 9,667,590
-----------
51,426,679
-----------------------------------------------------------------------
Oil & Gas Exploration &
Production -- 15.2%
Apache Corp. 126,760 10,247,278
Bill Barrett Corp. (c) 10,600 363,792
Cabot Oil & Gas Corp. Class A 88,200 3,016,440
CanArgo Energy Corp. (c) 235,500 214,305
Carrizo Oil & Gas, Inc. (c) 59,100 2,161,287
Cimarex Energy Co. 21,094 798,408
Devon Energy Corp. 196,898 14,690,560
EOG Resources, Inc. 210,900 14,784,090
Forest Oil Corp. (c) 45,800 1,853,526
Mariner Energy, Inc. (c) 37,065 783,183
Newfield Exploration Co. (c) 69,000 3,315,450
Noble Energy, Inc. 63,800 3,900,732
Occidental Petroleum Corp. 104,600 5,932,912
Range Resources Corp. 156,900 5,827,266
Southwestern Energy Co. (c) 31,000 1,259,530
-----------
69,148,759
-----------------------------------------------------------------------
Oil, Gas & Consumable
Fuels -- 2.1%
Arch Coal, Inc. 36,000 1,076,040
Consol Energy, Inc. 68,200 2,840,530
Peabody Energy Corp. 139,200 5,882,592
-----------
9,799,162
-----------------------------------------------------------------------
Refining, Marketing &
Transportation -- 2.1%
Holly Corp. 28,000 1,886,920
Sunoco, Inc. 25,400 1,694,688
Valero Energy Corp. 89,000 5,963,890
-----------
9,545,498
-----------------------------------------------------------------------
10 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Shares
Industry Common Stocks Held Value
===============================================================================
United States (concluded)
Utilities -- 1.1%
Equitable Resources, Inc. 102,000 $ 4,805,220
-----------------------------------------------------------------------
Total Common Stocks in the
United States 295,568,254
-----------------------------------------------------------------------
Total Common Stocks
(Cost -- $176,500,340) -- 97.1% 442,651,460
===============================================================================
===============================================================================
Warrants (h)
===============================================================================
Canada -- 0.0%
Energy Equipment &
Services -- 0.0%
Sikanni Services Ltd. (expires 9/30/2008) 715,000 0
-----------------------------------------------------------------------
Total Warrants (Cost -- $0) -- 0.0% 0
================================================================================
Short-Term Beneficial
Securities Interest Value
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.33% (b)(d) $13,479,613 $ 13,479,613
BlackRock Liquidity Series, LLC
Money Market Series, 5.37% (b)(d)(e) 10,412,500 10,412,500
-----------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $23,892,113) -- 5.2% 23,892,113
===============================================================================
Total Investments
(Cost -- $200,392,453) -- 102.3% 466,543,573
Liabilities in Excess of
Other Assets -- (2.3%) (10,392,344)
------------
Net Assets -- 100.0% $456,151,229
============
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 200,550,944
=============
Gross unrealized appreciation .......................... $ 268,368,100
Gross unrealized depreciation .......................... (2,375,471)
-------------
Net unrealized appreciation ............................ $ 265,992,629
=============
(a) Depositary receipts.
(b) Investments in companies considered to be an affiliate of the Trust, 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 $(24,563,277) $476,347
BlackRock Liquidity Series, LLC
Money Market Series $ 7,815,100 $ 55,899
- --------------------------------------------------------------------------------
(c) Non-income producing security.
(d) Represents the current yield as of July 31, 2007.
(e) Security was purchased with the cash proceeds from securities loans.
(f) Security, or a portion of security, is on loan.
(g) The security may be offered and sold to "qualified institutional buyers"
under Rule 144a of the Securities Act of 1933.
(h) Warrants entitle the Trust to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
o For Trust compliance purposes, the Trust'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 Trust management. This definition may not apply for purposes of
this report, which may combine such industry sub-classifications for
reporting ease. Industries are shown as a percentage of net assets. These
industry classifications are unaudited.
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 11
Statement of Assets and Liabilities
As of July 31, 2007
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value
(including securities loaned of $10,209,350)
(identified cost -- $176,500,340) ................................................ $ 442,651,460
Investments in affiliated securities, at value (identified cost -- $23,892,113) .... 23,892,113
Foreign cash (cost -- $132,461) .................................................... 130,724
Receivables:
Securities sold ................................................................ $ 1,028,568
Beneficial interest sold ....................................................... 523,140
Dividends ...................................................................... 236,189
Securities lending ............................................................. 24,625 1,812,522
-------------
Prepaid expenses and other assets .................................................. 20,613
-------------
Total assets ....................................................................... 468,507,432
-------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value .......................................... 10,412,500
Payables:
Beneficial interest redeemed ................................................... 1,334,582
Investment adviser ............................................................. 238,509
Distributor .................................................................... 180,306
Other affiliates ............................................................... 71,397 1,824,794
-------------
Accrued expenses and other liabilities ............................................. 118,909
-------------
Total liabilities .................................................................. 12,356,203
-------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ......................................................................... $ 456,151,229
=============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized ............................................................. $ 109,265
Investor AShares of beneficial interest, $.10 par value, unlimited number
of shares authorized ............................................................. 382,435
Investor B Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized ............................................................. 80,235
Investor CShares of beneficial interest, $.10 par value, unlimited number
of shares authorized ............................................................. 170,149
Paid-in capital in excess of par ................................................... 175,504,626
Accumulated investment loss -- net ................................................. $ (70,442)
Undistributed realized capital gains -- net ........................................ 13,823,906
Unrealized appreciation -- net ..................................................... 266,151,055
-------------
Total accumulated earnings -- net .................................................. 279,904,519
-------------
Net Assets ......................................................................... $ 456,151,229
=============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional -- Based on net assets of $69,738,682 and 1,092,654 shares of
beneficial interest outstanding .................................................. $ 63.83
=============
Investor A -- Based on net assets of $239,916,268 and 3,824,354 shares of
beneficial interest outstanding .................................................. $ 62.73
=============
Investor B -- Based on net assets of $47,381,016 and 802,349 shares of
beneficial interest outstanding .................................................. $ 59.05
=============
Investor C -- Based on net assets of $99,115,263 and 1,701,495 shares of
beneficial interest outstanding .................................................. $ 58.25
=============
See Notes to Financial Statements.
12 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Statement of Operations
For the Year Ended July 31, 2007
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends (net of $209,110 foreign withholding tax) ................................ $ 4,067,908
Interest from affiliates ........................................................... 476,347
Securities lending -- net .......................................................... 55,899
-------------
Total income ....................................................................... 4,600,154
-------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ........................................................... $ 2,419,563
Service and distribution fees -- Investor C ........................................ 884,520
Service fees -- Investor A ......................................................... 509,474
Service and distribution fees -- Investor B ........................................ 463,171
Transfer agent fees -- Investor A .................................................. 236,110
Accounting services ................................................................ 172,188
Transfer agent fees -- Investor C .................................................. 113,017
Transfer agent fees -- Institutional ............................................... 70,781
Printing and shareholder reports ................................................... 64,586
Registration fees .................................................................. 61,995
Professional fees .................................................................. 58,582
Transfer agent fees -- Investor B .................................................. 55,522
Custodian fees ..................................................................... 49,536
Trustees' fees and expenses ........................................................ 42,970
Pricing fees ....................................................................... 4,231
Other .............................................................................. 32,204
-------------
Total expenses ..................................................................... 5,238,450
-------------
Investment loss -- net ............................................................. (638,296)
-------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net ............................................................. 21,467,027
Foreign currency transactions -- net ........................................... (65,673) 21,401,354
-------------
Change in unrealized appreciation/depreciation on:
Investments -- net ............................................................. 50,983,013
Foreign currency transactions -- net ........................................... (617) 50,982,396
-------------------------------
Total realized and unrealized gain ................................................. 72,383,750
-------------
Net Increase in Net Assets Resulting from Operations ............................... $ 71,745,454
=============
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 13
Statements of Changes in Net Assets
For the Year Ended July 31,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment loss -- net ............................................................. $ (638,296) $ (698,363)
Realized gain -- net ............................................................... 21,401,354 17,283,340
Change in unrealized appreciation/depreciation -- net .............................. 50,982,396 59,900,534
-------------------------------
Net increase in net assets resulting from operations ............................... 71,745,454 76,485,511
-------------------------------
===================================================================================================================================
Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain -- net:
Institutional .................................................................. (3,514,828) (415,609)
Investor A ..................................................................... (10,107,517) (1,128,384)
Investor B ..................................................................... (2,529,507) (386,717)
Investor C ..................................................................... (4,757,650) (529,184)
-------------------------------
Net decrease in net assets resulting from distributions to shareholders ............ (20,909,502) (2,459,894)
-------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from beneficial interest transactions (33,722,734) 67,397,447
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ....................................................... 17,113,218 141,423,064
Beginning of year .................................................................. 439,038,011 297,614,947
-------------------------------
End of year* ....................................................................... $ 456,151,229 $ 439,038,011
===============================
* Accumulated investment loss -- net ........................................... $ (70,442) --
===============================
See Notes to Financial Statements.
14 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Financial Highlights
Institutional
The following per share data ----------------------------------------------------------------
and ratios have been derived For the Year Ended July 31,
from information provided in ----------------------------------------------------------------
the financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 55.85 $ 44.93 $ 29.22 $ 21.25 $ 18.34
----------------------------------------------------------------
Investment income (loss) -- net** .......... .17 .16 .02 --+ .01
Realized and unrealized gain -- net ........ 10.65 11.09 15.69 7.97 2.90
----------------------------------------------------------------
Total from investment operations ........... 10.82 11.25 15.71 7.97 2.91
----------------------------------------------------------------
Less distributions from realized gain -- net (2.84) (.33) -- -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 63.83 $ 55.85 $ 44.93 $ 29.22 $ 21.25
================================================================
================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 20.98% 25.10% 53.76% 37.51% 15.87%
================================================================
================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------
Expenses ................................... .83% .82% .91% 1.00% 1.12%
================================================================
Investment income (loss) -- net ............ .32% .31% .05% .02% .07%
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $ 69,739 $ 75,429 $ 52,148 $ 35,088 $ 23,981
================================================================
Portfolio turnover ......................... 6% 10% 11% 11% 18%
================================================================
Investor A
The following per share data ----------------------------------------------------------------
and ratios have been derived For the Year Ended July 31,
from information provided in ----------------------------------------------------------------
the financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 54.94 $ 44.32 $ 28.89 $ 21.06 $ 18.22
----------------------------------------------------------------
Investment income (loss) -- net** .......... .03 .03 (.07) (.06) (.03)
Realized and unrealized gain -- net ........ 10.48 10.92 15.50 7.89 2.87
----------------------------------------------------------------
Total from investment operations ........... 10.51 10.95 15.43 7.83 2.84
----------------------------------------------------------------
Less distributions from realized gain -- net (2.72) (.33) -- -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 62.73 $ 54.94 $ 44.32 $ 28.89 $ 21.06
================================================================
================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 20.66% 24.77% 53.41% 37.18% 15.59%
================================================================
================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------
Expenses ................................... 1.08% 1.07% 1.16% 1.25% 1.38%
================================================================
Investment income (loss) -- net ............ .05% .05% (.20%) (.23%) (.17%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $239,916 $208,789 $136,740 $ 77,035 $ 56,094
================================================================
Portfolio turnover ......................... 6% 10% 11% 11% 18%
================================================================
* Total investment returns exclude the effect of any sales charges.
** Based on average shares outstanding.
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 15
Financial Highlights (concluded)
Investor B
The following per share data ----------------------------------------------------------------
and ratios have been derived For the Year Ended July 31,
from information provided in ----------------------------------------------------------------
the financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 52.23 $ 42.47 $ 27.90 $ 20.49 $ 17.87
----------------------------------------------------------------
Investment loss -- net** ................... (.35) (.35) (.32) (.25) (.18)
Realized and unrealized gain -- net ........ 9.85 10.44 14.89 7.66 2.80
----------------------------------------------------------------
Total from investment operations ........... 9.50 10.09 14.57 7.41 2.62
----------------------------------------------------------------
Less distributions from realized gain -- net (2.68) (.33) -- -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 59.05 $ 52.23 $ 42.47 $ 27.90 $ 20.49
================================================================
================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 19.74% 23.82% 52.22% 36.16% 14.66%
================================================================
================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------
Expenses ................................... 1.85% 1.84% 1.93% 2.02% 2.16%
================================================================
Investment loss -- net ..................... (.70%) (.71%) (.97%) (1.00%) (.96%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $ 47,381 $ 57,926 $ 52,595 $ 35,399 $ 23,829
================================================================
Portfolio turnover ......................... 6% 10% 11% 11% 18%
================================================================
Investor C
The following per share data ----------------------------------------------------------------
and ratios have been derived For the Year Ended July 31,
from information provided in ----------------------------------------------------------------
the financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 51.57 $ 41.93 $ 27.55 $ 20.23 $ 17.65
----------------------------------------------------------------
Investment loss -- net** ................... (.36) (.35) (.32) (.25) (.18)
Realized and unrealized gain -- net ........ 9.72 10.32 14.70 7.57 2.76
----------------------------------------------------------------
Total from investment operations ........... 9.36 9.97 14.38 7.32 2.58
----------------------------------------------------------------
Less distributions from realized gain -- net (2.68) (.33) -- -- --
----------------------------------------------------------------
Net asset value, end of year ............... $ 58.25 $ 51.57 $ 41.93 $ 27.55 $ 20.23
================================================================
================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 19.72% 23.84% 52.20% 36.18% 14.62%
================================================================
================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------
Expenses ................................... 1.86% 1.84% 1.93% 2.02% 2.16%
================================================================
Investment loss -- net ..................... (.71%) (.71%) (.97%) (1.01%) (.96%)
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $ 99,115 $ 96,895 $ 56,131 $ 29,695 $ 11,789
================================================================
Portfolio turnover ......................... 6% 10% 11% 11% 18%
================================================================
* Total investment returns exclude the effect of sales charges.
** Based on average shares outstanding.
See Notes to Financial Statements.
16 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
On September 29, 2006, Merrill Lynch Natural Resources Trust was renamed
BlackRock Natural Resources Trust (the "Trust") and is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Trust's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. The Trust offers multiple classes of shares. Effective October
2, 2006, Class I, Class A, Class B and Class C Shares were redesignated
Institutional, Investor A, Investor B and Investor C Shares, respectively.
Institutional Shares are sold only to certain eligible investors. Investor A
Shares are sold with a front-end sales charge. Shares of Investor B and Investor
C may be subject to a contingent deferred sales charge. All classes of shares
have identical voting, dividend, liquidation and other rights and the same terms
and conditions, except that Investor A, Investor B and Investor C Shares bear
certain expenses related to shareholder servicing of such shares, and Investor B
and Investor C Shares also bear certain expenses related to the distribution of
such shares. Each class has exclusive voting rights with respect to matters
relating to its shareholder servicing and distribution expenditures (except that
Investor B 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 are allocated daily to each
class based on its relative net assets. The following is a summary of
significant accounting policies followed by the Trust.
(a) Valuation of investments -- Equity securities that are held by the Trust
that are traded on stock exchanges or the NASDAQ Global Market are valued at the
last sale price or official close price on the exchange, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price for long positions, and at the last available asked
price for short positions. In cases where equity securities are traded on more
than one exchange, the securities are valued on the exchange designated as the
primary market by or under the authority of the Board of Trustees of the Trust.
Long positions traded in the over-the-counter ("OTC") market, NASDAQ Capital
Market or Bulletin Board are valued at the last available bid price or yield
equivalent obtained from one or more dealers or pricing services approved by the
Board of Trustees of the Trust. Short positions traded in the OTC market are
valued at the last available asked price. Portfolio securities that are traded
both in the OTC market 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
Trust from a pricing service or counterparty. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their last sale
price as of the close of such exchanges. Valuation of short-term investment
vehicles is generally based on the net asset value of the underlying investment
vehicle or amortized cost.
Repurchase agreements are valued at cost plus accrued interest. The Trust
employs pricing services to provide certain securities prices for the Trust.
Securities and assets for which market quotations are not readily available are
valued at fair value as determined in good faith by or under the direction of
the Board of Trustees of the Trust, including valuations furnished by the
pricing services retained by the Trust, which may use a matrix system for
valuations. The procedures of a pricing service and its valuations are reviewed
by the officers of the Trust under the general supervision of the Trust's Board
of Trustees. Such valuations and procedures will be reviewed periodically by the
Board of Trustees of the Trust.
Generally, trading in foreign securities, as well as U.S. government securities,
money market instruments and certain fixed income securities is substantially
completed each day at various times prior to the close of business on the New
York Stock Exchange ("NYSE"). The values of such securities used in computing
the net asset value of the Trust'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 Trust's net asset value. If events (for example, a
company announcement, market volatility or a natural disaster) occur during such
periods that are expected to materially affect the value of such securities,
those securities will be valued at their fair value as determined in good faith
by the Trust's Board of Trustees or by BlackRock Advisors, LLC (the "Manager"),
an indirect, wholly owned subsidiary of BlackRock, Inc., using a pricing service
and/or procedures approved by the Trust's Board of Trustees.
(b) Derivative financial instruments -- The Trust may engage in various
portfolio investment strategies both to increase the return of the Trust and to
hedge, and protect its exposure to
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 17
Notes to Financial Statements (continued)
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 Forward foreign exchange contracts -- The Trust 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 Trust as an unrealized gain or
loss. When the contract is closed, the Trust 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 Options -- The Trust may purchase and write covered call options and put
options. When the Trust writes an option, an amount equal to the premium
received by the Trust 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 Trust enters into a closing
transaction), the Trust 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 is less than or greater than the premiums
paid or received).
Written and purchased options are non-income producing investments.
(c) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on investments.
The Trust invests in foreign securities, which may involve a number of risk
factors and special considerations not present with investments in securities of
U.S. corporations.
(d) Income taxes -- It is the Trust's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax law, a withholding tax may be imposed on interest, dividends, and
capital gains at various rates.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed are
subsequently recorded when the Trust has determined the ex-dividend dates.
Interest is recognized on the accrual basis.
(f) Prepaid registration fees -- Prepaid registration fees are charged to
expenses as the related shares are issued.
(g) Dividends and distributions -- Dividends and distributions paid by the Trust
are recorded on the ex-dividend dates.
(h) Securities lending -- The Trust 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 NYSE and any additional required collateral is delivered to the Trust on the
next business day. Where the Trust receives securities as collateral for the
loaned securities, it receives a fee from the borrower. The Trust typically
receives the income on the loaned securities but does not receive the income on
the collateral. Where the Trust 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 Trust 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 Trust could experience delays
and costs in gaining access to the collateral. The Trust 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.
18 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Notes to Financial Statements (continued)
(i) Recent accounting pronouncement -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including mutual funds being measured and
recognized in the financial statements. Adoption of FIN 48 is required for the
last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on the Trust's financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS 157
and its impact on the Trust's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB Statement of Financial Accounting Standards
No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Trust's financial statements,
if any, has not been determined.
(j) Reclassification -- U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $567,854 has been reclassified between undistributed net realized capital
gains and accumulated net investment loss as a result of permanent differences
attributable to net operating losses and foreign currency transactions. This
reclassification has no effect on net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM") and its affiliates, with BlackRock, Inc. to
create a new independent company. Merrill Lynch has a 49.8% economic interest
and a 45% voting interest in the combined company and The PNC Financial Services
Group, Inc. ("PNC") has approximately a 34% economic and voting interest. The
new company operates under the BlackRock name and is governed by a board of
directors with a majority of independent members.
On August 31, 2006, shareholders of the Trust approved a new Investment Advisory
Agreement with BlackRock Advisors, Inc. BlackRock Advisors, Inc. was reorganized
into a limited liability company and renamed BlackRock Advisors, LLC. The new
Investment Advisory Agreement between the Trust and the Manager became effective
on September 29, 2006. Prior to September 29, 2006, MLIM was the Trust's
manager. The general partner of MLIM is an indirect, wholly owned subsidiary of
Merrill Lynch, which is the limited partner. The Trust has also entered into
separate Distribution Agreements and Distribution Plans with FAM Distributors,
Inc. ("FAMD") and BlackRock Distributors, Inc. and its affiliates ("BDI")
(collectively, the "Distributor"). FAMD is a wholly owned subsidiary of Merrill
Lynch Group, Inc., and BDI is an affiliate of BlackRock, Inc.
The Manager is responsible for the management of the Trust's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Trust. For such services, the Trust
pays a monthly fee at an annual rate of .60% of the average daily value of the
Trust'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 BIM for services it provides a monthly fee at an annual
rate that is a percentage of the management fee paid by the Trust to the
Manager. Prior to September 29, 2006, MLIM had a Sub-Advisory Agreement with
Merrill Lynch Asset Management U.K. Limited ("MLAM U.K."), an affiliate of MLIM.
Pursuant to the Distribution Plans adopted by the Trust in accordance with Rule
12b-1 under the Investment Company Act of 1940, the Trust pays the Distributor
ongoing service
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 19
Notes to Financial Statements (continued)
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 C ........................................ .25% .75%
- --------------------------------------------------------------------------------
Pursuant to sub-agreements with each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and each Distributor provide shareholder servicing
and distribution services to the Trust. The ongoing service fee compensates the
Distributor and each broker-dealer (including MLPF&S) for providing shareholder
servicing services to Investor A, Investor B and Investor C shareholders. The
ongoing distribution fee compensates the Distributor and the broker-dealers for
providing shareholder servicing and distribution-related services to Investor B
and Investor C shareholders.
For the year ended July 31, 2007, FAMD, the Trust's sole distributor until
September 29, 2006, and BDI earned underwriting discounts and direct commissions
and MLPF&S and BDI earned dealer concessions on sales of the Trust's
Institutional and Investor A Shares as follows:
- --------------------------------------------------------------------------------
FAMD MLPF&S BDI
- --------------------------------------------------------------------------------
Institutional ................................. -- $ 62 --
Investor A .................................... $ 4,836 $61,584 $ 512
- --------------------------------------------------------------------------------
For the year ended July 31, 2007, affiliates received contingent deferred sales
charges of $93,069 and $24,137 relating to transactions in Investor B and
Investor C Shares, respectively. Furthermore, affiliates received contingent
deferred sales charges of $4,482 relating to transactions subject to front-end
sales charge waivers on Investor A Shares.
The Manager maintains a call center, which is responsible for providing certain
shareholder services to the Trust, such as responding to shareholder inquiries
and processing transactions based upon instructions from shareholders with
respect to the subscription and redemption of Trust shares. During the period
September 29, 2006 to July 31, 2007, the following amounts have been accrued by
the Trust 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 ..................................................... $ 680
Investor A ........................................................ $5,370
Investor B ........................................................ $1,240
Investor C ........................................................ $1,870
- --------------------------------------------------------------------------------
The Trust has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S or its
affiliates. As of July 31, 2007, the Trust lent securities with a value of
$10,209,350 to MLPF&S or its affiliates. Pursuant to that order, the Trust has
retained BIM as the securities lending agent for a fee based on a share of the
returns on investment of cash collateral. Prior to September 29, 2006, BIM was
organized as Merrill Lynch Investment Managers, LLC ("MLIM, LLC"), an affiliate
of MLIM, and MLIM, LLC was the securities lending agent. BIM, may, on behalf of
the Trust, invest cash collateral received by the Trust for such loans, among
other things, in a private investment company managed by the Manager or in
registered money market funds advised by the Manager or its affiliates. For the
year ended July 31, 2007, BIM received $17,787 in securities lending agent fees.
In addition, MLPF&S received $4,281 in commissions on the execution of portfolio
security transactions for the Trust for the year ended July 31, 2007.
For the year ended July 31, 2007, the Trust reimbursed MLIM and the Manager
$2,031 and $6,062 respectively, for certain accounting services.
Effective September 29, 2006, PFPC Inc., an indirect, wholly owned subsidiary of
PNC and an affiliate of the Manager, became the Trust's transfer agent. Prior to
September 29, 2006, the Trust's transfer agent was Financial Data Services, Inc.
("FDS"), a wholly owned subsidiary of Merrill Lynch.
Prior to September 29, 2006, certain officers and/or trustees of the Trust were
officers and/or directors of MLIM, MLAM U.K., FDS, FAMD, Merrill Lynch, and/or
MLIM, LLC.
Commencing September 29, 2006, certain officers and/or trustees of the Trust are
officers and/or directors of BlackRock, Inc. or its affiliates.
20 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended July 31, 2007 were $23,921,232 and $55,015,023, respectively.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions was $(33,722,734) and $67,397,447 for the years ended July 31, 2007
and July 31, 2006, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- -------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 148,081 $ 8,243,582
Shares issued to shareholders in
reinvestment of distributions .............. 66,965 3,287,168
---------------------------
Total issued ................................. 215,046 11,530,750
Shares redeemed .............................. (472,908) (25,103,761)
---------------------------
Net decrease ................................. (257,862) $(13,573,011)
===========================
- -------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 652,585 $ 34,313,325
Shares issued to shareholders in
reinvestment of distributions .............. 7,457 383,896
---------------------------
Total issued ................................. 660,042 34,697,221
Shares redeemed .............................. (470,102) (24,640,128)
---------------------------
Net increase ................................. 189,940 $ 10,057,093
===========================
- -------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 886,905 $ 49,002,617
Automatic conversion of shares ............... 5,312 270,101
Shares issued to shareholders in
reinvestment of distributions .............. 173,458 8,409,158
---------------------------
Total issued ................................. 1,065,675 57,681,876
Shares redeemed .............................. (1,041,360) (54,569,195)
---------------------------
Net increase ................................. 24,315 $ 3,112,681
===========================
- -------------------------------------------------------------------------------
Investor A Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 1,528,514 $ 78,148,165
Automatic conversion of shares ............... 91,386 4,530,597
Shares issued to shareholders in
reinvestment of distributions .............. 17,894 907,754
---------------------------
Total issued ................................. 1,637,794 83,586,516
Shares redeemed .............................. (923,188) (46,739,124)
---------------------------
Net increase ................................. 714,606 $ 36,847,392
===========================
- -------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 117,289 $ 6,096,933
Shares issued to shareholders in
reinvestment of distributions .............. 47,679 2,187,861
---------------------------
Total issued ................................. 164,968 8,284,794
---------------------------
Shares redeemed .............................. (466,032) (23,139,293)
Automatic conversion of shares ............... (5,590) (270,101)
---------------------------
Total redeemed ............................... (471,622) (23,409,394)
---------------------------
Net decrease ................................. (306,654) $(15,124,600)
===========================
- -------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 379,178 $ 18,366,346
Shares issued to shareholders in
reinvestment of distributions .............. 6,962 337,481
---------------------------
Total issued ................................. 386,140 18,703,827
---------------------------
Shares redeemed .............................. (419,900) (20,018,647)
Automatic conversion of shares ............... (95,720) (4,530,597)
---------------------------
Total redeemed ............................... (515,620) (24,549,244)
---------------------------
Net decrease ................................. (129,480) $ (5,845,417)
===========================
- -------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 359,983 $ 18,332,102
Shares issued to shareholders in
reinvestment of distributions .............. 95,618 4,334,128
---------------------------
Total issued ................................. 455,601 22,666,230
Shares redeemed .............................. (633,132) (30,804,034)
---------------------------
Net decrease ................................. (177,531) $ (8,137,804)
===========================
- -------------------------------------------------------------------------------
Investor C Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 1,006,111 $ 48,795,773
Shares issued to shareholders in
reinvestment of distributions .............. 10,006 478,791
---------------------------
Total issued ................................. 1,016,117 49,274,564
Shares redeemed .............................. (475,718) (22,936,185)
---------------------------
Net increase ................................. 540,399 $ 26,338,379
===========================
5. Short-Term Borrowings:
The Trust, along with certain other funds managed by the Manager and its
affiliates, is party to a $500,000,000 credit agreement with a group of lenders,
which expires November 2007. The Trust may borrow under the credit agreement to
fund shareholder redemptions and for other lawful purposes other than for
leverage. The Trust may borrow up to the maximum amount allowable under the
Trust's current prospectus and statement of additional information, subject to
various other legal, regulatory or contractual limits. If amounts are borrowed,
the Trust will pay a commitment fee of .06% per annum based on the Trust's pro
rata share of the unused portion of the credit agreement. Amounts borrowed under
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 21
Notes to Financial Statements (concluded)
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 Trust did not borrow under the credit agreement during the year
ended July 31, 2007.
6. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended July 31,
2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ................................ $ 340,666 --
Net long-term capital gains .................... 20,568,836 $ 2,459,894
--------------------------
Total taxable distributions ...................... $20,909,502 $ 2,459,894
==========================
As of July 31, 2007, the components of accumulated earnings on a tax basis were
as follows:
- -------------------------------------------------------------------------------
Undistributed ordinary income -- net .......................... $ 127,197
Undistributed long-term capital gains -- net .................. 13,784,758
------------
Total undistributed earnings -- net ........................... 13,911,955
Capital loss carryforward ..................................... --
Unrealized gains -- net ....................................... 265,992,564*
------------
Total accumulated earnings -- net ............................. $279,904,519
============
* The difference between book-basis and tax-basis net unrealized gains
(losses) is attributable primarily to the tax deferral of losses on wash
sales and the realization for tax purposes of unrealized gains on
investments in passive foreign investment companies.
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of BlackRock Natural Resources Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of BlackRock Natural Resources Trust (formerly
Merrill Lynch Natural Resources Trust) as of July 31, 2007, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Trust
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Trust's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of July 31, 2007, by correspondence with the custodian.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock Natural Resources Trust as of July 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
September 21, 2007
22 BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007
Officers and Trustees
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Trust Served Principal Occupation(s) During Past 5 Years Trustee Held by Trustee
====================================================================================================================================
Interested Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, 120 Funds None
P.O. Box 9011 President present Inc., Global Chief Investment Officer for 161 Portfolios
Princeton, NJ 08543-9011 and Equities, Chairman of the BlackRock Retail
1954 Trustee Operating Committee, and member of the
BlackRock Executive Committee since 2006;
President of the funds advised by Merrill
Lynch Investment Managers, L.P. ("MLIM") and
its affiliates ("MLIM/FAM-advised funds")
from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President
of MLIM and Fund Asset Management, L.P.
("FAM") from 2001 to 2006; Co-Head (Americas
Region) thereof from 2000 to 2001 and Senior
Vice President from 1999 to 2001; President
and Director of Princeton Services, Inc.
("Princeton Services") and President of
Princeton Administrators, L.P. ("Princeton
Administrators") from 2001 to 2006; Chief
Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
---------------------------------------------------------------------------------------------------------
* Mr. Doll is a director, trustee or member of an advisory board of certain other investment
companies for which BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll
is an "interested person," as defined in the Investment Company Act, of the Fund based on his
positions with BlackRock, Inc. and its affiliates. Trustees serve until their resignation, removal
or death, or until December 31 of the year in which they turn 72. As Fund President, Mr. Doll
serves at the pleasure of the Board of Trustees.
====================================================================================================================================
Independent Trustees*
- ------------------------------------------------------------------------------------------------------------------------------------
Donald W. Burton Trustee 2002 to Managing General Partner of The Burton 21 Funds Knology, Inc.
P.O. Box 9095 present Partnership, Limited Partnership (an 32 Portfolios (telecommunications);
Princeton, NJ 08543-9095 investment partnership) since 1979; Managing Symbion, Inc.
1944 General Partner of The South Atlantic (health care);
Venture Funds since 1983; Member of the Capital Southwest
Investment Advisory Council of the Florida (financial)
State Board of Administration since 2001.
- ------------------------------------------------------------------------------------------------------------------------------
John Francis O'Brien Trustee 2005 to President and Chief Executive Officer of 21 Funds Cabot Corporation
P.O. Box 9095 present Allmerica Financial Corporation (financial 32 Portfolios (chemicals);
Princeton, NJ 08543-9095 services holding company) from 1995 to 2002 LKQ Corporation
1943 and Director from 1995 to 2003; President of (auto parts
Allmerica Investment Management Co., Inc. manufacturing);
(investment adviser) from 1989 to 2002, TJX Companies, Inc.
Director from 1989 to 2002 and Chairman of (retailer)
the Board from 1989 to 1990; President,
Chief Executive Officer and Director of
First Allmerica Financial Life Insurance
Company from 1989 to 2002 and Director of
various other Allmerica Financial companies
until 2002; Director from 1989 to 2006,
Member of the Governance Nominating
Committee from 2004 to 2006, Member of the
Compensation Committee from 1989 to 2006 and
Member of the Audit Committee from 1990 to
2004 of ABIOMED; Director, Member of the
Governance and Nomination Committee and
Member of the Audit Committee of Cabot
Corporation since 1990; Director and Member
of the Audit Committee and Compensation
Committee of LKQ Corporation since 2003;
Lead Director of TJX Companies, Inc. since
1996; Trustee of the Woods Hole
Oceanographic Institute since 2003;
Director, Ameresco, Inc. since 2006;
Director, Boston Lyric Opera since 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 23
Officers and Trustees (concluded)
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Trust Served Principal Occupation(s) During Past 5 Years Trustee Held by Trustee
====================================================================================================================================
Independent Trustees* (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
David H. Walsh Trustee 2003 to Director, Ruckleshaus Institute and Haub 21 Funds None
P.O. Box 9095 present School of Natural Resources at the 32 Portfolios
Princeton, NJ 08543-9095 University of Wyoming since 2006; Consultant
1941 with Putnam Investments from 1993 to 2003,
and employed in various capacities therewith
from 1973 to 1992; Director, Massachusetts
Audubon Society from 1990 to 1997; Director,
The National Audubon Society from 1998 to
2005; Director, The American Museum of Fly
Fishing since 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Fred G. Weiss** Trustee 1998 to Managing Director of FGW Associates since 21 Funds Watson
P.O. Box 9095 present 1997; Vice President, Planning, Investment 32 Portfolios Pharmaceuticals, Inc.
Princeton, NJ 08543-9095 and Development of Warner Lambert Co. from (pharmaceutical
1941 1979 to 1997; Director of the Michael J. Fox company)
Foundation for Parkinson's Research since
2000; Director of BTG International Plc (a
global technology commercialization company)
since 2001.
---------------------------------------------------------------------------------------------------------
* Trustees serve until their resignation, removal or death, or until December 31 of the year in
which they turn 72.
** Chairman of the Board of Trustees and the Audit Committee.
- ------------------------------------------------------------------------------------------------------------------------------------
Position(s) Length of
Name, Address Held with Time
and Year of Birth Fund Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Trust Officers*
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Vice 1993 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill Lynch
P.O. Box 9011 President present Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM") in 2006;
Princeton, NJ 08543-9011 and and First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer thereof from
1960 Treasurer 1999 to 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
present
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Clark Fund Chief 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to 2007;
Princeton, NJ 08543-9011 Officer Principal and Senior Compliance Officer, State Street Global Advisors, from 2001 to
1965 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998 to 2001; and
Branch Chief, Division of Investment Management and Office of Compliance
Inspections and Examinations, U.S. Securities and Exchange Commission,
from 1993 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
Alice A. Pellegrino Secretary 2004 to Director of BlackRock, Inc. from 2006 to 2007; Director (Legal Advisory) of MLIM
P.O. Box 9011 2007 from 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated
Princeton, NJ 08543-9011 with MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and
1960 Princeton Services from 2004 to 2006.
---------------------------------------------------------------------------------------------------------
* Officers of the Trust serve at the pleasure of the Board of Trustees.
- ------------------------------------------------------------------------------------------------------------------------------------
Further information about the Trust's Officers and Trustees is available in the Fund's Statement of
Additional Information, which can be obtained without charge by calling 1-800-441-7762.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
24 BLACKROCK NATURAL RESOURCES TRUST JULY 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.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Trust'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 Trust'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 Trust 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 Trust at (800)
441-7762.
BLACKROCK NATURAL RESOURCES TRUST JULY 31, 2007 25
BlackRock Funds (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
The Trust has delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Trust's Board of Trustees. A
description of the policies and procedures that BlackRock and its affiliates use
to determine how to vote proxies relating to portfolio securities is available
without charge, upon request, on our Web site at www.blackrock.com, by calling
(800) 441-7762, or on the Web site of the Securities and Exchange Commission
(the"Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Trust's voting securities were voted
(if any) by BlackRock during the most recent 12-month period ended June 30 is
available, upon request and without charge, on our Web site at
www.blackrock.com, by calling (800) 441-7762 or on the Web site of the
Commission at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Trust 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 Trust'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 Trust'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.
26 BLACKROCK NATURAL RESOURCES TRUST JULY 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 NATURAL RESOURCES TRUST JULY 31, 2007 27
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 Trust unless
accompanied or preceded by the Trust'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 Natural Resources Trust
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#10303-7/07
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. A copy of the code of ethics is available without
charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1)
Donald W. Burton, (2) John F. O'Brien, (3) David H. Walsh and (4)
Fred G. Weiss.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees - Fiscal Year Ended July 31, 2007 - $29,000
Fiscal Year Ended July 31, 2006 - $29,000
(b) Audit-Related Fees - Fiscal Year Ended July 31, 2007 - $0
Fiscal Year Ended July 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ended July 31, 2007 - $6,100
Fiscal Year Ended July 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ended July 31, 2007 - $0
Fiscal Year Ended July 31, 2006 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ended July 31, 2007 - $712,933 Fiscal Year Ended
July 31, 2006 - $2,192,750
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $225,000, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Natural Resources Trust
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Natural Resources Trust
Date: September 20, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Natural Resources Trust
Date: September 20, 2007
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Natural Resources Trust
Date: September 20, 2007