UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21759
Name of Fund: BlackRock Global Dynamic Equity Fund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer,
BlackRock Global Dynamic Equity Fund, 800 Scudders Mill Road, Plainsboro,
NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 10/31/2008
Date of reporting period: 11/01/2007 - 10/31/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock Global Dynamic BLACKROCK
Equity Fund
ANNUAL REPORT | OCTOBER 31, 2008
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
- --------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Annual Report:
Fund Summary ............................................................. 4
About Fund Performance ................................................... 6
Disclosure of Expenses ................................................... 6
Portfolio Summary ........................................................ 7
Financial Statements:
Schedule of Investments ................................................ 8
Statement of Assets and Liabilities .................................... 22
Statement of Operations ................................................ 23
Statements of Changes in Net Assets .................................... 24
Financial Highlights ..................................................... 25
Notes to Financial Statements ............................................ 28
Report of Independent Registered Public Accounting Firm .................. 36
Important Tax Information (Unaudited) .................................... 36
Disclosure of Investment Advisory Agreement and Subadvisory Agreement .... 37
Officers and Trustees .................................................... 41
Additional Information ................................................... 45
Mutual Fund Family ....................................................... 47
2 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
A Letter to Shareholders
Dear Shareholder
It has been a tumultuous period for investors, marked by almost daily headlines
of deepening turmoil in financial markets and a darkening economic outlook. The
news took an extraordinarily heavy tone late in the period as the credit crisis
boiled over and triggered unprecedented failures and consolidation in the
financial sector, stoking fears of a market and economic collapse and prompting
a series of new government programs designed to contain and combat the fallout.
The Federal Reserve Board (the "Fed") has taken decisive measures to restore
liquidity and stabilize the financial system. Key moves included slashing the
target federal funds rate 250 basis points (2.50%) between November 2007 and
April 2008 and providing massive cash injections and lending programs. In
October, as credit conditions further deteriorated, the central bank cut the key
interest rate by 50 basis points on two separate occasions -- on October 8 in
coordination with five other global central banks, and again during its
regularly scheduled meeting on October 29. This left the key short-term rate at
just 1.0%, its lowest level since 2004. While the U.S. economy appeared fairly
resilient through the second quarter of 2008, the third quarter saw a
contraction of 0.5%, and a more significant decline is expected for the fourth
quarter. Moreover, on December 1, the National Bureau of Economic Research
confirmed that the U.S. had entered a recession in December 2007.
Against this backdrop, U.S. equity markets experienced intense volatility, with
periods of downward pressure punctuated by sharp rebounds. Losses were
significant and broad-based, though small-cap stocks fared moderately better
than their larger counterparts. Non-U.S. markets decelerated at a considerably
faster pace than domestic equities -- a stark reversal of recent years' trends,
when international stocks generally outpaced U.S. stocks.
Treasury issues also traded in a volatile fashion, but rallied overall (yields
fell and prices correspondingly rose) and outperformed other fixed income assets
as investors continued their flight to higher quality and more liquid
securities. Tax-exempt issues generally underperformed, as problems among
municipal bond insurers and the collapse in the market for auction rate
securities afflicted the group throughout the course of the past year. At the
same time, the above mentioned economic headwinds and malfunctioning credit
markets plagued the high yield sector, with the third quarter of 2008 marking
one of the worst periods in history for the asset class.
Facing unprecedented volatility and macro pressures, the major benchmark indexes
generally recorded losses for the six- and 12-month reporting periods:
Total Returns as of October 31, 2008 6-month 12-month
===============================================================================================================
U.S. equities (S&P 500 Index) (29.28)% (36.10)%
- ---------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) (24.39) (34.16)
- ---------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) (41.21) (46.62)
- ---------------------------------------------------------------------------------------------------------------
Fixed income (Barclays Capital U.S. Aggregate Index*) (3.63) 0.30
- ---------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Barclays Capital Municipal Bond Index*) (4.70) (3.30)
- ---------------------------------------------------------------------------------------------------------------
High yield bonds (Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index*) (24.86) (25.41)
- ---------------------------------------------------------------------------------------------------------------
* Formerly a Lehman Brothers Index.
Past performance is no guarantee of future results. Index performance
shown is for illustrative purposes only. You cannot invest directly in an
index.
Through periods of market turbulence, as ever, BlackRock's full resources are
dedicated to the management of our clients' assets. For our most current views
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 investments, 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
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 3
Fund Summary
Portfolio Management Commentary
How did the Fund perform?
o The Fund outperformed its Reference Portfolio, which is an unmanaged
weighted Index, and the FTSE World Index for the 12-month period ended
October 31, 2008. (See "Performance Summary" table on page 5.)
What factors influenced performance?
o Contributing to Fund performance were its overweight and security
selection in Japanese equities, its underweight and stock selection in the
U.K., and its equity underweights in Australia, France, Spain and Sweden.
From a sector perspective, performance benefited from an underweight and
security selection in financials and information technology (IT), as well
as effective stock selection in industrials, materials and
telecommunication services.
o The Fund benefited from investments in Japanese yen-denominated
convertible bonds, coupled with its overweight in the Japanese yen and its
underweight in both the British pound sterling and the euro.
o Detracting from relative performance were overweight equity exposures in
Russia, India, China and Brazil, and stock selection in Canada.
Underweight positions and stock selection in the consumer staples and
utilities sectors also weighed on returns.
Describe recent portfolio activity.
o During the period, the Fund increased its equity weightings in the U.S.
(+10.11%) and Japan (+4.4%), and reduced its weightings in Europe (-9.6%),
notably Germany (-4.8%), Asia excluding Japan (-10.0%) and Latin America
(-1.6%). The Fund increased its weightings in the health care (+4.2%),
telecommunication services (+1.6%) and IT (+0.3%) sectors, while reducing
its weightings in industrials (-8.7%), financials (-7.6%) and materials
(-2.9%).
Describe Fund positioning at period-end.
o Compared to its benchmark, the Fund was underweight in both Europe
(-11.1%) and the U.S. (-8.7%), and was overweight in Asia (+9.2%) and
Latin America (+0.8%).
o On a sector basis, the Fund was overweight in telecommunication services
(+2.9%), materials (+2.0%) and health care (+0.8%), and was underweight in
financials (-8.5%), industrials (-7.8%), consumer discretionary (-4.7%),
IT (-4.0%), consumer staples (-3.9%) and utilities (-1.6%).
o As for currency exposure, the Fund was underweight in the euro (-7.5%) the
British pound (-6.2%) and the Australian Dollar (-1.5%), and was
overweight in the Japanese yen (+8.9%) and the U.S. dollar (+3.5%). The
Fund had modest overweight positions in several small Asian currencies,
including the Malaysian ringgit (+0.9%), the Indian rupee (+0.5%) and the
Singapore dollar (+0.5%).
The views expressed reflect the opinions of BlackRock as of the date of this
report and are subject to change based on changes in market, economic or other
conditions. These views are not intended to be a forecast of future events and
are no guarantee of future results.
Expense Example
Actual Hypothetical 2
---------------------------------------------------- -----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
May 1, 2008 October 31, 2008 During the Period 1 May 1, 2008 October 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ...... $1,000 $662.70 $4.64 $1,000 $1,019.52 $ 5.63
Investor A ......... $1,000 $662.20 $5.72 $1,000 $1,018.21 $ 6.95
Investor B ......... $1,000 $659.20 $8.93 $1,000 $1,014.34 $10.84
Investor C ......... $1,000 $660.00 $8.89 $1,000 $1,014.39 $10.79
Class R ............ $1,000 $661.20 $6.85 $1,000 $1,016.86 $ 8.31
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.11% for Institutional, 1.37% for Investor A, 2.14%
for Investor B, 2.13% for Investor C and 1.64% for Class R), multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
See "Disclosure of Expenses" on page 6 for further information on how
expenses were calculated.
4 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional
and Investor A Shares compared to growth of an investment in the FTSE World
Index, S&P 500(R) Index, the FTSE World Index (Ex-U.S) and the Reference
Portfolio. Values are from November 4, 2005 to April 2008:
FTSE World
Institutional Investor A FTSE World S&P 500(R) Index Reference
Shares(1,2) Shares(1,2) Index(3) Index(4) (Ex-U.S.)(5) Portfolio(6)
11/4/2005(7) $10,000 $ 9,475 $10,000 $10,000 $10,000 $10,000
10/31/2006 $12,051 $11,390 $12,124 $11,503 $12,750 $11,996
10/31/2007 $15,928 $15,017 $14,965 $13,178 $16,702 $14,509
10/31/2008 $ 9,937 $ 9,349 $ 8,633 $ 8,421 $ 8,810 $ 8,604
1 Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
2 The Fund invests primarily in the securities of corporate issuers located
in North and South America, Europe, Australia and the Far East.
3 This unmanaged capitalization-weighted Index is comprised of 2,200
equities from 24 countries in 12 regions, including the United States.
4 This unmanaged Index covers 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.
5 This unmanaged capitalization-weighted Index is comprised of 1,631
companies in 28 countries, excluding the United States.
6 The Reference Portfolio is an unmanaged weighted Index comprised 60% of
the S&P 500 Index and 40% of the FTSE World Index (Ex-U.S.).
7 Commencement of operations.
Performance Summary for the Period Ended October 31, 2008
Average Annual Total Returns 8
----------------------------------------------------
1 Year Since Inception 9
----------------------- -----------------------
6-Month w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ........................................ (33.73)% (37.62)% -- (0.21)% --
Investor A ........................................... (33.78) (37.74) (41.01)% (0.45) (2.23)%
Investor B ........................................... (34.08) (38.24) (40.91) (1.24) (2.32)
Investor C ........................................... (34.00) (38.20) (38.79) (1.19) (1.19)
Class R .............................................. (33.88) (37.95) -- (0.76) --
FTSE World Index ..................................... (36.71) (42.31) -- (4.80) --
FTSE World Index (Ex-U.S.) ........................... (42.45) (47.25) -- (4.15) --
S&P 500 Index ........................................ (29.28) (36.10) -- (5.59) --
Reference Portfolio .................................. (34.78) (40.69) -- (4.90) --
- ------------------------------------------------------------------------------------------------------------------------------------
8 Assuming maximum sales charges, if any. See "About Fund Performance" on
page 6 for a detailed description of share classes, including any related
sales charges and fees.
9 The Fund commenced operations on 11/04/05.
Past performance is not indicative of future results.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 5
About Fund 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.)
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.
o Class R Shares do not incur a maximum initial sales charge (front-end
load) or deferred sales charge. These shares are subject to a distribution
fee of 0.25% per year and a service fee of 0.25% per year. Class R Shares
are available only to certain retirement plans. Prior to inception, Class
R Share performance results are those of Institutional Shares (which have
no distribution or service fees) restated to reflect Class R Share fees.
Performance information reflects past performance and does not guarantee future
results. Current performance may be lower or higher than the performance data
quoted. Refer to www.blackrock.com/funds to obtain performance data current to
the most recent month-end. Performance results do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. The Fund may charge a 2% redemption fee for sales or exchanges of
shares within 30 days of purchase or exchange. Performance data does not reflect
this potential fee. Figures shown in the performance table 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. The Fund's Advisor waived a portion of its fee. Without
such waiver, the Fund's returns would have been lower.
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses related
to transactions, including sales charges, redemption fees and exchange fees; and
(b) operating expenses including advisory fees, distribution fees including
12b-1 fees, and other Fund expenses. The expense example on page 4 (which is
based on a hypothetical investment of $1,000 invested on May 1, 2008 and held
through October 31, 2008) is intended to assist shareholders both in calculating
expenses based on an investment in the Fund and in comparing these expenses with
similar costs of investing in other mutual funds.
The table provides information about actual account values and actual expenses.
In order to estimate the expenses a shareholder paid during the period covered
by this report, shareholders can divide their account value by $1,000 and then
multiply the result by the number corresponding to their share class under the
heading entitled "Expenses Paid During the Period."
The table also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses. In order to assist shareholders
in comparing the ongoing expenses of investing in this Fund and other funds,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the hypothetical example 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 GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Portfolio Summary
As of October 31, 2008
- --------------------------------------------------------------------------------
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. .................................. 2%
Exxon Mobil Corp. ................................................... 2
Petroleo Brasileiro SA .............................................. 1
Microsoft Corp. ..................................................... 1
Bristol-Myers Squibb Co. ............................................ 1
Johnson & Johnson ................................................... 1
AT&T Inc. ........................................................... 1
Chevron Corp. ....................................................... 1
Union Pacific Corp. ................................................. 1
The Procter & Gamble Co. ............................................ 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Five Largest Industries Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels ......................................... 12%
Pharmaceuticals ..................................................... 8
Insurance ........................................................... 6
Diversified Telecommunication Services .............................. 5
Road & Rail ......................................................... 4
- --------------------------------------------------------------------------------
For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease.
- --------------------------------------------------------------------------------
Percent of
Geographic Allocation Long-Term Investments 1
- --------------------------------------------------------------------------------
United States ....................................................... 56%
Japan ............................................................... 14
United Kingdom ...................................................... 4
Canada .............................................................. 3
China ............................................................... 3
Brazil .............................................................. 2
France .............................................................. 2
India ............................................................... 2
Russia .............................................................. 2
Singapore ........................................................... 2
South Korea ......................................................... 1
Malaysia ............................................................ 1
Taiwan .............................................................. 1
Switzerland ......................................................... 1
Germany ............................................................. 1
Hong Kong ........................................................... 1
Australia ........................................................... 1
- --------------------------------------------------------------------------------
1 Total may not equal 100%.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 7
Schedule of Investments October 31, 2008
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
Australia -- 0.7%
Metals & Mining -- 0.5%
BHP Billiton Ltd. 91,800 $ 1,763,590
Newcrest Mining Ltd. 43,520 598,246
Rio Tinto Ltd. 26,000 1,345,052
------------
3,706,888
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.1%
Woodside Petroleum Ltd. 40,700 1,149,982
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.1%
Macquarie Airports Group 232,000 329,945
Transurban Group 218,566 784,749
------------
1,114,694
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Australia 5,971,564
=============================================================================================
Austria -- 0.1%
Diversified Telecommunication Services -- 0.1%
Telekom Austria AG 68,200 837,980
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Austria 837,980
=============================================================================================
Brazil -- 2.0%
Commercial Banks -- 0.1%
Banco Bradesco SA 61,801 708,864
- ---------------------------------------------------------------------------------------------
Electric Utilities -- 0.0%
Cia Energetica de Minas Gerais (a) 22,741 345,891
- ---------------------------------------------------------------------------------------------
Food & Staples Retailing -- 0.1%
Cia Brasileira de Distribuicao Grupo Pao de
Acucar (Preference Shares) 65,699 984,348
- ---------------------------------------------------------------------------------------------
Food Products -- 0.1%
Cosan SA Industria e Comercio (b) 17,000 83,803
SLC Agricola SA 148,700 768,724
------------
852,527
- ---------------------------------------------------------------------------------------------
Household Durables -- 0.1%
Cyrela Brazil Realty SA 26,700 127,184
Gafisa SA 59,600 422,276
------------
549,460
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.1%
Companhia Vale do Rio Doce
(Preference 'A' Shares) (a) 80,400 941,484
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 1.4%
Petroleo Brasileiro SA (a) 490,300 11,161,213
- ---------------------------------------------------------------------------------------------
Road & Rail -- 0.0%
All America Latina Logistica SA 67,400 310,479
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.0%
Obrascon Huarte Lain Brasil SA 42,900 243,559
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.1%
Vivo Participacoes SA (a)(c) 65,175 713,015
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Brazil 16,810,840
=============================================================================================
Canada -- 2.4%
Communications Equipment -- 0.0%
Nortel Networks Corp. (b) 54,700 68,375
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.1%
BCE, Inc. 700 20,307
TELUS Corp. 19,700 695,784
------------
716,091
- ---------------------------------------------------------------------------------------------
Food Products -- 0.0%
Vittera, Inc. (b) 56,500 358,604
- ---------------------------------------------------------------------------------------------
Insurance -- 0.0%
Sun Life Financial, Inc. 300 7,047
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 1.3%
Alamos Gold, Inc. (b) 162,300 669,237
Barrick Gold Corp. 42,497 965,532
Eldorado Gold Corp. (b) 259,400 1,071,776
Goldcorp, Inc. 94,800 1,768,968
Golden Star Resources Ltd. (b) 96,300 90,284
IAMGOLD Corp. 150,000 495,000
Kinross Gold Corp. 443,950 4,624,453
New Gold, Inc. (b) 34,100 39,608
Yamaha Gold, Inc. 195,100 930,743
------------
10,655,601
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.2%
Canadian Natural Resources Ltd. 9,900 500,148
EnCana Corp. 1,300 66,183
Imperial Oil Ltd. 1,700 60,248
Nexen, Inc. 2,900 46,371
Petro-Canada 25,000 625,082
Talisman Energy, Inc. 20,300 201,525
------------
1,499,557
- ---------------------------------------------------------------------------------------------
Paper & Forest Products -- 0.1%
Sino-Forest Corp. (b) 62,400 583,981
- ---------------------------------------------------------------------------------------------
Road & Rail -- 0.4%
Canadian Pacific Railway Ltd. 76,600 3,456,872
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
Rogers Communications, Inc. Class B 89,500 2,601,675
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Canada 19,947,803
=============================================================================================
Chile -- 0.1%
Commercial Banks -- 0.0%
Banco Santander Chile SA (a) 7,900 282,820
- ---------------------------------------------------------------------------------------------
Multiline Retail -- 0.1%
SACI Falabella 177,300 467,284
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Chile 750,104
=============================================================================================
China -- 1.8%
Automobiles -- 0.0%
Denway Motors Ltd. 725,500 180,929
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.0%
China Communications Services Corp. Ltd. 40,000 21,035
- ---------------------------------------------------------------------------------------------
Electrical Equipment -- 0.1%
Shanghai Electric Group Corp. 1,730,200 523,548
- ---------------------------------------------------------------------------------------------
Food Products -- 0.2%
Chaoda Modern Agriculture Holdings Ltd. 2,537,398 1,787,664
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
8 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
China (concluded)
Independent Power Producers &
Energy Traders -- 0.0%
Huaneng Power International, Inc. 175,000 $ 85,135
- ---------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.8%
Beijing Enterprises Holdings Ltd. 1,281,944 5,062,842
Shanghai Industrial Holdings Ltd. 62,400 99,215
Tianjin Development Holdings Ltd. 3,379,200 944,608
------------
6,106,665
- ---------------------------------------------------------------------------------------------
Insurance -- 0.1%
China Life Insurance Co. Ltd. (a) 16,399 649,728
Ping An Insurance Group Co. of China Ltd. 105,400 450,767
------------
1,100,495
- ---------------------------------------------------------------------------------------------
Machinery -- 0.0%
China South Locomotive and Rolling Corp. (b) 546,600 193,248
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.2%
China Shenhua Energy Co. Ltd. Class H 811,800 1,541,268
- ---------------------------------------------------------------------------------------------
Road & Rail -- 0.1%
Guangshen Railway Co. Ltd. 2,312,000 900,070
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.1%
Hainan Meilan International Airport Co., Ltd. 163,600 44,822
Jiangsu Express 313,900 219,559
Tianjin Port Development Holdings Ltd. 1,820,100 361,815
Xiamen International Port Co. Ltd. 2,329,300 202,383
------------
828,579
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.2%
China Mobile Ltd. 210,300 1,851,337
- ---------------------------------------------------------------------------------------------
Total Common Stocks in China 15,119,973
=============================================================================================
Egypt -- 0.2%
Diversified Telecommunication Services -- 0.2%
Telecom Egypt 623,634 1,513,614
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Egypt 1,513,614
=============================================================================================
Finland -- 0.4%
Communications Equipment -- 0.3%
Nokia Oyj 62,967 964,541
Nokia Oyj (a) 83,700 1,270,566
------------
2,235,107
- ---------------------------------------------------------------------------------------------
Electric Utilities -- 0.1%
Fortum Oyj 33,112 813,763
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Finland 3,048,870
=============================================================================================
France -- 1.5%
Automobiles -- 0.1%
Peugeot SA 22,145 590,937
- ---------------------------------------------------------------------------------------------
Commercial Banks -- 0.1%
Societe Generale SA 12,013 654,769
- ---------------------------------------------------------------------------------------------
Construction & Engineering -- 0.1%
Bouygues 9,859 419,799
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.3%
France Telecom SA 110,000 2,773,716
- ---------------------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 0.2%
Cie Generale d'Optique Essilor International SA 45,500 2,041,034
- ---------------------------------------------------------------------------------------------
Insurance -- 0.1%
AXA SA 49,303 941,887
- ---------------------------------------------------------------------------------------------
Media -- 0.1%
Vivendi SA 33,300 870,433
- ---------------------------------------------------------------------------------------------
Multi-Utilities -- 0.2%
GDF Suez 27,443 1,221,589
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.3%
Total SA 49,175 2,705,288
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.0%
Sanofi-Aventis (a) 2,000 63,240
- ---------------------------------------------------------------------------------------------
Total Common Stocks in France 12,282,692
=============================================================================================
Germany -- 1.0%
Air Freight & Logistics -- 0.1%
Deutsche Post AG 85,349 935,820
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.2%
Deutsche Telekom AG 93,224 1,367,696
- ---------------------------------------------------------------------------------------------
Electric Utilities -- 0.1%
E.ON AG 31,737 1,189,340
- ---------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
Siemens AG 20,202 1,187,991
- ---------------------------------------------------------------------------------------------
Insurance -- 0.2%
Allianz AG Registered Shares 17,532 1,286,674
- ---------------------------------------------------------------------------------------------
Machinery -- 0.1%
GEA Group AG 40,739 585,020
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
Bayer AG 34,327 1,879,100
Bayer AG (a) 1,100 61,513
------------
1,940,613
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Germany 8,493,154
=============================================================================================
Hong Kong -- 0.8%
Electric Utilities -- 0.1%
Cheung Kong Infrastructure Holdings Ltd. 298,200 1,092,288
- ---------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.2%
Hutchison Whampoa Ltd. 252,300 1,363,396
- ---------------------------------------------------------------------------------------------
Real Estate Investment Trusts (REITs) -- 0.2%
The Link REIT 927,300 1,658,027
- ---------------------------------------------------------------------------------------------
Real Estate Management & Development -- 0.3%
Cheung Kong Holdings Ltd. 100,200 962,073
Sun Hung Kai Properties Ltd. 65,700 575,604
Wharf Holdings Ltd. 335,125 668,648
------------
2,206,325
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Hong Kong 6,320,036
=============================================================================================
India -- 0.8%
Commercial Banks -- 0.1%
State Bank of India Ltd. 38,220 874,978
- ---------------------------------------------------------------------------------------------
Construction & Engineering -- 0.1%
Larsen & Toubro Ltd. 25,750 429,240
- ---------------------------------------------------------------------------------------------
Electrical Equipment -- 0.1%
Bharat Heavy Electricals Ltd. 44,200 1,174,245
- ---------------------------------------------------------------------------------------------
Media -- 0.0%
Zee Telefilms Ltd. 110,414 350,600
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.3%
Reliance Industries Ltd. 75,700 2,145,903
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.0%
Wockhardt Ltd. 8,950 20,659
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 9
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
India (concluded)
Road & Rail -- 0.1%
Container Corp. of India 58,200 $ 749,583
- ---------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.1%
Housing Development Finance Corp. 31,500 1,143,427
- ---------------------------------------------------------------------------------------------
Total Common Stocks in India 6,888,635
=============================================================================================
Indonesia -- 0.0%
Oil, Gas & Consumable Fuels -- 0.0%
Bumi Resources Tbk PT 2,975,907 264,299
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Indonesia 264,299
=============================================================================================
Israel -- 0.1%
Pharmaceuticals -- 0.1%
Teva Pharmaceutical Industries Ltd. (a) 21,800 934,784
- ---------------------------------------------------------------------------------------------
Real Estate Management & Development -- 0.0%
AFI Development Plc (a)(b) 172,000 275,200
- ---------------------------------------------------------------------------------------------
Software -- 0.0%
Check Point Software Technologies Ltd. (b) 4,400 88,968
Ectel Ltd. (a)(b) 4,251 3,826
------------
92,794
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Israel 1,302,778
=============================================================================================
Italy -- 0.3%
Aerospace & Defense -- 0.1%
Finmeccanica SpA 42,481 519,729
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.2%
Eni SpA 74,581 1,780,112
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Italy 2,299,841
=============================================================================================
Japan -- 12.6%
Auto Components -- 0.2%
Toyota Industries Corp. 79,400 1,792,528
- ---------------------------------------------------------------------------------------------
Automobiles -- 0.3%
Honda Motor Co., Ltd. 28,000 696,231
Suzuki Motor Corp. 152,200 2,233,430
------------
2,929,661
- ---------------------------------------------------------------------------------------------
Beverages -- 0.6%
Coca-Cola Central Japan Co., Ltd. 78 510,417
Coca-Cola West Holdings Co., Ltd. 103,675 2,079,301
Hokkaido Coca-Cola Bottling Co., Ltd. 15,000 76,553
Kirin Holdings Co., Ltd. 174,100 1,925,582
Mikuni Coca-Cola Bottling Co., Ltd. 39,500 378,201
------------
4,970,054
- ---------------------------------------------------------------------------------------------
Building Products -- 0.2%
Asahi Glass Co., Ltd. 165,500 1,039,965
Daikin Industries Ltd. 29,500 663,527
Nippon Sheet Glass Co., Ltd. 10,400 34,012
------------
1,737,504
- ---------------------------------------------------------------------------------------------
Chemicals -- 1.0%
Hitachi Chemical Co., Ltd. 44,700 456,736
Mitsubishi Rayon Co., Ltd. 811,000 1,741,019
Shin-Etsu Chemical Co., Ltd. 61,900 3,290,322
Sumitomo Chemical Co., Ltd. 807,900 2,471,728
Ube Industries Ltd. 312,100 656,675
------------
8,616,480
- ---------------------------------------------------------------------------------------------
Commercial Banks -- 0.3%
Mizuho Financial Group, Inc. 195 476,151
Sumitomo Mitsui Financial Group, Inc. 470 1,884,167
------------
2,360,318
- ---------------------------------------------------------------------------------------------
Construction & Engineering -- 0.6%
JGC Corp. 147,377 1,579,873
Kinden Corp. 116,000 968,568
Okumura Corp. 346,500 1,358,151
Toda Corp. 214,700 775,536
------------
4,682,128
- ---------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.2%
RHJ International (a)(b) 23,000 123,078
RHJ International (a)(b)(d) 41,200 221,599
RHJ International (b) 226,300 1,224,883
------------
1,569,560
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.2%
Nippon Telegraph & Telephone Corp. 330 1,346,639
- ---------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.4%
Hoya Corp. 109,600 2,001,276
Murata Manufacturing Co., Ltd. 37,600 1,295,861
------------
3,297,137
- ---------------------------------------------------------------------------------------------
Food & Staples Retailing -- 0.4%
Seven & I Holdings Co. Ltd. 127,300 3,574,325
- ---------------------------------------------------------------------------------------------
Gas Utilities -- 0.3%
Tokyo Gas Co., Ltd. 610,000 2,622,972
- ---------------------------------------------------------------------------------------------
Household Durables -- 0.7%
Panasonic Corp. 152,400 2,454,209
Rinnai Corp. 25,900 947,126
Sekisui House Ltd. 271,000 2,717,464
Sony Corp. (a) 2,000 46,480
------------
6,165,279
- ---------------------------------------------------------------------------------------------
Insurance -- 2.2%
Aioi Insurance Co., Ltd. 779,000 3,198,726
Mitsui Sumitomo Insurance Group Holdings, Inc. 179,509 4,988,267
Nipponkoa Insurance Co., Ltd. 436,200 2,614,396
Tokio Marine Holdings, Inc. 236,000 7,279,631
------------
18,081,020
- ---------------------------------------------------------------------------------------------
Machinery -- 0.3%
Kubota Corp. 373,400 1,874,227
NGK Insulators Ltd. 43,000 446,627
Tadano Ltd. 29,000 128,579
------------
2,449,433
- ---------------------------------------------------------------------------------------------
Media -- 0.2%
Toho Co., Ltd. 83,500 1,591,804
- ---------------------------------------------------------------------------------------------
Office Electronics -- 0.3%
Canon, Inc. 81,300 2,844,820
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 1.4%
Astellas Pharma, Inc. 124,800 5,026,788
Mitsubishi Tanabe Pharma Corp. 22,100 232,595
Takeda Pharmaceutical Co., Ltd. 137,800 6,846,622
------------
12,106,005
- ---------------------------------------------------------------------------------------------
Real Estate Management & Development -- 0.2%
Daiwa House Industry Co., Ltd. 105,200 935,219
NTT Urban Development Co. 435 446,270
------------
1,381,489
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
10 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
Japan (concluded)
Road & Rail -- 0.5%
East Japan Railway Co. 470 $ 3,344,521
West Japan Railway Co. 200 880,119
------------
4,224,640
- ---------------------------------------------------------------------------------------------
Software -- 0.1%
Nintendo Co., Ltd. 2,500 803,271
- ---------------------------------------------------------------------------------------------
Specialty Retail -- 0.1%
Shimachu Co., Ltd. 20,500 467,548
- ---------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.8%
Mitsubishi Corp. 238,500 3,997,702
Mitsui & Co., Ltd. 254,200 2,463,073
------------
6,460,775
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.1%
KDDI Corp. 445 2,666,234
NTT DoCoMo, Inc. 3,897 6,180,442
------------
8,846,676
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Japan 104,922,066
=============================================================================================
Kazakhstan -- 0.3%
Oil, Gas & Consumable Fuels -- 0.3%
KazMunaiGas Exploration Production (a) 181,200 2,536,800
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Kazakhstan 2,536,800
=============================================================================================
Luxembourg -- 0.1%
Metals & Mining -- 0.1%
ArcelorMittal 24,819 644,340
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Luxembourg 644,340
=============================================================================================
Malaysia -- 0.4%
Diversified Telecommunication Services -- 0.0%
Telekom Malaysia Bhd 370,000 350,011
- ---------------------------------------------------------------------------------------------
Electric Utilities -- 0.1%
Tenaga Nasional Bhd 425,841 723,815
- ---------------------------------------------------------------------------------------------
Food Products -- 0.1%
IOI Corp. Bhd 863,620 684,582
- ---------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.0%
Resorts World Bhd 167,330 118,147
- ---------------------------------------------------------------------------------------------
Tobacco -- 0.1%
British American Tobacco Malaysia Bhd 78,600 909,971
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.0%
PLUS Expressways Bhd 83,900 63,038
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.1%
TM International Bhd (b) 370,000 473,524
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Malaysia 3,323,088
=============================================================================================
Mexico -- 0.1%
Beverages -- 0.0%
Fomento Economico Mexicano, SA de CV (a) 18,000 455,220
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.1%
America Movil, SA de CV (a) 22,300 689,962
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Mexico 1,145,182
=============================================================================================
Netherlands -- 0.2%
Diversified Financial Services -- 0.0%
ING Groep NV CVA 55,399 519,662
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.1%
Koninklijke KPN NV 39,600 557,695
- ---------------------------------------------------------------------------------------------
Food Products -- 0.1%
Unilever NV (a) 23,200 557,960
- ---------------------------------------------------------------------------------------------
Total Common Stocks in the Netherlands 1,635,317
=============================================================================================
New Zealand -- 0.0%
Electric Utilities -- 0.0%
Contact Energy Ltd. 26,900 114,048
- ---------------------------------------------------------------------------------------------
Total Common Stocks in New Zealand 114,048
=============================================================================================
Norway -- 0.2%
Diversified Telecommunication Services -- 0.1%
Telenor ASA 76,700 457,668
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.0%
Norsk Hydro ASA 19,000 79,387
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.1%
Statoilhydro ASA 52,100 1,047,920
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Norway 1,584,975
=============================================================================================
Philippines -- 0.0%
Independent Power Producers &
Energy Traders -- 0.0%
Energy Development Corp. 496,000 30,113
First Gen Corp. (b) 36,000 10,168
- ---------------------------------------------------------------------------------------------
Total Common Stocks in the Philippines 40,281
=============================================================================================
Russia -- 1.4%
Commercial Banks -- 0.1%
Sberbank 1,185,000 1,066,500
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.1%
AO VimpelCom (a) 40,400 585,800
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.4%
Cherepovets MK Severstal (a) 59,200 204,240
Kuzbassrazrezugol (b) 3,080,806 492,929
MMC Norilsk Nickel (a) 97,500 975,975
Mechel OAO (a) 110,600 1,014,202
Novolipetsk Steel (a) 16,400 154,160
Polyus Gold Co. ZAO (a) 64,700 712,994
------------
3,554,500
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.6%
LUKOIL (a) 13,300 508,060
OAO Gazprom (a) 205,900 4,091,233
Surgutneftegaz (a) 25,500 164,475
------------
4,763,768
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.2%
Novorossiysk Commercial Sea Port (a) 308,500 1,665,900
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Russia 11,636,468
=============================================================================================
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 11
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
Singapore -- 1.1%
Commercial Banks -- 0.1%
Oversea-Chinese Banking Corp. 289,000 $ 977,095
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.2%
Singapore Telecommunications Ltd. 1,135,960 1,911,726
- ---------------------------------------------------------------------------------------------
Health Care Providers & Services -- 0.1%
Parkway Holdings Ltd. 849,190 910,478
- ---------------------------------------------------------------------------------------------
Industrial Conglomerates -- 0.4%
Fraser and Neave Ltd. 596,000 1,124,614
Keppel Corp. Ltd. 606,100 1,889,633
------------
3,014,247
- ---------------------------------------------------------------------------------------------
Machinery -- 0.1%
Sembcorp Marine Ltd. 336,200 417,789
- ---------------------------------------------------------------------------------------------
Media -- 0.1%
Singapore Press Holdings Ltd. 309,000 674,997
- ---------------------------------------------------------------------------------------------
Real Estate Investment Trusts (REITs) -- 0.0%
Parkway Life Real Estate Investment Trust 37,983 19,376
- ---------------------------------------------------------------------------------------------
Real Estate Management & Development -- 0.1%
CapitaLand Ltd. 249,800 500,641
Keppel Land Ltd. 55,900 71,860
------------
572,501
- ---------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.0%
Noble Group Ltd. 123,280 89,740
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.0%
MobileOne Ltd. 279,090 248,459
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Singapore 8,836,408
=============================================================================================
South Africa -- 0.2%
Metals & Mining -- 0.1%
Anglo Platinum Ltd. 6,500 268,575
Gold Fields Ltd. (a) 35,400 235,410
Impala Platinum Holdings Ltd. 25,600 267,205
Katanga Mining Ltd. (b) 201,500 249,096
------------
1,020,286
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.1%
Sasol Ltd. 13,700 404,395
- ---------------------------------------------------------------------------------------------
Total Common Stocks in South Africa 1,424,681
=============================================================================================
South Korea -- 1.3%
Chemicals -- 0.1%
Samsung Fine Chemicals Co., Ltd. 33,000 911,782
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.2%
KT Corp. (a) 109,600 1,375,480
- ---------------------------------------------------------------------------------------------
Electrical Equipment -- 0.1%
LS Corp. 20,600 870,129
- ---------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.0%
Interflex Co., Ltd. 27,462 32,179
- ---------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.0%
Paradise Co. Ltd. 135,434 213,827
- ---------------------------------------------------------------------------------------------
Insurance -- 0.1%
Dongbu Insurance Co., Ltd. 12,900 131,338
Korean Reinsurance Co. 52,659 293,929
Meritz Fire & Marine Insurance Co. Ltd. 91,647 336,455
------------
761,722
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.2%
POSCO 2,400 661,031
POSCO (a) 11,000 739,090
------------
1,400,121
- ---------------------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 0.2%
Samsung Electronics Co., Ltd. 4,400 1,855,056
- ---------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 0.0%
Cheil Industries, Inc. 13,800 450,422
- ---------------------------------------------------------------------------------------------
Tobacco -- 0.3%
KT&G Corp. 33,500 2,150,153
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.1%
SK Telecom Co., Ltd. 5,400 857,082
- ---------------------------------------------------------------------------------------------
Total Common Stocks in South Korea 10,877,953
=============================================================================================
Spain -- 0.4%
Commercial Banks -- 0.1%
Banco Santander SA 49,141 531,468
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.2%
Telefonica SA 96,510 1,786,878
- ---------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.0%
Iberdrola Renovables (b) 131,900 401,273
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.1%
Cintra Concesiones de Infraestructuras
de Transporte SA 45,675 406,372
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Spain 3,125,991
=============================================================================================
Sweden -- 0.1%
Machinery -- 0.1%
Volvo AB B Shares 111,961 585,068
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Sweden 585,068
=============================================================================================
Switzerland -- 1.1%
Capital Markets -- 0.1%
Credit Suisse Group AG 19,157 716,354
- ---------------------------------------------------------------------------------------------
Food Products -- 0.4%
Nestle SA Registered Shares 75,715 2,944,329
- ---------------------------------------------------------------------------------------------
Insurance -- 0.2%
Zurich Financial Services AG 9,307 1,888,182
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.4%
Novartis AG Registered Shares 23,270 1,181,139
Roche Holding AG 13,115 2,005,636
------------
3,186,775
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Switzerland 8,735,640
=============================================================================================
Taiwan -- 1.1%
Commercial Banks -- 0.0%
Chinatrust Financial Holding Co. 324,925 92,817
- ---------------------------------------------------------------------------------------------
Construction Materials -- 0.0%
Taiwan Cement Corp. 332,947 170,963
- ---------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.0%
Fubon Financial Holding Co. Ltd. 192,200 116,576
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.6%
Chunghwa Telecom Co., Ltd. 1,700,929 2,814,244
Chunghwa Telecom Co., Ltd. (a) 112,636 1,853,996
------------
4,668,240
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
12 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
Taiwan (concluded)
Electronic Equipment & Instruments -- 0.3%
Delta Electronics, Inc. 821,142 $ 1,863,530
HON HAI Precision Industry Co., Ltd. 302,450 730,022
------------
2,593,552
- ---------------------------------------------------------------------------------------------
Insurance -- 0.0%
Cathay Financial Holding Co., Ltd. 264,373 283,934
- ---------------------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 0.2%
Taiwan Semiconductor Manufacturing Co., Ltd. 512,492 745,705
Taiwan Semiconductor Manufacturing Co., Ltd. (a) 99,499 821,862
------------
1,567,567
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Taiwan 9,493,649
=============================================================================================
Thailand -- 0.3%
Commercial Banks -- 0.2%
Siam Commercial Bank PCL 922,200 1,381,327
- ---------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.0%
Hana Microelectronics PCL 785,400 230,802
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.1%
PTT Exploration & Production PCL 30,900 75,377
PTT Public Company 214,500 973,053
------------
1,048,430
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.0%
Airports of Thailand PCL 457,500 246,698
Bangkok Expressway PCL Foreign Shares 58,400 20,161
------------
266,859
- ---------------------------------------------------------------------------------------------
Total Common Stocks in Thailand 2,927,418
=============================================================================================
United Kingdom -- 3.4%
Aerospace & Defense -- 0.2%
BAE Systems Plc 240,952 1,354,381
- ---------------------------------------------------------------------------------------------
Beverages -- 0.5%
Diageo Plc (a) 68,900 4,284,891
- ---------------------------------------------------------------------------------------------
Commercial Banks -- 0.1%
HSBC Holdings Plc 32,581 385,896
- ---------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.1%
Guinness Peat Group Plc 1,153,257 643,038
- ---------------------------------------------------------------------------------------------
Food Products -- 0.4%
Cadbury Plc (a) 16,320 603,514
Premier Foods Plc 107,500 47,666
Unilever Plc 85,578 1,922,579
Unilever Plc (a) 14,500 327,120
------------
2,900,879
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.1%
Anglo American Plc 40,228 1,009,370
- ---------------------------------------------------------------------------------------------
Multiline Retail -- 0.1%
Next Plc 34,386 584,458
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 1.1%
BP Plc 384,218 3,131,943
BP Plc (a)(e) 60,200 2,991,940
Royal Dutch Shell Plc Class B 118,896 3,223,477
------------
9,347,360
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.1%
GlaxoSmithKline Plc 61,637 1,184,906
- ---------------------------------------------------------------------------------------------
Tobacco -- 0.2%
British American Tobacco Plc 68,047 1,866,480
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.5%
Vodafone Group Plc 1,577,889 3,035,408
Vodafone Group Plc (a) 62,694 1,208,113
------------
4,243,521
- ---------------------------------------------------------------------------------------------
Total Common Stocks in the United Kingdom 27,805,180
=============================================================================================
United States -- 42.4%
Aerospace & Defense -- 1.0%
Boeing Co. 63,400 3,313,918
General Dynamics Corp. 4,500 271,440
Goodrich Corp. 1,000 36,560
Honeywell International, Inc. 1,000 30,450
L-3 Communications Holdings, Inc. 600 48,702
Lockheed Martin Corp. 20,900 1,777,545
Northrop Grumman Corp. 600 28,134
Raytheon Co. 500 25,555
Spirit Aerosystems Holdings, Inc. Class A (b) 114,200 1,842,046
United Technologies Corp. 11,000 604,560
------------
7,978,910
- ---------------------------------------------------------------------------------------------
Auto Components -- 0.0%
Autoliv, Inc. 1,200 25,632
WABCO Holdings, Inc. 400 7,348
------------
32,980
- ---------------------------------------------------------------------------------------------
Automobiles -- 0.1%
General Motors Corp. (c) 101,975 589,415
- ---------------------------------------------------------------------------------------------
Beverages -- 0.3%
The Coca-Cola Co. 30,200 1,330,612
Constellation Brands, Inc. Class A (b) 24,100 302,214
Dr. Pepper Snapple Group, Inc. (b) 9,240 211,596
Pepsi Bottling Group, Inc. 1,200 27,744
PepsiAmericas, Inc. 10,500 198,765
------------
2,070,931
- ---------------------------------------------------------------------------------------------
Biotechnology -- 0.0%
Amgen, Inc. (b) 1,600 95,824
Senomyx, Inc. (b) 2,600 6,500
------------
102,324
- ---------------------------------------------------------------------------------------------
Capital Markets -- 1.6%
The Bank of New York Mellon Corp. (e) 144,279 4,703,495
Northern Trust Corp. 54,700 3,080,157
State Street Corp. 117,200 5,080,620
------------
12,864,272
- ---------------------------------------------------------------------------------------------
Chemicals -- 0.6%
CF Industries Holdings, Inc. 500 32,095
Celanese Corp. Series A 1,300 18,018
The Dow Chemical Co. 96,900 2,584,323
E.I. du Pont de Nemours & Co. 65,100 2,083,200
Lubrizol Corp. 900 33,822
Praxair, Inc. 2,300 149,845
Terra Industries, Inc. 1,400 30,786
------------
4,932,089
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 13
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
United States (continued)
Commercial Banks -- 0.1%
U.S. Bancorp 23,300 $ 694,573
- ---------------------------------------------------------------------------------------------
Communications Equipment -- 1.7%
3Com Corp. (b) 400,700 1,093,911
Cisco Systems, Inc. (b) 199,200 3,539,784
Comverse Technology, Inc. (b) 130,300 947,281
Corning, Inc. 256,200 2,774,646
Extreme Networks, Inc. (b) 3,043 5,599
JDS Uniphase Corp. (b) 15,850 86,541
Motorola, Inc. 83,200 446,784
Polycom, Inc. (b) 151,800 3,189,318
QUALCOMM, Inc. 45,600 1,744,656
Tellabs, Inc. (b) 2,800 11,872
------------
13,840,392
- ---------------------------------------------------------------------------------------------
Computers & Peripherals -- 1.4%
Dell, Inc. (b) 3,900 47,385
EMC Corp. (b) 2,600 30,628
Hewlett-Packard Co. 129,000 4,938,120
International Business Machines Corp. 40,700 3,783,879
Lexmark International, Inc. Class A (b) 53,300 1,376,739
SanDisk Corp. (b) 101,400 901,446
Seagate Technology 2,000 13,540
Sun Microsystems, Inc. (b) 59,775 274,965
Western Digital Corp. (b) 2,100 34,650
------------
11,401,352
- ---------------------------------------------------------------------------------------------
Construction & Engineering -- 0.3%
Foster Wheeler Ltd. (b) 68,584 1,879,202
KBR, Inc. 32,720 485,565
------------
2,364,767
- ---------------------------------------------------------------------------------------------
Consumer Finance -- 0.0%
Discover Financial Services, Inc. 350 4,287
- ---------------------------------------------------------------------------------------------
Containers & Packaging -- 0.1%
Crown Holdings, Inc. (b) 36,100 728,498
Owens-Illinois, Inc. (b) 1,200 27,456
Smurfit-Stone Container Corp. (b) 39,900 53,865
------------
809,819
- ---------------------------------------------------------------------------------------------
Distributors -- 0.0%
Genuine Parts Co. 1,000 39,350
- ---------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.6%
Bank of America Corp. 60,400 1,459,868
JPMorgan Chase & Co. 87,400 3,605,250
------------
5,065,118
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 2.2%
AT&T Inc. (n) 362,987 9,717,162
CenturyTel, Inc. 1,000 25,110
Embarq Corp. 6,235 187,050
FairPoint Communications, Inc. 3,003 11,952
General Communication, Inc. Class A (b) 36,000 276,480
Qwest Communications International Inc. 414,900 1,186,614
Verizon Communications, Inc. 212,600 6,307,842
Windstream Corp. 29,091 218,473
------------
17,930,683
- ---------------------------------------------------------------------------------------------
Electric Utilities -- 1.0%
Duke Energy Corp. 2,700 44,226
Entergy Corp. 22,900 1,787,345
Exelon Corp. 28,400 1,540,416
FPL Group, Inc. 51,500 2,432,860
FirstEnergy Corp. 700 36,512
PPL Corp. 28,800 945,216
RusHydro (b) 84,431,800 1,553,545
The Southern Co. 2,200 75,548
------------
8,415,668
- ---------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.1%
Avnet, Inc. (b) 1,000 16,740
Mettler Toledo International, Inc. (b) 2,500 191,350
Tyco Electronics Ltd. 16,475 320,274
------------
528,364
- ---------------------------------------------------------------------------------------------
Energy Equipment & Services -- 1.0%
Complete Production Services, Inc. (b) 42,300 524,097
ENSCO International, Inc. 6,700 254,667
Global Industries Ltd. (b)(c) 165,500 422,025
Halliburton Co. 41,150 814,358
Key Energy Services, Inc. (b) 29,825 184,915
Nabors Industries Ltd. (b) 14,500 208,510
National Oilwell Varco, Inc. (b) 50,072 1,496,652
Patterson-UTI Energy, Inc. 2,400 31,848
Schlumberger Ltd. 42,200 2,179,630
Smith International, Inc. 11,100 382,728
Transocean, Inc. 13,830 1,138,624
Weatherford International Ltd. (b) 42,900 724,152
------------
8,362,206
- ---------------------------------------------------------------------------------------------
Food & Staples Retailing -- 0.2%
CVS Caremark Corp. 24,170 740,810
The Kroger Co. 1,500 41,190
SUPERVALU, Inc. 11,891 169,328
Wal-Mart Stores, Inc. 9,900 552,519
------------
1,503,847
- ---------------------------------------------------------------------------------------------
Food Products -- 0.8%
Bunge Ltd. 11,600 445,556
ConAgra Foods, Inc. 28,800 501,696
H.J. Heinz Co. 23,193 1,016,317
Hormel Foods Corp. 1,600 45,216
Kraft Foods, Inc. 129,197 3,764,801
Ralcorp Holdings, Inc. (b) 2,801 189,572
Sara Lee Corp. 25,000 279,500
------------
6,242,658
- ---------------------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 0.8%
Baxter International, Inc. 12,200 737,978
Boston Scientific Corp. (b) 34,400 310,632
Covidien Ltd. 18,875 835,974
Hologic, Inc. (b) 145,400 1,779,696
Medtronic, Inc. 77,800 3,137,674
------------
6,801,954
- ---------------------------------------------------------------------------------------------
Health Care Providers & Services -- 1.9%
Aetna, Inc. (e) 96,400 2,397,468
AmerisourceBergen Corp. 25,200 788,004
Cardinal Health, Inc. 1,300 49,660
Cigna Corp. 81,500 1,328,450
DaVita, Inc. (b) 15,000 851,250
See Notes to Financial Statements.
14 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
United States (continued)
Health Care Providers & Services (concluded)
Express Scripts, Inc. (b) 1,000 $ 60,610
HealthSouth Corp. (b) 22,860 286,664
Humana, Inc. (b) 71,500 2,115,685
McKesson Corp. 15,000 551,850
Medco Health Solutions, Inc. (b) 25,200 956,340
PharMerica Corp. (b) 1,075 22,070
Quest Diagnostics, Inc. 1,200 56,160
UnitedHealth Group, Inc. 143,800 3,412,374
WellPoint, Inc. (b) 63,550 2,470,189
------------
15,346,774
- ---------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.4%
International Game Technology 76,500 1,071,000
McDonald's Corp. 34,200 1,981,206
Panera Bread Co. Class A (b) 13,500 609,120
------------
3,661,326
- ---------------------------------------------------------------------------------------------
Household Durables -- 0.0%
Mohawk Industries, Inc. (b) 600 29,028
- ---------------------------------------------------------------------------------------------
Household Products -- 0.9%
The Procter & Gamble Co. 117,700 7,596,358
- ---------------------------------------------------------------------------------------------
IT Services -- 0.0%
Accenture Ltd. Class A 1,100 36,355
Affiliated Computer Services, Inc. Class A (b) 1,300 53,300
Alliance Data Systems Corp. (b) 1,000 50,160
Computer Sciences Corp. (b) 1,000 30,160
Hewitt Associates, Inc. Class A (b) 1,700 47,413
SAIC, Inc. (b) 3,800 70,186
------------
287,574
- ---------------------------------------------------------------------------------------------
Independent Power Producers &
Energy Traders -- 0.1%
The AES Corp. (b) 45,500 362,635
Dynegy, Inc. Class A (b) 80,200 291,928
NRG Energy, Inc. (b) 20,900 485,925
------------
1,140,488
- ---------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.1%
3M Co. 24,400 1,568,920
General Electric Co. 288,760 5,633,708
McDermott International, Inc. (b) 40,000 685,200
Textron, Inc. 25,800 456,660
Tyco International Ltd. 16,075 406,376
------------
8,750,864
- ---------------------------------------------------------------------------------------------
Insurance -- 2.9%
ACE Ltd. 82,000 4,703,520
The Allstate Corp. 52,100 1,374,919
Arch Capital Group Ltd. (b) 12,400 864,900
Assurant, Inc. 21,400 545,272
Axis Capital Holdings Ltd. 1,100 31,328
CNA Financial Corp. 1,000 15,560
Chubb Corp. 43,400 2,248,988
Endurance Specialty Holdings Ltd. 47,000 1,421,280
Everest Re Group Ltd. 10,200 761,940
Fidelity National Title Group, Inc. Class A 135,300 1,219,053
Genworth Financial, Inc. Class A 1,000 4,840
Hartford Financial Services Group, Inc. 18,000 185,760
IPC Holdings, Ltd. 30,900 853,149
Lincoln National Corp. 700 12,068
Loews Corp. 1,000 33,210
Marsh & McLennan Cos., Inc. 19,500 571,740
MetLife, Inc. 30,000 996,600
PartnerRe Ltd. 11,100 751,359
Platinum Underwriters Holdings Ltd. 17,500 555,450
The Progressive Corp. 56,900 811,963
Prudential Financial, Inc. 12,200 366,000
RenaissanceRe Holdings Ltd. 20,300 931,770
The Travelers Cos., Inc. 70,800 3,012,540
XL Capital Ltd. Class A 221,900 2,152,430
------------
24,425,639
- ---------------------------------------------------------------------------------------------
Internet & Catalog Retail -- 0.0%
Expedia, Inc. (b) 1,600 15,216
Liberty Media Holding Corp. -- Interactive (b) 2,515 12,273
------------
27,489
- ---------------------------------------------------------------------------------------------
Internet Software & Services -- 0.4%
Google, Inc. Class A (b)(e) 9,800 3,521,728
- ---------------------------------------------------------------------------------------------
Leisure Equipment & Products -- 0.2%
Hasbro, Inc. 1,400 40,698
Mattel, Inc. 105,400 1,583,108
------------
1,623,806
- ---------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.3%
Applied Biosystems, Inc. 4,200 129,486
Invitrogen Corp. (b) 5,000 143,950
PerkinElmer, Inc. 9,100 163,254
Thermo Fisher Scientific, Inc. (b) 18,900 767,340
Varian, Inc. (b) 2,500 92,125
Waters Corp. (b) 18,750 821,250
------------
2,117,405
- ---------------------------------------------------------------------------------------------
Machinery -- 0.0%
AGCO Corp. (b) 1,000 31,520
Cummins, Inc. 1,000 25,850
Dover Corp. 1,600 50,832
Pall Corp. 5,000 132,050
Parker Hannifin Corp. 900 34,893
SPX Corp. 900 34,866
------------
310,011
- ---------------------------------------------------------------------------------------------
Marine -- 0.1%
American Commercial Lines, Inc. (b) 156,200 1,160,566
- ---------------------------------------------------------------------------------------------
Media -- 1.1%
Ascent Media Corp. Class A (b) 195 4,932
Comcast Corp. Class A (n) 257,600 4,059,776
DISH Network Corp. (b) 33,000 519,420
Discovery Communications, Inc. Class A (b) 1,850 25,234
Discovery Communications, Inc. Class C (b) 1,950 25,974
Liberty Media Corp. -- Entertainment Class A (b) 68 1,095
Liberty Media Holding Corp. -- Capital (b) 17 116
News Corp. Class A 98,900 1,052,296
Time Warner, Inc. 93,100 939,379
Viacom, Inc. Class B (b) 88,550 1,790,481
Virgin Media, Inc. 114,850 661,536
------------
9,080,239
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.7%
AK Steel Holding Corp. 1,000 13,920
Alcoa, Inc. 87,400 1,005,974
Freeport-McMoRan Copper & Gold, Inc. Class B 19,600 570,360
Newmont Mining Corp. 116,400 3,065,976
Nucor Corp. 1,100 44,561
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 15
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Common Stocks Shares Value
=============================================================================================
United States (continued)
Metals & Mining (concluded)
Reliance Steel & Aluminum Co. 1,100 $ 27,544
United States Steel Corp. 20,000 737,600
------------
5,465,935
- ---------------------------------------------------------------------------------------------
Multi-Utilities -- 0.0%
CMS Energy Corp. (c) 36,900 378,225
- ---------------------------------------------------------------------------------------------
Multiline Retail -- 0.0%
Big Lots, Inc. (b) 1,600 39,088
Family Dollar Stores, Inc. 1,400 37,674
------------
76,762
- ---------------------------------------------------------------------------------------------
Office Electronics -- 0.2%
Xerox Corp. 249,500 2,000,990
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 6.2%
Alliance Resource Partners LP 18,600 595,200
Anadarko Petroleum Corp. 25,900 914,270
Apache Corp. 19,600 1,613,668
CNX Gas Corp. (b) 46,900 1,186,101
Chevron Corp. (e) 121,450 9,060,170
Cimarex Energy Co. 1,100 44,506
ConocoPhillips 86,700 4,510,134
Consol Energy, Inc. 144,400 4,532,716
Devon Energy Corp. 35,100 2,838,186
El Paso Corp. 491,900 4,771,430
Exxon Mobil Corp. (e)(n) 176,100 13,052,532
Foundation Coal Holdings, Inc. 93,850 1,948,326
Frontline Ltd. 1,300 41,340
Hess Corp. 17,600 1,059,696
Marathon Oil Corp. 73,300 2,133,030
Murphy Oil Corp. 15,700 795,048
Noble Energy, Inc. 1,000 51,820
Occidental Petroleum Corp. 31,350 1,741,179
Plains Exploration & Production Co. (b) 1,200 33,840
Stone Energy Corp. (b) 11,100 336,774
Sunoco, Inc. 600 18,300
Valero Energy Corp. 900 18,522
------------
51,296,788
- ---------------------------------------------------------------------------------------------
Paper & Forest Products -- 0.2%
International Paper Co. 113,700 1,957,914
- ---------------------------------------------------------------------------------------------
Personal Products -- 0.1%
Avon Products, Inc. 21,600 536,328
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 5.3%
Abbott Laboratories 67,000 3,695,050
Bristol-Myers Squibb Co. 531,200 10,916,160
Eli Lilly & Co. 40,000 1,352,800
Endo Pharmaceuticals Holdings, Inc. (b) 11,000 203,500
Forest Laboratories, Inc. (b) 16,000 371,680
Johnson & Johnson 161,100 9,881,874
King Pharmaceuticals, Inc. (b) 15,700 138,003
Merck & Co., Inc. 111,875 3,462,531
Mylan, Inc. (b)(c) 95,600 819,292
Pfizer, Inc. 377,300 6,681,983
Schering-Plough Corp. 98,000 1,420,020
Valeant Pharmaceuticals International (b) 156,800 2,943,136
Wyeth 76,200 2,452,116
------------
44,338,145
- ---------------------------------------------------------------------------------------------
Professional Services -- 0.0%
Manpower, Inc. 600 18,678
- ---------------------------------------------------------------------------------------------
Real Estate Investment Trusts (REITs) -- 0.0%
Ventas, Inc. 10,900 393,054
- ---------------------------------------------------------------------------------------------
Real Estate Management & Development -- 0.3%
The St. Joe Co. (b) 89,100 2,754,972
- ---------------------------------------------------------------------------------------------
Road & Rail -- 3.0%
Burlington Northern Santa Fe Corp. 147,000 13,091,820
CSX Corp. 1,200 54,864
Norfolk Southern Corp. 53,300 3,194,802
Ryder System, Inc. 1,000 39,620
Union Pacific Corp. 126,700 8,459,759
------------
24,840,865
- ---------------------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 0.7%
Applied Materials, Inc. 46,400 599,024
Broadcom Corp. Class A (b) 49,800 850,584
Intel Corp. 239,001 3,824,016
Intersil Corp. Class A 1,400 19,166
LSI Corp. (b) 10,000 38,500
Novellus Systems, Inc. (b) 1,300 20,540
Texas Instruments, Inc. 29,300 573,108
Xilinx, Inc. 2,600 47,892
------------
5,972,830
- ---------------------------------------------------------------------------------------------
Software -- 1.7%
BMC Software, Inc. (b) 1,000 25,820
CA, Inc. 133,900 2,383,420
Microsoft Corp. 492,300 10,993,059
Novell, Inc. (b) 34,900 162,634
Oracle Corp. (b) 24,700 451,763
Symantec Corp. (b) 3,600 45,288
Synopsys, Inc. (b) 1,400 25,592
------------
14,087,576
- ---------------------------------------------------------------------------------------------
Specialty Retail -- 0.0%
The Gap, Inc. 4,000 51,760
Ross Stores, Inc. 2,000 65,380
TJX Cos., Inc. 2,300 61,548
------------
178,688
- ---------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 0.1%
Hanesbrands, Inc. (b) 3,150 55,030
Unifi, Inc. (b) 127,500 612,000
------------
667,030
- ---------------------------------------------------------------------------------------------
Tobacco -- 0.4%
Altria Group, Inc. 68,300 1,310,677
Philip Morris International, Inc. 54,300 2,360,421
Reynolds American, Inc. 800 39,168
------------
3,710,266
- ---------------------------------------------------------------------------------------------
Transportation Infrastructure -- 0.1%
Macquarie Infrastructure Co. LLC 83,500 847,525
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.1%
Sprint Nextel Corp. 187,200 585,936
- ---------------------------------------------------------------------------------------------
Total Common Stocks in the United States 351,763,761
=============================================================================================
Total Common Stocks -- 78.9% 655,010,497
=============================================================================================
See Notes to Financial Statements.
16 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Asse
Exchange-Traded Funds Shares Value
=============================================================================================
United States -- 3.7%
Consumer Staples Select Sector SPDR Fund 66,100 $ 1,594,332
Health Care Select Sector SPDR Fund 66,100 1,758,260
iShares Dow Jones U.S. Financial Sector
Index Fund 13,000 701,350
iShares Dow Jones U.S. Technology Sector
Index Fund 26,400 1,039,104
iShares Dow Jones U.S. Telecommunications
Sector Index Fund 40,000 648,800
iShares Silver Trust (b) 230,600 2,213,760
SPDR(R) Gold Trust (b) 269,000 19,190,460
Telecom HOLDRs Trust 11,200 266,672
Utilities Select Sector SPDR Fund 110,500 3,194,555
Vanguard Telecommunication Services 1,400 63,406
- ---------------------------------------------------------------------------------------------
Total Exchange-Traded Funds -- 3.7% 30,670,699
=============================================================================================
=============================================================================================
Mutual Funds
=============================================================================================
Vietnam -- 0.1%
Vietnam Enterprise Investments Ltd. -- R Shares (b) 199,954 339,922
Vinaland Ltd. (b) 1,723,580 870,408
- ---------------------------------------------------------------------------------------------
Total Mutual Funds -- 0.1% 1,210,330
=============================================================================================
=============================================================================================
Preferred Stocks
=============================================================================================
United States -- 0.3%
Diversified Financial Services -- 0.3%
Citigroup, Inc. Series T, 6.50% (f) 66,456 2,140,548
- ---------------------------------------------------------------------------------------------
Insurance -- 0.0%
XL Capital Ltd., 10.75% (f) 17,012 256,201
- ---------------------------------------------------------------------------------------------
Total Preferred Stocks -- 0.3% 2,396,749
=============================================================================================
=============================================================================================
Warrants (g)
=============================================================================================
Canada -- 0.0%
Metals & Mining -- 0.0%
Kinross Gold Corp. (expires 9/03/13) 36,725 57,892
New Gold, Inc. (expires 4/03/12) 170,500 2,829
- ---------------------------------------------------------------------------------------------
Total Warrants -- 0.0% 60,721
=============================================================================================
Fixed Income Securities
Par
Corporate Bonds (000) Value
=============================================================================================
Canada -- 0.2%
Oil, Gas & Consumable Fuels -- 0.0%
Addax Petroleum Corp. Series AXC,
3.75%, 5/31/12 (f) USD 200 96,500
- ---------------------------------------------------------------------------------------------
Paper & Forest Products -- 0.2%
Sino-Forest Corp., 5%, 8/01/13 (d)(f) 2,000 1,545,000
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in Canada 1,641,500
=============================================================================================
China -- 0.4%
Automobiles -- 0.1%
Brilliance China Finance Ltd., 0%, 6/07/11 (f)(h) 1,381 1,035,750
- ---------------------------------------------------------------------------------------------
Food Products -- 0.1%
Chaoda Modern Agriculture Holdings Ltd.,
0%, 5/08/11 (f)(h) HKD 9,080 1,145,830
- ---------------------------------------------------------------------------------------------
Specialty Retail -- 0.2%
GOME Electrical Appliances Holdings Ltd.,
0%, 5/18/14 (f)(h) CNY 17,200 1,458,586
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in China 3,640,166
=============================================================================================
Hong Kong -- 0.1%
Hotels, Restaurants & Leisure -- 0.1%
FUJI Food and Catering Services Holdings Ltd.,
0%, 10/18/10 (f)(h) 10,800 852,694
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in Hong Kong 852,694
=============================================================================================
India -- 0.6%
Automobiles -- 0.1%
Tata Motors Ltd., 1%, 4/27/11 (f) USD 1,645 987,000
- ---------------------------------------------------------------------------------------------
Metals & Mining -- 0.2%
Gujarat NRE Coke Ltd., 0%, 4/12/11 (f)(h) 1,000 820,000
Tata Steel Ltd., 1%, 9/05/12 (f) 700 430,405
------------
1,250,405
- ---------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 0.3%
Reliance Communications Ltd., 0%, 5/10/11 (f)(h) 1,850 1,174,750
Reliance Communications Ltd., 0%, 3/01/12 (f)(h) 3,300 1,631,550
------------
2,806,300
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in India 5,043,705
=============================================================================================
Japan -- 0.1%
Automobiles -- 0.1%
Suzuki Motor Corp. Series 9, 0%, 3/29/13 (f)(h) JPY 55,000 500,868
- ---------------------------------------------------------------------------------------------
Commercial Banks -- 0.0%
The Bank of Kyoto Ltd., 0%, 3/31/14 (f)(h) 32,000 351,487
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in Japan 852,355
=============================================================================================
Malaysia -- 0.9%
Diversified Financial Services -- 0.1%
Feringghi Capital Ltd., 0%, 12/22/09 (f)(h) USD 600 576,000
- ---------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.4%
Rafflesia Capital Ltd., 1.25%, 10/04/11 (f)(i) 3,800 3,264,356
- ---------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.1%
Berjaya Land Bhd, 8%, 8/15/11 (f) MYR 4,290 1,230,504
- ---------------------------------------------------------------------------------------------
Multi-Utilities -- 0.3%
YTL Power Finance Cayman Ltd., 0%,
5/09/10 (f)(h) 2,200 2,259,842
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in Malaysia 7,330,702
=============================================================================================
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 17
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Corporate Bonds (000) Value
=============================================================================================
Netherlands -- 0.1%
Capital Markets -- 0.1%
Pargesa Netherlands NV, 1.75%, 6/15/14 (f) CHF 975 $ 595,871
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in the Netherlands 595,871
=============================================================================================
Singapore -- 0.3%
Food Products -- 0.0%
Wilmar International Ltd., 0%, 12/18/12 (f)(h) USD 200 140,000
- ---------------------------------------------------------------------------------------------
Real Estate Management &
Development -- 0.3%
CapitaLand Ltd., 2.95%, 6/20/22 (f) SGD 4,000 1,264,124
CapitaLand Ltd., 3.125%, 3/05/18 (f) 1,750 590,020
Keppel Land Ltd., 2.50%, 6/23/13 (f) 1,000 608,587
------------
2,462,731
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in Singapore 2,602,731
=============================================================================================
South Korea -- 0.0%
Metals & Mining -- 0.0%
Zeus Cayman, 0%, 8/19/13 (f)(h) JPY 40,000 308,598
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in South Korea 308,598
=============================================================================================
Taiwan -- 0.0%
Insurance -- 0.0%
Shin Kong Financial Holding Co. Ltd.,
0%, 6/17/09 (f)(h) USD 20 17,763
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in Taiwan 17,763
=============================================================================================
United Arab Emirates -- 0.4%
Oil, Gas & Consumable Fuels -- 0.4%
Dana Gas Sukuk Ltd., 7.50%, 10/31/12 (f) 6,780 3,323,759
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in the United Arab Emirates 3,323,759
=============================================================================================
United States -- 1.3%
Biotechnology -- 0.0%
Cell Genesys, Inc., 3.125%, 11/01/11 (f) 90 35,888
Nabi Biopharmaceuticals, 2.875%, 4/15/25 (f) 50 43,813
------------
79,701
- ---------------------------------------------------------------------------------------------
Commercial Banks -- 0.1%
Preferred Term Securities:
XXIV, Ltd., 5.965%, 3/22/37 (d) 1,200 358,800
XXV, Ltd., 5.758%, 6/22/37 1,150 228,850
XXVI, Ltd., 6.191%, 9/22/37 970 170,720
XXVII, Ltd., 6.29%, 12/22/37 900 379,800
------------
1,138,170
- ---------------------------------------------------------------------------------------------
Energy Equipment & Services -- 0.3%
Transocean, Inc., 1.50%, 12/15/37 (f) 2,825 2,260,000
- ---------------------------------------------------------------------------------------------
Food & Staples Retailing -- 0.0%
Olam International Ltd., 1%, 7/03/13 (f) 400 178,000
- ---------------------------------------------------------------------------------------------
Food Products -- 0.3%
China Milk Products Group Ltd., 0%, 1/05/12 (f)(h) 700 563,622
IOI Capital Bhd Series IOI, 0%, 12/18/11 (f)(h) 2,150 2,042,500
------------
2,606,122
- ---------------------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 0.3%
Hologic, Inc., 2%, 12/15/37 (f) 4,500 2,328,750
- ---------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 0.1%
McMoRan Exploration Co., 5.25%, 10/06/11 (f) 480 459,600
- ---------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
Mylan, Inc., 1.25%, 3/15/12 (f) 2,000 1,317,500
- ---------------------------------------------------------------------------------------------
Semiconductors & Semiconductor
Equipment -- 0.0%
Intel Corp., 2.95%, 12/15/35 (f) 559 398,986
- ---------------------------------------------------------------------------------------------
Total Corporate Bonds in the United States 10,766,829
=============================================================================================
Total Corporate Bonds -- 4.4% 36,976,673
=============================================================================================
=============================================================================================
Structured Notes (j)
=============================================================================================
United States -- 0.2%
JPMorgan Chase & Co. (Bearish Buffered
Return Enhanced Notes Linked Inversely to
the S&P 500), 5/04/09 650 902,915
Morgan Stanley (Bear Market PLUS S&P 500
Linked Notes), 5/07/09 (b) 480 640,032
- ---------------------------------------------------------------------------------------------
Total Structured Notes -- 0.2% 1,542,947
=============================================================================================
=============================================================================================
U.S. Government Obligations
=============================================================================================
United States -- 2.2%
U.S. Treasury Notes:
4%, 6/15/09 9,500 9,657,339
4.875%, 6/30/09 8,100 8,291,743
- ---------------------------------------------------------------------------------------------
Total U.S. Government Obligations -- 2.2% 17,949,082
=============================================================================================
Total Fixed Income Securities -- 6.8% 56,468,702
=============================================================================================
Total Long-Term Investments (Cost -- $957,645,319) -- 89.8% 745,817,698
=============================================================================================
=============================================================================================
Short-Term Securities
=============================================================================================
Europe -- 0.1%
Time Deposits -- 0.1%
Citibank London, 2.354%, 11/03/08 EUR 575 732,449
- ---------------------------------------------------------------------------------------------
United States -- 9.1%
Time Deposits -- 0.0%
Brown Brothers Harriman & Co.,
0.17%, 11/03/08 USD 96 95,754
- ---------------------------------------------------------------------------------------------
U.S. Government Obligations -- 8.8%
U.S. Treasury Bills:
1.41%, 11/06/08 36,900 36,892,928
0.15%, 11/20/08 10,000 9,999,208
0.29%, 11/28/08 4,500 4,499,062
0.21%, 12/04/08 2,500 2,499,519
0.93%, 1/02/09 17,500 17,474,442
0.41%, 1/29/09 1,500 1,498,423
------------
72,863,582
- ---------------------------------------------------------------------------------------------
Beneficial
Interest
(000)
=============================================================================================
Money Market Fund -- 0.3%
BlackRock Liquidity Series, LLC
Money Market Series, 1.57% (k)(l)(m) USD 2,170 2,170,000
- ---------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $75,858,144) -- 9.2% 75,861,785
=============================================================================================
See Notes to Financial Statements.
18 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Options Purchased Contracts Value
=============================================================================================
Call Options Purchased
Bristol-Myers Squibb Co., expiring
January 2009 at USD 35 1,020 $ 2,040
General Motors Corp.:
expiring January 2010 at USD 50 592 9,176
expiring January 2010 at USD 60 558 6,417
Lockheed Martin Corp., expiring
January 2009 at USD 115 467 29,187
Medtronic, Inc.:
expiring January 2009 at USD 50 152 9,880
expiring January 2009 at USD 55 106 2,385
expiring January 2009 at USD 60 501 5,010
Northrop Grumman Corp., expiring
January 2009 at USD 80 555 2,775
Raytheon Co., expiring January 2009
at USD 70 874 13,110
S&P 500 Listed Option:
expiring June 2009 at USD 132.5 100 114,500
expiring December 2009 at USD 100 40 550,600
------------
745,080
- ---------------------------------------------------------------------------------------------
Put Options Purchased
American Commercial Lines, Inc., expiring
December 2008 at USD 7.5 398 49,750
S&P 500 Listed Option:
expiring November 2008 at USD 116.5 180 3,576,600
expiring November 2008 at USD 122 143 3,619,330
expiring November 2008 at USD 122.5 154 3,973,970
------------
11,219,650
- ---------------------------------------------------------------------------------------------
Structured Options
Credit Suisse Euro Stoxx Index Link,
expiring July 2009 (o) 87,000 (1,944,372)
JPMorgan Euro Stoxx Index Link,
expiring June 2009 (p) 100,575 (2,248,496)
------------
(4,192,868)
- ---------------------------------------------------------------------------------------------
Total Options Purchased (Cost -- $5,304,539) -- 0.9% 7,771,862
=============================================================================================
Total Investments Before Options Written
and Investments Sold Short
(Cost -- $1,038,808,002) -- 99.9% 829,451,345
=============================================================================================
=============================================================================================
Options Written
=============================================================================================
Call Options Written
AO VimpelCom, expiring April 2009
at USD 22.50 404 (115,140)
Aetna, Inc.:
expiring January 2009 at USD 45 61 (1,067)
expiring January 2009 at USD 50 264 (1,980)
Boeing Co.:
expiring January 2009 at USD 75 122 (3,355)
expiring January 2009 at USD 85 125 (937)
Bunge Ltd., expiring April 2009 at USD 85 116 (2,610)
Burlington Northern Santa Fe Corp., expiring
January 2009 at USD 90 774 (561,150)
Cigna Corp., expiring January 2009
at USD 43.375 675 (10,125)
Consol Energy, Inc.:
expiring January 2009 at USD 45 496 (97,960)
expiring January 2009 at USD 80 212 (3,180)
Corning, Inc., expiring January 2009
at USD 30 939 (4,695)
DISH Network Corp., expiring January 2009
at USD 32.50 301 (4,515)
The Dow Chemical Co., expiring January 2009
at USD 35 684 (20,520)
E.I. du Pont de Nemours & Co., expiring
January 2009 at USD 45 424 (4,240)
Foster Wheeler Ltd., expiring January 2009
at USD 67.50 112 (1,120)
Hewlett-Packard Co., expiring January 2009
at USD 47.50 1,290 (106,425)
Hologic, Inc., expiring January 2009 at USD 25 167 (2,922)
Humana, Inc.:
expiring January 2009 at USD 45 259 (18,130)
expiring January 2009 at USD 50 137 (3,082)
International Game Technology, expiring
January 2009 at USD 25 765 (7,650)
International Paper Co., expiring January 2009
at USD 30 227 (3,405)
Kraft Foods, Inc., expiring January 2009 at USD 30 755 (126,463)
Lexmark International, Inc. Class A, expiring
January 2009 at USD 35 533 (10,660)
Mattel, Inc., expiring January 2009 at USD 17.50 1,054 (28,985)
McDermott International, Inc., expiring
February 2009 at USD 30 297 (17,078)
Mechel OAO, expiring January 2009 at USD 20 1,106 (52,535)
Norfolk Southern Corp., expiring
January 2009 at USD 55 494 (466,830)
Panera Bread Co. Class A, expiring
January 2009 at USD 55 135 (14,850)
Polycom, Inc.:
expiring January 2009 at USD 25 181 (17,195)
expiring January 2009 at USD 30 1,160 (17,400)
S&P 500 Listed Option:
expiring June 2009 at USD 152.50 27 (3,375)
expiring December 2009 at USD 125 40 (185,800)
SanDisk Corp.:
expiring January 2009 at USD 17.50 267 (8,678)
expiring January 2009 at USD 20 267 (5,874)
expiring January 2010 at USD 20 78 (11,037)
The St. Joe Co.:
expiring January 2009 at USD 35 443 (83,063)
expiring January 2009 at USD 40 380 (24,700)
expiring January 2009 at USD 45 68 (1,190)
State Street Corp.:
expiring January 2009 at USD 70 131 (1,965)
expiring January 2009 at USD 75 322 (3,220)
expiring January 2009 at USD 80 52 (1,040)
Time Warner, Inc., expiring January 2009 at USD 16 578 (4,335)
Unilever NV, expiring January 2009 at USD 30 232 (6,960)
United States Steel Corp., expiring
January 2009 at USD 110 200 (2,000)
UnitedHealth Group, Inc.:
expiring January 2009 at USD 30 240 (21,000)
expiring January 2009 at USD 35 962 (24,050)
Valeant Pharmaceuticals International:
expiring January 2009 at USD 12.50 854 (512,400)
expiring January 2009 at USD 15 714 (289,170)
Viacom, Inc. Class B, expiring January 2009
at USD 30 450 (10,125)
WellPoint, Inc., expiring January 2009 at USD 55 577 (18,753)
Xerox Corp., expiring January 2009 at USD 20 674 (3,370)
------------
(2,948,309)
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 19
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Options Written Contracts Value
=============================================================================================
Put Options Written
S&P 500 Listed Option:
expiring November 2008 at USD 102.50 357 $ (2,857,785)
expiring November 2008 at USD 112.50 120 (1,924,200)
------------
(4,781,985)
- ---------------------------------------------------------------------------------------------
Total Options Written
(Premiums Received -- $9,176,258) -- (0.9)% (7,730,294)
=============================================================================================
=============================================================================================
Investments Sold Short Shares
=============================================================================================
Bed Bath & Beyond, Inc. (60,800) (1,566,816)
Black & Decker, Corp. (15,553) (787,293)
Carnival Corp. (66,600) (1,691,640)
Masco Corp. (81,600) (828,240)
Staples Inc. (30,519) (592,984)
- ---------------------------------------------------------------------------------------------
Total Investments Sold Short (Proceeds -- $8,491,948) -- (0.7)% (5,466,973)
=============================================================================================
Total Investments, Net of Options Written and
Investments Sold Short -- 98.3% 816,254,078
Other Assets Less Liabilities -- 1.8% 14,004,665
------------
Net Assets -- 100.0% $830,258,743
============
* The cost and unrealized appreciation (depreciation) of investments as of
October 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 1,049,469,565
===============
Gross unrealized appreciation ........................ $ 34,022,124
Gross unrealized depreciation ........................ (254,040,344)
---------------
Net unrealized depreciation .......................... $ (220,018,220)
===============
(a) Depositary receipts.
(b) Non-income producing security.
(c) Security, or a portion of security, is on loan.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration to qualified institutional investors.
(e) All or a portion of security has been pledged as collateral in connection
with open financial futures contracts.
(f) Convertible security.
(g) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(h) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(i) Variable rate security. Rate shown is as of report date.
(j) Securities represent index linked notes. Value of the instruments is
inversely derived from the price fluctuations in the underlying index.
(k) Security was purchased with the cash proceeds from securities loans.
(l) Represents the current yield as of report date.
(m) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net
Activity
Affiliate (000) Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Money Market Series USD (21,256) $207,056
--------------------------------------------------------------------------
(n) All or a portion of security has been pledged as collateral in connection
with open swap contracts.
(o) CSFB DJ Euro Stoxx Structured Option is issued in units. Each unit
contains (a) one written put unit on the DJ Euro Stoxx 50 Index (Ticker
"SX5E") at a strike price of 3,384.537 and (b) the equivalent of 2.37 Call
Spread units on the DJ Euro Stoxx with a lower call strike of 3,562.67 and
an upper call strike of 3,918.937. For each unit of the Structured Option,
the Fund has sold or written 2.37 calls on the DJ Euro Stoxx Index at
3,918.937 and bought 2.37 calls on the DJ Euro Stoxx Index at 3,562.67.
Because the Structured Option was constructed with an upper call strike
limit of 110%, theoretically, the structure peaked at a 23.7% return in
the event that the DJ Euro Stoxx Index rose above 3,918.937. At year-end,
the DJ Euro Stoxx Index was at 2,591.76. At year-end, the value of this
Structured Option was $(1,944,372) representing the price of the potential
obligation of the Fund to the counterparty on the imbedded Put at
expiration of $792.777 per unit. The option expires on July 13, 2009.
(p) JP Morgan DJ Euro Stoxx Structured Option is issued in units. Each unit
contains (a) one written put unit on the DJ Euro Stoxx 50 Index (Ticker
"SX5E") at a strike price of 3,365.46 and (b) 2.7 Call Spread units on the
DJ Euro Stoxx with a lower call strike of 3,542.59 and an upper call
strike of 3,826.00. For each unit of the Structured Option, the Fund has
sold or written 2.7 calls on the DJ Euro Stoxx Index at 3,826.00 and
bought 2.7 calls on the DJ Euro Stoxx Index at 3,542.59. Because the
Structured Option was constructed with an upper call strike limit of 108%,
theoretically, the structure peaked at a 29.1% return in the event that
the DJ Euro Stoxx Index rose above 3,826.00. At year-end, the DJ Euro
Stoxx Index was at 2,591.76. At year-end, the value of this Structured
Option was $(2,248,496) representing the price of the potential obligation
of the Fund to the counterparty on the imbedded Put at expiration of
$773.70 per unit. The option expires on June 19, 2009.
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classification for reporting
ease. These industry classifications are unaudited.
See Notes to Financial Statements.
20 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Schedule of Investments (concluded)
o Foreign currency exchange contracts as of October 31, 2008 were as
follows:
--------------------------------------------------------------------------
Unrealized
Currency Currency Settlement Appreciation
Purchased Sold Date (Depreciation)
--------------------------------------------------------------------------
BRL 2,691,550 USD 1,143,394 11/10/08 $ 93,393
CHF 15,921,870 USD 13,641,666 11/10/08 87,980
JPY 3,471,985,000 USD 35,716,336 11/10/08 (464,862)
MYR 10,049,800 USD 2,816,727 11/10/08 12,148
SEK 18,238,800 USD 2,325,073 11/10/08 24,147
USD 2,358,518 AUD 3,566,648 11/10/08 (8,562)
USD 9,300,120 CAD 7,353,036 11/10/08 (360,648)
USD 354,436 EUR 276,729 11/10/08 1,944
USD 24,501,562 GBP 15,215,526 11/10/08 35,860
USD 2,810,792 HKD 21,790,664 11/10/08 (912)
USD 13,864,491 INR 694,611,000 11/10/08 (132,156)
USD 6,719,460 KRW 9,575,230,000 11/10/08 (718,027)
USD 1,507,182 MXN 20,730,996 11/10/08 (98,372)
USD 1,294,036 NOK 9,212,371 11/10/08 (72,537)
USD 2,633,486 SGD 3,966,030 11/10/08 (41,404)
USD 5,660,535 TWD 187,250,500 11/10/08 (27,268)
USD 894,829 ZAR 9,977,340 11/10/08 (122,698)
--------------------------------------------------------------------------
Total $ (1,791,974)
============
o Financial futures contracts purchased as of October 31, 2008 were as
follows:
--------------------------------------------------------------------------------------------
Unrealized
Expiration Face Appreciation
Contracts Issue Exchange Date Value (Depreciation)
--------------------------------------------------------------------------------------------
150 DJ Euro Stoxx 50 Eurex December 2008 $ 5,961,841 $ (1,006,387)
Deutschland
201 S&P 500 Index Chicago December 2008 53,878,074 (5,271,249)
8 S&P EMINI Chicago December 2008 368,515 18,405
10 DAX Index Eurex December 2008 1,914,699 (300,799)
25 Euro Deutschland
120 Topix Index Tokyo December 2008 14,562,383 (4,159,378)
--------------------------------------------------------------------------------------------
Total $(10,719,408)
============
o Swaps outstanding as of October 31, 2008 were as follows:
--------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Appreciation
--------------------------------------------------------------------------
Bought credit default protection on
DaimlerChrysler NA Holding Corp. and pay 0.53%
Broker, JPMorgan Chase Bank N.A.
Expires September 2011 EUR 160 $16,540
Bought credit default protection on Carnival Corp.
and pay 0.25%
Broker, JPMorgan Chase Bank N.A.
Expires September 2011 USD 310 15,999
Bought credit default protection on Whirlpool Corp.
and pay 0.48%
Broker, JPMorgan Chase Bank N.A.
Expires September 2011 USD 103 6,087
Bought credit default protection on McDonald's Corp.
and pay 0.16%
Broker, JPMorgan Chase Bank N.A.
Expires September 2011 USD 103 859
Bought credit default protection on JC Penney Corp.,
Inc. and pay 0.53%
Broker, JPMorgan Chase Bank N.A.
Expires September 2011 USD 103 7,955
--------------------------------------------------------------------------
Total $47,440
=======
o Currency Abbreviations:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
CNY Chinese Yuan
EUR Euro
GBP British Pound
HKD Hong Kong Dollar
INR Indian Rupee
KRW South Korean Won
JPY Japanese Yen
MXN Mexican New Peso
MYR Malaysian Ringgit
NOK Norwegian Krone
SEK Swedish Krona
SGD Singapore Dollar
TWD Taiwan Dollar
USD U.S. Dollar
ZAR South African Rand
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 21
Statement of Assets and Liabilities
October 31, 2008
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated (cost -- $1,036,638,002) (including securities loaned of $1,985,325) ...... $ 827,281,345
Investments at value -- affiliated (cost -- $2,170,000) ........................................................ 2,170,000
Foreign currency at value (cost -- $12,887,938) ................................................................ 12,823,425
Cash on deposit for short sales ................................................................................ 5,608,417
Unrealized appreciation on swaps ............................................................................... 47,440
Unrealized appreciation on foreign currency exchange contracts ................................................. 255,472
Investments sold receivable .................................................................................... 4,638,779
Dividends receivable ........................................................................................... 2,641,767
Capital shares sold receivable ................................................................................. 712,564
Interest receivable ............................................................................................ 573,407
Prepaid expenses ............................................................................................... 38,515
Securities lending income receivable -- affiliated ............................................................. 14,995
Other assets ................................................................................................... 90,651
---------------
Total assets ................................................................................................... 856,896,777
---------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned at value ....................................................................... 2,170,000
Investments sold short at value (proceeds -- $8,491,948) ....................................................... 5,466,973
Options written at value (premiums received -- $9,176,258) ..................................................... 7,730,294
Unrealized depreciation on foreign currency exchange contracts ................................................. 2,047,446
Investments purchased payable .................................................................................. 4,856,944
Capital shares redeemed payable ................................................................................ 2,579,430
Investment advisory fees payable ............................................................................... 323,048
Distribution fees payable ...................................................................................... 279,279
Other affiliates payable ....................................................................................... 206,641
Margin variation payable ....................................................................................... 193,184
Dividends on short sales payable ............................................................................... 19,176
Options purchased .............................................................................................. 4,662
Officer's and Trustees' fees payable ........................................................................... 564
Swaps payable .................................................................................................. 357
Other accrued expenses payable ................................................................................. 345,401
Other liabilities .............................................................................................. 414,635
---------------
Total liabilities .............................................................................................. 26,638,034
---------------
Net Assets ..................................................................................................... $ 830,258,743
===============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares, $0.10 par value, unlimited shares authorized ............................................. $ 2,594,325
Investor A Shares, $0.10 par value, unlimited shares authorized ................................................ 4,155,037
Investor B Shares, $0.10 par value, unlimited shares authorized ................................................ 390,464
Investor C Shares, $0.10 par value, unlimited shares authorized ................................................ 2,065,439
Class R Shares, $0.10 par value, unlimited shares authorized ................................................... 80,518
Paid-in capital in excess of par ............................................................................... 1,067,952,135
Undistributed net investment income ............................................................................ 9,055,923
Accumulated net realized loss .................................................................................. (38,659,238)
Net unrealized appreciation/depreciation ....................................................................... (217,375,860)
---------------
Net Assets ..................................................................................................... $ 830,258,743
===============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional -- Based on net assets of $233,081,175 and 25,943,252 shares of beneficial interest outstanding .. $ 8.98
===============
Investor A -- Based on net assets of $372,188,007 and 41,550,365 shares of beneficial interest outstanding ..... $ 8.96
===============
Investor B -- Based on net assets of $34,681,740 and 3,904,638 shares of beneficial interest outstanding ....... $ 8.88
===============
Investor C -- Based on net assets of $183,124,922 and 20,654,391 shares of beneficial interest outstanding ..... $ 8.87
===============
Class R -- Based on net assets of $7,182,899 and 805,183 shares of beneficial interest outstanding ............. $ 8.92
===============
See Notes to Financial Statements.
22 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Statement of Operations
Year Ended October 31, 2008
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends (net of $1,344,892 foreign withholding tax) ............................................................ $ 26,424,474
Interest ......................................................................................................... 2,243,878
Securities lending income -- affiliated .......................................................................... 207,056
Income -- affiliated ............................................................................................. 5,011
-------------
Total income ..................................................................................................... 28,880,419
-------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory .............................................................................................. 10,357,537
Service -- Investor A ............................................................................................ 1,414,271
Service and distribution -- Investor B ........................................................................... 634,819
Service and distribution -- Investor C ........................................................................... 2,778,415
Service and distribution -- Class R .............................................................................. 53,132
Transfer agent -- Institutional .................................................................................. 306,413
Transfer agent -- Investor A ..................................................................................... 549,547
Transfer agent -- Investor B ..................................................................................... 116,832
Transfer agent -- Investor C ..................................................................................... 296,382
Transfer agent -- Class R ........................................................................................ 40,910
Custodian ........................................................................................................ 839,712
Accounting services .............................................................................................. 419,414
Registration ..................................................................................................... 151,537
Professional ..................................................................................................... 111,134
Printing ......................................................................................................... 114,269
Officer and Trustees ............................................................................................. 53,379
Interest expense ................................................................................................. 2,860
Miscellaneous .................................................................................................... 93,473
-------------
Total expenses excluding dividend expense ........................................................................ 18,334,036
Dividend expense ................................................................................................. 1,287,244
-------------
Total expenses ................................................................................................... 19,621,280
Less fees waived by advisor ...................................................................................... (395,957)
-------------
Total expenses after waiver ...................................................................................... 19,225,323
-------------
Net investment income ............................................................................................ 9,655,096
-------------
===================================================================================================================================
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments (including $1,914,393 foreign capital gain tax) .................................................... (20,133,184)
Futures and swaps .............................................................................................. (29,473,811)
Options written ................................................................................................ 4,499,526
Foreign currency ............................................................................................... 4,867,070
Short sales .................................................................................................... 5,477,895
-------------
(34,762,504)
-------------
Net change in unrealized appreciation/depreciation on:
Investments (including $222,999 deferred foreign capital gain credit) .......................................... (518,921,113)
Options written ................................................................................................ 10,195,845
Futures and swaps .............................................................................................. (13,934,366)
Foreign currency ............................................................................................... (2,683,872)
Short sales .................................................................................................... 3,084,267
-------------
(522,259,239)
-------------
Total realized and unrealized loss ............................................................................... (557,021,743)
-------------
Net Decrease in Net Assets Resulting from Operations ............................................................. $(547,366,647)
=============
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 23
Statements of Changes in Net Assets
Year Ended
October 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2008 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ...................................................................... $ 9,655,096 $ 5,415,132
Net realized gain (loss) ................................................................... (34,762,504) 64,422,814
Net change in unrealized appreciation/depreciation ......................................... (522,259,239) 164,308,239
-----------------------------------
Net increase (decrease) in net assets resulting from operations ............................ (547,366,647) 234,146,185
-----------------------------------
===================================================================================================================================
Dividends and Distributions to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ............................................................................ (2,967,933) (1,865,895)
Investor A ............................................................................... (3,704,220) (866,790)
Investor B ............................................................................... (13,717) (60,745)
Investor C ............................................................................... (365,926) (512,648)
Class R .................................................................................. (48,175) (36)
Net realized gain:
Institutional ............................................................................ (15,025,378) (4,651,154)
Investor A ............................................................................... (24,465,366) (2,532,894)
Investor B ............................................................................... (3,171,004) (734,273)
Investor C ............................................................................... (11,819,802) (4,337,172)
Class R .................................................................................. (425,864) (340)
-----------------------------------
Decrease in net assets resulting from dividends and distributions to shareholders .......... (62,007,385) (15,561,947)
-----------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from share transactions ................................. 6,955,553 918,338,590
-----------------------------------
===================================================================================================================================
Redemption Fee
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fee ............................................................................. 54,970 4,532
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .................................................... (602,363,509) 1,136,927,360
Beginning of year .......................................................................... 1,432,622,252 295,694,892
-----------------------------------
End of year ................................................................................ $ 830,258,743 $ 1,432,622,252
===================================
End of year undistributed net investment income ............................................ $ 9,055,923 $ 3,269,014
===================================
See Notes to Financial Statements.
24 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Financial Highlights
Institutional Investor A
------------------------------------ ------------------------------------
Year Ended Period Year Ended Period
October 31, Nov. 4, 2005 1 October 31, Nov. 4, 2005 1
-------------------- to October 31, ------------------- to October 31,
2008 2007 2006 2008 2007 2006
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 15.11 $ 12.03 $ 10.00 $ 15.08 $ 12.00 $ 10.00
------------------------------------ ------------------------------------
Net investment income 2 ............................. 0.15 0.13 0.12 0.11 0.10 0.10
Net realized and unrealized gain (loss) 3 ........... (5.60) 3.59 1.93 (5.57) 3.59 1.92
------------------------------------ ------------------------------------
Net increase (decrease) from investment operations .. (5.45) 3.72 2.05 (5.46) 3.69 2.02
------------------------------------ ------------------------------------
Dividends and distributions from:
Net investment income ........................... (0.11) (0.19) (0.02) (0.09) (0.16) (0.02)
Net realized gain ............................... (0.57) (0.45) -- (0.57) (0.45) --
------------------------------------ ------------------------------------
Total dividends and distributions ................... (0.68) (0.64) (0.02) (0.66) (0.61) (0.02)
------------------------------------ ------------------------------------
Net asset value, end of period ...................... $ 8.98 $ 15.11 $ 12.03 $ 8.96 $ 15.08 $ 12.00
==================================== ====================================
===================================================================================================================================
Total Investment Return 4
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................ (37.62)% 32.17% 20.51% 5,6 (37.74)% 31.84% 20.21% 5,6
==================================== ====================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver, excluding reorganization
expenses and excluding dividend expense ........... 0.99% 1.02% 1.26% 7 1.25% 1.27% 1.51% 7
==================================== ====================================
Total expenses after waiver ......................... 1.09% 1.04% 1.26% 7 1.35% 1.29% 1.51% 7
==================================== ====================================
Total expenses ...................................... 1.12% 1.04% 1.26% 7 1.38% 1.29% 1.51% 7
==================================== ====================================
Net investment income ............................... 1.13% 1.09% 1.14% 7 0.88% 0.83% 0.93% 7
==================================== ====================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ..................... $233,081 $383,601 $107,419 $372,188 $648,402 $ 66,714
==================================== ====================================
Portfolio turnover .................................. 66% 35% 38% 66% 35% 38%
==================================== ====================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Includes redemption fees, which are less than $0.01 per share.
4 Total investment return excludes the effects of sales charges.
5 Aggregate total investment return.
6 A portion of total investment return consisted of a payment by the
previous investment advisor in order to resolve a regulatory issue
relating to an investment, which increased the return by 0.03%.
7 Annualized.
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 25
Financial Highlights (continued)
Investor B Investor C
------------------------------------ ------------------------------------
Year Ended Period Year Ended Period
October 31, Nov. 4, 2005 1 October 31, Nov. 4, 2005 1
-------------------- to October 31, ------------------- to October 31,
2008 2007 2006 2008 2007 2006
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 14.98 $ 11.91 $ 10.00 $ 14.97 $ 11.92 $ 10.00
------------------------------------ ------------------------------------
Net investment income 2 ............................. 0.01 0.01 0.02 0.01 0.01 0.02
Net realized and unrealized gain (loss) 3 ........... (5.54) 3.55 1.91 (5.52) 3.55 1.92
------------------------------------ ------------------------------------
Net increase (decrease) from investment operations .. (5.53) 3.56 1.93 (5.51) 3.56 1.94
------------------------------------ ------------------------------------
Dividends and distributions from:
Net investment income ........................... (0.00) 4 (0.04) (0.02) (0.02) (0.06) (0.02)
Net realized gain ............................... (0.57) (0.45) -- (0.57) (0.45) --
------------------------------------ ------------------------------------
Total dividends and distributions ................... (0.57) (0.49) (0.02) (0.59) (0.51) (0.02)
------------------------------------ ------------------------------------
Net asset value, end of period ...................... $ 8.88 $ 14.98 $ 11.91 $ 8.87 $ 14.97 $ 11.92
==================================== ====================================
===================================================================================================================================
Total Investment Return 5
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................ (38.24)% 30.76% 19.31% 6,7 (38.20)% 30.76% 19.41% 6,7
==================================== ====================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver, excluding reorganization
expenses and excluding dividend expense ........... 2.05% 2.07% 2.27% 8 2.01% 2.05% 2.27% 8
==================================== ====================================
Total expenses after waiver ......................... 2.15% 2.09% 2.27% 8 2.11% 2.07% 2.27% 8
==================================== ====================================
Total expenses ...................................... 2.21% 2.11% 2.27% 8 2.14% 2.07% 2.27% 8
==================================== ====================================
Net investment income ............................... 0.05% 0.09% 0.18% 8 0.12% 0.08% 0.16% 8
==================================== ====================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ..................... $ 34,682 $ 84,465 $ 18,395 $183,125 $305,241 $103,167
==================================== ====================================
Portfolio turnover .................................. 66% 35% 38% 66% 35% 38%
==================================== ====================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Includes redemption fees, which are less than $0.01 per share.
4 Amount is less than $(0.01) per share.
5 Total investment return excludes the effects of sales charges.
6 Aggregate total investment return.
7 A portion of total investment return consisted of a payment by the
previous investment advisor in order to resolve a regulatory issue
relating to an investment, which increased the return by 0.03%
8 Annualized.
See Notes to Financial Statements.
26 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Financial Highlights (concluded)
Class R
---------------------------
Period
Year March 1,
Ended 2007 1 to
October 31, October 31,
2008 2007
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .............................................................. $ 15.04 $ 12.41
---------------------------
Net investment income 2 ........................................................................... 0.08 0.04
Net realized and unrealized gain (loss) 3 ......................................................... (5.57) 2.82
---------------------------
Net increase (decrease) from investment operations ................................................ (5.49) 2.86
---------------------------
Dividends and distributions from:
Net investment income ........................................................................... (0.06) (0.02)
Net realized gain ............................................................................... (0.57) (0.21)
---------------------------
Total dividends and distributions ................................................................. (0.63) (0.23)
---------------------------
Net asset value, end of period .................................................................... $ 8.92 $ 15.04
===========================
==================================================================================================================================
Total Investment Return
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .......................................................................... (37.95)% 23.36% 4
===========================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver, excluding reorganization expenses and excluding dividend expense ..... 1.54% 1.54% 5
===========================
Total expenses after waiver ....................................................................... 1.64% 1.55% 5
===========================
Total expenses .................................................................................... 1.92% 1.67% 5
===========================
Net investment income ............................................................................. 0.60% 0.53% 5
===========================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ................................................................... $ 7,183 $ 10,914
===========================
Portfolio turnover ................................................................................ 66% 35%
===========================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Includes redemption fees, which are less than $0.01 per share.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 27
Notes to Financial Statements
1. Organization and Significant Accounting Policies:
BlackRock Global Dynamic Equity Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company. The Fund is organized as a Delaware
statutory trust. The Fund'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 Fund 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. Class R
Shares are generally sold only to certain retirement plans. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Investor A, Investor B, Investor C and
Class R Shares bear certain expenses related to the shareholder servicing of
such shares, and Investor B, Investor C and Class R Shares also bear certain
expenses related to the distribution of such shares. Each class has exclusive
voting rights with respect to matters relating to its shareholder servicing and
distribution expenditures (except that Investor B shareholders may vote on
material changes to the Investor A distribution plan).
The following is a summary of significant accounting policies followed by the
Fund:
Valuation of Investments: Equity investments traded on a recognized securities
exchange or the NASDAQ Global Market System are valued at the last reported sale
price that day or the NASDAQ official closing price, if applicable. For equity
investments traded on more than one exchange, the last reported sale price on
the exchange where the stock is primarily traded is used. Equity investments
traded on a recognized exchange for which there were no sales on that day are
valued at the last available bid (long positions) or ask (short positions)
price. If no bid or ask price is available, the prior day's price will be used,
unless it is determined that such prior day's price no longer reflects the fair
value of the security.
The Fund values its bond investments on the basis of last available bid price or
current market quotations provided by dealers or pricing services selected under
the supervision of the Board of Trustees (the "Board"). In determining the value
of a particular investment, pricing services may use certain information with
respect to transactions in such investments, quotations from dealers, pricing
matrixes, market transactions in comparable investments, various relationships
observed in the market between investments and calculated yield measures based
on valuation technology commonly employed in the market for such investments.
Financial futures contracts traded on exchanges are valued at their last sale
price. Swap agreements are valued by utilizing quotes received daily by the
Fund's pricing service or through brokers. Short-term securities are valued at
amortized cost. The Fund values its investment in BlackRock Liquidity Series,
LLC Money Market Series at fair value, which is ordinarily based upon their
pro-rata ownership in the net assets of the underlying fund.
Exchange-traded options are valued at the mean between the last bid and ask
prices at the close of the options market in which the options trade. An
exchange-traded option for which there is no mean price is valued at the last
bid (long positions) or ask (short positions) price. If no bid or ask price is
available, the prior day's price will be used, unless it is determined that such
prior day's price no longer reflects the fair value of the option.
Over-the-counter options are valued by an independent pricing service using a
mathematical model which incorporates a number of market data factors.
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 a method approved by 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 Fund 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
Fund 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 Fund's net assets. 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 Board or by the investment advisor using a
pricing service and/or procedures approved by the Board.
Derivative Financial Instruments: The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise 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.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such futures contracts for investment
purposes or to manage its interest rate risk. Futures contracts are
contracts for delayed delivery of securities at a specific future date and
at a specific price or yield. Pursuant to the contract, the Fund agrees to
receive from, or pay, to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as margin variation and are recorded by the Fund as unrealized
28 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Notes to Financial Statements (continued)
gains or losses. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at
the time it was opened and the value at the time it was closed. The use of
futures transactions involves the risk of an imperfect correlation in the
movements in the price of futures contracts, interest rates and the
underlying assets, and the possible inability of counterparties to meet
the terms of their contracts.
o Foreign currency exchange contracts -- A forward currency contract is an
agreement between two parties to buy and sell a currency at a set exchange
rate on a future date. The Fund may enter into foreign currency exchange
contracts as a hedge against either specific transactions or portfolio
positions. Foreign currency exchange contracts, when used by the Fund,
help to manage the overall exposure to the foreign currency backing some
of the investments held by the Fund. The contract is marked-to-market
daily and the change in market value is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value at the
time it was opened and the value at the time it was closed.
The use of forward foreign currency contracts involves the risk that
counterparties may not meet the terms of the agreement and market risk of
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.
o Options -- The Fund may purchase and write call and put options. A call
option gives the purchaser of the option the right (but not the
obligation) to buy, and obligates the seller to sell (when the option is
exercised), the underlying position at the exercise price at any time or
at a specified time during the option period. A put option gives the
holder the right to sell and obligates the writer to buy the underlying
position at the exercise price at any time or at a specified time during
the option period.
When the Fund purchases (writes) an option, an amount equal to the premium
paid received by the Fund is reflected as an asset and an equivalent
liability. The amount of the asset (liability) is subsequently
marked-to-market to reflect the current market value of the option
written. When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or deducted
from) the basis of the security acquired or deducted from (or added to)
the proceeds of the security sold. When an option expires (or the Fund
enters into a closing transaction), the Fund realizes a gain or loss on
the option to the extent of the premiums received or paid (or gain or loss
to the extent the cost of the closing transaction exceeds the premium
received or paid). When the Fund writes a call option, such option is
"covered," meaning that the Fund holds the underlying security subject to
being called by the option counterparty, or cash in an amount sufficient
to cover the obligation. When the Fund writes a put option, such option is
covered by cash in an amount sufficient to cover the obligation. Certain
call options are written as part of an arrangement where the counterparty
to the transaction borrows the underlying security from the Fund in a
securities lending transaction.
In purchasing and writing options, the Fund bears the market risk of an
unfavorable change in the price of the underlying security. Exercise of a
written option could result in the Fund purchasing a security at a price
different from the current market value.
The Fund may execute transactions in both listed and over-the-counter
options. Transactions in certain over-the-counter options may expose the
Fund to the risk of default by the counterparty to the transaction.
Structured Options -- The Fund invests in structured options with approved
counterparties. These structured options are European-Style Options and
consist of multiple over-the-counter options which are priced as a single
security. European-Style Options may only be exercised at the expiration
date, but may be transferred/sold prior to expiration date. Each of the
component options is purchased or sold on a single underlying index. The
value on structured options will increase when the value of the underlying
index increases, and decrease when the value of the underlying index
decreases. The Fund may also invest in structured options the return of
which is inversely related to changes in an index ("Inverse Structured
Options"). In general, the value on Inverse Structured Options will
decrease when the value of the underlying index increases, and increase
when the value of the underlying index decreases. Upon the exercise of the
structured option, the Fund will receive a payment from, or be required to
remit a payment to the counterparty, depending on the value of the
underlying index at exercise. Pursuant to the CSA, each day, a
determination of collateral requirements is made. Upon the exercise of the
structured option, the Fund may receive a payment from, or be required to
pay, the counterparty depending on the value of the structured option.
o Swaps -- The Fund may enter into swaps for investment purposes or to
manage its interest rate risk. The Fund may enter into swap agreements, in
which the Fund and a counterparty agree to make periodic net payments on a
specified notional amount. These periodic payments received or made by the
Fund are recorded in the accompanying Statement of Operations as realized
gains or losses, respectively. Swaps are marked-to-market daily and
changes in value are recorded as unrealized appreciation (depreciation).
When the swap is terminated, the Fund will record a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract, if any. Swap
transactions involve, to varying degrees, elements of credit and market
risk in excess of the amounts
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 29
Notes to Financial Statements (continued)
recognized on the Statement of Assets and Liabilities. Such risks involve
the possibility that there will be no liquid market for these agreements,
that the counterparty to the agreements may default on its obligation to
perform or disagree as to the meaning of the contractual terms in the
agreements, and that there may be unfavorable changes in interest rates
and/or market values associated with these transactions.
Credit default swaps -- Credit default swaps are agreements in which one
party pays fixed periodic payments to a counterparty in consideration for
a guarantee from the counterparty to make a specific payment should a
negative credit event take place.
Interest rate swaps -- Interest rate swaps are agreements in which one
party pays a floating rate of interest on a notional principal amount and
receives a fixed rate of interest on the same notional principal amount
for a specified period of time. Alternatively, a party may pay a fixed
rate and receive a floating rate. In more complex swaps, the notional
principal amount may decline (or amortize) over time.
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 Fund 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.
Preferred Stock: The Fund may invest in preferred stocks. Preferred stock has a
preference over common stock in liquidation (and generally in receiving
dividends as well) but is subordinated to the liabilities of the issuer in all
respects. As a general rule, the market value of preferred stock with a fixed
dividend rate and no conversion element varies inversely with interest rates and
perceived credit risk, while the market price of convertible preferred stock
generally also reflects some element of conversion value. Because preferred
stock is junior to debt securities and other obligations of the issuer,
deterioration in the credit quality of the issuer will cause greater changes in
the value of a preferred stock than in a more senior debt security with similar
stated yield characteristics. Unlike interest payments on debt securities,
preferred stock dividends are payable only if declared by the issuer's board of
directors. Preferred stock also may be subject to optional or mandatory
redemption provisions.
Short Sales: When the Fund engages in a short sale, an amount equal to the
proceeds received by the Fund is reflected as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the market value of the short sale. When the Fund makes a short sale, it
may borrow the security sold short and deliver it to the broker-dealer through
which it made the short sale as collateral for its obligation to deliver the
security upon conclusion of the sale. The Fund maintains a segregated account of
securities as collateral for the short sales. The Fund is exposed to market risk
based on the amount, if any, that the market value of the security exceeds the
market value of the securities in the segregated account. Thus, a short sale of
a security involves the risk that instead of declining, the price of the
security sold short will rise. The short sale of securities involves the
possibility of a theoretically unlimited loss since there is a theoretically
unlimited potential for the market price of the security sold short to increase.
The Fund is required to repay the counterparty any dividends or interest
received on the security sold short. A gain, limited to the price at which the
Fund sold the security short, or a loss, unlimited as to the dollar amount, will
be recognized upon the termination of a short sale if the market price is
greater or less than the proceeds originally received.
Zero-Coupon Bonds: The Fund may invest in zero-coupon bonds, which are normally
issued at a significant discount from face value and do not provide for periodic
interest payments. Zero-coupon bonds may experience greater volatility in market
value then similar maturity debt obligations, which provide for regular interest
payments.
Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the Securities and Exchange Commission ("SEC") require
that the Fund segregate assets in connection with certain investments (e.g.,
swaps, written options, forward foreign currency contracts, short sales,
structured options or financial futures contracts), the Fund will, consistent
with certain interpretive letters issued by the SEC, designate on its books and
records cash or other liquid securities having a market value at least equal to
the amount that would otherwise be required to be physically segregated.
Furthermore, based on requirements and agreements with certain exchanges and
third party broker-dealers, the Fund may also be required to deliver or deposit
securities as collateral for certain investments (e.g., financial futures
contracts, swaps, structured options and written options).
Investment Transactions and Investment Income: Investment transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed are
subsequently recorded when the Fund has determined the ex-dividend date.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities. Income and realized and unrealized
gains and losses are allocated daily to each class based on its relative net
assets.
Dividends and Distributions: Dividends and distributions paid by the Fund are
recorded on the ex-dividend dates.
30 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Notes to Financial Statements (continued)
Securities Lending: The Fund may lend securities to financial institutions that
provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The market value of
the loaned securities is determined at the close of business of the Fund and any
additional required collateral is delivered to the Fund on the next business
day. The Fund typically receives the income on the loaned securities but does
not receive the income on the collateral. Where the Fund receives cash
collateral, it may invest such collateral and retain the amount earned on such
investment, net of any amount rebated to the borrower. The Fund may receive a
flat fee for its loans. 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 Fund 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 Fund
could experience delays and costs in gaining access to the collateral. The Fund
also could suffer a loss where the value of the invested collateral falls below
the market value of the borrowed securities either in the event of borrower
default or in the event of losses on investments made with cash collateral. For
the year ended October 31, 2008, the Fund received only cash collateral for any
securities loaned.
Income Taxes: It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
Effective April 30, 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. The investment advisor has
evaluated the application of FIN 48 to the Fund, and has determined that the
adoption of FIN 48 does not have a material impact on the Fund's financial
statements. The Fund 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 Fund's tax returns remains open for the years ended October
31, 2005 through October 31, 2007. The statutes of limitations on the Fund's
state and local tax returns may remain open for an additional year depending
upon the jurisdiction.
Recent Accounting Pronouncements: 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 Fund's financial
statement disclosures is currently being assessed.
In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures
about Derivative Instruments and Hedging Activities -- an amendment of FASB
Statement No. 133" ("FAS 161"), was issued. FAS 161 is intended to improve
financial reporting for derivative instruments by requiring enhanced disclosure
that enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for and how derivative instruments affect an entity's
results of operations and financial position. In September 2008, FASB Staff
Position No. 133-1 and FASB Interpretation No. 45-4 (the "FSP"), "Disclosures
about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement
No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date
of FASB Statement No. 161," was issued and is effective for fiscal years and
interim periods ending after November 15, 2008. The FSP amends FASB Statement
No. 133, "Accounting for Derivative Instruments and Hedging Activities," to
require disclosures by sellers of credit derivatives, including credit
derivatives embedded in hybrid instruments. The FSP also clarifies the effective
date of FAS 161, whereby disclosures required by FAS 161 are effective for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008. The impact on the Fund's financial statement disclosures, if
any, is currently being assessed.
Other: Expenses directly related to the Fund or its classes are charged to that
Fund or class. Other operating expenses shared by several funds are pro-rated
among those funds on the basis of relative net assets or other appropriate
methods. Other expenses of the Fund are allocated daily to each class based on
its relative net assets.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of
BlackRock, Inc., to provide investment advisory and administration services.
Merrill Lynch & Co. Inc. ("Merrill Lynch") and The PNC Financial Services Group,
Inc. ("PNC") are principal owners of BlackRock, Inc.
The Advisor is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays the Advisor a monthly fee of 0.80%, on an annual basis, of the average
daily value of the Fund's net assets. The Advisor has agreed to contractually
waive and/or reimburse Fund fees or expenses until April 30, 2009 so that the
net operating expense ratio of the Fund (excluding
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 31
Notes to Financial Statements (continued)
acquired Fund fees and expenses), as a percentage of average daily net assets,
will be no greater than 1.04% for Institutional Shares, 1.29% for Investor A
Shares, 2.06% for Investor B Shares, 2.06% for Investor C Shares and 1.54% for
Class R Shares, which is shown as fees waived by advisor on the Statement of
Operations. The expense limit applies to the aggregate expenses incurred on a
share class (excluding: interest, taxes, brokerage commissions, expenses
incurred as a result of investments in other funds and other expenses
attributable to, and incurred as a result of, the Fund's investments and other
extraordinary expenses).
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC ("BIM") and BlackRock Asset Management U.K. Limited,
both affiliates of the Advisor, under which the Advisor pays the sub-advisors
for services they provide, a monthly fee that is a percentage of the investment
advisory fee paid by the Fund to the Advisor.
For the year ended October 31, 2008, the Fund reimbursed the Advisor $23,705 for
certain accounting services, which is included in accounting services in the
Statement of Operations.
Effective October 1, 2008, the Fund has entered into separate Distribution
Agreements and Distribution Plans with BlackRock Investments, Inc. ("BII") which
replaced FAM Distributors, Inc. ("FAMD") and BlackRock Distributors, Inc. and
its affiliates ("BDI") (collectively, the "Distributor") as the sole distributor
of the Fund. FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc., and
BII and BDI are affiliates of BlackRock, Inc. The service and distribution fees
did not change as a result of this transaction.
Pursuant to the Distribution Plans adopted by the Fund in accordance with Rule
12b-1 under the 1940 Act, the Fund pays the Distributor ongoing service and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
- --------------------------------------------------------------------------------
Service Distribution
Fee Fee
- --------------------------------------------------------------------------------
Investor A .......................................... 0.25% --
Investor B .......................................... 0.25% 0.75%
Investor C .......................................... 0.25% 0.75%
Class R ............................................. 0.25% 0.25%
- --------------------------------------------------------------------------------
Pursuant to sub-agreements with the Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and the Distributor provide shareholder servicing
and distribution services to the Fund. The ongoing service and/or distribution
fee compensates the Distributor and each broker-dealer for providing shareholder
servicing and/or distribution-related services to Investor A, Investor B,
Investor C and Class R shareholders.
For the year ended October 31, 2008, the Distributor earned underwriting
discounts and direct commissions and its affiliates earned dealer concessions on
sales of the Fund's Investor A Shares, totaling $378,384, and the affiliates
received contingent deferred sales charges of $81,182 and $54,446 relating to
transactions in Investor B and Investor C Shares, respectively. Furthermore,
affiliates received contingent deferred sales charges of $38,896 relating to
transactions subject to front-end sales charge waivers on Investor A Shares.
These amounts include payments to Hilliard Lyons, which was considered an
affiliate for a portion of the year.
PNC Global Investment Servicing (U.S.) Inc., formerly PFPC Inc., an indirect,
wholly owned subsidiary of PNC and an affiliate of the Advisor, is the Fund's
transfer agent. Each class of the Fund bears the costs of transfer agent fees
associated with such respective classes. Transfer agency fees borne by each
class of the Fund are comprised of those fees charged for all shareholder
communications including mailing of shareholder reports, dividend and
distribution notices, and proxy materials for shareholders meetings, as well as
per account and per transaction fees related to servicing and maintenance of
shareholder accounts, including the issuing, redeeming and transferring of
shares of each class of the Fund, 12b-1 fee calculation, check writing,
anti-money laundering services, and customer identification services.
The Fund may earn income on positive cash balances in demand deposit accounts
that are maintained by the transfer agent on behalf of the Fund. For the year
ended October 31, 2008, the Fund earned $5,011, which is shown as income from
affiliates in the Statement of Operations.
Pursuant to written agreements, certain affiliates provide the Fund with
sub-accounting, recordkeeping, sub-transfer agency and other administrative
services with respect to sub-accounts they service. For these services, these
affiliates receive an annual fee per shareholder account which will vary
depending on share class. For the year ended October 31, 2008, the Fund paid
$1,077,916 in return for these services, which are a component of the transfer
agent fees in the accompanying Statement of Operations.
The Advisor maintains a call center, which is responsible for providing certain
shareholder services to the Fund, such as responding to shareholder inquiries
and processing transactions based upon instructions from shareholders with
respect to the subscription and redemption of Fund shares. For the year ended
October 31, 2008, the following amounts have been accrued by the Fund to
reimburse the Advisor 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 ................................................. $ 3,167
Investor A .................................................... $15,685
Investor B .................................................... $ 2,076
Investor C .................................................... $ 6,044
Class R ....................................................... $ 149
- --------------------------------------------------------------------------------
32 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Notes to Financial Statements (continued)
The Fund 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
Fund 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 Fund,
invest cash collateral received by the Fund for such loans, among other things,
in a private investment company managed by the Advisor or in registered money
market funds advised by the Advisor or its affiliates. For the year ended
October 31, 2008, BIM received $51,316 in securities lending agent fees.
In addition, MLPF&S received $82,272 in commissions on the execution of
portfolio security transactions for the Fund for the year ended October 31,
2008.
Certain officers and/or trustees of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates. The Fund reimburses the Advisor for
compensation paid to the Fund's Chief Compliance Officer.
3. Investments:
Purchases and sales of investments, excluding short-term securities and U.S.
government securities, for the year ended October 31, 2008 were $842,110,533 and
$1,002,777,496, respectively.
Purchases of U.S. government securities for the year ended October 31, 2008 was
$17,902,289.
Transactions in call options written for the year ended October 31, 2008 were as
follows:
- --------------------------------------------------------------------------------
Premiums
Contracts Received
- --------------------------------------------------------------------------------
Outstanding call options written,
beginning of year ............................ 24,975 $ 9,021,994
Options written ................................ 24,929 8,825,104
Options exercised .............................. (4,909) (2,962,459)
Options expired ................................ (19,030) (4,988,204)
Options closed ................................. (4,140) (1,435,446)
-----------------------
Outstanding call options written, end of year .. 21,825 $ 8,460,989
- --------------------------------------------------------------------------------
Transactions in put options written for the year ended October 31, 2008 were as
follows:
- --------------------------------------------------------------------------------
Premiums
Contracts Received
- --------------------------------------------------------------------------------
Outstanding put options written,
beginning of year ............................ 689 $ 832,470
Options written ................................ 2,577 3,908,325
Options expired ................................ (723) (664,218)
Options closed ................................. (2,066) (3,361,308)
-----------------------
Outstanding put options written, end of year ... 477 $ 715,269
- --------------------------------------------------------------------------------
4. Short-Term Borrowings:
The Fund, along with certain other funds managed by the Advisor and its
affiliates, is party to a $500,000,000 credit agreement with a group of lenders,
which expired November 2008 and was subsequently renewed until November 2009.
The Fund may borrow under the credit agreement to fund shareholder redemptions
and for other lawful purposes other than for leverage. The Fund may borrow up to
the maximum amount allowable under the Fund's current Prospectus and Statement
of Additional Information, subject to various other legal, regulatory or
contractual limits. The Fund pays a commitment fee of 0.06% per annum based on
the Fund's pro rata share of the unused portion of the credit agreement, which
is included in miscellaneous 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 0.35% or a base rate as defined in the
credit agreement. The Fund did not borrow under the credit agreement during the
year ended October 31, 2008.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 33
Notes to Financial Statements (continued)
5. Capital Shares Transactions:
Transactions in shares for each class were as follows:
Year Ended Year Ended
October 31, 2008 October 31, 2007
----------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 13,096,429 $ 169,985,494 9,540,477 $ 127,989,856
Shares issued resulting from reorganization ................ -- -- 9,154,204 119,139,221
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 1,165,557 16,005,253 418,598 5,260,827
----------------------------- ----------------------------
Total issued ............................................... 14,261,986 185,990,747 19,113,279 252,389,904
Shares redeemed ............................................ (13,709,000) (159,757,153) (2,649,701) (35,239,772)
----------------------------- ----------------------------
Net increase ............................................... 552,986 $ 26,233,594 16,463,578 $ 217,150,132
============================= ============================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 4,939,017 $ 63,886,041 4,100,590 $ 55,209,904
Shares issued resulting from reorganization ................ -- -- 37,429,400 486,769,349
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 2,440,964 33,335,670 244,828 3,065,430
----------------------------- ----------------------------
Total issued ............................................... 7,379,981 97,221,711 41,774,818 545,044,683
Shares redeemed ............................................ (8,838,680) (106,478,393) (4,323,689) (57,886,622)
----------------------------- ----------------------------
Net increase (decrease) .................................... (1,458,699) $ (9,256,682) 37,451,129 $ 487,158,061
============================= ============================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 499,520 $ 6,644,261 644,109 $ 8,490,220
Shares issued resulting from reorganization ................ -- -- 5,067,946 65,770,280
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 243,037 3,269,951 56,178 704,942
----------------------------- ----------------------------
Total issued ............................................... 742,557 9,914,212 5,768,233 74,965,442
Shares redeemed ............................................ (2,475,480) (30,973,042) (1,674,725) (22,574,076)
----------------------------- ----------------------------
Net increase (decrease) .................................... (1,732,923) $ (21,058,830) 4,093,508 $ 52,391,366
============================= ============================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 4,266,751 $ 54,843,695 4,606,181 $ 60,421,791
Shares issued resulting from reorganization ................ -- -- 8,648,551 112,097,330
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 987,712 13,169,662 355,065 4,454,121
----------------------------- ----------------------------
Total issued ............................................... 5,254,463 68,013,357 13,609,797 176,973,242
Shares redeemed ............................................ (4,994,399) (58,277,272) (1,873,578) (24,865,217)
----------------------------- ----------------------------
Net increase ............................................... 260,064 $ 9,736,085 11,736,219 $ 152,108,025
============================= ============================
Period February 27, 2007+
to October 31, 2007
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Class R
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 59,606 $ 414,927 193,911 $ 2,689,134
Shares issued resulting from reorganization ................ -- -- 632,574 8,216,249
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 407,552 5,664,773 69 376
----------------------------- ----------------------------
Total issued ............................................... 467,158 6,079,700 826,554 10,905,759
Shares redeemed ............................................ (387,860) (4,778,314) (100,669) (1,374,753)
----------------------------- ----------------------------
Net increase ............................................... 79,298 $ 1,301,386 725,885 $ 9,531,006
============================= ============================
+ Commencement of operations.
34 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Notes to Financial Statements (concluded)
There is a 2% redemption fee on shares redeemed or exchanged which have been
held 30 days or less. The redemption fees are collected and retained by the Fund
for the benefit of the remaining shareholders. The redemption fees are recorded
as a credit to paid-in capital.
6. Acquisition of BlackRock Global Value Fund, Inc.:
On April 30, 2007, the Fund acquired substantially all of the net assets and
assumed substantially all of the liabilities of BlackRock Global Value Fund,
Inc. ("Global Value") pursuant to a plan of reorganization. The acquisition was
accomplished by a tax-free exchange of 50,914,832 shares of common stock of
Global Value for 60,932,675 shares of beneficial interest of the Fund. Global
Value's net assets on that date of $791,992,429, including $2,841,292 of
accumulated distributions in excess of net investment income, $933,034 of
accumulated distributions in excess of net realized gains and $114,821,172 of
net unrealized appreciation, were combined with those of the Fund. The Fund's
aggregate net assets immediately after the acquisition amounted to
$1,181,336,081.
7. Commitments:
At October 31, 2008, the Fund had entered into foreign exchange contracts, under
which it had agreed to purchase and sell various foreign currencies with an
approximate value of $1,849,000 and $437,000, respectively.
8. Income Tax Information:
Reclassifications -- Accounting principles generally accepted in the United
States of America require that certain components of net assets be adjusted to
reflect permanent differences between financial and tax reporting. The following
permanent differences as of October 31, 2008 attributable to foreign currency
transactions, gains from the sale of stock of passive foreign investment
companies, accounting for swap agreements, the tax characterization of income
recognized from grantor trusts, the reclassification of distributions,
non-deductible expenses and classification of settlement proceeds were
reclassified to the following accounts:
- --------------------------------------------------------------------------------
Decrease paid-in capital ....................................... $ (4,217)
Increase undistributed net investment income ................... $ 3,231,784
Decrease accumulated net realized gain (loss) .................. $(3,227,567)
- --------------------------------------------------------------------------------
The tax character of distributions paid during the fiscal years ended October
31, 2008 and October 31, 2007 was as follows:
- --------------------------------------------------------------------------------
10/31/2008 10/31/2007
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ................................ $33,825,832 $13,402,121
Net long-term capital gains .................... 28,181,553 2,159,826
--------------------------
Total taxable distributions. ..................... $62,007,385 $15,561,947
==========================
As of October 31, 2008, the components of accumulated losses on a tax basis were
as follows:
- ------------------------------------------------------------------------------
Undistributed ordinary net income ........................... $ 6,872,953
Undistributed long-term net capital gains ................... --
-------------
Total undistributed net earnings ............................ 6,872,953
Capital loss carryforward ................................... (27,238,357)
Net unrealized losses ....................................... (226,613,771)*
-------------
Total accumulated net losses ................................ $(246,979,175)
=============
* The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the realization for tax purposes of
unrealized gains (losses) on certain futures and foreign currency
contracts, the realization for tax purposes of unrealized gains on
investments in passive foreign investment companies, the accounting for
swap agreements, the difference between book and tax amortization methods
for premiums and discounts on fixed income securities, the timing of
income recognition on partnership interests and grantor trusts.
As of October 31, 2008, the Fund had a capital loss carryforward available to
offset future realized capital gains through the indicated year of expiration:
- --------------------------------------------------------------------------------
Expires October 31,
- --------------------------------------------------------------------------------
2016 ........................................................ $27,238,357
- --------------------------------------------------------------------------------
9. Subsequent Events:
The Fund paid an ordinary income dividend in the amount of $0.132884 per
Institutional Share, $0.101014 per Investor A Share, $0.012021 per Investor C
Share and $0.064876 per Class R share on December 16, 2008 to shareholders of
record on December 12, 2008.
On September 15, 2008, Bank of America Corporation announced that it has agreed
to acquire Merrill Lynch, one of the principal owners of BlackRock, Inc. The
purchase has been approved by the shareholders and directors of both companies
and certain regulators. Subject to other regulatory approvals, the transaction
is expected to close on or about December 31, 2008.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 35
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of BlackRock Global Dynamic Equity
Fund:
We have audited the accompanying statement of assets and liabilities of
BlackRock Global Dynamic Equity Fund (the "Fund"), including the schedule of
investments, as of October 31, 2008, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of the securities owned as of October 31, 2008, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock Global Dynamic Equity Fund as of October 31, 2008, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods presented, in conformity with accounting principles generally
accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
December 29, 2008
Important Tax Information (Unaudited)
The following information is provided with respect to the ordinary income
distribution paid by BlackRock Global Dynamic Equity Fund during the fiscal year
ended October 31, 2008:
================================================================================
Record Date December 13, 2007
Payable Date December 17, 2007
================================================================================
Qualified Dividend Income for Individuals 1 34.12%
- --------------------------------------------------------------------------------
Dividends Qualifying for the Dividends
Received Deduction for Corporations 1 9.61%
- --------------------------------------------------------------------------------
Short-Term Capital Gain Dividends for
Non-U.S. Residents 2 79.01%
- --------------------------------------------------------------------------------
1 The Fund hereby designates the percentage indicated above or the maximum
amount allowable by law.
2 Represents the portion of the taxable ordinary income dividends eligible
for exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.
Additionally, the Fund paid a long-term capital gain distribution of $0.292465
to shareholders of record on December 13, 2007.
36 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
The Board of Trustees (the "Board," the members of which are referred to as
"Trustees") of BlackRock Global Dynamic Equity Fund (the "Fund") met in April
and June 2008 to consider the approval of the Fund's investment advisory
agreement (the "Advisory Agreement") with BlackRock Advisors, LLC (the
"Advisor"), the Fund's investment advisor. The Board also considered the
approval of the subadvisory agreements (collectively, the "Subadvisory
Agreement") between the Advisor and BlackRock Investment Management, LLC, and
the Advisor and BlackRock Asset Management U.K. Limited (collectively, the
"Subadvisor"). The Advisor and the Subadvisor are referred to herein as
"BlackRock." The Advisory Agreement and the Subadvisory Agreement are referred
to herein as the "Agreements."
Activities and Composition of the Board
The Board of the Fund consists of fifteen individuals, twelve of whom are not
"interested persons" of the Fund as defined in the Investment Company Act of
1940, as amended (the "1940 Act") (the "Independent Trustees"). The Trustees are
responsible for the oversight of the operations of the Fund and perform the
various duties imposed on the directors of investment companies by the 1940 Act.
The Independent Trustees have retained independent legal counsel to assist them
in connection with their duties. The Chairman of the Board is an Independent
Trustee. The Board established four standing committees: an Audit Committee, a
Governance and Nominating Committee, a Compliance Committee and a Performance
Oversight Committee, each of which is composed of, and chaired by Independent
Trustees.
The Agreements
Upon the consummation of the combination of BlackRock's investment management
business with Merrill Lynch & Co., Inc.'s investment management business,
including Merrill Lynch Investment Managers, L.P., and certain affiliates (the
"Transaction"), the Fund entered into the Advisory Agreement with an initial
two-year term and the Advisor entered into the Subadvisory Agreement with the
Subadvisor with an initial two-year term. Consistent with the 1940 Act, prior to
the expiration of the Agreements' respective initial two-year term, the Board is
required to consider the continuation of the Fund's Agreements on an annual
basis. In connection with this process, the Board assessed, among other things,
the nature, scope and quality of the services provided to the Fund by the
personnel of BlackRock and its affiliates, including investment management,
administrative services, shareholder services, oversight of fund accounting and
custody, marketing services and assistance in meeting legal and regulatory
requirements. The Board also received and assessed information regarding the
services provided to the Fund by certain unaffiliated service providers.
Throughout the year, the Board, acting directly and through its committees,
considers at each of its meetings factors that are relevant to its annual
consideration of the renewal of the Fund's Agreements, including the services
and support provided to the Fund and its shareholders. Among the matters the
Board considered were: (a) investment performance for one, three and five years,
as applicable, against peer funds, as well as senior management and portfolio
managers' analysis of the reasons for underperformance, if applicable; (b) fees,
including advisory, administration, if applicable, and other fees paid to
BlackRock and its affiliates by the Fund, such as transfer agency fees and fees
for marketing and distribution; (c) Fund operating expenses; (d) the resources
devoted to and compliance reports relating to the Fund's investment objective,
policies and restrictions; (e) the Fund's compliance with its Code of Ethics and
compliance policies and procedures; (f) the nature, cost and character of
non-investment management services provided by BlackRock and its affiliates; (g)
BlackRock's and other service providers' internal controls; (h) BlackRock's
implementation of the proxy voting guidelines approved by the Board; (i) the use
of brokerage commissions and spread and execution quality; (j) valuation and
liquidity procedures; and (k) periodic overview of BlackRock's business,
including BlackRock's response to the increasing scale of its business.
Board Considerations in Approving the Agreements
The Approval Process: At an in-person meeting held on April 10, 2008, the Board
reviewed materials relating to its consideration of the Agreements. At an
in-person meeting held on June 5 - 6, 2008, the Fund's Board, including the
Independent Trustees, unanimously approved the continuation of the Advisory
Agreement between the Advisor and the Fund for a one-year term ending June 30,
2009 and the Subadvisory Agreement between the Advisor and BlackRock Investment
Management, LLC for a one-year term ending June 30, 2009 and the Subadvisory
Agreement between the Advisor and BlackRock Asset Management U.K. Limited for a
one-year term ending June 30, 2009. In considering the approval of the
Agreements, the Board received and discussed various materials provided to it in
advance of the April 10, 2008 meeting. As a result of the discussions that
occurred during the April 10, 2008 meeting, the Board requested and BlackRock
provided additional information, as detailed below, in advance of the June 5 -
6, 2008 Board meeting. The Board considered all factors it believed relevant
with respect to the Fund, including, among other factors: (a) the nature, extent
and quality of the services provided by BlackRock; (b) the investment
performance of the Fund and BlackRock portfolio management; (c) the advisory fee
and the cost of the services and profits to be realized by BlackRock and certain
affiliates from the relationship with the Fund; (d) economies of scale; and (e)
other factors.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 37
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(continued)
Prior to the April 10, 2008 meeting, the Board requested and received materials
specifically relating to the Agreements. The Board is engaged in an ongoing
process with BlackRock to continuously review the nature and scope of the
information provided to better assist its deliberations. These materials
included (a) information independently compiled and prepared by Lipper, Inc.
("Lipper") on Fund fees and expenses, and the investment performance of the Fund
as compared with a peer group of funds as determined by Lipper ("Peers"); (b)
information on the profitability of the Agreements to BlackRock and certain
affiliates, including their other relationships with the Fund, and a discussion
of fall-out benefits; (c) a general analysis provided by BlackRock concerning
investment advisory fees charged to other clients, such as institutional and
closed-end funds, under similar investment mandates, as well as the performance
of such other clients; (d) a report on economies of scale; (e) sales and
redemption data regarding the Fund's shares; and (f) an internal comparison of
management fees classified by Lipper, if applicable. At the April 10, 2008
meeting, the Board requested and subsequently received from BlackRock (i) a
comprehensive analysis of total expenses on a fund-by-fund basis; (ii) further
analysis of investment performance; (iii) further data regarding Fund
profitability, Fund size and Fund fee levels; and (iv) additional information on
sales and redemptions.
The Board also considered other matters it deemed important to the approval
process, such as payments made to BlackRock or its affiliates relating to the
distribution of Fund shares, services related to the valuation and pricing of
Fund portfolio holdings, and direct and indirect benefits to BlackRock and its
affiliates from their relationship with the Fund. The Board did not identify any
particular information as controlling, and each Trustee may have attributed
different weights to the various items considered.
A. Nature, Extent and Quality of the Services: The Board, including the
Independent Trustees, reviewed the nature, extent and quality of services
provided by BlackRock, including the investment advisory services and the
resulting performance of the Fund. Throughout the year, the Board compared Fund
performance to the performance of a comparable group of mutual funds as
classified by Lipper and the performance of at least one relevant index or
combination of indices. The Board met with BlackRock's senior management
personnel responsible for investment operations, including the senior investment
officers. The Board also reviewed the materials provided by the Fund's portfolio
management team discussing Fund performance and the Fund's investment objective,
strategies and outlook.
The Board considered, among other factors, the number, education and experience
of BlackRock's investment personnel generally and the Fund's portfolio
management team, BlackRock's portfolio trading capabilities, BlackRock's use of
technology, BlackRock's commitment to compliance and BlackRock's approach to
training and retaining portfolio managers and other research, advisory and
management personnel. The Board also reviewed BlackRock's compensation structure
with respect to the Fund's portfolio management team and BlackRock's ability to
attract and retain high-quality talent.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to the Fund.
BlackRock and its affiliates provide the Fund with certain administrative,
transfer agency, shareholder and other services (in addition to any such
services provided to the Fund by third parties) and officers and other personnel
as are necessary for the operations of the Fund. In addition to investment
advisory services, BlackRock and its affiliates provide the Fund with other
services, including (i) preparing disclosure documents, such as the prospectus,
the statement of additional information and shareholder reports; (ii) assisting
with daily accounting and pricing; (iii) overseeing and coordinating the
activities of other service providers; (iv) organizing Board meetings and
preparing the materials for such Board meetings; (v) providing legal and
compliance support; and (vi) performing other administrative functions necessary
for the operation of the Fund, such as tax reporting and fulfilling regulatory
filing requirements. The Board reviewed the structure and duties of BlackRock's
fund administration, accounting, legal and compliance departments.
B. The Investment Performance of the Fund and BlackRock: The Board, including
the Independent Trustees, also reviewed and considered the performance history
of the Fund. In preparation for the April 10, 2008 meeting, the Board was
provided with reports, independently prepared by Lipper, which included a
comprehensive analysis of the Fund's performance. The Board also reviewed a
narrative and statistical analysis of the Lipper data that was prepared by
BlackRock, which analyzed various factors that affect Lipper's rankings. In
connection with its review, the Board received and reviewed information
regarding the investment performance of the Fund as compared to a representative
group of similar funds as determined by Lipper and to all funds in the Fund's
applicable Lipper category. The Board was provided with a description of the
methodology used by Lipper to select peer funds. The Board regularly reviews the
performance of the Fund throughout the year. The Board attaches more importance
to performance over relatively long periods of time, typically three to five
years.
38 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(continued)
The Fund ranked in the first quartile on a net basis against its Lipper peer
universe for each of the one-year and since-inception periods ended December 31,
2007, respectively.
C. Consideration of the Advisory Fees and the Cost of the Services and Profits
to be Realized by BlackRock and its Affiliates from the Relationship with the
Fund: The Board, including the Independent Trustees, reviewed the Fund's
contractual advisory fee rates compared with the other funds in its Lipper
category. It also compared the Fund's total expenses to those of other
comparable funds. The Board considered the services provided and the fees
charged by BlackRock to other types of clients with similar investment mandates,
including separately managed institutional accounts.
The Board received and reviewed statements relating to BlackRock's financial
condition and profitability with respect to the services it provided the Fund.
The Board was also provided with a profitability analysis that detailed the
revenues earned and the expenses incurred by BlackRock and certain affiliates
that provide services to the Fund. The Board reviewed BlackRock's profitability
with respect to the Fund and each fund the Board currently oversees for the year
ended December 31, 2007 compared to aggregated profitability data provided for
the year ended December 31, 2005.
In addition, the Board considered the cost of the services provided to the Fund
by BlackRock, and BlackRock's and its affiliates' profits relating to the
management and distribution of the Fund and the other funds advised by BlackRock
and its affiliates. As part of its analysis, the Board reviewed BlackRock's
methodology in allocating its costs to the management of the Fund and concluded
that there was a reasonable basis for the allocation. The Board also considered
whether BlackRock has the financial resources necessary to attract and retain
high-quality investment management personnel to perform its obligations under
the Agreements and to continue to provide the high quality of services that are
expected by the Board.
The Board noted that BlackRock has agreed to contractually cap the total annual
operating expenses, excluding certain expenses, of one or more share classes of
the Fund, at certain levels. The Board observed that those expense caps
benefited shareholders by keeping total fees down even in the absence of
breakpoints.
D. Economies of Scale: The Board, including the Independent Trustees, considered
the extent to which economies of scale might be realized as the assets of the
Fund increase and whether there should be changes in the advisory fee rate or
structure in order to enable the Fund to partici- pate in these economies of
scale. The Board, including the Independent Trustees, considered whether the
shareholders would benefit from economies of scale and whether there was
potential for future realization of economies with respect to the Fund. The
Board considered that the funds in the BlackRock fund complex share common
resources and, as a result, an increase in the overall size of the complex could
permit each fund to incur lower expenses than it would otherwise as stand-alone
entities. The Board also considered the anticipated efficiencies in the
processes of BlackRock's overall operations as it continues to add personnel and
commit capital to expand the scale of operations. The Board found, based on its
review of comparable funds, that the Fund's management fee is appropriate in
light of the scale of the Fund.
E. Other Factors: The Board also took into account other ancillary or "fall-out"
benefits that BlackRock may derive from its relationship with the Fund, both
tangible and intangible, such as BlackRock's ability to leverage its investment
professionals that manage other portfolios, an increase in BlackRock's profile
in the investment advisory community, and the engagement of BlackRock's
affiliates as service providers to the Fund, including for administrative,
transfer agency and distribution services. The Board also noted that BlackRock
may use third-party research obtained by soft dollars generated by transactions
in the Fund to assist itself in managing all or a number of its other client
accounts.
In connection with its consideration of the Agreements, the Board also received
information regarding BlackRock's brokerage and soft dollar practices. The Board
received reports from BlackRock which included information on brokerage
commissions and trade execution practices throughout the year.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 39
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(concluded)
Conclusion
The Board approved the continuation of the Advisory Agreement between the
Advisor and the Fund for a one-year term ending June 30, 2009 and the
Subadvisory Agreement between the Advisor and BlackRock Investment Management,
LLC for a one-year term ending June 30, 2009 and the Subadvisory Agreement
between the Advisor and BlackRock Asset Management U.K. Limited for a one-year
term ending June 30, 2009. Based upon its evaluation of all these factors in
their totality, the Board, including the Independent Trustees, was satisfied
that the terms of the Agreements were fair and reasonable and in the best
interest of the Fund and the Fund's shareholders. In arriving at a decision to
approve the Agreements, the Board did not identify any single factor or group of
factors as all-important or controlling, but considered all factors together.
The Independent Trustees were also assisted by the advice of independent legal
counsel in making this determination. The contractual fee arrangements for the
Fund reflect the result of several years of review by the Trustees and
predecessor Trustees, and discussions between the Trustees (and predecessor
Trustees) and BlackRock. Certain aspects of the arrangements may be the subject
of more attention in some years than in others, and the Trustees' conclusions
may be based in part on their consideration of these arrangements in prior
years.
40 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Officers and Trustees
Number of
BlackRock-
Position(s) Length of Time Advised Funds
Name, Address Held with Served as a Principal Occupation(s) and Portfolios
and Year of Birth Fund Trustee 2 During Past Five Years Overseen Public Directorships
====================================================================================================================================
Non-Interested Trustees 1
- ------------------------------------------------------------------------------------------------------------------------------------
Robert M. Hernandez Chairman of Since 2007 Formerly Director, Vice Chairman 37 Funds ACE Limited
40 East 52nd Street the Board, and Chief Financial Officer of 104 Portfolios (insurance company);
New York, NY 10022 Trustee and USX Corporation (energy and Eastman
1944 Member of steel business) from 1991 to Chemical Company
the Audit 2001. (chemical); RTI
Committee International Metals,
Inc. (metals);
TYCO Electronics
(electronics)
- ------------------------------------------------------------------------------------------------------------------------------------
Fred G. Weiss Vice Chairman Since 2007 Managing Director, FGW 37 Funds Watson
40 East 52nd Street of the Board, Associates (consulting and 104 Portfolios Pharmaceutical Inc.
New York, NY 10022 Chairman of investment company) since
1941 the Audit 1997; Director, Michael J. Fox
Committee Foundation for Parkinson's
and Trustee Research since 2000; Formerly
Director of BTG International
Plc (a global technology
commercialization company) from
2001 to 2007.
- ------------------------------------------------------------------------------------------------------------------------------------
James H. Bodurtha Trustee Since 2007 Director, The China Business 37 Funds None
40 East 52nd Street Group, Inc. (consulting firm) 104 Portfolios
New York, NY 10022 since 1996 and formerly
1944 Executive Vice President thereof
from 1996 to 2003; Chairman of
the Board, Berkshire Holding
Corporation since 1980.
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce R. Bond Trustee Since 2007 Formerly Trustee and Member of 37 Funds None
40 East 52nd Street the Governance Committee, State 104 Portfolios
New York, NY 10022 Street Research Mutual Funds
1946 from 1997 to 2005; Formerly
Board Member of Governance,
Audit and Finance Committee,
Avaya Inc. (computer equipment)
from 2003 to 2007.
- ------------------------------------------------------------------------------------------------------------------------------------
Donald W. Burton Trustee Since 2007 Managing General Partner, The 37 Funds Knology, Inc.
40 East 52nd Street Burton Partnership, LP (an 104 Portfolios (telecommunica-
New York, NY 10022 investment partnership) since tions); Capital
1944 1979; Managing General Partner, Southwest
The South Atlantic Venture Funds (financial)
since 1983; Member of the
Investment Advisory Council of
the Florida State Board of
Administration from 2001 to
2007.
- ------------------------------------------------------------------------------------------------------------------------------------
Honorable Trustee Since 2007 Partner and Head of 37 Funds UPS Corporation
Stuart E. Eizenstat International Practice, 104 Portfolios (delivery service)
40 East 52nd Street Covington and Burling (law firm)
New York, NY 10022 since 2001; International
1943 Advisory Board Member, The Coca-
Cola Company since 2002;
Advisory Board Member, BT
Americas (telecommunications)
since 2004; Member of the Board
of Directors, Chicago Climate
Exchange (environmental) since
2006; Member of the
International Advisory Board,
GML (energy) since 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. Froot Trustee Since 2007 Professor, Harvard University 37 Funds None
40 East 52nd Street since 1992. 104 Portfolios
New York, NY 10022
1957
- ------------------------------------------------------------------------------------------------------------------------------------
John F. O'Brien Trustee Since 2007 Trustee, Woods Hole 37 Funds Cabot Corporation
40 East 52nd Street Oceanographic Institute since 104 Portfolios (chemicals);
New York, NY 10022 2003; Formerly Director, LKQ Corporation
1943 Allmerica Financial Corporation (auto parts
from 1995 to 2003; Formerly manufacturing);
Director, ABIOMED from 1989 to TJX Companies, Inc.
2006; Formerly Director, (retailer)
Ameresco, Inc. (energy solutions
company) from 2006 to 2007.
- ------------------------------------------------------------------------------------------------------------------------------------
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 41
Officers and Trustees (continued)
Number of
BlackRock-
Position(s) Length of Time Advised Funds
Name, Address Held with Served as a Principal Occupation(s) and Portfolios
and Year of Birth Fund Trustee 2 During Past Five Years Overseen Public Directorships
====================================================================================================================================
Non-Interested Trustees 1 (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Roberta Cooper Ramo Trustee Since 2007 Shareholder, Modrall, Sperling, 37 Funds None
40 East 52nd Street Roehl, Harris & Sisk, P.A. (law 104 Portfolios
New York, NY 10022 firm) since 1993; Chairman of
1942 the Board, Cooper's Inc.
(retail) since 2000; Director of
ECMC Group (service provider to
students, schools and lenders)
since 2001; President Elect, The
American Law Institute
(non-profit), 2007; Formerly
President, American Bar
Association from 1995 to 1996.
- ------------------------------------------------------------------------------------------------------------------------------------
Jean Margo Reid Trustee Since 2005 Self-employed consultant since 37 Funds None
40 East 52nd Street 2001; Director and Secretary, 104 Portfolios
New York, NY 10022 SCB, Inc. (holding company)
1945 since 1998; Director and
Secretary, SCB Partners, Inc.
(holding company) since 2000;
Formerly Director, Covenant
House (non-profit) from 2001 to
2004.
- ------------------------------------------------------------------------------------------------------------------------------------
David H. Walsh Trustee Since 2007 Director, National Museum of 37 Funds None
40 East 52nd Street Wildlife Art since 2007; 104 Portfolios
New York, NY 10022 Director, Ruckleshaus Institute
1941 and Haub School of Natural
Resources at the University of
Wyoming since 2006; Director,
The American Museum of Fly
Fishing since 1997; Formerly
Consultant with Putnam
Investments from 1993 to 2003;
Formerly Director, The National
Audubon Society from 1998 to
2005.
- ------------------------------------------------------------------------------------------------------------------------------------
Richard R. West Trustee and Since 2005 Dean Emeritus, New York 37 Funds Bowne & Co., Inc.
40 East 52nd Street Member of University's Leonard N. Stern 104 Portfolios (financial printers);
New York, NY 10022 the Audit School of Business Vornado Realty
1938 Committee Administration since 1995. Trust (real estate
company);
Alexander's Inc.
(real estate
company)
------------------------------------------------------------------------------------------------------------
1 Trustees serve until their resignation, removal or death, or until December 31 of the year in which
they turn 72.
2 Following the combination of Merrill Lynch Investment Managers, L.P. ("MLIM") and BlackRock, Inc.
("BlackRock") in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were
realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows
certain trustees as joining the Fund's board in 2007, each trustee first became a member of the board
of trustees of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha since 1995;
Bruce R. Bond since 2005; Donald W. Burton since 2002; Stuart E. Eizenstat since 2001; Kenneth A.
Froot since 2005; Robert M. Hernandez since 1996; John F. O'Brien since 2004; Roberta Cooper Ramo
since 2000; Jean Margo Reid since 2004; David H. Walsh since 2003; Fred G. Weiss since 1998; and
Richard R. West since 1978.
42 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Officers and Trustees (continued)
Number of
BlackRock-
Position(s) Length of Time Advised Funds
Name, Address Held with Served as a Principal Occupation(s) and Portfolios
and Year of Birth Fund Trustee During Past Five Years Overseen Public Directorships
====================================================================================================================================
Interested Trustees 1
- ------------------------------------------------------------------------------------------------------------------------------------
Richard S. Davis Trustee Since 2007 Managing Director, BlackRock, 184 Funds None
40 East 52nd Street Inc. since 2005; Formerly Chief 295 Portfolios
New York, NY 10022 Executive Officer, State Street
1945 Research & Management Company
from 2000 to 2005; Formerly
Chairman of the Board of
Trustees, State Street Research
Mutual Funds from 2000 to 2005;
Formerly Chairman, SSR Realty
from 2000 to 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Laurence D. Fink Trustee Since 2007 Chairman and Chief Executive 37 Funds None
40 East 52nd Street Officer of BlackRock, Inc. since 104 Portfolios
New York, NY 10022 its formation in 1998 and of
1952 BlackRock, Inc.'s predecessor
entities since 1988 and Chairman
of the Executive and Management
Committees; Formerly Managing
Director, The First Boston
Corporation, Member of its
Management Committee, Co-Head of
its Taxable Fixed Income
Division and Head of its
Mortgage and Real Estate
Products Group; Chairman of the
Board of several of BlackRock's
alternative investment vehicles;
Director of several of
BlackRock's offshore funds;
Member of the Board of Trustees
of New York University, Chair of
the Financial Affairs Committee
and a member of the Executive
Committee, the Ad Hoc Committee
on Board Governance, and the
Committee on Trustees;
Co-Chairman of the NYU Hospitals
Center Board of Trustees,
Chairman of the
Development/Trustee Stewardship
Committee and Chairman of the
Finance Committee; Trustee, The
Boys' Club of New York.
- ------------------------------------------------------------------------------------------------------------------------------------
Henry Gabbay Trustee Since 2007 Consultant, BlackRock, Inc. 184 Funds None
40 East 52nd Street since 2007; Formerly Managing 295 Portfolios
New York, NY 10022 Director, BlackRock, Inc. from
1947 1989 to 2007; Formerly Chief
Administrative Officer,
BlackRock Advisors, LLC from
1998 to 2007; Formerly President
of BlackRock Funds and BlackRock
Bond Allocation Target Shares
from 2005 to 2007 and Treasurer
of certain closed-end funds in
the BlackRock fund complex from
1989 to 2006.
------------------------------------------------------------------------------------------------------------
1 Messrs. Davis and Fink are both "interested persons," as defined in the Investment Company Act of
1940, of the Fund based on their positions with BlackRock, Inc. and its affiliates. Mr. Gabbay is an
"interested person" of the Fund due to his consulting arrangement with BlackRock, Inc. as well as his
ownership of BlackRock, Inc. and PNC securities. Trustees serve until their resignation, removal or
death, or until December 31 of the year in which they turn 72.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 43
Officers and Trustees (concluded)
Position(s)
Name, Address Held with Length of
and Year of Birth Fund Time Served Principal Occupation(s) During Past Five Years
====================================================================================================================================
Fund Officers(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Fund Since 2007 Managing Director of BlackRock, Inc. since 2006; Formerly Managing
40 East 52nd Street President and Director of Merrill Lynch Investment Managers, L.P. ("MLIM") and Fund
New York, NY 10022 Chief Executive Asset Management, L.P. ("FAM") in 2006; First Vice President thereof
1960 Officer from 1997 to 2005; Treasurer thereof from 1999 to 2006 and Vice
President thereof from 1990 to 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Anne F. Ackerley Vice Since 2007 Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer
40 East 52nd Street President of BlackRock's U.S. Retail Group since 2006; Head of BlackRock's Mutual
New York, NY 10022 Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to
1962 1986 and from 1988 to 2000, most recently as First Vice President and
Operating Officer of the Mergers and Acquisitions Group.
- ------------------------------------------------------------------------------------------------------------------------------------
Neal J. Andrews Chief Since 2007 Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice
40 East 52nd Street Financial President and Line of Business Head of Fund Accounting and
New York, NY 10022 Officer Administration at PNC Global Investment Servicing (U.S.) Inc. (formerly
1966 PFPC Inc.) from 1992 to 2006.
- ------------------------------------------------------------------------------------------------------------------------------------
Jay M. Fife Treasurer Since 2007 Managing Director of BlackRock, Inc. since 2007 and Director in 2006;
40 East 52nd Street Formerly Assistant Treasurer of the MLIM/FAM-advised Funds from 2005 to
New York, NY 10022 2006; Director of MLIM Fund Services Group from 2001 to 2006.
1970
- ------------------------------------------------------------------------------------------------------------------------------------
Brian P. Kindelan Chief Since 2007 Chief Compliance Officer of the BlackRock-advised Funds since 2007;
40 East 52nd Street Compliance Anti-Money Laundering Officer of the BlackRock-advised Funds since 2007;
New York, NY 10022 Officer of Managing Director and Senior Counsel of BlackRock, Inc. since 2005;
1959 the Fund Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to
2004 and Vice President and Senior Counsel thereof from 1998 to 2000;
Formerly Senior Counsel of The PNC Bank Corp. from 1995 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
Howard B. Surloff Secretary Since 2007 Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds
40 East 52nd Street at BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) of
New York, NY 10022 Goldman Sachs Asset Management, L.P. from 1993 to 2006.
1965
------------------------------------------------------------------------------------------------------------
1 Officers of the Fund serve at the pleasure of the Board of Trustees.
------------------------------------------------------------------------------------------------------------
Further information about the Fund's Officers and Trustees is available in the Fund's Statement of
Additional Information, which can be obtained without charge by calling (800) 441-7762.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
Brown Brothers Harriman & Co.
Boston, MA 02109
Transfer Agent
PNC Global Investment
Servicing (U.S.) 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
44 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
Additional 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 Fund'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 Fund's electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, 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
Householding
The Fund will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined with
those for other members of your household, please contact the Fund at (800)
441-7762.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 45
Additional Information (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund 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 fund votes proxies relating to securities held in the
Fund'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 Fund 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 Fund'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 Fund'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 to 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.
46 BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008
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 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 Emerging Markets Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio
BlackRock Global SmallCap Fund
BlackRock Health Sciences Opportunities Portfolio*
BlackRock Healthcare Fund
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Diversification Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio
BlackRock International Value Fund
BlackRock Large Cap Core Fund
BlackRock Large Cap Core Plus 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 Science & Technology Opportunities Portfolio
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 U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
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 Bond 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 currently distributed by BlackRock Investments, Inc.
You should consider the investment objectives, risks, charges and expenses of
the funds under consideration carefully before investing. Each fund's prospectus
contains this and other information and is available at www.blackrock.com or by
calling (800) 882-0052 or from your financial advisor. The prospectus should be
read carefully before investing.
BLACKROCK GLOBAL DYNAMIC EQUITY FUND OCTOBER 31, 2008 47
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Investment returns and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change. Please see the Fund's prospectus
for a description of risks associated with global investments.
BlackRock Global Dynamic Equity Fund
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#GDE-10/08
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Robert M. Hernandez
Fred G. Weiss
Richard R. West
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
- -----------------------------------------------------------------------------------------------------------------------------------
(a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees(3)
- -----------------------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal
Entity Name End Year End End Year End End Year End End Year End
- -----------------------------------------------------------------------------------------------------------------------------------
BlackRock Global
Dynamic Equity Fund $29,300 $31,600 $0 $0 $12,623 $6,100 $1,049 $1,042
- -----------------------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services
reasonably related to the performance of the audit of financial statements
not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
3 The nature of the services include a review of compliance procedures and
attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). The term of any general pre-approval is 12 months
from the date of the pre-approval, unless the Committee provides for
a different period. Tax or other non-audit services provided to the
registrant which have a direct impact on the operation or financial
reporting of the registrant will only be deemed pre-approved
provided that any individual project does not exceed $10,000
attributable to the registrant or $50,000 for all of the registrants
the Committee oversees. For this purpose, multiple projects will be
aggregated to determine if they exceed the previously mentioned cost
levels.
Any proposed services exceeding the pre-approved cost levels
will require specific pre-approval by the Committee, as will any
other services not subject to general pre-approval (e.g.,
unanticipated but permissible services). The Committee is informed
of each service approved subject to general pre-approval at the next
regularly scheduled in-person board meeting. At this meeting, an
analysis of such services is presented to the Committee for
ratification. The Committee may delegate to one or more of its
members the authority to approve the provision of and fees for any
specific engagement of permitted non-audit services, including
services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Previous Fiscal
Entity Name Year End Year End
--------------------------------------------------------------------
BlackRock Global Dynamic
Equity Fund $301,172 $291,642
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $287,500, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
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 of directors recommended by shareholders when
a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that 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 - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Global Dynamic Equity Fund
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Global Dynamic Equity Fund
Date: February 25, 2009
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
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Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Global Dynamic Equity Fund
Date: February 25, 2009
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Global Dynamic Equity Fund
Date: February 25, 2009