UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04282
Name of Fund: BlackRock Natural Resources Trust
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief 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: 07/31/2008
Date of reporting period: 08/01/2007 - 01/31/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock BLACKROCK
Natural Resources Trust
SEMI-ANNUAL REPORT
JANUARY 31, 2008 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
- --------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Semi-Annual Report:
Trust Summary ............................................................ 4
About Trust Performance .................................................. 6
Disclosure of Expenses ................................................... 6
Portfolio Information .................................................... 7
Financial Statements:
Schedule of Investments ................................................ 8
Statement of Assets and Liabilities .................................... 11
Statement of Operations ................................................ 12
Statements of Changes in Net Assets .................................... 13
Financial Highlights ..................................................... 14
Notes to Financial Statements ............................................ 18
Proxy Results ............................................................ 23
Officers and Trustees .................................................... 23
BlackRock Fund Information ............................................... 24
Mutual Fund Family ....................................................... 26
2 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
A Letter to Shareholders
Dear Shareholder
Financial markets weathered intense bouts of volatility in 2007, only to enter
the new year with no relief. While most major market indexes managed to post
positive returns in 2007, January proved to be a trying month as fears of an
economic recession swelled.
The Federal Reserve Board (the "Fed"), after cutting interest rates 100 basis
points (1%) between September 2007 and year-end, more than matched those cuts in
January alone. The Fed, responding to a slowing economy and continued fallout
from the subprime mortgage crisis, cut interest rates 75 basis points in a rare
unscheduled session on January 22, and quickly followed with another
50-basis-point cut at its regular meeting on January 30. This brought the target
short-term interest rate to 3% as of the conclusion of this reporting period. In
a statement accompanying its action, the central bank cited "a deepening housing
contraction" and "considerable stress in the credit markets."
To be sure, subprime mortgage woes dominated headlines for much of 2007,
spawning a widespread liquidity and credit crisis with ramifications across
global markets. The reverberations continue to be felt as stocks grapple with
recession fears, heightened volatility and weakening earnings growth. Small-cap
and value-oriented stocks suffered most in 2007, while large-cap and
growth-oriented stocks fared better. International markets, which outperformed
the U.S. in 2007, generally experienced greater declines in January as investors
grew increasingly risk averse.
The reaction has been similar in fixed income markets, with fears related to the
economic slowdown, housing collapse and subprime fallout prompting a flight to
quality. Investors have largely shunned bonds associated with the housing and
credit markets in favor of higher-quality government issues. The yield on
10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in
five years), fell to 4.04% by year-end and to 3.67% by the end of January, while
prices correspondingly rose. The tax-exempt bond market set a new-issuance
record in 2007, but has struggled with additional concerns around the
creditworthiness of bond insurers.
Against this volatile backdrop, the major benchmark indexes posted mixed results
for the current reporting period:
Total Returns as of January 31, 2008 6-month 12-month
=============================================================================================================
U.S. equities (S&P 500 Index) -4.32% -2.31%
- -------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -7.51 -9.79
- -------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) -7.52 +0.22
- -------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +6.82 +8.81
- -------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +3.71 +4.93
- -------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) +1.34 -0.44
- -------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate the current uncertainties, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
we invite you to visit www.blackrock.com/funds. As always, we thank you for
entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Trust Summary
Portfolio Management Commentary
How did the Fund perform?
o Fund returns for the six-month period ended January 31, 2008 significantly
outpaced those of the broad-market S&P 500 Index and the MSCI Natural
Resources Index. Given the Fund's focus on natural resources stocks, we
deem this MSCI index a more comparable means for measuring Fund
performance.
What factors influenced performance?
o Solid security selection was the primary contributor to Fund performance.
Stock selection was particularly strong within the integrated oil & gas,
equipment & services and exploration & production sectors.
o Additionally, as the Fund did not own any steel companies, this boosted
relative returns. The Fund also was overweight in exploration & production
stocks relative to the MSCI Natural Resources Index, which helped return
comparisons for the period.
o Conversely, the favorable stock selection in equipment & services was
overshadowed by negative results from overweighting this industry, which
as a group underperformed. Security selection within diversified metals &
mining hindered relative results as well, but neither of these negative
factors was enough to derail the Fund's strong outperformance for the
period.
Describe recent portfolio activity.
o The Fund typically has low turnover, consistent with our philosophy and
process. As such, changes to the portfolio during the period were minimal.
o Notable purchases included Tristar Oil & Gas Ltd., and significant sales
included CanArgo Energy Corp.
Describe Fund positioning at period-end.
o Relative to the MSCI Natural Resources Index, the Fund ended the period
substantially overweight in exploration & production companies and
underweight in integrated oil & gas companies. It also was overweight in
the equipment & services and drilling segments.
o Our long-term investment outlook remains relatively unchanged. Long-term
supply/demand dynamics continue to appear favorable and many groups in the
sector continue to trade at a substantial discount relative to our
long-term commodity price projections. While many investors have become
concerned that high prices, combined with a U.S. economic slowdown, will
have a significant impact on global oil demand, we believe these concerns
are overstated. We remain aggressively positioned to take advantage of
favorable valuation opportunities across the natural resources complex.
Expense Example
Actual Hypothetical**
---------------------------------------------------- ---------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Aug. 1, 2007 Jan. 31, 2008 During the Period* Aug. 1, 2007 Jan. 31, 2008 During the Period*
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ........ $1,000 $1,044.70 $4.02 $1,000 $1,021.27 $3.97
Investor A ........... $1,000 $1,043.40 $5.36 $1,000 $1,019.96 $5.30
Investor B ........... $1,000 $1,039.40 $9.30 $1,000 $1,016.08 $9.20
Investor C ........... $1,000 $1,039.30 $9.41 $1,000 $1,015.97 $9.30
- ------------------------------------------------------------------------------------------------------------------------------------
* For each class of the Trust, expenses are equal to the annualized expense
ratio for the class (.78% for Institutional, 1.04% for Investor A, 1.81%
for Investor B and 1.83% for Investor C), multiplied by the average
account value over the period, multiplied by 184/365 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
See "Disclosure of Expenses" on page 6 for further information on how
expenses were calculated.
4 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Trust's Institutional
and Investor A Shares compared to growth of an investment in the MSCI Natural
Resources Index and the S&P 500(R) Index. Values are from January 1998 to
January 2008:
MSCI Natural
Institutional Investor A Resources S&P 500
Shares*+ Shares*+ Index+++ Index++
1/98 $10,000 $9,475 $10,000 $10,000
1/99 $8,287 $7,828 $9,681 $13,249
1/00 $10,563 $9,953 $11,902 $14,620
1/01 $14,436 $13,569 $12,419 $14,488
1/02 $13,321 $12,485 $11,387 $12,149
1/03 $13,772 $12,883 $10,143 $9,352
1/04 $18,224 $16,997 $13,750 $12,586
1/05 $24,892 $23,159 $17,637 $13,370
1/06 $41,738 $38,736 $24,568 $14,757
1/07 $39,211 $36,302 $27,019 $16,899
1/08 $50,771 $46,885 $32,445 $16,509
* 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. S&P 500 is a registered trademark of the McGraw-Hill Companies.
+++ This unmanaged Index is comprised of all global securities classified as
natural-resource related securities.
Performance Summary for the Period Ended January 31, 2008
Average Annual Total Returns*
------------------------------------------------------------------------------
1 Year 5 Years 10 Years
--------------------- --------------------- --------------------
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional .................... +4.47% +29.48% -- +29.82% -- +17.64% --
Investor A ....................... +4.34 +29.15 +22.37% +29.48 +28.09% +17.34 +16.71%
Investor B ....................... +3.94 +28.17 +23.67 +28.49 +28.34 +16.61 +16.61
Investor C ....................... +3.93 +28.12 +27.12 +28.49 +28.49 +16.43 +16.43
S&P 500 Index .................... -4.32 - 2.31 -- +12.04 -- + 5.14 --
MSCI Natural Resources Index ..... +0.33 +20.08 -- +26.18 -- +12.49 --
- ------------------------------------------------------------------------------------------------------------------------------------
* Assuming maximum sales charges. See "About Trust Performance" on page 6
for a detailed description of share classes, including any related sales
charges and fees.
Past performance is not indicative of future results.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 5
About Trust Performance
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/funds to obtain performance data current to
the most recent month-end. Performance results do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Figures shown in the performance tables on page 5 assume
reinvestment of all dividends and capital gain distributions, if any, at net
asset value on the ex-dividend date. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. Dividends paid to each class of shares will vary
because of the different levels of service, distribution and transfer agency
fees applicable to each class, which are deducted from the income available to
be paid to shareholders.
Disclosure of Expenses
Shareholders of this 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 expense example on page 4 (which is
based on a hypothetical investment of $1,000 invested on August 1, 2007 and held
through January 31, 2008) 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 table provides information about actual account values and actual expenses.
In order to estimate the expenses a shareholder paid during the period covered
by this report, shareholders can divide their account value by $1,000 and then
multiply the result by the number corresponding to their share class under the
heading entitled "Expenses Paid During the Period."
The table also provides information about hypothetical account values and
hypothetical expenses based on the 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 hypothetical table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
6 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Portfolio Information
As of January 31, 2008
Percent of
Ten Largest Equity Holdings Net Assets
- --------------------------------------------------------------------------------
Transocean, Inc. ................................................ 3.8%
EOG Resources, Inc. ............................................. 3.8
Murphy Oil Corp. ................................................ 3.8
Devon Energy Corp. .............................................. 3.5
National Oilwell Varco, Inc. .................................... 2.7
Apache Corp. .................................................... 2.5
Chevron Corp. ................................................... 2.4
Exxon Mobil Corp. ............................................... 2.3
Weatherford International Ltd. .................................. 2.2
Suncor Energy, Inc. ............................................. 2.2
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Percent of
Five Largest Industries Net Assets
- --------------------------------------------------------------------------------
Oil & Gas Exploration & Production .............................. 19.0%
Integrated Oil & Gas ............................................ 14.9
Canadian Independents ........................................... 13.4
Oil & Gas Equipment & Services .................................. 11.3
Oil & Gas Drilling .............................................. 10.0
- --------------------------------------------------------------------------------
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 industry sub-classifications for reporting
ease.
- --------------------------------------------------------------------------------
Percent of
Long-Term
Geographic Allocation Investments
- --------------------------------------------------------------------------------
United States ................................................... 63.4%
Canada .......................................................... 19.9
Cayman Islands .................................................. 4.5
Brazil .......................................................... 3.0
France .......................................................... 2.4
Australia ....................................................... 1.7
Italy ........................................................... 1.5
China ........................................................... 1.5
Hong Kong ....................................................... 1.0
United Kingdom .................................................. 0.6
Greece .......................................................... 0.5
- --------------------------------------------------------------------------------
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 7
Schedule of Investments as of January 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Australia -- 1.6%
Metals & Mining -- 1.6%
Alumina Ltd. 153,800 $ 724,321
BHP Billiton Ltd. 60,500 2,028,552
Newcrest Mining Ltd. 162,000 5,128,240
- -------------------------------------------------------------------------------
Total Common Stocks in Australia 7,881,113
===============================================================================
Brazil -- 2.8%
Metals & Mining -- 1.1%
Companhia Vale do Rio Doce (Common
Shares) (a)(e) 174,000 5,216,520
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 1.1%
Petroleo Brasileiro SA (a) 49,600 5,512,544
- -------------------------------------------------------------------------------
Paper & Forest Products -- 0.6%
Votorantim Celulose e Papel SA 100,000 2,955,000
- -------------------------------------------------------------------------------
Total Common Stocks in Brazil 13,684,064
===============================================================================
Canada -- 18.9%
Canadian Independents -- 14.3%
Addax Petroleum Corp. 44,300 1,783,825
Canadian Natural Resources Ltd. 85,600 5,474,205
Compton Petroleum Corp. (c) 192,800 1,856,856
Crew Energy, Inc. (c) 270,700 2,504,659
Cyries Energy, Inc. (c) 88,928 710,326
Ember Resources, Inc. (c) 74,288 103,584
EnCana Corp. 123,622 8,149,535
Husky Energy, Inc. 106,400 4,407,326
Kereco Energy Ltd. (c) 116,068 447,371
MGM Energy Corp. (c) 3,000 6,962
Nexen, Inc. 118,600 3,394,815
Niko Resources Ltd. 21,800 1,847,914
Oilexco, Inc. (c) 82,000 1,047,000
Pan Orient Energy Corp. (c) 224,000 2,657,079
Paramount Resources Ltd. (c) 75,000 1,107,017
Petro-Canada Inc. 116,800 5,308,086
ProEx Energy Ltd. (c) 140,653 1,958,397
Suncor Energy, Inc. 114,200 10,736,995
TUSK Energy Corp. (c) 673,096 1,052,498
Talisman Energy, Inc. 601,800 9,506,049
TriStar Oil and Gas Ltd. (c) 222,959 2,797,952
UTS Energy Corp. (c) 282,500 1,496,838
Uranium One, Inc. (c) 120,000 834,221
------------
69,189,510
- -------------------------------------------------------------------------------
Energy Equipment & Services -- 0.2%
Sikanni Services Ltd. (c) 1,430,000 284,846
Trican Well Service Ltd. 42,500 576,938
------------
861,784
- -------------------------------------------------------------------------------
Gold -- 1.1%
Barrick Gold Corp. 51,800 2,672,933
Eldorado Gold Corp. (c) 404,500 2,658,931
------------
5,331,864
- -------------------------------------------------------------------------------
Metals & Mining -- 2.8%
Franco-Nevada Corp. 75,000 1,419,252
Goldcorp, Inc. 124,682 4,636,847
HudBay Minerals, Inc. (c) 195,000 3,587,122
Inmet Mining Corp. 12,700 933,226
Teck Cominco Ltd. Class B 84,964 2,773,886
------------
13,350,333
- -------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.5%
Tesco Corp. (c) 106,300 2,405,394
- -------------------------------------------------------------------------------
Total Common Stocks in Canada 91,138,885
===============================================================================
Cayman Islands -- 4.3%
Oil & Gas Drilling -- 3.8%
Transocean, Inc. 150,909 18,501,443
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.5%
Coastal Energy Co. (c) 500,000 2,285,743
- -------------------------------------------------------------------------------
Total Common Stocks in the Cayman Islands 20,787,186
===============================================================================
China -- 1.4%
Metals & Mining -- 1.4%
Aluminum Corp. of China Ltd. (a) 188,500 6,831,240
- -------------------------------------------------------------------------------
Total Common Stocks in China 6,831,240
===============================================================================
France -- 2.3%
Integrated Oil & Gas -- 1.4%
Total SA (a) 90,800 6,608,424
- -------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.9%
Technip SA (a) 64,975 4,140,545
- -------------------------------------------------------------------------------
Total Common Stocks in France 10,748,969
===============================================================================
Greece -- 0.5%
Marine -- 0.5%
Aegean Marine Petroleum Network, Inc. 72,300 2,363,487
- -------------------------------------------------------------------------------
Total Common Stocks in Greece 2,363,487
===============================================================================
Hong Kong -- 0.9%
Oil & Gas Exploration & Production -- 0.9%
CNOOC Ltd. (a) 31,400 4,575,922
- -------------------------------------------------------------------------------
Total Common Stocks in Hong Kong 4,575,922
===============================================================================
Italy -- 1.5%
Integrated Oil & Gas -- 0.3%
Eni SpA (a) 19,250 1,242,203
- -------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.2%
Saipem SpA 164,500 5,707,714
- -------------------------------------------------------------------------------
Total Common Stocks in Italy 6,949,917
===============================================================================
United Kingdom -- 0.5%
Energy Equipment & Services -- 0.3%
Acergy SA (a) 85,000 1,547,850
- -------------------------------------------------------------------------------
Integrated Oil & Gas -- 0.2%
BP Plc (a) 18,600 1,185,750
- -------------------------------------------------------------------------------
Total Common Stocks in the United Kingdom 2,733,600
===============================================================================
8 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
United States -- 60.1%
Chemicals -- 0.6%
E.I. du Pont de Nemours & Co. 33,400 $ 1,509,012
Praxair, Inc. 18,000 1,456,380
Tronox, Inc. Class B 2,478 18,139
------------
2,983,531
- -------------------------------------------------------------------------------
Energy Equipment & Services -- 6.0%
Cameron International Corp. (c) 186,200 7,496,412
Dresser-Rand Group, Inc. (c) 179,800 5,699,660
Dril-Quip, Inc. (c) 56,000 2,718,240
National Oilwell Varco, Inc. (c) 218,866 13,182,299
------------
29,096,611
- -------------------------------------------------------------------------------
Independent Power Producers & Energy
Traders -- 0.0%
Dynegy, Inc. Class A (c) 2,656 18,645
- -------------------------------------------------------------------------------
Integrated Oil & Gas -- 13.0%
Chevron Corp. 139,591 11,795,439
ConocoPhillips 112,475 9,033,992
Exxon Mobil Corp. 129,328 11,173,939
Hess Corp. 64,800 5,885,784
Marathon Oil Corp. 142,400 6,671,440
Murphy Oil Corp. 247,400 18,193,796
------------
62,754,390
- -------------------------------------------------------------------------------
Metals & Mining -- 1.2%
Alcoa, Inc. 22,900 757,990
Newmont Mining Corp. 9,100 494,494
Southern Copper Corp. 45,800 4,297,872
------------
5,550,356
- -------------------------------------------------------------------------------
Oil & Gas Drilling -- 5.0%
Diamond Offshore Drilling, Inc. 46,600 5,262,538
ENSCO International, Inc. 30,900 1,579,608
Helmerich & Payne, Inc. 95,200 3,733,744
Hercules Offshore, Inc. (c) 61,300 1,412,965
Nabors Industries Ltd. (c) 67,600 1,840,072
Noble Corp. 141,800 6,206,586
Pride International, Inc. (c) 70,700 2,241,897
Rowan Cos., Inc. 50,000 1,702,000
------------
23,979,410
- -------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 9.9%
BJ Services Co. 96,000 2,088,000
Baker Hughes, Inc. 105,000 6,817,650
Complete Production Services, Inc. (c) 39,100 621,690
Exterran Holdings, Inc. (c) 521 33,990
FMC Technologies, Inc. (c) 142,600 6,867,616
Grant Prideco, Inc. (c) 46,100 2,294,858
Halliburton Co. 145,400 4,822,918
Oil States International, Inc. (c) 73,400 2,573,404
Schlumberger Ltd. 75,800 5,719,868
Smith International, Inc. 97,400 5,280,054
Weatherford International Ltd. (c) 174,726 10,799,814
------------
47,919,862
- -------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 18.1%
Apache Corp. 126,760 12,097,974
Bill Barrett Corp. (c) 10,600 442,762
Cabot Oil & Gas Corp. Class A 88,200 3,412,458
Carrizo Oil & Gas, Inc. (c) 59,100 2,876,988
Cimarex Energy Co. 21,094 860,846
Devon Energy Corp. 196,898 16,732,392
EOG Resources, Inc. 210,900 18,453,750
Forest Oil Corp. (c) 45,800 2,071,076
Mariner Energy, Inc. (c) 37,065 928,849
Newfield Exploration Co. (c) 69,000 3,441,720
Noble Energy, Inc. 63,800 4,630,604
Occidental Petroleum Corp. 117,100 7,947,577
Range Resources Corp. 156,900 8,193,318
SandRidge Energy, Inc. (c)(e) 86,500 2,632,195
Southwestern Energy Co. (c) 31,000 1,733,210
XTO Energy, Inc. 25,125 1,304,992
------------
87,760,711
- -------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 3.0%
Arch Coal, Inc. 36,000 1,584,000
Consol Energy, Inc. 68,200 4,978,600
Patriot Coal Corp. (c) 13,920 553,320
Peabody Energy Corp. 139,200 7,519,584
------------
14,635,504
- -------------------------------------------------------------------------------
Refining, Marketing & Transportation -- 1.7%
Holly Corp. 28,000 1,355,760
Sunoco, Inc. 25,400 1,579,880
Valero Energy Corp. 89,000 5,267,910
------------
8,203,550
- -------------------------------------------------------------------------------
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 9
Schedule of Investments (concluded) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
United States (concluded)
Utilities -- 1.6%
Equitable Resources, Inc. 102,000 $ 5,686,500
Williams Cos., Inc. 67,200 2,148,384
- -------------------------------------------------------------------------------
7,834,884
- -------------------------------------------------------------------------------
Total Common Stocks in the United States 290,737,454
Total Common Stocks
(Cost -- $186,367,988) -- 94.8% 458,431,837
===============================================================================
===============================================================================
Warrants
===============================================================================
Canada -- 0.0%
Energy Equipment & Services -- 0.0%
Sikanni Services Ltd. (expires 9/30/2008) 715,000 7
- -------------------------------------------------------------------------------
Total Warrants (Cost -- $0) -- 0.0% 7
===============================================================================
===============================================================================
Beneficial
Short-Term Securities Interest Value
===============================================================================
BlackRock Liquidity Series,
LLC Cash Sweep Series, 4.49% (b)(d) $24,902,333 $ 24,902,333
BlackRock Liquidity Series, LLC
Money Market Series, 4.16% (b)(d)(f) 7,220,000 7,220,000
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $32,122,333) -- 6.6% 32,122,333
===============================================================================
Total Investments
(Cost -- $218,490,321*) -- 101.4% $490,554,177
Liabilities in Excess of Other Assets -- (1.4%) (6,737,718)
------------
Net Assets -- 100.0% $483,816,459
============
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 218,648,812
=============
Gross unrealized appreciation .......................... $ 275,203,914
Gross unrealized depreciation .......................... (3,298,549)
-------------
Net unrealized appreciation ............................ $ 271,905,365
=============
(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 $11,422,720 $512,393
BlackRock Liquidity Series, LLC Money Market Series $(3,192,500) $ 34,943
---------------------------------------------------------------------------------
(c) Non-income producing security.
(d) Rates shown are the effective yields as of January 31, 2008.
(e) Security, or a portion of security, is on loan.
(f) Security was purchased with the cash proceeds from securities loans.
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 industry sub-classifications for reporting
ease.
10 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Statement of Assets and Liabilities
As of January 31, 2008 (Unaudited)
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated (including securities loaned of $7,083,550)
(identified cost -- $186,367,988) .............................................................................. $ 458,431,844
Investments at value -- affiliated (identified cost -- $32,122,333) .............................................. 32,122,333
Foreign currency at value (cost -- $1,280,356) ................................................................... 1,272,195
Beneficial interest sold receivable .............................................................................. 657,041
Dividends receivable ............................................................................................. 234,220
Interest receivable -- affiliated ................................................................................ 488
Securities lending income receivable ............................................................................. 3,686
Prepaid expenses and other assets ................................................................................ 152,120
-------------
Total assets ..................................................................................................... 492,873,927
-------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral received at value -- securities loaned ................................................................ 7,220,000
Beneficial interest redeemed payable ............................................................................. 1,121,300
Other affiliates ................................................................................................. 264,443
Investment advisory fees payable ................................................................................. 258,189
Service and distribution fees payable ............................................................................ 190,503
Other liabilities ................................................................................................ 2,545
-------------
Total liabilities ................................................................................................ 9,056,980
-------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ....................................................................................................... $ 483,816,459
=============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares of beneficial interest, $.10 par value, unlimited number of shares authorized ............... $ 109,686
Investor AShares of beneficial interest, $.10 par value, unlimited number of shares authorized ................... 422,137
Investor B Shares of beneficial interest, $.10 par value, unlimited number of shares authorized .................. 76,566
Investor CShares of beneficial interest, $.10 par value, unlimited number of shares authorized ................... 176,846
Paid-in capital in excess of par ................................................................................. 205,869,131
Accumulated net investment loss .................................................................................. (646,153)
Undistributed net realized gains ................................................................................. 5,749,435
Net unrealized appreciation ...................................................................................... 272,058,811
-------------
Net Assets ....................................................................................................... $ 483,816,459
=============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional -- Based on net assets of $70,220,130 and 1,096,862 shares of beneficial interest outstanding ...... $ 64.02
=============
Investor A -- Based on net assets of $265,792,494 and 4,221,367 shares of beneficial interest outstanding ........ $ 62.96
=============
Investor B -- Based on net assets of $45,105,576 and 765,661 shares of beneficial interest outstanding ........... $ 58.91
=============
Investor C -- Based on net assets of $102,698,259 and 1,768,461 shares of beneficial interest outstanding ........ $ 58.07
=============
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 11
Statement of Operations
For the Six Months Ended January 31, 2008 (Unaudited)
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends (net of $97,153 foreign withholding tax) ................................................................ $ 1,998,357
Interest from affiliates .......................................................................................... 512,393
Securities lending ................................................................................................ 34,943
------------
Total income ...................................................................................................... 2,545,693
------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory ............................................................................................... 1,500,794
Service and distribution fees -- Investor C ....................................................................... 533,928
Service fees -- Investor A ........................................................................................ 335,215
Service and distribution fees -- Investor B ....................................................................... 245,433
Transfer agent -- Investor A ...................................................................................... 130,376
Accounting services ............................................................................................... 92,997
Transfer agent -- Investor C ...................................................................................... 72,695
Transfer agent -- Institutional ................................................................................... 34,803
Printing .......................................................................................................... 30,409
Registration ...................................................................................................... 29,027
Audit and legal ................................................................................................... 28,481
Transfer agent -- Investor B ...................................................................................... 28,136
Custodian ......................................................................................................... 23,076
Officers' and trustees' ........................................................................................... 15,371
Pricing ........................................................................................................... 2,172
Miscellaneous ..................................................................................................... 18,491
------------
Total expenses .................................................................................................... 3,121,404
------------
Net investment loss ............................................................................................... (575,711)
------------
===================================================================================================================================
Net Realized & Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments ................................................................................................... 12,528,573
Foreign currency .............................................................................................. (7,452)
------------
12,521,121
------------
Net change in unrealized appreciation/depreciation on:
Investments ................................................................................................... 5,912,736
Foreign currency .............................................................................................. (4,980)
------------
5,907,756
------------
Total net realized and unrealized gain ............................................................................ 18,428,877
------------
Net Increase in Net Assets Resulting from Operations .............................................................. $ 17,853,166
============
See Notes to Financial Statements.
12 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Statements of Changes in Net Assets
For the Six
Months Ended For the
January 31, Year Ended
2008 July 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment loss ............................................................................ $ (575,711) $ (638,296)
Net realized gain .............................................................................. 12,521,121 21,401,354
Change in net unrealized appreciation/depreciation ............................................. 5,907,756 50,982,396
-------------------------------
Net increase in net assets resulting from operations ........................................... 17,853,166 71,745,454
-------------------------------
===================================================================================================================================
Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains:
Institutional .............................................................................. (3,262,488) (3,514,828)
Investor A ................................................................................. (10,719,439) (10,107,517)
Investor B ................................................................................. (2,061,398) (2,529,507)
Investor C ................................................................................. (4,552,267) (4,757,650)
-------------------------------
Decrease in net assets resulting from distributions to shareholders ............................ (20,595,592) (20,909,502)
-------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from beneficial interest transactions ............ 30,407,656 (33,722,734)
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ................................................................... 27,665,230 17,113,218
Beginning of period ............................................................................ 456,151,229 439,038,011
-------------------------------
End of period .................................................................................. $ 483,816,459 $ 456,151,229
===============================
End of period accumulated net investment loss .................................................. $ (646,153) $ (70,442)
===============================
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 13
Financial Highlights
Institutional
------------------------------------------------------------------------------------
For the Six
Months Ended
January 31, For the Year Ended July 31,
2008 -------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 63.83 $ 55.85 $ 44.93 $ 29.22 $ 21.25 $ 18.34
----------------------------------------------------------------------------------
Net investment income1 ................... .08 .17 .16 .02 --2 .01
Net realized and unrealized gain ......... 2.98 10.65 11.09 15.69 7.97 2.90
----------------------------------------------------------------------------------
Total from investment operations ......... 3.06 10.82 11.25 15.71 7.97 2.91
----------------------------------------------------------------------------------
Less distributions from net realized gains (2.87) (2.84) (.33) -- -- --
----------------------------------------------------------------------------------
Net asset value, end of period ........... $ 64.02 $ 63.83 $ 55.85 $ 44.93 $ 29.22 $ 21.25
==================================================================================
================================================================================================================================
Total Investment Return3
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................. 4.47%4 20.98% 25.10% 53.76% 37.51% 15.87%
==================================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. .78%5 .83% .82% .91% 1.00% 1.12%
==================================================================================
Net investment income .................... .24%5 .32% .31% .05% .02% .07%
==================================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 70,220 $ 69,739 $ 75,429 $ 52,148 $ 35,088 $ 23,981
==================================================================================
Portfolio turnover ....................... 4% 6% 10% 11% 11% 18%
==================================================================================
1 Based on average shares outstanding.
2 Amount is less than $.01 per share.
3 Total investment returns exclude the effect of any sales charges.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements.
14 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Financial Highlights (continued)
Investor A
------------------------------------------------------------------------------------
For the Six
Months Ended
January 31, For the Year Ended July 31,
2008 -------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 62.73 $ 54.94 $ 44.32 $ 28.89 $ 21.06 $ 18.22
----------------------------------------------------------------------------------
Net investment income (loss)1 ............ (.01) .03 .03 (.07) (.06) (.03)
Net realized and unrealized gain ......... 2.93 10.48 10.92 15.50 7.89 2.87
----------------------------------------------------------------------------------
Total from investment operations ......... 2.92 10.51 10.95 15.43 7.83 2.84
----------------------------------------------------------------------------------
Less distributions from net realized gains (2.69) (2.72) (.33) -- -- --
----------------------------------------------------------------------------------
Net asset value, end of period ........... $ 62.96 $ 62.73 $ 54.94 $ 44.32 $ 28.89 $ 21.06
==================================================================================
================================================================================================================================
Total Investment Return2
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................. 4.34%3 20.66% 24.77% 53.41% 37.18% 15.59%
==================================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. 1.04%4 1.08% 1.07% 1.16% 1.25% 1.38%
==================================================================================
Net investment income (loss) ............. (.03%)4 .05% .05% (.20%) (.23%) (.17%)
==================================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 265,792 $ 239,916 $ 208,789 $ 136,740 $ 77,035 $ 56,094
==================================================================================
Portfolio turnover ....................... 4% 6% 10% 11% 11% 18%
==================================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 15
Financial Highlights (continued)
Investor B
------------------------------------------------------------------------------------
For the Six
Months Ended
January 31, For the Year Ended July 31,
2008 -------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 59.05 $ 52.23 $ 42.47 $ 27.90 $ 20.49 $ 17.87
----------------------------------------------------------------------------------
Net investment loss1 ..................... (.25) (.35) (.35) (.32) (.25) (.18)
Net realized and unrealized gain ......... 2.78 9.85 10.44 14.89 7.66 2.80
----------------------------------------------------------------------------------
Total from investment operations ......... 2.53 9.50 10.09 14.57 7.41 2.62
----------------------------------------------------------------------------------
Less distributions from net realized gains (2.67) (2.68) (.33) -- -- --
----------------------------------------------------------------------------------
Net asset value, end of period ........... $ 58.91 $ 59.05 $ 52.23 $ 42.47 $ 27.90 $ 20.49
==================================================================================
================================================================================================================================
Total Investment Return2
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................. 3.94%3 19.74% 23.82% 52.22% 36.16% 14.66%
==================================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. 1.81%4 1.85% 1.84% 1.93% 2.02% 2.16%
==================================================================================
Net investment loss ...................... (.79%)4 (.70%) (.71%) (.97%) (1.00%) (.96%)
==================================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 45,106 $ 47,381 $ 57,926 $ 52,595 $ 35,399 $ 23,829
==================================================================================
Portfolio turnover ....................... 4% 6% 10% 11% 11% 18%
==================================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
16 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Financial Highlights (concluded)
Investor C
------------------------------------------------------------------------------------
For the Six
Months Ended
January 31, For the Year Ended July 31,
2008 -------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $ 58.25 $ 51.57 $ 41.93 $ 27.55 $ 20.23 $ 17.65
----------------------------------------------------------------------------------
Net investment loss1 ..................... (.25) (.36) (.35) (.32) (.25) (.18)
Net realized and unrealized gain ......... 2.74 9.72 10.32 14.70 7.57 2.76
----------------------------------------------------------------------------------
Total from investment operations ......... 2.49 9.36 9.97 14.38 7.32 2.58
----------------------------------------------------------------------------------
Less distributions from net realized gains (2.67) (2.68) (.33) -- -- --
----------------------------------------------------------------------------------
Net asset value, end of period ........... $ 58.07 $ 58.25 $ 51.57 $ 41.93 $ 27.55 $ 20.23
==================================================================================
================================================================================================================================
Total Investment Return2
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................. 3.93%3 19.72% 23.84% 52.20% 36.18% 14.62%
==================================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. 1.83%4 1.86% 1.84% 1.93% 2.02% 2.16%
==================================================================================
Net investment loss ...................... (.81%)4 (.71%) (.71%) (.97%) (1.01%) (.96%)
==================================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) . $ 102,698 $ 99,115 $ 96,895 $ 56,131 $ 29,695 $ 11,789
==================================================================================
Portfolio turnover ....................... 4% 6% 10% 11% 11% 18%
==================================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 17
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock Natural Resources Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a
non-diversified, open-end management investment company. The Trust's financial
statements are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. The Trust offers multiple classes of shares. Institutional Shares are
sold only to certain eligible investors. Investor A Shares are generally 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 the 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 and losses are allocated daily
to each class based on its relative net assets.
The following is a summary of significant accounting policies followed by the
Trust:
Valuation of Investments: Equity investments traded on a national securities
exchange or on the NASDAQ National Market System are valued at the last reported
sale price that day or the NASDAQ official closing price, if applicable. Equity
investments traded on a national securities exchange for which there were no
sales on that day and equity investments traded on other over-the-counter
markets for which market quotations are readily available are valued at the mean
of the bid and asked prices.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by, under the direction of, or
in accordance with, a method approved by the Trust's Board of Trustees (the
"Board") as reflecting fair value ("Fair Value Assets"). When determining the
price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to
determine the price that the Trust might reasonably expect to receive from the
current sale of that asset in an arm's-length transaction. Fair value
determinations shall be based upon all available factors that the investment
advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets
is subsequently reported to the Board or a committee thereof.
Generally, trading in foreign 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 assets of the
Trust are determined as of such times. Foreign currency exchange rates will 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.
Derivative Financial Instruments: The Trust may engage in various portfolio
investment strategies both to increase the return of the Trust and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract decreases due to an
unfavorable change in the price of the underlying security or if the
counterparty does not perform under the contract. For certain instruments, the
counterparty 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. Forward currency contracts, when used by the
Trust, help to manage the overall exposure to the foreign currency backing
some of the investments held by the Trust. 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.
18 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Notes to Financial Statements (continued)
Foreign Currency Transactions: Foreign currency amounts are translated into
United States dollars on the following basis: (i) market value of investment
securities, assets and liabilities at the current rate of exchange; and (ii)
purchases and sales of investment securities, income and expenses at the rates
of exchange prevailing on the respective dates of such transactions. The Trust
does not isolate the portion of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the market
prices of securities held at period end and sold during the period.
The Trust reports foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components are
treated as ordinary income for federal income tax purposes.
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.
Effective January 31, 2008, the Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). 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 investment companies, before being
measured and recognized in the financial statements. Management has evaluated
the application of FIN 48 to the Trust, and has determined that the adoption of
FIN 48 does not have a material impact on the Trust's financial statements. The
Trust files U.S. federal and various state and local tax returns. No income tax
returns are currently under examination. The statute of limitations on the
Trust's U.S. federal tax returns remains open for the years ended July 31, 2004
through July 31, 2007. The statutes of limitations on the Trust's state and
local tax returns may remain open for an additional year depending upon the
jurisdiction.
Investment 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 income is recognized on the accrual basis.
Dividends and Distributions: Dividends and distributions paid by the Trust are
recorded on the ex-dividend dates.
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. 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. The Trust may receive a
flat fee for its loan. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within the
standard time period for settlement of securities transactions. The Trust may
pay reasonable 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.
Recent Accounting Pronouncement: 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. The impact on the Trust's financial
statement disclosures, if any, is currently being assessed.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 19
Notes to Financial Statements (continued)
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. The impact on the Trust's financial
statement disclosures, if any, is currently being assessed.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Trust has entered into an Investment Advisory Agreement with the Manager to
provide investment advisory and administration services. The Trust has also
entered into separate Distribution Agreements with FAM Distributors, Inc.
("FAMD") and BlackRock Distributors, Inc. and its affiliates ("BDI")
(collectively, the "Distributor") and has adopted separate Distribution Plans
with respect to Investor A, Investor B and Investor C Shares. FAMD is a wholly
owned subsidiary of Merrill Lynch Group, Inc., and BDI is an affiliate of
BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC
Financial Services Group, Inc. ("PNC") are the principal owners of BlackRock,
Inc.
The Manager is responsible for the management of the 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 the Manager 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.
Pursuant to the Distribution Plans adopted by the Trust in accordance with Rule
12b-1 under the 1940 Act, the Trust pays the Distributor ongoing service and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
- --------------------------------------------------------------------------------
Service Distribution
Fee Fee
- --------------------------------------------------------------------------------
Investor A ......................................... .25% --
Investor B ......................................... .25% .75%
Investor C ......................................... .25% .75%
- --------------------------------------------------------------------------------
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 for providing shareholder servicing to
Investor A, Investor B and Investor C shareholders. The ongoing distribution fee
compensates each Distributor and the broker-dealers for providing shareholder
and distribution-related services to Investor B and Investor C shareholders.
For the six months ended January 31, 2008, FAMD and BDI earned underwriting
discounts and direct commissions and MLPF&S and BDI earned dealer concessions on
sales of the Trust's Investor A Shares, which totaled $78,897.
For the six months ended January 31, 2008, affiliates received contingent
deferred sales charges of $24,885 and $9,781 relating to transactions in
Investor B and Investor C Shares, respectively. Furthermore, affiliates received
contingent deferred sales charges of $13,865 relating to transactions subject to
front-end sales charge waivers in 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. For the six months
ended January 31, 2008, 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 ..................................................... $ 342
Investor A ........................................................ $3,205
Investor B ........................................................ $ 588
Investor C ........................................................ $ 972
- --------------------------------------------------------------------------------
20 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Notes to Financial Statements (continued)
The Trust has received an exemptive order from the SEC permitting it to lend
portfolio securities 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. 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 six months
ended January 31, 2008, BIM received $10,473 in securities lending agent fees.
In addition, MLPF&S received $2,987 in commissions on the execution of portfolio
security transactions for the Trust for the six months ended January 31, 2008.
For the six months ended January 31, 2008, the Trust reimbursed the Manager
$4,175 for certain accounting services, which is included in accounting services
in the Statement of Operations.
PFPC Inc., an indirect, wholly owned subsidiary of PNC and an affiliate of the
Manager, is the Trust's transfer agent.
Certain officers and/or trustees of the Trust are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended January 31, 2008 were $21,313,300 and $23,974,226 respectively.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions was $30,407,656 and $(33,722,734) for the six months ended January
31, 2008 and the year ended July 31, 2007, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- -------------------------------------------------------------------------------
Institutional Shares for the Six Months Dollar
Ended January 31, 2008 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 168,852 $ 11,174,046
Shares issued to shareholders in reinvestment
of distributions ........................... 43,296 3,017,542
---------------------------
Total issued ................................. 212,148 14,191,588
Shares redeemed .............................. (207,940) (13,951,725)
---------------------------
Net increase ................................. 4,208 $ 239,863
===========================
- -------------------------------------------------------------------------------
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)
===========================
- -------------------------------------------------------------------------------
Investor A Shares for the Six Months Dollar
Ended January 31, 2008 Shares Amount
- -------------------------------------------------------------------------------
Shares sold and automatic conversion
of shares .................................. 693,373 $ 46,525,550
Shares issued to shareholders in reinvestment
of distributions ........................... 132,467 9,080,524
---------------------------
Total issued ................................. 825,840 55,606,074
Shares redeemed .............................. (428,827) (28,017,117)
---------------------------
Net increase ................................. 397,013 $ 27,588,957
===========================
- -------------------------------------------------------------------------------
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 B Shares for the Six Months Dollar
Ended January 31, 2008 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 58,837 $ 3,685,290
Shares issued to shareholders in reinvestment
of distributions ........................... 27,561 1,772,057
---------------------------
Total issued ................................. 86,398 5,457,347
Shares redeemed and automatic conversion
of shares .................................. (123,086) (7,592,828)
---------------------------
Net decrease ................................. (36,688) $ (2,135,481)
===========================
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 21
Notes to Financial Statements (concluded)
- -------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 2008 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .................................. 229,911 $ 14,293,002
Shares issued to shareholders in reinvestment
of distributions ........................... 64,720 4,102,221
---------------------------
Total issued ................................. 294,631 18,395,223
Shares redeemed .............................. (227,665) (13,680,906)
---------------------------
Net increase ................................. 66,966 $ 4,714,317
===========================
- -------------------------------------------------------------------------------
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)
===========================
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.
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. On November 21, 2007, the credit agreement was renewed
for one year under substantially the same terms. The Trust pays a commitment fee
of .06% per annum based on the Trust's pro rata share of the unused portion of
the credit agreement, which is included in miscellaneous expenses in the
Statement of Operations. Amounts borrowed under the credit agreement bear
interest at a rate equal to, at each fund's election, the federal funds rate
plus .35% or a base rate as defined in the credit agreement. The Trust did not
borrow under the credit agreement during the six months ended January 31, 2008.
22 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Proxy Results
During the six-month period ended January 31, 2008, the shareholders of
BlackRock Natural Resources Trust voted on the following proposal, which was
approved at a special shareholders' meeting on August 23, 2007. This proposal
was a part of the reorganization of the Trust's Board of Trustees that took
effect on November 1, 2007. A description of the proposal and number of shares
voted are as follows:
- ------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- ------------------------------------------------------------------------------------------------------------
To elect the Trust's Board of Trustees: James H. Bodurtha 6,087,509 93,789
Bruce R. Bond 6,087,132 94,166
Donald W. Burton 6,087,265 94,033
Richard S. Davis 6,086,417 94,881
Stuart E. Eizenstat 6,085,534 95,764
Laurence D. Fink 6,085,699 95,599
Kenneth A. Froot 6,086,396 94,902
Henry Gabbay 6,087,544 93,754
Robert M. Hernandez 6,087,177 94,121
John F. O'Brien 6,087,587 93,711
Roberta Cooper Ramo 6,087,027 94,271
Jean Margo Reid 6,086,858 94,440
David H. Walsh 6,087,663 96,635
Fred G. Weiss 6,087,626 93,672
Richard R. West 6,087,023 94,275
- ------------------------------------------------------------------------------------------------------------
Officers and Trustees
James H. Bodurtha, Trustee
Bruce R. Bond, Trustee
Donald W. Burton, Trustee
Richard S. Davis, Trust President and Trustee
Stuart E. Eizenstat, Trustee
Laurence D. Fink, Trustee
Kenneth A. Froot, Trustee
Henry Gabbay, Trustee
Robert M. Hernandez, Trustee
John F. O'Brien, Trustee
Roberta Cooper Ramo, Trustee
Jean Margo Reid, Trustee
David H. Walsh, Trustee
Fred G. Weiss, Trustee
Richard R. West, Trustee
Donald C. Burke, Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer
Howard Surloff, Secretary
Custodian
The Bank of New York
New York, NY 10286
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 23
BlackRock Fund Information
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their 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 websites.
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 website 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 website at http://www.blackrock.com/edelivery
2) Click on the applicable link and follow the steps to sign up
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.
24 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's (the
"SEC") website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Trust votes proxies relating to securities held in the
Trust's portfolios during the most recent 12-month period ended June 30 is
available upon request and without charge (1) at www.blackrock.com or by calling
(800) 441-7762 and (2) on the SEC's website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q
are available on the SEC's website at http://www.sec.gov and may also be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on 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
and without charge by calling (800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM - 6:00 PM EST to get information about
your account balances, recent transactions and share prices. You can also reach
us on the web at www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long as
their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008 25
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 Asset Allocation Portfolio+
BlackRock Aurora 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 Growth Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio
BlackRock Global Science & Technology Opportunities Portfolio
BlackRock Global SmallCap Fund
BlackRock Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio*
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio
BlackRock International Value Fund
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Commodity Strategies Fund
BlackRock Emerging Market Debt Portfolio
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Income Portfolio
BlackRock Income Builder Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Long Duration Fund Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Strategic Income Portfolio
BlackRock Total Return Fund
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on investments
in the fund.
+ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should consider
the investment objectives, risks, charges and expenses of the funds under
consideration carefully before investing. Each fund's prospectus contains this
and other information and is available at www.blackrock.com or by calling (800)
882-0052 or from your financial advisor. The prospectus should be read carefully
before investing.
26 BLACKROCK NATURAL RESOURCES TRUST JANUARY 31, 2008
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
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#10303-1/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to these
procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Natural Resources Trust
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Natural Resources Trust
Date: March 24, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Natural Resources Trust
Date: March 24, 2008
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Natural Resources Trust
Date: March 24, 2008