BlackRock Health Sciences Trust
Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21702

Name of Fund:    BlackRock Health Sciences Trust (BME)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Health Sciences Trust,

    55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2013

Date of reporting period: 04/30/2013


Table of Contents

Item 1 – Report to Stockholders


Table of Contents

APRIL 30, 2013        

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

      BLACK ROCK®

 

  BlackRock EcoSolutions Investment Trust (BQR)

   BlackRock Energy and Resources Trust (BGR)

   BlackRock Enhanced Capital and Income Fund, Inc. (CII)

   BlackRock Enhanced Equity Dividend Trust (BDJ)

   BlackRock Global Opportunities Equity Trust (BOE)

   BlackRock Health Sciences Trust (BME)

   BlackRock International Growth and Income Trust (BGY)

   BlackRock Real Asset Equity Trust (BCF)

   BlackRock Resources & Commodities Strategy Trust (BCX)

   BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)

   BlackRock Utility and Infrastructure Trust (BUI)

 

 

 

 

Not FDIC Insured ¡ May Lose Value ¡ No Bank Guaranteed  

 


Table of Contents
      

 

Section 19(a) Notices

BlackRock EcoSolutions Investment Trust’s (BQR), BlackRock Energy and Resources Trust’s (BGR), BlackRock Enhanced Capital and Income Fund, Inc.’s (CII), BlackRock Enhanced Equity Dividend Trust’s (BDJ), BlackRock Global Opportunities Equity Trust’s (BOE), BlackRock Health Sciences Trust’s (BME), BlackRock International Growth and Income Trust’s (BGY), BlackRock Real Asset Equity Trust’s (BCF), BlackRock Resources & Commodities Strategy Trust’s (BCX), BlackRock S&P Quality Rankings Global Equity Managed Trust’s (BQY) and BlackRock Utility and Infrastructure Trust’s (BUI) (each, a “Trust” and collectively, the “Trusts”), reported amounts and sources of distributions are estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Trust’s investment experience during the year and may be subject to changes based on the tax regulations. Each Trust will provide a Form 1099-DIV each calendar year that will explain the character of these dividends and distributions for federal income tax purposes.

April 30, 2013

 

      Total Cumulative Distributions for the Fiscal Year      % Breakdown of the Total Cumulative Distributions for the Fiscal Year  
     

Net

Investment

Income

     Net Realized
Capital Gains
Short-Term
     Net Realized
Capital Gains
Long-Term
    

Return

of

Capital

     Total Per
Common Share
     Net
Investment
Income
    Net Realized
Capital Gains
Short-Term
    Net Realized
Capital Gains
Long-Term
    Return
of
Capital
    Total Per
Common Share
 

BQR*

   $ 0.033523                       $ 0.324977       $ 0.358500         9     0     0     91     100

BGR

   $ 0.054296       $ 0.357122       $ 0.398582               $ 0.810000         7     44     49     0     100

CII*

   $ 0.135410                       $ 0.464590       $ 0.600000         23     0     0     77     100

BDJ*

   $ 0.087717                       $ 0.192283       $ 0.280000         31     0     0     69     100

BOE*

   $ 0.026701                       $ 0.596599       $ 0.623300         4     0     0     96     100

BME

   $ 0.099271       $ 0.896788       $ 0.622691               $ 1.618750         4     55     38     0     100

BGY*

   $ 0.018147                       $ 0.317553       $ 0.335700         5     0     0     95     100

BCF*

   $ 0.031402                       $ 0.411598       $ 0.443000         7     0     0     93     100

BCX*

   $ 0.075286                       $ 0.504714       $ 0.580000         13     0     0     87     100

BQY*

   $ 0.091573       $ 0.091905       $ 0.192085       $ 0.104437       $ 0.480000         19     19     40     5     100

BUI*

   $ 0.197837       $ 0.022575       $ 0.028701       $ 0.475887       $ 0.725000         27     3     4     66     100

 

* Certain Trusts estimate they have distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in a Trust is returned to the shareholder. A return of capital does not necessarily reflect a Trust’s investment performance and should not be confused with ‘yield’ or ‘income.’

Section 19(a) notices for each Trust, as applicable, are available on the BlackRock website http://www.blackrock.com.

 

Section 19(b) Disclosure

The Trusts, acting pursuant to a Securities and Exchange Commission (“SEC”) exemptive order and with the approval of each Trust’s Board of Trustees/Directors (the “Board”), each have adopted a plan, consistent with its investment objectives and policies to support a level distribution of income, capital gains and/or return of capital (the “Plan”). In accordance with the Plans, the Trusts currently distribute the following fixed amounts per share on a quarterly basis:

 

Exchange Symbol

  

Amount Per Common Share

BQR

   $0.179250

BGR

   $0.405000

CII

   $0.300000

BDJ

   $0.140000

BOE

   $0.311650

BME

   $0.384375

BGY

   $0.167850

BCF

   $0.221500

BCX

   $0.290000

BQY

   $0.230000

BUI

   $0.362500

The fixed amounts distributed per share are subject to change at the discretion of each Trust’s Board. Under its Plan, each Trust will distribute all available investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a quarterly basis, the Trusts will distribute long-term capital gains and/or return of capital to shareholders in order to maintain a level distribution. Each quarterly distribution to shareholders is expected to be at the fixed amount established by the Board, except for extraordinary distributions and potential distribution rate increases or decreases to enable the Trusts to comply with the distribution requirements imposed by the Code.

Shareholders should not draw any conclusions about each Trust’s investment performance from the amount of these distributions or from the terms of the Plan. Each Trust’s total return performance on net asset value is presented in its financial highlights table.

The Board may amend, suspend or terminate a Trust’s Plan without prior notice if it deems such actions to be in the best interests of the Trust or its shareholders. The suspension or termination of the Plan could have the effect of creating a trading discount (if the Trust’s stock is trading at or above net asset value) or widening an existing trading discount. The Trusts are subject to risks that could have an adverse impact on their ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, decreased market volatility, companies suspending or decreasing corporate dividend distributions and changes in the Code. Please refer to each Trust’s prospectus for a more complete description of its risks.

 

2    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Table of Contents     

 

       Page   

Section 19(a) Notices

     2   

Section 19(b) Disclosure

     2   

Dear Shareholder

     4   

Semi-Annual Report:

  

The Benefits and Risks of Option Over-Writing

     5   

Derivative Financial Instruments

     5   

Trust Summaries

     6   

Financial Statements:

  

Schedules of Investments

     28   

Statements of Assets and Liabilities

     95   

Statements of Operations

     97   

Statements of Changes in Net Assets

     99   

Statements of Cash Flows

     105   

Financial Highlights

     108   

Notes to Financial Statements

     119   

Officers and Trustees

     131   

Additional Information

     132   

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    3


Table of Contents

Dear Shareholder

About this time one year ago, financial market activity was dominated by concerns about Europe’s debt crisis. Investors were also discouraged by gloomy economic reports from various parts of the world, particularly in China. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the world’s largest central banks would intervene to stimulate growth. This theme, along with the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer of 2012. In early September, the ECB announced its sovereign bond-buying program designed to support the region’s debt-laden countries. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.

Although financial markets world-wide were buoyed by these aggressive policy actions, risk assets weakened in the fall of 2012. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China. In the United States, stocks slid on lackluster corporate earnings and volatility rose in advance of the US Presidential election. In the post-election environment, investors became more concerned about the “fiscal cliff,” the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. High levels of global market volatility persisted through year-end due to fears that bipartisan gridlock would preclude a timely resolution, putting the US economy at high risk for recession. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal, although decisions relating to spending cuts and the debt ceiling were postponed, leaving lingering uncertainty.

Investors shook off the nerve-wracking finale to 2012 and the New Year began with a powerful relief rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaling modest but broad-based improvements in the world’s major economies underpinned the rally. Underlying this aura of comfort was the absence of negative headlines out of Europe. Against this backdrop, global equities surged through January while rising US Treasury yields pressured high quality fixed income assets (as prices move in the opposite direction of yields).

However, bond markets regained strength in February (as yields once again dropped) when global economic momentum slowed and investors toned down their risk appetite. International stock markets weakened amid a resurgence of macro risk out of Europe. A stalemate presidential election in Italy was a reminder that political instability continued to plague the eurozone and a severe banking crisis in Cyprus underscored the fragility of the broader European banking system. In the United States, stocks continued to rise, but at a more moderate pace. Investors grew more cautious given uncertainty as to how long the central bank would continue its stimulus programs. How government spending cuts would impact the already slow economic recovery was another concern. But improving labor market data and rising home prices boosted sentiment in March, pushing major US stock indices to all-time highs. Investors scaled back their enthusiasm in April due to a series of disappointing economic reports. On the whole, US stocks have performed well thus far in 2013 as the US economy demonstrated enough resilience to allay fears of recession, but growth has remained slow enough to dissuade the US Federal Reserve from changing its stance.

Despite continued headwinds for global growth, risk assets have rallied, driven largely by investors seeking meaningful yields in the ongoing low-interest-rate environment. For the 6- and 12-month periods ended April 30, 2013, US and international stocks and high yield bonds posted strong gains. Emerging market equities lagged the rally as the uneven pace of global growth raised doubts that developing economies could thrive in the near term. US Treasury yields were highly volatile over the past 12 months, although they continue to remain low from a historical perspective. US Treasury and investment-grade bonds generated modest returns in this environment, while tax-exempt municipal bonds benefited from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

Market conditions have improved over the past couple of years, but investors still remain highly uncertain and many of the old ways of investing no longer work. That’s why the new world of investing calls for a new approach. One that seeks out more opportunities in more places across a broader array of investments in a portfolio designed to move freely as the markets move up and down. Visit www.blackrockplan.com to learn more about how to take action.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

LOGO

“Despite continued headwinds for global growth, risk assets have rallied, driven largely by investors seeking meaningful yields in the ongoing low-interest-rate environment.”

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of April 30, 2013
     6-month     12-month  

US large cap equities
(S&P 500® Index)

     14.42     16.89

US small cap equities
(Russell 2000® Index)

     16.58        17.69   

International equities
(MSCI Europe, Australasia, Far East Index)

     16.90        19.39   

Emerging market equities
(MSCI Emerging Markets Index)

     5.29        3.97   

3-month Treasury bill
(BofA Merrill Lynch
3-Month Treasury
Bill Index)

     0.06        0.12   

US Treasury securities
(BofA Merrill Lynch
10- Year US Treasury
Index)

     1.52        5.07   

US investment grade
bonds (Barclays US
Aggregate Bond Index)

     0.90        3.68   

Tax-exempt municipal
bonds (S&P Municipal Bond Index)

     2.01        5.74   

US high yield bonds
(Barclays US Corporate
High Yield 2% Issuer
Capped Index)

     7.26        13.95   
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

4    THIS PAGE NOT PART OF YOUR TRUST REPORT          


Table of Contents
      

 

The Benefits and Risks of Option Over-Writing

 

In general, the goal of each of the Trusts is to provide total return through a combination of current income and realized and unrealized gains (capital appreciation). The Trusts seek to pursue this goal primarily by investing in a portfolio of equity securities and utilizing an option over-writing strategy in an effort to enhance distribution yield and total return performance. However, these objectives cannot be achieved in all market conditions.

The Trusts primarily write single stock covered call options, and may also from time to time write single stock put options. When writing (selling) a covered call option, the Trust holds an underlying equity security and enters into an option transaction which allows the counterparty to purchase the equity security at an agreed-upon price (“strike price”) within an agreed-upon time period. The Trusts receive cash premiums from the counterparties upon writing (selling) the option, which along with net investment income and net realized gains, if any, are generally available to support current or future distributions paid by the Trusts. During the option term, the counterparty will elect to exercise the option if the market value of the equity security rises above the strike price, and the Trust will be obligated to sell the equity security to the counterparty at the strike price, realizing a gain or loss. Premiums received will increase gains or reduce losses realized on the sale of the equity security. If the option remains unexercised upon its expiration, the Trusts will realize gains equal to the premiums received.

Writing covered call options entails certain risks, which include, but are not limited to, the following: an increase in the value of the underlying equity security above the strike price can result in the exercise of a written option (sale by the Trust to the counterparty) when the Trust might not otherwise have sold the security; exercise of the option by the counterparty will result in a sale below the current market value and will result in a gain or loss being realized by the Trust; and writing covered call options limits the potential appreciation that could be realized on the underlying equity security to the extent of the strike price of the option. As such, an option over-writing strategy may outperform the general equity market in flat or falling markets but underperform in rising markets.

Each Trust employs a plan to support a level distribution of income, capital gains and/or return of capital. The goal of the plan is to provide shareholders with consistent and predictable cash flows by setting

distribution rates based on expected long-term returns of the Trusts. Such distributions, under certain circumstances, may exceed a Trust’s total return performance. When total distributions exceed total return performance for the period, the difference will reduce the Trust’s net asset value per share (“NAV”). The final determination of the source and character of distributions in accordance with federal income tax regulations is made after the fiscal year and is reported in the Trust’s annual report to shareholders. To the extent that dividends and distributions exceed the Trust’s current and accumulated earnings and profits, which are measured on a tax basis, the excess may be treated as a tax return of capital. Dividends and distributions in excess of a Trust’s taxable income and net capital gains that do not exceed the Trust’s current and accumulated earnings and profits, which are measured on a tax basis, may be treated as ordinary income dividends and/or capital gain distributions.

To illustrate these concepts, assume the following: (1) a common stock purchased at and currently trading at $37.15 per share; (2) a three-month call option is written by a Trust with a strike price of $40 (i.e., 7.7% higher than the current market price); and (3) the Trust receives $2.45, or 6.6% of the common stock’s value, as a premium. If the stock price remains unchanged, the option will expire and there would be a 6.6% return for the three-month period. If the stock were to decline in price by 6.6% (i.e., decline to $34.70 per share), the option strategy would “break-even” from an economic perspective resulting in neither a gain nor a loss. If the stock were to climb to a price of $40 or above, the option would be exercised and the stock would return 7.7% coupled with the option premium received of 6.6% for a total return of 14.3%. Under this scenario, the Trust loses the benefit of any appreciation of the stock above $40, and thus is limited to a 14.3% total return. The premium from writing the call option serves to offset some of the unrealized loss on the stock in the event that the price of the stock declines, but if the stock were to decline more than 6.6% under this scenario, the Trust’s downside protection is eliminated and the stock could eventually become worthless.

Each Trust intends to write covered call options to varying degrees depending upon market conditions. Please refer to each Trust’s Schedule of Investments and the Notes to Financial Statements for details of written options.

 

 

Derivative Financial Instruments

 

The Trusts may invest in various derivative financial instruments, including foreign currency exchange contracts and options, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market, equity, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts’ ability to use a

derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to shareholders or may cause a Trust to hold an investment that it might otherwise sell. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    5


Table of Contents
Trust Summary as of April 30, 2013      BlackRock EcoSolutions Investment Trust   

 

Trust Overview

BlackRock EcoSolutions Investment Trust’s (BQR) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in equity securities issued by companies that are engaged in one or more of New Energy (e.g., products, technologies and services connected to the efficient use of energy or the provision or manufacture of alternative forms of energy), Water Resources and Agriculture business segments. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 6.99% based on market price and 8.78% based on net asset value (“NAV”). For the same period, the closed-end Lipper Sector Equity Funds category posted an average return of 10.23% based on market price and 10.14% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The largest contribution to the Trust’s positive performance for the period came from the water resources segment of the portfolio where the Trust’s water utility holdings drove returns. The strongest-performing stock was Manila Water Co., Inc., a full service water utility company that primarily services residents in the East Zone region of Manila, Philippines. The company’s robust 2012 earnings were a catalyst for its share price touching all-time highs as it soared over the period. In the agriculture segment of the portfolio, exposure to agriculture equipment and machinery names had a positive impact on results for the period. Also within agriculture, Monsanto Co. was a strong individual contributor to returns as the agricultural science company’s earnings continuously beat analysts’ expectations and its management raised the earnings forecast given strong pricing power and high sales volume. Gains from the Trust’s option writing strategy had a positive impact on results for the period.

Ÿ  

Conversely, the Trust’s position in fertilizer stock Agrium, Inc. detracted from performance due to a reduced output of potash (a fertilizer product) at the company’s Canadian mines and concerns that the late-season planting in the United States would impact retail demand for agricultural input products. The Trust’s holding in Pennon Group Plc also had a negative impact on returns as shares of the British water utility and waste management company weakened following a profit warning early in the period. In addition, the Trust held an elevated cash balance as a means of defensive positioning given near-term uncertainty about the market outlook. The Trust’s cash position had a modestly negative impact on performance as equities generally advanced.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust initiated a position in TransCanada Corp., a North American infrastructure company that operates mainly in the oil and natural gas pipelines business. Also in the new energy sleeve, the Trust sold its holding in Spanish utilities group Iberdrola SA.

Describe portfolio positioning at period end.

 

Ÿ  

At the end of period, the Trust continued to hold large allocations to both the agriculture and water resources segments and less emphasis on new energy, which is reflective of the relative outlooks and valuations for each of these segments.

 

 

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.

 

6    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
     BlackRock EcoSolutions Investment Trust

 

Trust Information

 

Symbol on New York Stock Exchange (“NYSE”)

   BQR

Initial Offering Date

   September 28, 2007

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($8.90)1

   8.06%

Current Quarterly Distribution per Common Share2

   $0.17925

Current Annualized Distribution per Common Share2

   $0.71700

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change      High        Low  

Market Price

     $ 8.90         $ 8.66           2.77    $ 9.48         $ 7.59   

Net Asset Value

     $ 9.55         $ 9.14           4.49    $ 9.78         $ 8.87   

The following charts show the ten largest holdings and industry allocation of the Trust’s long-term investments:

 

Ten Largest Holdings    4/30/13

Manila Water Co., Inc.

     5

Monsanto Co.

     4   

Syngenta AG

     3   

Severn Trent Plc

     3   

Inversiones Aguas Metropolitanas SA

     3   

Aqua America, Inc.

     3   

Sao Martinho SA

     3   

Agrium, Inc.

     2   

Potash Corp of Saskatchewan, Inc.

     2   

BrasilAgro - Co Brasileira de Propriedades Agricolas

     2   
Industry Allocation    4/30/13    10/31/12

Water Utilities

     29     25

Chemicals

     22        22   

Food Products

     12        14   

Machinery

     11        12   

Electric Utilities

     4        4   

Oil, Gas & Consumable Fuels

     4        2   

Real Estate Investment Trusts (REITs)

     3        3   

Electrical Equipment

     3        3   

Commercial Services & Supplies

     3        3   

Multi-Utilities

     2        3   

Electronic Equipment, Instruments & Components

     2        2   

Construction & Engineering

     2        3   

Other3

     3                      4   

 

3 

Other includes a 1% holding or less in each of the following industries; for 4/30/13, Auto Components, Building Products, Independent Power Producers & Energy Traders, Industrial Conglomerates, Paper & Forest Products, Real Estate Management & Development, Road & Rail and Semiconductors & Semiconductor Equipment, and for 10/31/12, Auto Components, Building Products, Independent Power Producers & Energy Traders, Metals & Mining, Paper & Forest Products, Road & Rail and Semiconductors & Semiconductor Equipment.

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    7


Table of Contents
Trust Summary as of April 30, 2013    BlackRock Energy and Resources Trust

 

Trust Overview

BlackRock Energy and Resources Trust’s (BGR) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its total assets in equity securities of energy and natural resources companies and equity derivatives with exposure to the energy and natural resources industry. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 9.06% based on market price and 11.56% based on NAV. For the same period, the closed-end Lipper Sector Equity Funds category posted an average return of 10.23% based on market price and 10.14% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The Trust’s positive performance was driven largely by its exposure to on-shore oil producers in the United States, including Anadarko Petroleum Corp. and Noble Energy, Inc., which benefited from rising crude oil prices during the period. The Trust’s holdings in the oil refining and marketing segment also had a positive impact on returns as companies such as Valero Energy Corp. and Delek Logistics Partners LP benefited from improved operating margins. Gains from the Trust’s option writing strategy had a positive impact on results for the period.

Ÿ  

Exposure to gold and silver producers detracted from the Trust’s performance during the period. With gold and silver prices declining roughly 15% and 24%, respectively, in an upward-moving equity market, precious metals producers declined dramatically. In particular, the Trust’s key holdings in Silver Wheaton Corp. and Goldcorp, Inc. each fell more than 20% during the period. Elsewhere, the Trust’s overall return was hindered by weakness in select holdings such as Prospect Global Resources, Inc. a company with a potash (fertilizer product) development project in Arizona.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust reduced exposure to companies involved in the production of non-energy related products. The overall number of holdings in the Trust decreased during the period.

Describe portfolio positioning at period end.

 

Ÿ  

At the end of period, the Trust held a large exposure to energy exploration and production companies, with smaller allocations to oil services, energy distribution and oil refining and marketing companies. The Trust continued to maintain a limited exposure to metals & mining stock.

 

 

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.

 

8    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
     BlackRock Energy and Resources Trust

 

 

Trust Information

 

Symbol on NYSE

   BGR

Initial Offering Date

   December 29, 2004

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($25.64)1

   6.32%

Current Quarterly Distribution per Common Share2

   $0.405

Current Annualized Distribution per Common Share2

   $1.620

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change      High        Low  

Market Price

     $ 25.64         $ 24.28           5.60    $ 26.30         $ 21.78   

Net Asset Value

     $ 28.03         $ 25.95           8.02    $ 28.53         $ 24.64   

The following charts show the ten largest holdings and industry allocation of the Trust’s long-term investments:

 

Ten Largest Holdings    4/30/13

Chevron Corp.

     8

Gulfport Energy Corp.

     7   

Anadarko Petroleum Corp.

     6   

Noble Energy, Inc.

     5   

Schlumberger Ltd.

     5   

Range Resources Corp.

     5   

Valero Energy Corp.

     5   

Pioneer Natural Resources Co.

     4   

Keyera Corp.

     3   

Cameron International Corp.

     3   
Industry Allocation    4/30/13    10/31/12

Oil, Gas & Consumable Fuels

     80     78

Energy Equipment & Services

     18        16   

Metals & Mining

     2                      6   

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    9


Table of Contents
Trust Summary as of April 30, 2013    BlackRock Enhanced Capital and Income Fund, Inc.

 

Trust Overview

BlackRock Enhanced Capital and Income Fund, Inc.’s (CII) (the “Trust”) investment objective is to provide investors with a combination of current income and capital appreciation. The Trust seeks to achieve its investment objective by investing in a portfolio of equity and debt securities of US and foreign issuers. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

No assurance can be given that the Trust’s investment objectives will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 5.52% based on market price and 7.61% based on NAV. For the same period, the benchmark S&P 500® Value Index returned 16.63%. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

Relative to the S&P 500® Value Index, stock selection across several sectors detracted from performance during the period. The Trust’s positioning within financials was the leading source of underperformance. While the Trust held exposure to strong-performing money center banks such as Citigroup, Inc. and JPMorgan Chase & Co., the returns realized on these holdings were lower than that reflected in the benchmark index as a result of the Trust’s call-writing strategy. As money center banks rallied, the Trust’s positions in these stocks were called away, leading to an underweight posture within the group and hence the Trust’s underperformance. Similarly, the Trust’s performance in the insurance industry lagged the benchmark index due to changes in exposure to the group resulting from stock selection during the period.

 

Ÿ  

Stock selection within the information technology (“IT”) sector also detracted from relative returns. The Trust purchased Apple, Inc. during the period, which proved particularly costly as the stock then declined over 20% by period end due to concerns about prospects for the company’s future growth. Within energy, exposure to oil-levered holdings in the integrated oil & gas segment, such as Suncor Energy, Inc., Chevron Corp. and Exxon Mobil Corp., had a negative impact on results as global oil prices posted modest declines during the period. Concurrently, gas-oriented producers rallied on a modest recovery in natural gas prices

   

while the Trust was underweight in this space. In materials, shares of fertilizer producer CF Industries Holdings, Inc. fell sharply as global fertilizer prices dipped on concerns about the sustainability of global economic growth. Overall, gains from the Trust’s option writing strategy had a positive impact on results for the period.

 

Ÿ  

Conversely, the Trust benefited from its overweight to the IT sector, which performed well relative to the broader equity market during the period. An underweight to industrials also proved beneficial for relative returns.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust lowered its exposure to defensive-oriented areas such as consumer staples, utilities and telecommunication services (“telecom”), while increasing exposure to the more cyclical sectors, including IT and energy. Additionally, the strategy cut its exposure to financials during the period. Sector weightings in the Trust are generally a result of individual stock selection. Within that context, the Trust initiated high-conviction positions during the period including American International Group, Inc. (financials), Google, Inc. (IT), Japan Airlines Co. Ltd. (industrials), Vodafone Group Plc (telecom) and HollyFrontier Corp. (energy), while eliminating holdings in Wells Fargo & Co. (financials), Intel Corp. (IT), Honeywell International, Inc. (industrials), Verizon Communications, Inc. (telecom) and Noble Energy, Inc. (energy).

Describe portfolio positioning at period end.

 

Ÿ  

Relative to the S&P 500® Value Index, the Trust ended the period underweight within the defensive consumer staples and utilities sectors, and was also underweight in financials and consumer discretionary. The Trust maintained overweights in energy and materials. Across the sectors, the Trust continues to emphasize Management’s highest-conviction investment ideas on a stock-by-stock basis.

 

 

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.

 

10    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock Enhanced Capital and Income Fund, Inc.   

 

Trust Information     

 

Symbol on NYSE

   CII

Initial Offering Date

   April 30, 2004

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($13.09)1

   9.17%

Current Quarterly Distribution per Common Share2

   $0.30

Current Annualized Distribution per Common Share2

   $1.20

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change        High        Low  

Market Price

     $ 13.09         $ 12.99           0.77      $ 13.29         $ 11.80   

Net Asset Value

     $ 14.50         $ 14.11           2.76      $ 14.54         $ 13.62   

The following charts show the ten largest holdings and sector allocation of the Trust’s long-term investments:

 

Ten Largest Holdings    4/30/13

American International Group, Inc.

       6

Japan Airlines Co. Ltd.

       6   

Google, Inc., Class A

       5   

Vodafone Group Plc — ADR

       5   

CF Industries Holdings, Inc.

       4   

Suncor Energy, Inc.

       4   

Merck & Co., Inc.

       4   

Pfizer, Inc.

       3   

HollyFrontier Corp.

       3   

Apple, Inc.

         3   
Sector Allocation    4/30/13    10/31/12

Energy

    19     11

Information Technology

    18        12   

Financials

    16        22   

Health Care

    13        12   

Consumer Discretionary

    8        8   

Industrials

    7        10   

Telecommunication Services

    7        8   

Consumer Staples

    5        8   

Materials

    5        4   

Utilities

    2                      5   

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    11


Table of Contents
Trust Summary as of April 30, 2013      BlackRock Enhanced Equity Dividend Trust   

 

 

Trust Overview

BlackRock Enhanced Equity Dividend Trust’s (BDJ) (the  “Trust”) primary investment objective is to provide current income and current gains, with a secondary investment objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing in common stocks that pay dividends and have the potential for capital appreciation and by utilizing an option writing (selling) strategy to enhance distributions paid to the Trust’s shareholders. The Trust invests, under normal market conditions, at least 80% of its total assets in dividend paying equities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 9.33% based on market price and 8.61% based on NAV. For the same period, the Russell 1000® Value Index returned 16.31%. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The largest detractor from relative performance during the period was a combination of stock selection and an underweight position in the financials sector, followed by an underweight and stock selection in information technology (“IT”). Individual stock selection in consumer discretionary and consumer staples hampered returns, as did an overweight in utilities. Stock selection in industrials also weighed on performance.

 

Ÿ  

Contributing positively to performance was a combination of stock selection and an underweight in energy. The Trust’s energy position favored integrated oil & gas companies, which were strong performers during the period. Overweight positions in consumer staples and consumer discretionary also added meaningfully to returns, as did stock selection in utilities and materials. Gains from the Trust’s option writing strategy had a positive impact on results for the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, there were no large-scale changes to overall allocations. However, we continued to position the Trust opportunistically in the current environment. The largest active change was an addition to the financials sector, specifically to the regional banking industry where there were opportunities to own companies that were well-capitalized, exhibit above-peer earnings growth, strong dividend growth and were trading at discounted valuations. The Trust also reduced traditionally defensive holdings in utilities and telecommunication services and used the proceeds to buy companies in the same sectors whose management teams have been more articulate about growth and future expansion plans in the near term. The Trust sold holdings in industrials that may likely be impacted by slowing demand, weaker productivity and fewer growth projects within the mining space.

Describe portfolio positioning at period end.

 

Ÿ  

As of the end of the period, the Trust was positioned to perform well in a wide range of economic scenarios. This has been done by emphasizing companies that carry a diverse group of assets, have extensive customer bases among both retail and institutional clients and those which are less sensitive to broad changes in macroeconomic variables. By taking less factor-specific risk, the Trust is better protected than the market, but able to capture upside as equity markets and the broader economy gain momentum. By owning companies that can participate in all parts of a cycle, not just early or late-cycle names, the Trust is more prepared for less-certain times. As always, the Trust continued to search for brand leadership and industry dominance in its investments.

 

 

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.

 

 

12    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents

BlackRock Enhanced Equity Dividend Trust

 

 

Trust Information     

 

Symbol on NYSE

   BDJ

Initial Offering Date

   August 31, 2005

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($7.81)1

   7.17%

Current Quarterly Distribution per Common Share2

   $0.14

Current Annualized Distribution per Common Share2

   $0.56

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

      4/30/13      10/31/12      Change     High      Low  

Market Price

   $  7.81       $  7.41         5.40   $ 7.91       $ 6.87   

Net Asset Value

   $ 8.69       $ 8.30         4.70   $ 8.69       $ 8.03   

The following charts show the ten largest holdings and sector allocation of the Trust’s long-term investments:

Ten Largest Holdings         4/30/13  

Chevron Corp.

       3

JPMorgan Chase & Co.

       3   

Wells Fargo & Co.

       3   

The Home Depot, Inc.

       2   

General Electric Co.

       2   

Comcast Corp., Special Class A

       2   

Pfizer, Inc.

       2   

Verizon Communications, Inc.

       2   

Exxon Mobil Corp.

       2   

Philip Morris International, Inc.

         2   

 

Sector Allocation

  4/30/13     10/31/12  

Financials

    19     18

Industrials

    14        15   

Energy

    14        12   

Consumer Staples

    13        13   

Consumer Discretionary

    10        11   

Health Care

    8        7   

Utilities

    7        10   

Materials

    6        5   

Information Technology

    5        3   

Telecommunication Services

    4                      6   

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    13


Table of Contents
Trust Summary as of April 30, 2013      BlackRock Global Opportunities Equity Trust   

 

Trust Overview

BlackRock Global Opportunities Equity Trust’s (BOE) (the  “Trust”) primary investment objective is to provide current income and current gains, with a secondary investment objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy to enhance current gains. The Trust invests, under normal market conditions, at least 80% of its assets in equity securities or options on equity securities or indices or sectors of equity securities. Under normal circumstances, the Trust invests a substantial amount of its total assets in foreign issuers, issuers that primarily trade in a market located outside the United States or issuers that do a substantial amount of business outside the United States. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 11.72% based on market price and 10.84% based on NAV. For the same period, the MSCI All Country World Index posted a return of 13.46%. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The Trust’s positioning within energy, which was among the weaker performing sectors in the benchmark index, detracted from relative results for the period. Exposure to the offshore drilling and energy equipment & services segments had a negative impact on results amid declining oil prices. While there have been several factors at play, a stronger US dollar and more moderate economic data out of China are commonly cited for the recent weakness in oil prices. On a regional basis, stock selection in developed Europe detracted from the Trust’s performance. Most notably, while eurozone instability has persisted for an extended period of time, the conditions of the latest bailout package for Cyprus added to pressures on the Trust’s euro-centric positions.

 

Ÿ  

Conversely, stock selection in industrials was the largest contributor to performance. Several capital goods holdings such as United Rentals, Inc., Eaton Corp. and Hino Motors Ltd. delivered stand-out performance, as did German airliner Deutsche Lufthansa AG and US car rental

 

operator Hertz Global Holdings, Inc. The cost savings associated with massive industry restructuring and consolidation since the onset of the financial crisis have resulted in better operating and profitability measures for many of these now higher quality businesses. Other factors that drove positive relative performance were the Trust’s US commodity chemical holdings in the materials sector and an overweight to asset managers in the financials sector. Gains from the Trust’s option writing strategy had a positive impact on results for the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust reduced its cash position as well as several commodity-linked holdings domiciled in Australia and Mexico. The proceeds were used to increase exposure to Japan and core European countries.

Describe portfolio positioning at period end.

 

Ÿ  

At period end, the Trust’s holdings reflected a preference for well-capitalized businesses with the ability to consistently grow and generate cash flow in excess of their cost of capital. These companies, more often than not, have re-invested in their businesses, restructured, and are now among the lowest cost producers in their respective industries and hold significant market share. The Trust’s regional positioning was consistent with the view that economies around the world continue to recover. The Trust maintained a bias toward globally oriented companies domiciled in the United States and Europe, while reflecting optimism for Japan and general caution with respect to emerging markets.

 

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.

 

14    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock Global Opportunities Equity Trust   

 

Trust Information

 

Symbol on NYSE

   BOE

Initial Offering Date

   May 31, 2005

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($14.12)1

   8.83%

Current Quarterly Distribution per Common Share2

   $0.31165
Current Annualized Distribution per Common Share2    $1.24660

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

          4/30/13        10/31/12        Change      High        Low  

Market Price

     $ 14.12         $ 13.24           6.65    $ 14.20         $ 11.92   

Net Asset Value

     $ 15.86         $ 14.99           5.80    $ 15.86         $ 14.27   

The following charts show the ten largest holdings and geographic allocation of the Trust’s long-term investments:

Ten Largest Holdings    4/30/13  

Roche Holding AG

     2

Google, Inc., Class A

     2   

Bank of America Corp.

     2   

Barclays Plc — ADR

     1   

Svenska Cellulosa AB, B Shares

     1   

AIA Group Ltd.

     1   

UBS AG

     1   

Mead Johnson Nutrition Co.

     1   

Diageo Plc

     1   
esure Group Plc    1  
Geographic Allocation    4/30/13     10/31/12  

United States

     47     47

United Kingdom

     14        12   

Japan

     9        3   

Switzerland

     8        2   

France.

     5        4   

Indonesia

     3        2   

Italy

     3        1   

Germany

     2        5   

Sweden

     1        3   

Hong Kong

     1        2   

Mexico

     1        2   

Australia

            2   

Norway

            2   

Ireland

            2   
Other3    6                   11  

 

3 

Other includes a 1% holding or less in each of the following countries; for 4/30/13, India, Belgium, Taiwan, Cayman Islands, Netherlands, Thailand and Argentina, and for 10/31/12, Italy, Taiwan, China, Spain, Singapore, India, Belgium, Cayman Islands, Bermuda, Thailand, Canada, Brazil, South Korea and Argentina.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    15


Table of Contents
Trust Summary as of April 30, 2013      BlackRock Health Sciences Trust   

 

Trust Overview

BlackRock Health Sciences Trust’s (BME) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in equity securities of companies engaged in the health sciences and related industries and equity derivatives with exposure to the health sciences industry. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 18.47% based on market price and 19.30% based on NAV. For the same period, the Russell 3000® Healthcare Index returned 20.37%. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

Given the strong performance of the Trust and the benchmark index during the period, there were only a few detractors from relative returns. In pharmaceuticals, the Trust’s underweight positions in some of the larger benchmark constituents such as Johnson & Johnson and Pfizer, Inc. hindered results, although stock selection in this industry was still a positive contributor to relative performance in the aggregate. Additionally, several holdings in managed health care detracted from performance due to uncertainty regarding the impact of Health Care Reform legislation and reimbursement cuts. The Trust’s option writing strategy had a slightly negative impact on results for the period.

 

Ÿ  

Positive relative performance in the Trust came from multiple industries. The largest contributor was a combination of stock selection and an overweight in biotechnology, where several of the Trust’s holdings appreciated due to favorable outcomes for their clinical developments, strong financial results or the combination thereof. Similarly, stock selection in pharmaceuticals aided relative performance due to overweight positions in Roche Holding AG and Novartis AG, while the Trust benefited from maintaining an underweight in Merck & Co., Inc., which underperformed the benchmark. Elsewhere, the Trust benefited from its overweight positions in strong performers such as health care equipment company Sirona Dental Systems, Inc. and life sciences tools company Agilent Technologies, Inc., the latter of which the Fund sold after the stock had appreciated to Management’s price target at the beginning of 2013.

 

Additionally, the Trust’s avoidance of several health care equipment laggards, Intuitive Surgical, Inc. and Edwards Lifesciences Corp., proved beneficial given their poor stock performance. Lastly, the Trust derived gains from its health care facility holdings, Universal Health Services, Inc. and Capital Senior Living Corp.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust’s industry exposures changed as a result of investment decisions at the individual stock level. The Trust’s exposures to the pharmaceutical, biotechnology industries and health care equipment & supplies increased slightly, while its allocation to health care providers & services slightly decreased.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the Trust continued to maintain a focus on innovative companies that seek to satisfy an unmet health care need or enhance current products or services. As a result, the Trust’s largest industry allocations continued to be pharmaceuticals and biotechnology. The Trust also maintained focused exposure to companies deemed likely to benefit from the implementation of Health Care Reform legislation.

 

Ÿ  

Overall, Trust management remains constructive on the health care sector. Generally speaking, valuations in the health care sector remain reasonable, even after the strong performance of the sector in 2012 and thus far in 2013. Policy uncertainty has diminished as the implementation of Health Care Reform legislation has been slated for 2014. Furthermore, the new legislation is expected to benefit health care companies by creating increased consumer demand. Additionally, innovation has been improving, particularly in the pharmaceutical and biotechnology industries, which enhances the long-term growth outlook for those stocks.

 

 

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.

 

16    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock Health Sciences Trust   

 

Trust Information     

 

Symbol on NYSE

   BME

Initial Offering Date

   March 31, 2005

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($31.22)1

   4.92%

Current Quarterly Distribution per Common Share2

   $0.384375

Current Annualized Distribution per Common Share2

   $1.537500

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

      4/30/13      10/31/12      Change     High      Low  

Market Price

   $ 31.22       $ 27.86         12.06   $ 32.38       $ 26.41   

Net Asset Value

   $ 31.98       $ 28.34         12.84   $ 32.22       $ 27.59   

The following charts show the ten largest holdings and industry allocation of the Trust’s long-term investments:

 

Ten Largest Holdings    4/30/13  

Roche Holding AG

     5

Pfizer, Inc.

     4   

Gilead Sciences, Inc.

     4   

Novartis AG

     4   

Amgen, Inc.

     4   

Celgene Corp.

     4   

Bristol-Myers Squibb Co.

     3   

Eli Lilly & Co.

     3   

Sanofi

     3   

Johnson & Johnson

     3   
Industry Allocation    4/30/13     10/31/12  

Pharmaceuticals

     39     36

Biotechnology

     28        22   

Health Care Equipment & Supplies

     14        13   

Health Care Providers & Services

     11        20   

Life Sciences Tools & Services

     4        6   

Food & Staples Retailing

     2        1   

Other3

     2                      2   

 

3 

Other includes a 1% holding or less in each of the following industries; for 4/30/13, Health Care Technology, Diversified Consumer Services, and Industrial Conglomerates, and for 10/31/12, Industrial Conglomerates, Diversified Consumer Services, Health Care, Technology and Chemicals.

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    17


Table of Contents
Trust Summary as of April 30, 2013      BlackRock International Growth and Income Trust   

 

Trust Overview

BlackRock International Growth and Income Trust’s (BGY) (the “Trust”) primary investment objective is to provide current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies of any market capitalization located in countries throughout the world and utilizing an option writing (selling) strategy to enhance current gains. The Trust invests, under normal market conditions, at least 80% of its assets in equity securities issued by non-U.S. companies of any market capitalization located in countries throughout the world. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 9.25% based on market price and 9.50% based on NAV. For the same period, the MSCI All Country World Index ex-US returned 12.78%. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The largest detractor from Trust performance was positioning within the materials sector. Exposures to gold miners and industrial-related metals had a negative impact on results due to price reversals in the underlying commodities after multi-year runs of considerable pricing strength. While there have been several factors at play, a stronger US dollar and more moderate economic data out of China are commonly cited for the recent weakness in commodity prices. Also in materials, the Trust’s holdings in the paper products segment lagged the benchmark index during the period. The Trust’s option writing strategy had a negative impact on results for the period.

 

Ÿ  

Conversely, stock selection within diversified financials and pharmaceuticals were the largest relative contributors from an industry perspective. These segments performed well as strong cash flow attributes, and larger cash inflows for asset managers, attracted investors seeking income and

 

growth in the low interest rate environment. From a geographic standpoint, stock selection in Japan contributed positively. While the outcome is far from certain, Japan has clearly been taking bold policy actions in an attempt to reinvigorate its domestic economy, leading to a re-pricing of local assets as well as shares of export-oriented companies.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust increased its allocation to developed Europe, with the largest additions centered on globally oriented businesses domiciled in Switzerland. The Trust also added to Japanese equities. These purchases were funded primarily from reduced exposures to the Trust’s more cyclical holdings in Australia, Canada and the emerging markets.

Describe portfolio positioning at period end.

 

Ÿ  

At period end, the Trust’s holdings reflected a preference for well-capitalized businesses with the ability to consistently grow and generate cash flow in excess of their cost of capital. These companies, more often than not, have re-invested in their businesses, restructured, and are now among the lowest cost producers in their respective industries and hold significant market share. The Trust’s regional positioning was consistent with the view that economies around the world continue to recover. The Trust maintained a bias toward globally oriented companies domiciled in Europe, while reflecting optimism for Japan and general caution with respect to emerging markets.

 

 

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.

 

18    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock International Growth and Income Trust   

 

Trust Information

 

Symbol on NYSE

   BGY

Initial Offering Date

   May 30, 2007

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($7.75)1

   8.66%

Current Quarterly Distribution per Common Share2

   $0.16785

Current Annualized Distribution per Common Share2

   $0.67140

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

      4/30/13      10/31/12      Change     High      Low  

Market Price

   $ 7.75       $ 7.41         4.59   $ 7.82       $ 6.85   

Net Asset Value

   $ 8.68       $ 8.28         4.83   $ 8.70       $ 8.07   

The following charts show the ten largest holdings and geographic allocation of the Trust’s long-term investments:

 

Ten Largest Holdings    4/30/13  

Roche Holding AG

     5

Sanofi

     3   

Novartis AG

     2   

Barclays Plc — ADR

     2   

Syngenta AG

     2   

Nestle SA

     2   

Eni SpA

     2   

ORIX Corp.

     2   

Diageo Plc

     2   

Swiss Re AG

     2   
Geographic Allocation    4/30/13     10/31/12  

United Kingdom

     24     25

Switzerland

     19        11   

Japan

     12        6   

Germany

     7        6   

France

     6        7   

Hong Kong

     5        3   

Netherlands

     4        2   

Italy

     4        2   

Belgium

     3        1   

Ireland

     3        2   

Indonesia

     2        1   

Sweden

     2        4   

Mexico

     1        3   

Australia

     1        4   

Canada

            4   

Singapore

            3   

China

            2   

Spain

            2   

Brazil

            2   

Other3

     7        10   

 

3 

Other includes a 1% holding or less in each of the following countries; for 4/30/13, Finland, Thailand, Taiwan, United States, India, Malaysia, Canada, China, and Cayman Islands and for 10/31/12, South Korea, India, Jersey, Channel Islands, Norway, Finland, Taiwan, South Africa, United States, Israel, Argentina, Thailand, Malaysia, Gibraltar, and Cayman Islands.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    19


Table of Contents
Trust Summary as of April 30, 2013      BlackRock Real Asset Equity Trust   

 

Trust Overview

BlackRock Real Asset Equity Trust’s (BCF) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in equity securities of energy, natural resources and basic materials companies and equity derivatives with exposure to companies in the energy, natural resources and basic materials industries. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned (0.72)% based on market price and (3.55)% based on NAV. For the same period, the closed-end Lipper Sector Equity Funds category posted an average return of 10.23% based on market price and 10.14% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The Trust’s investments in the natural resources segment (metals & mining stocks) detracted from performance for the period amid price weakness in precious metals, especially gold. In particular, the Trust’s position in Peruvian gold miner Cia de Minas Buenaventura SA hurt returns after the company delivered a disappointing update from its growth development project in southern Peru, the Chucapaca open-pit mine, suggesting that open-pit mining may no longer be an economic method for developing the mine. The company also reported faster-than-expected grade declines (the concentration of metal contained in the ore) in other mines, suggesting the possibility of lower production levels for 2013. Other holdings in this space having a negative impact on the Trust’s results included Fresnillo Plc and Industrias Penoles SAB de CV. In addition, the Trust held an elevated cash balance as a means of defensive positioning given near-term uncertainty about the market outlook. The Trust’s cash position had a modestly negative impact on performance as equities generally advanced.

Ÿ  

The Trust’s investments in the basic materials segment of the portfolio contributed positively to results, with notable performance from the chemicals, paper & forest products and containers & packaging industries. Notable contributors within chemicals included E.I. du Pont de Nemours & Co., Praxair, Inc. and Monsanto Co. In paper & forest products, International Paper Co. was a stand-out performer with strong fourth-quarter earnings that beat consensus estimates. The company benefited from higher prices for container board while its management effectively reduced fixed costs and improved free cash flow generation. In the energy segment of the portfolio, the Trust’s position in refiner Valero Energy Corp. proved beneficial as the stock soared on expectations that the company would have the ability to monetize crude oil price differentials given its available capacity to increase production in the United States. Gains from the Trust’s option writing strategy had a positive impact on performance during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, notable transactions included the addition of Nevsun Resources Ltd. and Silver Wheaton Corp. and the elimination of Cliffs Natural Resources, Inc. and Harry Winston Diamond Corp.

Describe portfolio positioning at period end.

 

Ÿ  

At the end of the period, the Trust held its largest exposure in metals & mining stocks, with the remainder broadly divided between the energy sector and basic materials.

 

 

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.

 

20    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock Real Asset Equity Trust   

 

 

Trust Information

 

Symbol on NYSE

   BCF

Initial Offering Date

   September 29, 2006

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($9.88)1

   8.97%

Current Quarterly Distribution per Common Share2

   $0.2215

Current Annualized Distribution per Common Share2

   $0.8860

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change        High        Low  

Market Price

     $ 9.88         $ 10.39           (4.91 )%       $ 10.85         $ 9.18   

Net Asset Value

     $ 10.19         $ 11.03           (7.62 )%       $ 11.35         $ 9.69   

The following charts show the ten largest holdings and industry allocation of the Trust’s long-term investments:

 

Ten Largest Holdings    4/30/13

Rio Tinto Plc

     4

BHP Billiton Plc

     4   

EI du Pont de Nemours & Co.

     4   

Caterpillar, Inc.

     3   

Praxair, Inc.

     3   

International Paper Co.

     3   

Xstrata Plc

     3   

Chevron Corp.

     3   

Industrias Penoles SAB de CV

     3   

MeadWestvaco Corp.

     3   
Industry Allocation    4/30/13    10/31/12

Metals & Mining

     38     43

Oil, Gas & Consumable Fuels

     27        27   

Chemicals

     15        13   

Paper & Forest Products

     7        6   

Energy Equipment & Services

     6        5   

Machinery

     5        4   

Real Estate Investment Trusts (REITs)

     2                      2   

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    21


Table of Contents
Trust Summary as of April 30, 2013      BlackRock Resources & Commodities Strategy Trust   

 

Trust Overview

BlackRock Resources & Commodities Strategy Trust’s (BCX) (the “Trust”) primary investment objective is to seek high current income and current gains, with a secondary objective of capital appreciation. The Trust will seek to achieve its investment objectives, under normal market conditions,by investing at least 80% of its total assets in equity securities issued by commodity or natural resources companies, derivatives with exposure to commodity or natural resources companies or investments in securities and derivatives linked to the underlying price movement of commodities or natural resources. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

No assurance can be given that the Trust’s investment objectives will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned (6.76)% based on market price and (5.94)% based on NAV. For the same period, the closed-end Lipper Sector Equity Funds category posted an average return of 10.23% based on market price and 10.14% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The Trust’s exposure to metals & mining stocks detracted from performance as concerns about growth in China and some disappointing company reports (including asset write-downs from a number of major mining companies) weighed on the industry. Gold and precious metals producers were among the weakest performers during the period. Gold producers sold off heavily amid severe volatility in the price of gold, which declined roughly 15% over the period, driven largely by uncertainty around central bank actions, including the longevity of the US Federal Reserve’s stimulus program and fears that the bailout terms for Cyprus may entail a gold sale.

Ÿ  

The Trust’s investments in the energy sector contributed positively to returns as optimism around the US economy (the largest end market for crude oil) helped generate momentum for the sector. Certain gas producers held in the Trust were among the stronger performers due to a significant appreciation in natural gas prices, helped by cooler weather in the United States. Gains from the Trust’s option writing strategy also had a positive impact on performance during the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, the Trust increased its allocation to oil, gas & consumable fuels and decreased exposure to metals & mining stocks. In basic materials, the Trust reduced its chemicals exposure, while adding to holdings in machinery and food products.

Describe portfolio positioning at period end.

 

Ÿ  

As of period end, the Trust’s largest allocation was to the energy sector, while the remaining exposure was divided broadly between metals & mining and basic materials stocks. This positioning reflects the relative outlooks and valuations for each of these segments.

 

 

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.

 

22    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock Resources & Commodities Strategy Trust   

 

Trust Information

 

Symbol on NYSE

   BCX

Initial Offering Date

   March 30, 2011

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($12.60)1

   9.21%

Current Quarterly Distribution per Common Share2

   $0.29

Current Annualized Distribution per Common Share2

   $1.16

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change        High        Low  

Market Price

     $ 12.60         $ 14.12           (10.76 )%       $ 14.32         $ 12.04   

Net Asset Value

     $ 13.88         $ 15.42           (9.99 )%       $ 15.54         $ 13.19   

The following charts show the ten largest holdings and industry allocation of the Trusts long-term investments:

Ten Largest Holdings    4/30/13

Chevron Corp.

     7

Exxon Mobil Corp.

     5   

Monsanto Co.

     4   

BHP Billiton Ltd. — ADR

     4   

Syngenta AG.

     4   

Potash Corp of Saskatchewan, Inc.

     3   

ConocoPhillips

     3   

Royal Dutch Shell Plc — ADR

     3   

Xstrata Plc

     3   

Southwestern Energy Co.

     3   
Industry Allocation    4/30/13    10/31/12

Oil, Gas & Consumable Fuels

     45     37

Metals & Mining

     24        33   

Chemicals

     17        21   

Food Products

     7        3   

Machinery

     6        4   

Real Estate Investment Trusts (REITS)

     1          

Energy Equipment & Services

                          2   

For Trust compliance purposes, the Trust iindustry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    23


Table of Contents
Trust Summary as of April 30, 2013      BlackRock S&P Quality Rankings Global Equity Managed Trust   

 

Trust Overview

BlackRock S&P Quality Rankings Global Equity Managed Trust’s (BQY) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing primarily in equity securities of issuers that pay above-average dividends and have the potential for capital appreciation. The Trust invests, under normal market conditions, at least 80% of its assets in equity securities included in the S&P Quality Rankings that are ranked at least B+ by S&P at the time of investment. Under normal circumstances, the Trust invests a substantial amount of its total assets in foreign issuers, issuers that primarily trade in a market located outside the United States or issuers that do a substantial amount of business outside the United States. The Trust may invest directly in such securities or synthetically through the use of derivatives. The Trust utilizes an option writing (selling) strategy to enhance dividend yield.

The Board approved a change to the Trust’s non-fundamental investment policies on June 4, 2013. Please refer to page 132 in the Additional Information section.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 10.02% based on market price and 10.06% based on NAV. For the same period, the MSCI World Value Index returned 15.64%. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

Relative to the MSCI World Value Index, the largest detractor from the Trust’s performance was the combination of a substantial underweight and stock selection in the financials sector, followed by individual stock selection in information technology (“IT”). An overweight and stock selection in telecommunication services hampered returns, as did stock selection in consumer staples and utilities. A small overweight in utilities also weighed on performance.

 

Ÿ  

The largest contributor to the Trust’s positive performance was a combination of strong stock selection and underweight positions in both materials and energy. A large overweight in consumer staples added to returns, as did marginal overweights in health care and consumer discretionary. Gains from the Trust’s option writing strategy had a positive impact on results for the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, there were few meaningful changes to overall portfolio allocations due to the longer-term nature of the Trust’s investment horizon and project cycle within the global utility and infrastructure space. The Trust continued to focus on companies that are likely to gain market share and grow revenues in a recovering global economy.

Describe Trust positioning at period end.

 

Ÿ  

As of the end of the period, the Trust was positioned to perform well in a wide range of economic scenarios. This has been done by emphasizing companies that carry a diverse group of assets, have extensive customer bases among both retail and institutional clients and those which are less sensitive to broad changes in macroeconomic variables. By taking less factor-specific risk, the Trust is better protected than the market, but able to capture upside as equity markets and the broader economy gain momentum. By owning companies that can participate in all parts of a cycle, not just early or late-cycle names, the Trust is more prepared for less-certain times. As always, the Trust continued to search for brand leadership and industry dominance in its investments.

 

 

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.

 

24    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
     BlackRock S&P Quality Rankings Global Equity Managed Trust

 

 

Trust Information

 

Symbol on NYSE MKT

   BQY

Initial Offering Date

   May 28, 2004

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($13.06)1

   7.04%

Current Quarterly Distribution per Common Share2

   $0.23

Current Annualized Distribution per Common Share2

   $0.92

 

1 

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change        High        Low  

Market Price

     $ 13.06         $ 12.34           5.83      $ 13.20         $ 11.04   

Net Asset Value

     $ 14.25         $ 13.46           5.87      $ 14.25         $ 12.73   

The following charts show the ten largest holdings and geographic allocation of the Trust’s long-term investments:

Ten Largest Holdings    4/30/13

Exxon Mobil Corp.

     3

AT&T Inc.

     3   

Chevron Corp.

     2   

General Mills, Inc.

     2   

The Walt Disney Co.

     2   

Verizon Communications, Inc.

     2   

Emerson Electric Co.

     2   

Altria Group, Inc.

     2   

Bristol-Myers Squibb Co.

     2   

The Home Depot, Inc.

     2   
Geographic Allocation    4/30/13    10/31/12

United States

     69     69

United Kingdom

     7        6   

Australia

     4        4   

France

     3        3   

Canada

     3        4   

Sweden

     3        3   

Germany

     3        3   

Hong Kong

     2        2   

Japan

     2        2   

Other3

     4                      4   

 

3 

Other includes a 1% holding or less in each of the following countries; for 4/30/13, Singapore, Switzerland, Netherlands, Belgium, Spain and Italy, and for 10/31/12, Singapore, Switzerland, Netherlands, Belgium, Spain and Italy.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    25


Table of Contents
Trust Summary as of April 30, 2013      BlackRock Utility and Infrastructure Trust   

 

Trust Overview

BlackRock Utility and Infrastructure Trust’s (BUI) (the “Trust”) investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing primarily in equity securities issued by companies that are engaged in the Utilities and Infrastructure business segments anywhere in the world and by utilizing an option writing (selling) strategy in an effort to enhance current gains. The Trust considers the “Utilities” business segment to include products, technologies and services connected to the management, ownership, operation, construction, development or financing of facilities used to generate, transmit or distribute electricity, water, natural resources or telecommunications and the “Infrastructure” business segment to include companies that own or operate infrastructure assets or that are involved in the development, construction, distribution or financing of infrastructure assets. Under normal circumstances, the Trust invests a substantial amount of its total assets in foreign issuers, issuers that primarily trade in a market located outside the United States or issuers that do a substantial amount of business outside the United States. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Portfolio Management Commentary

 

How did the Trust perform?

 

Ÿ  

For the six-month period ended April 30, 2013, the Trust returned 8.12% based on market price and 10.23% based on NAV. For the same period, the closed-end Lipper Sector Equity Funds category posted an average return of 10.23% based on market price and 10.14% based on NAV. All returns reflect reinvestment of dividends. The Trust ended the period trading at discount to NAV, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

 

Ÿ  

The largest contributor to the Trust’s performance was stock selection in the utilities sector, particularly regulated utilities, where several holdings returned more than 20%. Stock selection in water utilities was strong, with robust absolute performance coming from American Water Works Co., Inc. and Aqua America, Inc. In telecommunication services, investments in Verizon Communications, Inc., BT Group Plc and Telenor ASA substantially benefited performance. The Trust’s exposure to the industrials sector also contributed positively to results.

 

Ÿ  

Detracting from returns for the period was a handful of stocks that performed weakly due to both macroeconomic and fundamental reasons. German utility E.ON AG fell later during 2012 as the German government announced it would seek alternative sources of energy. CenturyLink, Inc., which the Trust sold during the first quarter of 2013, cut its dividend as a result of a capital allocation change. The stock’s price reacted immediately following the announcement. In industrials, an investment in Asian port operator China Merchants Holdings International Co. Ltd. weighed

on returns as the stock was weaker due to fears of a cooling Chinese economy and slower growth in the near term. The Trust’s option writing strategy had a negative impact on results for the period.

Describe recent portfolio activity.

 

Ÿ  

During the six-month period, there were few meaningful changes to overall portfolio allocations due to the longer-term nature of the Trust’s investment horizon and project cycle within the global utility and infrastructure space. The Trust continued to focus on companies that are likely to gain market share and grow revenues in a recovering global economy.

Describe Trust positioning at period end.

 

Ÿ  

As of period end, the Trust was positioned to reflect ownership in companies we expect to capitalize on global trends of industrialization and urbanization around the world. Trust management continues to believe that the proliferation of wealth and general population growth across emerging markets will drive demand for commodities and related items in order to support infrastructure development, power generation, energy exploration & production and enhanced agricultural efficiencies. The Trust’s holdings reflected a preference for industry leaders with early market penetration that are poised to capture growing revenues as demand for infrastructure, telecommunication services and electricity accelerates. This theme remains critical to the Trust’s current positioning, as Trust management believes the velocity of an emerging middle class, with an anticipated two billion people joining by 2030, will be an exceptionally important investment theme.

 

 

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.

 

26    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
       BlackRock Utility and Infrastructure Trust   

 

Trust Information

 

Symbol on NYSE

   BUI

Initial Offering Date

   November 25, 2011

Current Distribution Rate on Closing Market Price as of April 30, 2013 ($19.80)1

   7.32%

Current Quarterly Distribution per Common Share2

   $0.3625

Current Annualized Distribution per Common Share2

   $1.4500

 

1

Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate consists of income, net realized gains and/or a tax return of capital. See the Section 19(a) Notices on page 2 for the estimated sources and character of distributions. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

        4/30/13        10/31/12        Change        High        Low  

Market Price

     $ 19.80         $ 19.03           4.05      $ 19.95         $ 16.85   

Net Asset Value

     $ 21.45         $ 20.22           6.08      $ 21.45         $ 18.87   

The following charts show the ten largest holdings and industry allocation of the Trust’s long-term investments:

Ten Largest Holdings    4/30/13

American Tower Corp. — REIT

     4

Verizon Communications, Inc.

     3   

National Grid Plc

     3   

CCR SA

     3   

Tractebel Energia SA

     3   

NextEra Energy, Inc.

     3   

Duke Energy Corp.

     2   

Plains All American Pipeline LP

     2   

CMS Energy Corp.

     2   

Cia de Saneamento de Minas Gerais — COPASA

     2   
Industry Allocation    4/30/13    10/31/12

Electric Utilities

     23     26

Oil, Gas & Consumable Fuels

     19        9   

Multi-Utilities

     16        20   

Transportation Infrastructure

     13        8   

Water Utilities

     8        11   

Diversified Telecommunication Services

     7        13   

Independent Power Producers & Energy Traders

     5        4   

Real Estate Investment Trusts (REITs)

     4        3   

Wireless Telecommunication Services

     2        2   

Construction & Engineering

     2        1   

Other3

     1                      3   

 

3 

Other includes a 1% holding or less in each of the following industries; for 4/30/13, Gas Utilities, and Machinery, and for 10/31/12, Machinery, Media, and Gas Utilities.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    27


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock EcoSolutions Investment Trust (BQR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Auto Components — 0.8%

     

Johnson Controls, Inc. (a)

     29,000       $ 1,015,290   

Building Products — 0.2%

     

Kingspan Group Plc

     23,600         285,284   

Chemicals — 20.8%

     

Agrium, Inc.

     29,100         2,667,597   

CF Industries Holdings, Inc. (a)

     9,650         1,799,822   

Incitec Pivot Ltd.

     265,600         796,945   

Israel Chemicals Ltd.

     90,000         1,072,485   

Johnson Matthey Plc

     59,204         2,229,220   

K+S AG

     19,000         841,140   

Monsanto Co.

     37,900         4,048,478   

The Mosaic Co. (a)

     34,900         2,149,491   

Novozymes A/S, B Shares

     38,100         1,318,685   

Nufarm Ltd.

     60,460         263,664   

Potash Corp of Saskatchewan, Inc. (a)

     63,100         2,656,510   

Sinofert Holdings Ltd.

     2,201,500         478,123   

Syngenta AG

     7,700         3,291,899   

Umicore SA

     19,800         917,655   

Wacker Chemie AG

     6,000         459,205   
     

 

 

 
                24,990,919   

Commercial Services & Supplies — 2.4%

     

Tetra Tech, Inc. (b)

     83,400         2,192,586   

Tianjin Capital Environmental Protection Group Co. Ltd., Series H

     2,007,000         709,606   
     

 

 

 
                2,902,192   

Construction & Engineering — 1.6%

     

Aegion Corp. (b)

     12,000         252,720   

Chicago Bridge & Iron Co. NV (a)

     3,362         180,842   

Layne Christensen Co. (a)(b)

     11,100         226,773   

Quanta Services, Inc. (a)(b)

     45,700         1,255,836   
     

 

 

 
                1,916,171   

Electric Utilities — 3.5%

     

Acciona SA

     3,800         248,600   

Iberdrola SA

     207,005         1,112,977   

ITC Holdings Corp.

     2,900         267,438   

NextEra Energy, Inc.

     21,600         1,771,848   

SSE Plc

     32,000         774,780   
     

 

 

 
                4,175,643   

Electrical Equipment — 3.1%

     

ABB Ltd.

     26,000         589,600   

American Superconductor Corp. (b)

     33,500         84,085   

Gamesa Corp Tecnologica SA

     40,100         156,775   

General Cable Corp. (a)(b)

     8,100         279,288   

Nordex SE (b)

     6,200         46,716   

Roper Industries, Inc. (a)

     10,800         1,292,220   
Common Stocks    Shares      Value  

Electrical Equipment (concluded)

     

Schneider Electric SA

     13,400       $ 1,021,572   

Vestas Wind Systems A/S (b)

     25,800         224,460   
     

 

 

 
                3,694,716   

Electronic Equipment, Instruments & Components — 1.7%

  

Itron, Inc. (a)(b)

     20,000         793,000   

Trimble Navigation Ltd. (a)(b)

     43,220         1,242,143   
     

 

 

 
                2,035,143   

Food Products — 10.9%

     

Agria Corp. — ADR (b)

     100,000         106,000   

Archer-Daniels-Midland Co. (a)

     36,600         1,242,204   

BrasilAgro — Co Brasileira de Propriedades Agricolas (b)

     525,200         2,627,641   

Bunge Ltd. (a)

     35,000         2,527,350   

Illovo Sugar Ltd.

     234,900         908,083   

IOI Corp Bhd

     533,333         881,730   

Sao Martinho SA

     200,000         2,812,945   

SLC Agricola SA

     150,000         1,321,754   

SunOpta, Inc. (a)(b)

     52,900         384,583   

Wilmar International Ltd.

     81,000         219,876   
     

 

 

 
                13,032,166   

Independent Power Producers & Energy Traders — 0.8%

  

China Longyuan Power Group Corp.,
Series H

     243,000         223,197   

Enel Green Power SpA (a)

     133,300         284,358   

Ormat Technologies, Inc. (a)

     18,700         406,538   
     

 

 

 
                914,093   

Industrial Conglomerates — 0.4%

     

Orkla ASA

     57,700         520,299   

Machinery — 10.7%

     

AGCO Corp.

     37,900         2,018,175   

CNH Global NV (a)

     27,500         1,131,075   

Deere & Co.

     24,100         2,152,130   

IDEX Corp.

     10,400         541,112   

Kurita Water Industries Ltd.

     59,600         1,223,522   

Pall Corp. (a)

     10,000         667,100   

Pentair Ltd.

     38,200         2,076,170   

Watts Water Technologies, Inc., Class A

     26,400         1,242,384   

Xylem, Inc.

     66,400         1,842,600   
     

 

 

 
                12,894,268   

Multi-Utilities — 2.2%

     

Hera SpA

     361,600         736,456   

Suez Environnement Co.

     9,925         142,436   

Veolia Environnement SA

     126,000         1,742,884   
     

 

 

 
                2,621,776   
 
Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of

Investments, the names and descriptions of many securities have

been abbreviated according to the following list:

 

ADR     American Depositary Receipt

AUD     Australian Dollar

BRL     Brazil Real

CAD     Canadian Dollar

CHF     Swiss Franc

CLP     Chilean Peso

DKK     Danish Krone

EUR     Euro

GBP     British Pound

HKD     Hong Kong Dollar

ILS       Israeli Shekel

 

JPY      Japanese Yen

MXN    Mexican New Peso

NOK    Norwegian Krone

NVDR   Non-Voting Depository Receipts

PEN     Peruvian Neuvo Sol

REIT    Real Estate Investment Trust

SEK     Swedish Krona

SGD     Singapore Dollar

TWD    Taiwan Dollar

USD     US Dollar

ZAR     South African Rand

 

See Notes to Financial Statements.

 

28    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock EcoSolutions Investment Trust (BQR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels — 3.5%

     

Cheniere Energy, Inc. (a)(b)

     7,100       $ 202,208   

Cosan Ltd., Class A

     73,000         1,514,750   

Rentech, Inc.

     317,900         658,053   

Sasol Ltd.

     25,000         1,082,913   

Sasol Ltd. — ADR (a)

     7,800         338,676   

TransCanada Corp. (a)

     7,500         371,780   
     

 

 

 
                4,168,380   

Paper & Forest Products — 0.3%

     

Fibria Celulose SA — ADR (b)

     20,100         214,869   

Precious Woods Holding AG (b)

     20,000         86,040   
     

 

 

 
                300,909   

Real Estate Investment Trusts (REITs) — 3.2%

     

Plum Creek Timber Co., Inc.

     48,500         2,499,690   

Rayonier, Inc. (a)

     23,175         1,377,060   
     

 

 

 
                3,876,750   

Real Estate Management & Development — 0.3%

     

Cresud SACIF y A — ADR

     44,900         394,222   

Road & Rail — 0.6%

     

All America Latina Logistica SA

     133,000         672,728   

Semiconductors & Semiconductor Equipment — 0.4%

     

First Solar, Inc. (a)(b)

     3,700         172,272   

MEMC Electronic Materials, Inc. (a)(b)

     19,400         104,760   

Renewable Energy Corp. ASA (b)

     22,700         6,310   

Suntech Power Holdings Co. Ltd. — ADR (b)

     14,600         10,074   

Trina Solar Ltd. — ADR (a)(b)

     19,200         98,112   

Yingli Green Energy Holding Co. Ltd. — ADR (b)

     38,200         96,264   
     

 

 

 
                487,792   

Water Utilities — 26.9%

     

American States Water Co.

     40,600         2,252,488   

American Water Works Co., Inc.

     53,400         2,236,392   

Aqua America, Inc.

     99,400         3,153,962   

Artesian Resources Corp., Class A

     37,200         876,804   

California Water Service Group (a)

     94,100         1,886,705   
Common Stocks    Shares      Value  

Water Utilities (concluded)

     

China Water Affairs Group Ltd.

     4,556,000       $ 1,369,932   

Cia de Saneamento Basico do Estado de Sao Paulo

     105,000         1,478,371   

Cia de Saneamento de Minas Gerais — COPASA

     43,100         993,083   

Guangdong Investment Ltd.

     1,260,000         1,219,900   

Hyflux Ltd.

     752,000         838,030   

Inversiones Aguas Metropolitanas SA

     1,500,000         3,184,733   

Manila Water Co., Inc.

     5,610,000         5,445,080   

Pennon Group Plc

     215,200         2,292,164   

Severn Trent Plc

     113,500         3,216,712   

United Utilities Group Plc

     158,381         1,824,576   
     

 

 

 
                32,268,932   

Total Long-Term Investments

(Cost — $106,563,780) — 94.3%

  

  

     113,167,673   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     6,030,375         6,030,375   

Total Short-Term Securities

(Cost — $6,030,375) — 5.0%

  

  

     6,030,375   

Total Investments Before Options Written

(Cost — $112,594,155) — 99.3%

  

  

     119,198,048   
     
Options Written                

(Premiums Received — $1,159,044) — (1.2)%

              (1,473,747

Total Investments Net of Options Written — 98.1%

        117,724,301   

Other Assets Less Liabilities — 1.9%

        2,316,094   
     

 

 

 

Net Assets — 100.0%

      $ 120,040,395   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares/Beneficial
Interest Held at
October 31, 2012
    

Net

Activity

    Shares/Beneficial
Interest Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     7,218,848         (1,188,473     6,030,375       $ 4,471       $ 77   

BlackRock Liquidity Series, LLC Money Market Series

   $ 1,554,150       $ (1,554,150           $ 878           

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Ormat Technologies, Inc.

     Call         USD         21.00         5/03/13         84       $ (6,703

Quanta Services, Inc.

     Call         USD         30.25         5/10/13         205         (701

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    29


Table of Contents
Schedule of Investments (continued)      BlackRock EcoSolutions Investment Trust (BQR)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

SunOpta, Inc.

     Call         USD        6.75         5/15/13         238       $ (12,761

Enel Green Power SpA

     Call         EUR        1.65         5/17/13         12         (341

Archer-Daniels-Midland Co.

     Call         USD        33.00         5/20/13         82         (11,111

Archer-Daniels-Midland Co.

     Call         USD        34.00         5/20/13         82         (6,150

Bunge Ltd.

     Call         USD        77.50         5/20/13         30         (225

California Water Service Group

     Call         USD        20.00         5/20/13         217         (8,680

CF Industries Holdings, Inc.

     Call         USD        200.00         5/20/13         43         (4,601

Cheniere Energy, Inc.

     Call         USD        25.00         5/20/13         31         (11,160

Chicago Bridge & Iron Co. NV

     Call         USD        55.00         5/20/13         15         (1,912

CNH Global NV

     Call         USD        45.00         5/20/13         123         (2,152

General Cable Corp.

     Call         USD        36.00         5/20/13         36         (2,430

Itron, Inc.

     Call         USD        45.00         5/20/13         90         (1,350

MEMC Electronic Materials, Inc.

     Call         USD        5.00         5/20/13         87         (5,046

Trimble Navigation Ltd.

     Call         USD        31.25         5/20/13         194         (2,425

Trina Solar Ltd. — ADR

     Call         USD        4.50         5/20/13         85         (6,332

Rayonier, Inc.

     Call         USD        59.00         6/06/13         104         (10,391

The Mosaic Co.

     Call         USD        60.00         6/11/13         156         (45,508

Roper Industries, Inc.

     Call         USD        123.75         6/13/13         48         (5,266

Sasol Ltd. — ADR

     Call         USD        43.05         6/14/13         78         (9,556

First Solar, Inc.

     Call         USD        40.00         6/24/13         17         (13,770

Johnson Controls, Inc.

     Call         USD        33.00         6/24/13         130         (30,225

Layne Christensen Co.

     Call         USD        20.00         6/24/13         49         (6,125

Pall Corp.

     Call         USD        70.00         6/24/13         10         (675

Potash Corp of Saskatchewan, Inc.

     Call         USD        40.00         6/24/13         284         (73,982

TransCanada Corp.

     Call         CAD        49.50         6/24/13         33         (4,586

Total

                 $ (284,164
                

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
  

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Cosan Ltd., Class A

   Barclays Bank    Call    USD      21.21         5/02/13         33,000       $ (791

American Water Works Co., Inc.

   Deutsche Bank Securities Corp.    Call    USD      39.88         5/03/13         6,300         (12,613

American States Water Co.

   Morgan Stanley & Co., Inc.    Call    USD      52.92         5/06/13         18,200         (46,592

Aqua America, Inc.

   Deutsche Bank Securities Corp.    Call    USD      29.30         5/06/13         5,700         (13,851

China Longyuan Power Group Corp., Series H

   Citigroup Global Markets, Inc.    Call    HKD      7.43         5/07/13         109,000         (1,001

China Water Affairs Group Ltd.

   Citigroup Global Markets, Inc.    Call    HKD      2.68         5/07/13         1,000,000         (3

Guangdong Investment Ltd.

   JPMorgan Chase Securities    Call    HKD      7.00         5/07/13         568,000         (37,948

Sinofert Holdings Ltd.

   Morgan Stanley & Co., Inc.    Call    HKD      1.96         5/07/13         990,000         (76

Tianjin Capital Environmental Protection Group Co. Ltd., Series H

   Citigroup Global Markets, Inc.    Call    HKD      3.58         5/07/13         904,000         (11

AGCO Corp.

   Goldman Sachs & Co.    Call    USD      51.48         5/08/13         8,500         (16,043

BrasilAgro — Co Brasileira de Propriedades Agricolas

   Deutsche Bank Securities Corp.    Call    BRL      10.09         5/08/13         39,000         (1,863

Cia de Saneamento de Minas Gerais — COPASA

   UBS Securities LLC    Call    BRL      49.97         5/08/13         19,400         (23

Fibria Celulose SA — ADR

   Goldman Sachs & Co.    Call    USD      11.60         5/08/13         4,500         (55

Sao Martinho SA

   UBS Securities LLC    Call    BRL      28.69         5/08/13         41,600         (5,697

American Water Works Co., Inc.

   Citigroup Global Markets, Inc.    Call    USD      40.38         5/09/13         5,800         (8,840

IDEX Corp.

   Barclays Bank    Call    USD      52.09         5/09/13         4,700         (2,754

Plum Creek Timber Co., Inc.

   Morgan Stanley & Co., Inc.    Call    USD      50.40         5/09/13         21,800         (27,155

 

See Notes to Financial Statements.

 

30    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)    BlackRock EcoSolutions Investment Trust (BQR)

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Aegion Corp.

   Barclays Bank      Call         USD         25.76         5/10/13         5,400       $   

Agrium, Inc.

   Deutsche Bank Securities Corp.      Call         USD         104.55         5/10/13         13,000         (388

California Water Service Group

   UBS Securities LLC      Call         USD         19.58         5/13/13         20,600         (9,762

Acciona SA

   Goldman Sachs & Co.      Call         EUR         46.57         5/14/13         1,700         (7,598

Gamesa Corp Tecnologica SA

   Goldman Sachs & Co.      Call         EUR         2.46         5/14/13         18,000         (12,051

Illovo Sugar Ltd.

   Deutsche Bank Securities Corp.      Call         ZAR         31.01         5/14/13         52,900         (21,908

Illovo Sugar Ltd.

   Goldman Sachs & Co.      Call         ZAR         31.06         5/14/13         52,900         (21,611

Johnson Matthey Plc

   Goldman Sachs & Co.      Call         GBP         23.01         5/14/13         26,700         (53,008

Kingspan Group Plc

   Goldman Sachs & Co.      Call         EUR         9.47         5/14/13         5,300         (741

Pennon Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         6.68         5/14/13         96,900         (30,628

Schneider Electric SA

   Morgan Stanley & Co., Inc.      Call         EUR         59.85         5/14/13         6,000         (1,369

Scottish & Southern Energy Plc

   Goldman Sachs & Co.      Call         GBP         14.82         5/14/13         14,400         (17,224

Severn Trent Plc

   UBS Securities LLC      Call         GBP         16.22         5/14/13         51,000         (160,571

Suez Environnement Co.

   Goldman Sachs & Co.      Call         EUR         10.40         5/14/13         4,500         (3,182

United Utilities Group Plc

   UBS Securities LLC      Call         GBP         7.49         5/14/13         71,300         (13,163

American Water Works Co., Inc.

   Citigroup Global Markets, Inc.      Call         USD         40.47         5/15/13         6,200         (9,268

BrasilAgro - Co Brasileira de Propriedades Agricolas

   Deutsche Bank Securities Corp.      Call         BRL         10.10         5/15/13         39,400         (2,739

Inversiones Aguas Metropolitanas SA

   Credit Suisse First Boston      Call         CLP         1,006.97         5/15/13         225,000         (4,724

SLC Agricola SA

   Credit Suisse First Boston      Call         BRL         18.02         5/15/13         16,900         (2,581

AGCO Corp.

   Goldman Sachs & Co.      Call         USD         51.48         5/22/13         8,500         (18,199

Aqua America, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         30.50         5/22/13         5,700         (7,853

All America Latina Logistica SA

   Deutsche Bank Securities Corp.      Call         BRL         10.74         5/23/13         59,900         (1,585

BrasilAgro - Co Brasileira de Propriedades Agricolas

   Deutsche Bank Securities Corp.      Call         BRL         10.01         5/23/13         39,400         (4,395

Deere & Co.

   Morgan Stanley & Co., Inc.      Call         USD         92.74         5/23/13         10,800         (9,035

ABB Ltd.

   Goldman Sachs & Co.      Call         CHF         21.98         5/28/13         11,700         (1,696

Israel Chemicals Ltd.

   Morgan Stanley & Co., Inc.      Call         ILS         48.19         5/28/13         40,500         (496

K+S AG

   Citigroup Global Markets, Inc.      Call         EUR         36.24         5/28/13         8,500         (2,346

Kingspan Group Plc

   Deutsche Bank Securities Corp.      Call         EUR         9.75         5/28/13         5,300         (733

Nordex SE

   Deutsche Bank Securities Corp.      Call         EUR         4.45         5/28/13         2,800         (4,716

Novozymes A/S, B Shares

   Deutsche Bank Securities Corp.      Call         DKK         204.02         5/28/13         17,200         (7,032

Orkla ASA

   Citigroup Global Markets, Inc.      Call         NOK         47.26         5/28/13         26,000         (21,960

Syngenta AG

   Deutsche Bank Securities Corp.      Call         CHF         418.62         5/28/13         3,500         (5,631

Veolia Environnement SA

   Citigroup Global Markets, Inc.      Call         EUR         9.81         5/28/13         56,700         (62,022

Vestas Wind Systems A/S

   Deutsche Bank Securities Corp.      Call         DKK         49.24         5/28/13         11,700         (6,346

Wacker Chemie AG

   Deutsche Bank Securities Corp.      Call         EUR         64.50         5/28/13         2,700         (2,658

American Water Works Co., Inc.

   Morgan Stanley & Co., Inc.      Call         USD         41.56         5/29/13         5,700         (5,258

Hyflux Ltd.

   Citigroup Global Markets, Inc.      Call         SGD         1.43         5/30/13         339,000         (1,582

Incitec Pivot Ltd.

   Morgan Stanley & Co., Inc.      Call         AUD         3.09         5/30/13         119,600         (3,569

Kurita Water Industries Ltd.

   Banc of America Securities      Call         JPY         2,077.53         5/30/13         26,900         (5,426

Monsanto Co.

   Deutsche Bank Securities Corp.      Call         USD         106.13         5/30/13         17,000         (46,583

Nufarm Ltd.

   JPMorgan Chase Securities      Call         AUD         4.46         5/30/13         27,300         (4,987

Wilmar International Ltd.

   Citigroup Global Markets, Inc.      Call         SGD         3.37         5/30/13         37,000         (2,156

Xylem, Inc.

   Credit Suisse First Boston      Call         USD         29.38         6/03/13         29,800         (6,642

SLC Agricola SA

   Credit Suisse First Boston      Call         BRL         17.44         6/04/13         33,700         (13,704

Umicore SA

   Goldman Sachs & Co.      Call         EUR         35.23         6/04/13         8,900         (9,828

Aqua America, Inc.

   Citigroup Global Markets, Inc.      Call         USD         30.55         6/05/13         7,200         (9,362

Watts Water Technologies, Inc., Class A

   Citigroup Global Markets, Inc.      Call         USD         46.74         6/05/13         11,800         (18,153

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    31


Table of Contents
Schedule of Investments (continued)      BlackRock EcoSolutions Investment Trust (BQR)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Aqua America, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         32.42         6/06/13         18,500       $ (7,796

Cresud SACIF y A — ADR

   Citigroup Global Markets, Inc.      Call         USD         9.43         6/06/13         20,000         (2,924

Fibria Celulose SA — ADR

   JPMorgan Chase Securities      Call         USD         12.49         6/07/13         4,500         (198

NextEra Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         77.39         6/07/13         9,700         (45,008

Rentech, Inc.

   UBS Securities LLC      Call         USD         2.46         6/07/13         143,000         (3,476

Inversiones Aguas Metropolitanas SA

   Credit Suisse First Boston      Call         CLP         1,002.56         6/10/13         225,000         (9,742

Sao Martinho SA

   Citigroup Global Markets, Inc.      Call         BRL         28.27         6/10/13         24,200         (12,859

Bunge Ltd.

   Morgan Stanley & Co., Inc.      Call         USD         68.17         6/11/13         12,700         (57,138

Iberdrola SA

   Citigroup Global Markets, Inc.      Call         EUR         3.87         6/13/13         93,500         (35,152

Aqua America, Inc.

   JPMorgan Chase Securities      Call         USD         30.73         6/14/13         3,800         (4,597

Tetra Tech, Inc.

   Deutsche Bank Securities Corp.      Call         USD         25.70         6/14/13         37,500         (49,676

BrasilAgro - Co Brasileira de Propriedades Agricolas

   Citigroup Global Markets, Inc.      Call         BRL         10.05         6/17/13         39,000         (5,911

Cia de Saneamento Basico do Estado de Sao Paulo

   UBS Securities LLC      Call         BRL         31.38         6/17/13         47,400         (4,150

SLC Agricola SA

   UBS Securities LLC      Call         BRL         18.33         6/17/13         16,900         (4,629

Pentair Ltd.

   Goldman Sachs & Co.      Call         USD         50.44         6/18/13         17,100         (75,127

Aqua America, Inc.

   JPMorgan Chase Securities      Call         USD         30.73         6/27/13         3,800         (4,829

BrasilAgro - Co Brasileira de Propriedades Agricolas

   Deutsche Bank Securities Corp.      Call         BRL         9.74         6/27/13         39,400         (9,925

Inversiones Aguas Metropolitanas SA

   Citigroup Global Markets, Inc.      Call         CLP         1,008.99         6/27/13         225,000         (10,328

Sao Martinho SA

   UBS Securities LLC      Call         BRL         28.47         6/27/13         24,200         (14,333

Total

                     $ (1,189,583
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

32    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (concluded)      BlackRock EcoSolutions Investment Trust (BQR)   

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Auto Components

   $ 1,015,290                     $ 1,015,290   

Building Products

          $ 285,284                285,284   

Chemicals

     15,551,118        9,439,801                24,990,919   

Commercial Services & Supplies

     2,192,586        709,606                2,902,192   

Construction & Engineering

     1,916,171                       1,916,171   

Electric Utilities

     2,039,286        2,136,357                4,175,643   

Electrical Equipment

     1,655,593        2,039,123                3,694,716   

Electronic Equipment, Instruments & Components

     2,035,143                       2,035,143   

Food Products

     12,812,290        219,876                13,032,166   

Independent Power Producers & Energy Traders

     406,538        507,555                914,093   

Industrial Conglomerates

            520,299                520,299   

Machinery

     11,670,746        1,223,522                12,894,268   

Multi-Utilities

            2,621,776                2,621,776   

Oil, Gas & Consumable Fuels

     3,085,467        1,082,913                4,168,380   

Paper & Forest Products

     300,909                       300,909   

Real Estate Investment Trusts (REITs)

     3,876,750                       3,876,750   

Real Estate Management & Development

     394,222                       394,222   

Road & Rail

     672,728                       672,728   

Semiconductors & Semiconductor Equipment

     481,482        6,310                487,792   

Water Utilities

     21,507,618        10,761,314                32,268,932   

Short-Term Securities

     6,030,375                       6,030,375   

Total

   $ 87,644,312      $ 31,553,736              $ 119,198,048   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (192,938   $ (1,280,809           $ (1,473,747
         

1    Derivative financial instruments are options written, which are shown at value.

         
Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 1,865,546                     $ 1,865,546   

Foreign currency at value

     80,750                       80,750   

Cash pledged as collateral for options written

     100,000                       100,000   

Total

   $ 2,046,296                     $ 2,046,296   
  

 

 

 

Certain foreign securities are fair valued utilizing an external pricing service to reflect any significant market movements between the time the Trust values such foreign securities and the earlier closing of foreign markets. Such fair valuations are categorized as Level 2 in the disclosure hierarchy. As of October 31, 2012, there were securities with a value of $4,831,829 that were systematically fair valued due to significant market movements, but were not valued using systematic fair values as of April 30, 2013. Therefore, these securities were transferred from Level 2 to Level 1 during the period October 31, 2012 to April 30, 2013.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    33


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Energy and Resources Trust (BGR)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Energy Equipment & Services — 17.3%

     

Cameron International Corp. (a)(b)

     445,500       $ 27,420,525   

Halliburton Co. (b)

     419,000         17,920,630   

National Oilwell Varco, Inc. (b)

     370,500         24,164,010   

Schlumberger Ltd. (b)

     508,268         37,830,387   

Superior Energy Services, Inc. (a)

     191,400         5,280,726   

Technip SA

     160,900         17,258,191   

Transocean Ltd. (a)(b)

     286,400         14,741,008   
     

 

 

 
                144,615,477   

Metals & Mining — 1.9%

     

Hi-Crush Partners LP (b)

     838,643         15,657,465   

Oil, Gas & Consumable Fuels — 79.0%

     

Access Midstream Partners LP (b)

     251,200         10,367,024   

AltaGas Ltd. (b)

     481,100         17,926,938   

Anadarko Petroleum Corp. (b)

     591,633         50,146,813   

Cabot Oil & Gas Corp.

     333,800         22,715,090   

Cairn Energy Plc (a)

     2,000,000         8,980,934   

Chevron Corp. (b)

     555,500         67,776,555   

Cimarex Energy Co. (b)

     141,400         10,347,650   

Concho Resources, Inc. (a)(b)

     64,700         5,572,611   

Crew Energy, Inc. (a)(b)

     1,688,292         11,713,893   

DCP Midstream Partners LP

     235,150         11,550,568   

Delek Logistics Partners LP

     416,600         12,581,320   

Denbury Resources, Inc. (a)(b)

     1,122,846         20,087,715   

Energy XXI (Bermuda) Ltd. (b)

     446,400         10,151,136   

EQT Corp.

     186,132         13,982,236   

Exxon Mobil Corp. (b)

     141,000         12,547,590   

Golar LNG Ltd. (b)

     340,934         11,394,014   

Gulfport Energy Corp. (a)(b)

     1,165,750         60,840,494   

Keyera Corp.

     441,367         27,569,830   

Kodiak Oil & Gas Corp. (a)(b)

     818,700         6,410,421   

Kosmos Energy Ltd. (a)(b)

     993,007         10,913,147   

MarkWest Energy Partners LP (b)

     357,789         22,612,265   

Noble Energy, Inc. (b)

     361,196         40,919,895   

NuVista Energy Ltd. (a)(b)

     557,400         4,049,996   

Pembina Pipeline Corp. (b)

     298,400         9,795,114   

Pioneer Natural Resources Co. (b)

     270,433         33,055,026   

Plains All American Pipeline LP

     350,000         20,097,000   

Range Resources Corp.

     514,200         37,803,984   

Trilogy Energy Corp. (b)

     343,470         10,040,391   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels (concluded)

     

Valero Energy Corp. (b)

     930,000       $ 37,497,600   

Whiting Petroleum Corp. (a)(b)

     526,600         23,433,700   

Williams Partners LP (b)

     300,784         16,437,846   
     

 

 

 
                659,318,796   

Total Common Stocks — 98.2%

              819,591,738   
     
Rights                

Oil, Gas & Consumable Fuels — 0.0%

     

Magnum Hunter Resources Corp., Expires
10/14/13 (a)(c)

     70,300         9,842   

Total Long-Term Investments

(Cost — $650,154,284) — 98.2%

              819,601,580   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (d)(e)

     24,255,568         24,255,568   
      Beneficial
Interest
(000)
         

BlackRock Liquidity Series, LLC Money Market Series, 0.22% (d)(e)(f)

   $ 7         6,500   

Total Short-Term Securities

(Cost — $24,262,068) — 2.9%

              24,262,068   

Total Investments Before Options Written

(Cost — $674,416,352) — 101.1%

              843,863,648   
     
Options Written                

(Premiums Received — $7,013,209) — (1.2)%

  

     (10,022,464

Total Investments Net of Options Written — 99.9%

  

     833,841,184   

Other Assets Less Liabilities — 0.1%

        452,817   
     

 

 

 

Net Assets — 100.0%

      $ 834,294,001   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) Non-income producing security.

 

(b) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(c) Security, or a portion of security, is on loan.

 

(d) Represents the current yield as of report date.

 

(e) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares/
Beneficial Interest
Held at
October 31, 2012
    

Net

Activity

   

Shares/
Beneficial Interest
Held at

April 30, 2013

     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     4,572,699         19,682,869        24,255,568       $ 13,590       $ 108   

BlackRock Liquidity Series, LLC Money Market Series

   $ 13,663,321       $ (13,656,821   $ 6,500       $ 1,322           

 

(f) Security was purchased with the cash collateral from loaned securities. The Trust may withdraw up to 25% of its investment daily, although the manager of the BlackRock Liquidity Series, LLC Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

 

See Notes to Financial Statements.

 

34    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Chevron Corp.

     Call         USD         116.00         5/18/13         425       $ (257,511

AltaGas Ltd.

     Call         CAD         36.00         5/20/13         1,481         (235,208

Anadarko Petroleum Corp.

     Call         USD         85.00         5/20/13         370         (86,210

Cameron International Corp.

     Call         USD         67.50         5/20/13         1,510         (22,650

Chevron Corp.

     Call         USD         120.00         5/20/13         80         (19,920

Cimarex Energy Co.

     Call         USD         80.00         5/20/13         247         (11,733

Concho Resources, Inc.

     Call         USD         100.00         5/20/13         226         (2,825

Crew Energy, Inc.

     Call         CAD         7.50         5/20/13         925         (9,641

Denbury Resources, Inc.

     Call         USD         18.00         5/20/13         870         (36,975

Exxon Mobil Corp.

     Call         USD         87.50         5/20/13         490         (81,340

Gulfport Energy Corp.

     Call         USD         45.00         5/20/13         1,600         (1,224,000

Halliburton Co.

     Call         USD         42.00         5/20/13         730         (106,945

Hi-Crush Partners LP

     Call         USD         20.00         5/20/13         40         (600

Kodiak Oil & Gas Corp.

     Call         USD         9.00         5/20/13         221         (2,210

Kodiak Oil & Gas Corp.

     Call         USD         10.00         5/20/13         580         (2,900

MarkWest Energy Partners LP

     Call         USD         62.50         5/20/13         450         (58,500

National Oilwell Varco, Inc.

     Call         USD         70.00         5/20/13         1,260         (22,680

Noble Energy, Inc.

     Call         USD         115.00         5/20/13         632         (86,900

NuVista Energy Ltd.

     Call         CAD         7.00         5/20/13         1,100         (49,134

Pembina Pipeline Corp.

     Call         CAD         31.50         5/20/13         1,042         (155,144

Pioneer Natural Resources Co.

     Call         USD         135.00         5/20/13         390         (17,550

Schlumberger Ltd.

     Call         USD         77.50         5/20/13         1,316         (42,112

Trilogy Energy Corp.

     Call         CAD         30.00         5/20/13         1,200         (83,379

Whiting Petroleum Corp.

     Call         USD         52.50         5/20/13         1,429         (14,290

Schlumberger Ltd.

     Call         USD         76.50         5/29/13         410         (32,882

Noble Energy, Inc.

     Call         USD         113.00         6/05/13         632         (203,751

Chevron Corp.

     Call         USD         120.00         6/24/13         789         (252,480

Cimarex Energy Co.

     Call         USD         80.00         6/24/13         247         (33,960

Crew Energy, Inc.

     Call         CAD         7.00         6/24/13         1,000         (42,186

Denbury Resources, Inc.

     Call         USD         18.00         6/24/13         870         (60,900

Energy XXI (Bermuda) Ltd.

     Call         USD         24.00         6/24/13         783         (62,640

Golar LNG Ltd.

     Call         USD         35.00         6/24/13         600         (45,000

Halliburton Co.

     Call         USD         42.00         6/24/13         730         (153,665

Kodiak Oil & Gas Corp.

     Call         USD         9.00         6/24/13         663         (11,603

Pioneer Natural Resources Co.

     Call         USD         125.00         6/24/13         555         (266,400

Williams Partners LP

     Call         USD         55.00         6/24/13         300         (35,250

Kosmos Energy Ltd.

     Call         USD         12.50         7/22/13         700         (17,500

Total

                  $ (3,848,574
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Superior Energy Services, Inc.

   Deutsche Bank Securities Corp.      Call         USD         26.14         5/02/13         66,900       $ (97,150

Transocean Ltd.

   Citigroup Global Markets, Inc.      Call         USD         52.00         5/02/13         50,100         (7,166

Kosmos Energy Ltd.

   Banc of America Securities      Call         USD         10.70         5/03/13         65,000         (22,842

Range Resources Corp.

   Citigroup Global Markets, Inc.      Call         USD         80.78         5/03/13         90,000         (7

Anadarko Petroleum Corp.

   Morgan Stanley & Co., Inc.      Call         USD         86.97         5/06/13         164,000         (92,152

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    35


Table of Contents
Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

EQT Corp.

   Goldman Sachs & Co.      Call         USD         60.25         5/08/13         16,500       $ (245,355

EQT Corp.

   JPMorgan Chase Securities      Call         USD         68.19         5/08/13         46,500         (322,624

Gulfport Energy Corp.

   Morgan Stanley & Co., Inc.      Call         USD         40.70         5/08/13         76,000         (873,963

Keyera Corp.

   Morgan Stanley & Co., Inc.      Call         CAD         55.33         5/08/13         38,700         (291,945

Kodiak Oil & Gas Corp.

   Morgan Stanley & Co., Inc.      Call         USD         9.61         5/09/13         140,000         (503

Plains All American Pipeline LP

   JPMorgan Chase Securities      Call         USD         54.01         5/09/13         58,500         (199,544

Kosmos Energy Ltd.

   Citigroup Global Markets, Inc.      Call         USD         11.11         5/10/13         54,000         (13,720

Access Midstream Partners LP

   Morgan Stanley & Co., Inc.      Call         USD         39.79         5/13/13         44,000         (68,546

Keyera Corp.

   UBS Securities LLC      Call         CAD         56.52         5/14/13         57,500         (365,849

NuVista Energy Ltd.

   Deutsche Bank Securities Corp.      Call         CAD         5.83         5/14/13         83,400         (124,141

Technip SA

   Goldman Sachs & Co.      Call         EUR         82.74         5/14/13         14,900         (14,390

Technip SA

   Morgan Stanley & Co., Inc.      Call         EUR         85.15         5/14/13         26,600         (8,464

Golar LNG Ltd.

   UBS Securities LLC      Call         USD         35.94         5/15/13         59,300         (3,170

Kosmos Energy Ltd.

   Goldman Sachs & Co.      Call         USD         11.45         5/22/13         73,500         (27,492

Keyera Corp.

   UBS Securities LLC      Call         CAD         56.38         5/24/13         57,500         (373,840

Cairn Energy Plc

   Citigroup Global Markets, Inc.      Call         GBP         2.88         5/28/13         233,000         (35,154

Technip SA

   Goldman Sachs & Co.      Call         EUR         82.52         5/28/13         14,900         (24,517

Access Midstream Partners LP

   Morgan Stanley & Co., Inc.      Call         USD         39.79         5/30/13         44,000         (76,206

Williams Partners LP

   UBS Securities LLC      Call         USD         53.50         5/30/13         27,000         (38,587

Valero Energy Corp.

   Deutsche Bank Securities Corp.      Call         USD         47.57         5/31/13         119,000         (20,505

Transocean Ltd.

   Citigroup Global Markets, Inc.      Call         USD         55.00         6/03/13         50,100         (25,678

Williams Partners LP

   Banc of America Securities      Call         USD         52.77         6/03/13         48,200         (102,405

Chevron Corp.

   Morgan Stanley & Co., Inc.      Call         USD         118.78         6/05/13         65,000         (230,908

Hi-Crush Partners LP

   JPMorgan Chase Securities      Call         USD         19.49         6/05/13         40,000         (11,403

MarkWest Energy Partners LP

   Deutsche Bank Securities Corp.      Call         USD         61.36         6/05/13         39,400         (86,988

Cairn Energy Plc

   Citigroup Global Markets, Inc.      Call         GBP         2.88         6/11/13         233,000         (42,633

DCP Midstream Partners LP

   UBS Securities LLC      Call         USD         47.91         6/14/13         39,700         (54,675

Range Resources Corp.

   Morgan Stanley & Co., Inc.      Call         USD         76.57         6/14/13         90,000         (161,551

Valero Energy Corp.

   Citigroup Global Markets, Inc.      Call         USD         41.50         6/14/13         108,000         (143,975

Cabot Oil & Gas Corp.

   Credit Suisse First Boston      Call         USD         70.27         6/17/13         110,000         (240,130

Gulfport Energy Corp.

   Morgan Stanley & Co., Inc.      Call         USD         48.67         6/17/13         77,000         (443,482

Gulfport Energy Corp.

   UBS Securities LLC      Call         USD         45.41         6/17/13         95,000         (770,584

Energy XXI (Bermuda) Ltd.

   Goldman Sachs & Co.      Call         USD         23.20         6/18/13         78,000         (80,441

Kosmos Energy Ltd.

   UBS Securities LLC      Call         USD         10.85         6/18/13         42,500         (29,618

Cairn Energy Plc

   Citigroup Global Markets, Inc.      Call         GBP         2.88         6/26/13         233,000         (48,866

MarkWest Energy Partners LP

   Goldman Sachs & Co.      Call         USD         62.52         6/27/13         40,800         (71,771

DCP Midstream Partners LP

   UBS Securities LLC      Call         USD         47.91         6/28/13         39,700         (56,737

Valero Energy Corp.

   Citigroup Global Markets, Inc.      Call         USD         41.50         6/28/13         108,000         (171,565

Plains All American Pipeline LP

   Deutsche Bank Securities Corp.      Call         USD         58.58         7/08/13         32,000         (24,577

Plains All American Pipeline LP

   Deutsche Bank Securities Corp.      Call         USD         58.58         7/24/13         32,000         (28,071

Total

                     $ (6,173,890
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

 

See Notes to Financial Statements.

 

36    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Energy and Resources Trust (BGR)   

 

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Energy Equipment & Services

   $ 127,357,286      $ 17,258,191              $ 144,615,477   

Metals & Mining

     15,657,465                       15,657,465   

Oil, Gas & Consumable Fuels

     650,337,862        8,980,934                659,318,796   

Rights

            9,842                9,842   

Short-Term Securities

     24,255,568        6,500                24,262,068   

Total

   $ 817,608,181      $ 26,255,467              $ 843,863,648   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (3,354,431   $ (6,668,033           $ (10,022,464
         

1    Derivative financial instruments are options written, which are shown at value.

         
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Foreign currency at value

   $ 24                     $ 24   

Liabilities:

         

Cash received as collateral for options written

          $ (397,000             (397,000

Collateral at value - securities loaned

            (6,500             (6,500

Total

   $ 24      $ (403,500           $ (403,476
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    37


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Airlines — 5.2%

     

Japan Airlines Co. Ltd.

     660,500       $ 33,470,483   

Automobiles — 2.8%

     

Ford Motor Co. (a)

     282,600         3,874,446   

General Motors Co. (a)(b)

     274,800         8,474,832   

Renault SA

     76,000         5,245,129   
     

 

 

 
                17,594,407   

Beverages — 0.6%

     

PepsiCo, Inc.

     48,100         3,966,807   

Capital Markets — 0.7%

     

Legg Mason, Inc. (a)

     139,900         4,457,214   

Chemicals — 4.1%

     

CF Industries Holdings, Inc. (a)

     140,700         26,241,957   

Commercial Banks — 0.7%

     

U.S. Bancorp (a)

     134,100         4,462,848   

Communications Equipment — 2.5%

     

QUALCOMM, Inc. (a)

     258,400         15,922,608   

Computers & Peripherals — 3.1%

     

Apple, Inc. (a)

     45,400         20,100,850   

Diversified Financial Services — 4.2%

     

Citigroup, Inc. (a)

     174,330         8,134,238   

JPMorgan Chase & Co. (a)

     388,000         19,015,880   
     

 

 

 
                27,150,118   

Diversified Telecommunication Services — 2.3%

     

AT&T Inc. (a)

     116,400         4,360,344   

CenturyLink, Inc. (a)

     272,800         10,249,096   
     

 

 

 
                14,609,440   

Electric Utilities — 1.4%

     

NextEra Energy, Inc.

     52,900         4,339,387   

The Southern Co.

     99,900         4,818,177   
     

 

 

 
                9,157,564   

Energy Equipment & Services — 3.6%

     

Ensco Plc, Class A (a)

     153,000         8,825,040   

Halliburton Co. (a)

     121,000         5,175,170   

Noble Corp. (a)

     240,800         9,030,000   
     

 

 

 
                23,030,210   

Food & Staples Retailing — 1.2%

     

Wal-Mart Stores, Inc. (a)

     101,300         7,873,036   

Food Products — 1.5%

     

Archer-Daniels-Midland Co. (a)

     50,200         1,703,788   

Unilever NV

     181,500         7,710,120   
     

 

 

 
                9,413,908   

Health Care Providers & Services — 3.0%

     

Express Scripts Holding Co. (a)(b)

     82,200         4,880,214   

UnitedHealth Group, Inc.

     239,500         14,353,235   
     

 

 

 
                19,233,449   

Household Products — 1.2%

     

Kimberly-Clark Corp. (a)

     47,800         4,932,482   

The Procter & Gamble Co. (a)

     39,600         3,040,092   
     

 

 

 
                7,972,574   

Industrial Conglomerates — 1.8%

     

General Electric Co. (a)

     519,900         11,588,571   

Insurance — 8.1%

     

The Allstate Corp.

     185,200         9,122,952   

American International Group, Inc. (a)(b)

     816,100         33,802,861   

Berkshire Hathaway, Inc., Class B (b)

     47,800         5,082,096   

Prudential Financial, Inc.

     33,700         2,036,154   
Common Stocks    Shares      Value  

Insurance (concluded)

     

The Travelers Cos., Inc.

     21,200       $ 1,810,692   
     

 

 

 
                51,854,755   

Internet Software & Services — 8.2%

     

Google, Inc., Class A (a)(b)

     40,000         32,982,800   

Yahoo!, Inc. (a)(b)

     781,900         19,336,387   
     

 

 

 
                52,319,187   

IT Services — 2.5%

     

SAIC, Inc. (a)

     1,059,000         15,821,460   

Media — 3.3%

     

Comcast Corp., Special Class A (a)

     306,600         12,046,314   

Time Warner, Inc.

     103,000         6,157,340   

The Walt Disney Co. (a)

     49,200         3,091,728   
     

 

 

 
                21,295,382   

Metals & Mining — 0.9%

     

Freeport-McMoRan Copper & Gold, Inc. (a)

     184,700         5,620,421   

Multi-Utilities — 0.8%

     

Dominion Resources, Inc.

     82,800         5,107,104   

Oil, Gas & Consumable Fuels — 13.9%

     

Chevron Corp. (a)

     60,000         7,320,600   

Exxon Mobil Corp. (a)

     176,000         15,662,240   

HollyFrontier Corp. (a)

     416,000         20,571,200   

Marathon Oil Corp. (a)

     131,100         4,283,037   

Marathon Petroleum Corp. (a)

     73,900         5,790,804   

PBF Energy, Inc. (a)

     356,100         10,843,245   

Suncor Energy, Inc. (a)

     788,800         24,571,120   
     

 

 

 
                89,042,246   

Pharmaceuticals — 9.4%

     

Eli Lilly & Co.

     129,800         7,188,324   

Johnson & Johnson (a)

     121,200         10,329,876   

Merck & Co., Inc. (a)

     455,200         21,394,400   

Pfizer, Inc. (a)

     721,100         20,962,377   
     

 

 

 
                59,874,977   

Real Estate Investment Trusts (REITs) — 1.2%

     

Annaly Capital Management, Inc. (a)

     497,000         7,922,180   

Software — 0.5%

     

Oracle Corp. (a)

     96,100         3,150,158   

Specialty Retail — 1.0%

     

L Brands, Inc. (a)

     123,700         6,235,717   

Wireless Telecommunication Services — 4.6%

     

Vodafone Group Plc — ADR (a)

     961,700         29,418,403   

Total Long-Term Investments

(Cost — $559,283,203) — 94.3%

              603,908,034   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     31,924,863         31,924,863   

Total Short-Term Securities

(Cost — $31,924,863) — 5.0%

              31,924,863   

Total Investments Before Options Written

(Cost — $591,208,066) — 99.3%

              635,832,897   
     
                  
 

 

See Notes to Financial Statements.

 

38    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   
     (Percentages shown are based on Net Assets)   

 

Options Written    Value  

(Premiums Received — $7,424,954) — (1.7)%

   $ (11,057,747

Total Investments Net of Options Written — 97.6%

     624,775,150   

Other Assets Less Liabilities — 2.4%

     15,131,668   
  

 

 

 

Net Assets — 100.0%

   $ 639,906,818   
  

 

 

 

    

 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2012
     Net
Activity
     Shares Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     23,189,440         8,735,423         31,924,863       $ 15,738       $ 347   

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Exxon Mobil Corp.

     Call         USD         90.00         5/03/13         300       $ (914

JPMorgan Chase & Co.

     Call         USD         50.15         5/06/13         550         (3,987

Comcast Corp., Special Class A

     Call         USD         39.05         5/13/13         1,030         (79,593

Wal-Mart Stores, Inc.

     Call         USD         78.00         5/18/13         110         (9,621

Annaly Capital Management, Inc.

     Call         USD         16.00         5/20/13         1,060         (16,430

Apple, Inc.

     Call         USD         465.00         5/20/13         277         (75,206

Archer-Daniels-Midland Co.

     Call         USD         34.00         5/20/13         502         (37,650

CenturyLink, Inc.

     Call         USD         36.00         5/20/13         700         (136,500

CenturyLink, Inc.

     Call         USD         38.00         5/20/13         200         (12,500

CF Industries Holdings, Inc.

     Call         USD         200.00         5/20/13         525         (56,175

Chevron Corp.

     Call         USD         120.00         5/20/13         330         (82,170

Citigroup, Inc.

     Call         USD         48.00         5/20/13         952         (35,700

Comcast Corp., Special Class A

     Call         USD         40.00         5/20/13         115         (5,462

Ensco Plc, Class A

     Call         USD         55.00         5/20/13         420         (130,200

Express Scripts Holding Co.

     Call         USD         60.00         5/20/13         226         (18,306

Exxon Mobil Corp.

     Call         USD         90.00         5/20/13         665         (23,275

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         31.00         5/20/13         508         (28,448

General Motors Co.

     Call         USD         29.00         5/20/13         1,510         (313,325

Halliburton Co.

     Call         USD         43.00         5/20/13         665         (60,515

HollyFrontier Corp.

     Call         USD         55.00         5/20/13         919         (25,272

Johnson & Johnson

     Call         USD         85.00         5/20/13         220         (23,540

JPMorgan Chase & Co.

     Call         USD         49.00         5/20/13         295         (21,978

JPMorgan Chase & Co.

     Call         USD         50.00         5/20/13         500         (17,250

L Brands, Inc.

     Call         USD         46.00         5/20/13         680         (306,000

Legg Mason, Inc.

     Call         USD         31.00         5/20/13         385         (47,162

Legg Mason, Inc.

     Call         USD         32.00         5/20/13         385         (22,138

Marathon Oil Corp.

     Call         USD         36.00         5/20/13         226         (678

Marathon Petroleum Corp.

     Call         USD         92.50         5/20/13         203         (2,030

Merck & Co., Inc.

     Call         USD         48.00         5/20/13         320         (12,320

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    39


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   
     (Percentages shown are based on Net Assets)   

 

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Noble Corp.

     Call         USD         38.00         5/20/13         1,320       $ (93,720

Oracle Corp.

     Call         USD         33.00         5/20/13         264         (10,824

PBF Energy, Inc.

     Call         USD         40.00         5/20/13         435         (4,350

Pfizer, Inc.

     Call         USD         31.00         5/20/13         295         (1,328

QUALCOMM, Inc.

     Call         USD         67.50         5/20/13         1,605         (8,828

SAIC, Inc.

     Call         USD         13.00         5/20/13         583         (109,312

Suncor Energy, Inc.

     Call         USD         31.00         5/20/13         1,017         (67,630

Wal-Mart Stores, Inc.

     Call         USD         77.50         5/20/13         222         (25,863

The Walt Disney Co.

     Call         USD         62.50         5/20/13         270         (42,525

Yahoo!, Inc.

     Call         USD         23.00         5/20/13         1,750         (318,500

Ford Motor Co.

     Call         USD         13.00         5/24/13         775         (56,575

CF Industries Holdings, Inc.

     Call         USD         190.00         6/10/13         389         (197,273

American International Group, Inc.

     Call         USD         41.00         6/12/13         900         (155,167

Annaly Capital Management, Inc.

     Call         USD         16.00         6/24/13         1,670         (46,760

AT&T Inc.

     Call         USD         38.00         6/24/13         100         (5,750

CenturyLink, Inc.

     Call         USD         38.00         6/24/13         200         (16,000

Citigroup, Inc.

     Call         USD         46.00         6/24/13         195         (39,098

Comcast Corp., Special Class A

     Call         USD         40.00         6/24/13         270         (23,625

Ensco Plc, Class A

     Call         USD         57.50         6/24/13         420         (90,300

Express Scripts Holding Co.

     Call         USD         57.50         6/24/13         226         (68,930

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         32.00         6/24/13         508         (38,608

General Electric Co.

     Call         USD         24.00         6/24/13         311         (1,866

Google, Inc., Class A

     Call         USD         795.00         6/24/13         204         (823,140

Google, Inc., Class A

     Call         USD         800.00         6/24/13         16         (58,640

HollyFrontier Corp.

     Call         USD         50.00         6/24/13         607         (148,715

HollyFrontier Corp.

     Call         USD         54.00         6/24/13         34         (3,570

Johnson & Johnson

     Call         USD         85.00         6/24/13         220         (33,000

Kimberly-Clark Corp.

     Call         USD         105.00         6/24/13         137         (18,152

Marathon Oil Corp.

     Call         USD         31.00         6/24/13         495         (108,900

Merck & Co., Inc.

     Call         USD         48.00         6/24/13         320         (23,200

Merck & Co., Inc.

     Call         USD         49.00         6/24/13         333         (13,820

Oracle Corp.

     Call         USD         34.00         6/24/13         264         (13,596

PBF Energy, Inc.

     Call         USD         30.00         6/24/13         260         (61,750

PBF Energy, Inc.

     Call         USD         35.00         6/24/13         475         (29,688

PBF Energy, Inc.

     Call         USD         45.00         6/24/13         460         (4,600

Pfizer, Inc.

     Call         USD         31.00         6/24/13         420         (6,090

Pfizer, Inc.

     Call         USD         32.00         6/24/13         148         (1,036

The Procter & Gamble Co.

     Call         USD         82.50         6/24/13         108         (1,296

Suncor Energy, Inc.

     Call         USD         32.00         6/24/13         1,017         (66,105

U.S. Bancorp

     Call         USD         33.00         6/24/13         710         (60,350

Vodafone Group Plc — ADR

     Call         USD         30.00         6/24/13         1,980         (257,400

Wal-Mart Stores, Inc.

     Call         USD         77.50         6/24/13         222         (37,296

Yahoo!, Inc.

     Call         USD         24.00         6/24/13         1,275         (174,675

AT&T Inc.

     Call         USD         38.00         7/20/13         100         (7,200

Ford Motor Co.

     Call         USD         13.80         7/20/13         776         (41,244

Comcast Corp., Special Class A

     Call         USD         40.00         7/22/13         270         (29,025

The Procter & Gamble Co.

     Call         USD         82.50         7/22/13         108         (2,700

Yahoo!, Inc.

     Call         USD         25.00         7/22/13         1,275         (145,988

Total

                  $ (5,198,353
                 

 

 

 

 

See Notes to Financial Statements.

 

40    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

The Travelers Cos., Inc.

   Goldman Sachs & Co.      Call         USD         83.88         5/02/13         21,200       $ (32,436

General Electric Co.

   Credit Suisse First Boston      Call         USD         23.27         5/06/13         254,800         (500

Prudential Financial, Inc.

   Credit Suisse First Boston      Call         USD         59.94         5/06/13         5,000         (5,478

The Southern Co.

   Morgan Stanley & Co., Inc.      Call         USD         45.41         5/06/13         27,500         (77,550

CenturyLink, Inc.

   Citigroup Global Markets, Inc.      Call         USD         35.63         5/09/13         94,800         (189,069

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/09/13         76,500         (147,212

American International Group, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         39.31         5/13/13         318,000         (764,934

Pfizer, Inc.

   Credit Suisse First Boston      Call         USD         28.97         5/13/13         177,200         (61,162

U.S. Bancorp

   Morgan Stanley & Co., Inc.      Call         USD         34.34         5/13/13         17,500         (410

NextEra Energy, Inc.

   Goldman Sachs & Co.      Call         USD         74.64         5/14/13         10,600         (78,334

Japan Airlines Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         4,345.20         5/22/13         300,000         (1,830,435

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/23/13         76,500         (161,870

Vodafone Group Plc - ADR

   Citigroup Global Markets, Inc.      Call         USD         29.39         5/28/13         331,000         (522,092

Kimberly-Clark Corp.

   Credit Suisse First Boston      Call         USD         100.72         5/29/13         12,500         (44,607

Time Warner, Inc.

   Goldman Sachs & Co.      Call         USD         57.02         5/30/13         48,100         (161,087

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         56.94         5/31/13         22,600         (107,124

Pfizer, Inc.

   Citigroup Global Markets, Inc.      Call         USD         29.23         5/31/13         93,000         (34,106

The Allstate Corp.

   Deutsche Bank Securities Corp.      Call         USD         50.35         6/03/13         53,300         (26,522

Unilever NV

   UBS Securities LLC      Call         USD         41.27         6/03/13         56,000         (68,074

Renault SA

   Citigroup Global Markets, Inc.      Call         EUR         49.98         6/04/13         41,800         (156,722

PepsiCo, Inc.

   Deutsche Bank Securities Corp.      Call         USD         79.99         6/05/13         26,400         (70,855

The Southern Co.

   Citigroup Global Markets, Inc.      Call         USD         47.14         6/05/13         27,400         (29,948

UnitedHealth Group, Inc.

   Citigroup Global Markets, Inc.      Call         USD         62.67         6/05/13         131,700         (52,996

SAIC, Inc.

   Barclays Bank      Call         USD         14.20         6/06/13         274,500         (238,923

NextEra Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         77.39         6/07/13         18,400         (85,376

Suncor Energy, Inc.

   Deutsche Bank Securities Corp.      Call         USD         29.10         6/09/13         112,000         (271,748

Marathon Petroleum Corp.

   Credit Suisse First Boston      Call         USD         82.19         6/10/13         20,300         (37,340

AT&T Inc.

   Citigroup Global Markets, Inc.      Call         USD         38.90         6/12/13         44,000         (8,270

Berkshire Hathaway, Inc., Class B

   UBS Securities LLC      Call         USD         105.47         6/12/13         26,000         (72,334

Unilever NV

   Citigroup Global Markets, Inc.      Call         USD         42.01         6/12/13         27,000         (26,190

SAIC, Inc.

   Barclays Bank      Call         USD         14.18         6/14/13         165,500         (151,563

The Allstate Corp.

   Goldman Sachs & Co.      Call         USD         50.13         6/17/13         48,500         (35,253

Time Warner, Inc.

   Citigroup Global Markets, Inc.      Call         USD         60.20         6/18/13         8,500         (12,161

Eli Lilly & Co.

   Morgan Stanley & Co., Inc.      Call         USD         56.06         6/19/13         71,400         (63,832

JPMorgan Chase & Co.

   Morgan Stanley & Co., Inc.      Call         USD         49.50         6/27/13         121,600         (123,554

Prudential Financial, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         57.67         7/08/13         17,200         (63,269

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         61.71         7/09/13         23,000         (16,445

PBF Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         34.53         7/09/13         32,800         (29,613

Total

                     $ (5,859,394
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    41


Table of Contents
Schedule of Investments (concluded)      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   

 

used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks1

   $ 598,662,905      $ 5,245,129              $ 603,908,034   

Short-Term Securities

     31,924,863                       31,924,863   

Total

   $ 630,587,768        5,245,129              $ 635,832,897   
  

 

 

 

1    See above Schedule of Investments for values in each industry excluding Level 2, Automobiles, within the table.

         
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments2

         

Liabilities:

         

Equity contracts

   $ (4,710,552   $ (6,347,195           $ (11,057,747
         

2    Derivative financial instruments are options written, which are shown at value.

         

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

          
      Level 1      Level 2     Level 3      Total  

Assets:

          

Foreign currency at value

   $ 6,104                      $ 6,104   

Cash pledged as collateral for options written

     900,000                        900,000   

Liabilities:

          

Bank overdraft

           $ (2,951,603             (2,951,603

Total

   $ 906,104       $ (2,951,603           $ (2,045,499
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

42    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Enhanced Equity Dividend Trust (BDJ)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Aerospace & Defense — 5.0%

     

Honeywell International, Inc.

     221,000       $ 16,252,340   

Northrop Grumman Corp.

     189,100         14,322,434   

Raytheon Co. (a)

     341,800         20,979,684   

Rockwell Collins, Inc.

     50,800         3,196,336   

United Technologies Corp. (a)

     253,300         23,123,757   
     

 

 

 
                77,874,551   

Air Freight & Logistics — 1.0%

     

United Parcel Service, Inc., Class B (a)

     184,700         15,854,648   

Auto Components — 0.4%

     

Johnson Controls, Inc. (a)

     192,000         6,721,920   

Beverages — 2.5%

     

The Coca-Cola Co. (a)

     457,000         19,344,810   

Diageo Plc — ADR (a)

     156,300         19,099,860   
     

 

 

 
                38,444,670   

Building Products — 0.1%

     

Masco Corp. (a)

     65,100         1,265,544   

Chemicals — 3.0%

     

The Dow Chemical Co.

     248,300         8,419,853   

EI du Pont de Nemours & Co.

     415,200         22,632,552   

Olin Corp.

     213,600         5,162,712   

Praxair, Inc.

     92,500         10,572,750   
     

 

 

 
                46,787,867   

Commercial Banks — 7.9%

     

Bank of Nova Scotia (a)

     254,200         14,657,281   

Fifth Third Bancorp (a)

     725,200         12,350,156   

M&T Bank Corp. (a)

     35,000         3,507,000   

SunTrust Banks, Inc.

     404,100         11,819,925   

The Toronto-Dominion Bank

     180,000         14,742,000   

U.S. Bancorp (a)

     644,500         21,448,960   

Wells Fargo & Co. (a)

     1,187,300         45,093,654   
     

 

 

 
                123,618,976   

Consumer Finance — 1.2%

     

American Express Co. (a)

     274,800         18,799,068   

Diversified Financial Services — 3.8%

     

Citigroup, Inc. (a)

     265,400         12,383,564   

JPMorgan Chase & Co. (a)

     954,500         46,780,045   
     

 

 

 
                59,163,609   

Diversified Telecommunication Services — 3.7%

     

AT&T Inc. (a)

     533,100         19,969,926   

BCE, Inc.

     112,100         5,253,006   

Verizon Communications, Inc. (a)

     605,000         32,615,550   
     

 

 

 
                57,838,482   

Electric Utilities — 2.9%

     

American Electric Power Co., Inc.

     156,000         8,023,080   

Duke Energy Corp. (a)

     94,566         7,111,363   

Edison International

     135,700         7,300,660   

ITC Holdings Corp. (a)

     22,300         2,056,506   

NextEra Energy, Inc. (a)

     193,500         15,872,805   

Northeast Utilities

     38,520         1,746,112   

PPL Corp. (a)

     112,100         3,741,898   
     

 

 

 
                45,852,424   

Electrical Equipment — 0.7%

     

Brady Corp., Class A

     111,700         3,784,396   

Rockwell Automation, Inc. (a)

     57,900         4,908,762   

Roper Industries, Inc. (a)

     14,900         1,782,785   
     

 

 

 
                10,475,943   

Energy Equipment & Services — 0.5%

     

Schlumberger Ltd. (a)

     102,800         7,651,404   
Common Stocks    Shares      Value  

Food & Staples Retailing — 0.6%

     

Wal-Mart Stores, Inc. (a)

     117,200       $ 9,108,784   

Food Products — 3.8%

     

General Mills, Inc. (a)

     281,900         14,213,398   

HJ Heinz Co.

     109,978         7,964,607   

Kraft Foods Group, Inc. (a)

     146,895         7,563,624   

Mondelez International, Inc. — Class A (a)

     509,985         16,039,028   

Unilever NV

     331,700         14,090,616   
     

 

 

 
                59,871,273   

Gas Utilities — 0.1%

     

Northwest Natural Gas Co. (a)

     46,000         2,045,620   

Health Care Providers & Services — 0.5%

     

Quest Diagnostics, Inc. (a)

     123,700         6,968,021   

Hotels, Restaurants & Leisure — 1.5%

     

McDonald’s Corp.

     233,600         23,859,904   

Household Products — 2.1%

     

Kimberly-Clark Corp. (a)

     136,450         14,080,276   

The Procter & Gamble Co. (a)

     242,000         18,578,340   
     

 

 

 
                32,658,616   

Industrial Conglomerates — 3.1%

     

3M Co. (a)

     130,900         13,706,539   

General Electric Co. (a)

     1,573,600         35,075,544   
     

 

 

 
                48,782,083   

Insurance — 4.5%

     

ACE Ltd.

     191,800         17,097,052   

The Chubb Corp.

     179,000         15,764,530   

Prudential Financial, Inc. (a)

     267,500         16,162,350   

The Travelers Cos., Inc.

     249,600         21,318,336   
     

 

 

 
                70,342,268   

IT Services — 2.1%

     

Automatic Data Processing, Inc. (a)

     65,260         4,394,608   

International Business Machines Corp. (a)

     139,700         28,294,838   
     

 

 

 
                32,689,446   

Leisure Equipment & Products — 0.9%

     

Mattel, Inc. (a)

     224,500         10,250,670   

Polaris Industries, Inc. (a)

     44,500         3,835,455   
     

 

 

 
                14,086,125   

Machinery — 2.3%

     

Deere & Co.

     298,900         26,691,770   

Graco, Inc.

     22,000         1,331,660   

Pentair Ltd.

     148,400         8,065,540   
     

 

 

 
                36,088,970   

Media — 2.7%

     

Comcast Corp., Special Class A (a)

     860,600         33,812,974   

The Walt Disney Co. (a)

     121,100         7,609,924   
     

 

 

 
                41,422,898   

Metals & Mining — 2.5%

     

BHP Billiton Ltd. — ADR (a)

     381,800         25,664,596   

Newmont Mining Corp. (a)

     264,800         8,579,520   

Southern Copper Corp. (a)

     150,377         5,012,065   
     

 

 

 
                39,256,181   

Multi-Utilities — 2.6%

     

Dominion Resources, Inc. (a)

     253,600         15,642,048   

Public Service Enterprise Group, Inc.

     283,200         10,367,952   

Sempra Energy

     92,200         7,638,770   

Wisconsin Energy Corp.

     156,600         7,037,604   
     

 

 

 
                40,686,374   
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    43


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Equity Dividend Trust (BDJ)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels — 12.9%

     

Chevron Corp. (a)

     403,350       $ 49,212,732   

ConocoPhillips (a)

     127,560         7,711,002   

Enbridge, Inc. (a)

     485,200         23,088,479   

Exxon Mobil Corp. (a)

     356,800         31,751,632   

Kinder Morgan, Inc.

     304,100         11,890,310   

Marathon Oil Corp. (a)

     375,800         12,277,386   

Marathon Petroleum Corp. (a)

     176,600         13,838,376   

Occidental Petroleum Corp.

     178,300         15,915,058   

Phillips 66 (a)

     82,550         5,031,424   

Royal Dutch Shell Plc — ADR (a)

     59,400         4,037,418   

Spectra Energy Corp.

     215,400         6,791,562   

Total SA — ADR (a)

     402,100         20,201,504   
     

 

 

 
                201,746,883   

Paper & Forest Products — 0.7%

     

MeadWestvaco Corp. (a)

     291,600         10,054,368   

Pharmaceuticals — 7.6%

     

Abbott Laboratories (a)

     146,700         5,416,164   

AbbVie, Inc. (a)

     148,900         6,856,845   

Bristol-Myers Squibb Co. (a)

     564,400         22,417,968   

Johnson & Johnson (a)

     234,400         19,977,912   

Merck & Co., Inc. (a)

     644,700         30,300,900   

Pfizer, Inc. (a)

     1,142,200         33,203,754   
     

 

 

 
                118,173,543   

Real Estate Investment Trusts (REITs) — 1.1%

     

American Tower Corp. (a)

     76,900         6,458,831   

Liberty Property Trust

     31,000         1,332,690   

Sovran Self Storage, Inc.

     16,980         1,164,828   

Tanger Factory Outlet Centers

     28,900         1,072,768   

Weyerhaeuser Co. (a)

     233,100         7,111,881   
     

 

 

 
                17,140,998   

Road & Rail — 0.8%

     

Union Pacific Corp. (a)

     87,600         12,961,296   

Semiconductors & Semiconductor Equipment — 1.0%

  

  

Intel Corp. (a)

     633,000         15,160,350   
Common Stocks    Shares      Value  

Software — 1.4%

     

Microsoft Corp. (a)

     666,200       $ 22,051,220   

Specialty Retail — 2.3%

     

The Home Depot, Inc. (a)

     486,000         35,648,100   

Textiles, Apparel & Luxury Goods — 1.4%

     

VF Corp.

     120,100         21,404,222   

Tobacco — 3.3%

     

Altria Group, Inc. (a)

     246,500         8,999,715   

Lorillard, Inc. (a)

     291,800         12,515,302   

Philip Morris International, Inc. (a)

     319,700         30,560,123   
     

 

 

 
                52,075,140   

Water Utilities — 0.7%

     

American Water Works Co., Inc.

     252,000         10,553,760   

Total Long-Term Investments

(Cost — $1,281,152,986) — 95.2%

              1,485,185,549   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.08% (b)(c)

     76,237,084         76,237,084   

Total Short-Term Securities

(Cost — $76,237,084) — 4.9%

              76,237,084   

Total Investments Before Options Written

(Cost — $1,357,390,070) — 100.1%

              1,561,422,633   
     
Options Written                

(Premiums Received — $14,999,846) — (1.7)%

              (25,826,639

Total Investments Net of Options Written — 98.4%

        1,535,595,994   

Other Assets Less Liabilities — 1.6%

        24,538,560   
     

 

 

 

Net Assets — 100.0%

      $ 1,560,134,554   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Represents the current yield as of report date.

 

(c) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares/
Beneficial Interest
Held at
October 31, 2012
    

Net

Activity

   

Shares/
Beneficial Interest
Held at

April 30, 2013

     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     112,624,435         (36,387,351     76,237,084       $ 50,687       $ 660   

BlackRock Liquidity Series, LLC Money Market Series

   $ 4,054,445       $ (4,054,445           $ 202           

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency

Purchased

      

Currency
Sold

    Counterparty   Settlement
Date
       Unrealized
Depreciation
 
USD        123,240           CAD           125,000      Goldman Sachs & Co.     5/01/13         $ (836

 

See Notes to Financial Statements.

 

44    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Quest Diagnostics, Inc.

     Call         USD         57.50         5/02/13         635       $ (1,976

Exxon Mobil Corp.

     Call         USD         90.00         5/03/13         657         (2,001

American Express Co.

     Call         USD         65.85         5/06/13         1,462         (375,692

JPMorgan Chase & Co.

     Call         USD         50.15         5/06/13         1,900         (13,775

Rockwell Automation, Inc.

     Call         USD         90.00         5/06/13         175         (51

Duke Energy Corp.

     Call         USD         70.85         5/07/13         95         (41,325

Mattel, Inc.

     Call         USD         43.00         5/07/13         103         (27,398

Comcast Corp., Special Class A

     Call         USD         39.05         5/13/13         1,540         (119,003

PPL Corp.

     Call         USD         31.50         5/13/13         51         (9,588

Northwest Natural Gas Co.

     Call         USD         44.00         5/15/13         230         (36,061

Raytheon Co.

     Call         USD         56.50         5/15/13         166         (81,008

American Tower Corp.

     Call         USD         77.00         5/18/13         212         (148,188

Microsoft Corp.

     Call         USD         28.20         5/18/13         635         (311,150

Total SA — ADR

     Call         USD         50.65         5/18/13         140         (8,261

Verizon Communications, Inc.

     Call         USD         49.10         5/18/13         2,730         (1,313,130

American Tower Corp.

     Call         USD         80.00         5/20/13         195         (82,875

Bank of Nova Scotia

     Call         CAD         59.50         5/20/13         1,353         (16,116

BHP Billiton Ltd. — ADR

     Call         USD         67.50         5/20/13         154         (21,329

BHP Billiton Ltd. — ADR

     Call         USD         75.00         5/20/13         1,945         (13,615

Comcast Corp., Special Class A

     Call         USD         41.00         5/20/13         434         (8,680

Dominion Resources, Inc.

     Call         USD         57.50         5/20/13         75         (31,875

Enbridge, Inc.

     Call         CAD         48.00         5/20/13         191         (8,911

Exxon Mobil Corp.

     Call         USD         90.00         5/20/13         1,240         (43,400

Fifth Third Bancorp

     Call         USD         16.00         5/20/13         1,826         (193,556

General Electric Co.

     Call         USD         24.00         5/20/13         2,556         (3,834

General Mills, Inc.

     Call         USD         49.00         5/20/13         1,400         (226,800

International Business Machines Corp.

     Call         USD         215.00         5/20/13         230         (2,070

Johnson & Johnson

     Call         USD         85.00         5/20/13         495         (52,965

Johnson Controls, Inc.

     Call         USD         36.00         5/20/13         355         (7,988

JPMorgan Chase & Co.

     Call         USD         49.00         5/20/13         1,427         (106,312

JPMorgan Chase & Co.

     Call         USD         50.00         5/20/13         1,382         (47,679

Lorillard, Inc.

     Call         USD         40.00         5/20/13         1,520         (462,840

Marathon Oil Corp.

     Call         USD         36.00         5/20/13         720         (2,160

Marathon Petroleum Corp.

     Call         USD         92.50         5/20/13         269         (2,690

Masco Corp.

     Call         USD         21.00         5/20/13         651         (4,883

Merck & Co., Inc.

     Call         USD         48.00         5/20/13         302         (11,627

Merck & Co., Inc.

     Call         USD         49.00         5/20/13         615         (9,840

Mondelez International, Inc. — Class A

     Call         USD         29.00         5/20/13         794         (214,380

Newmont Mining Corp.

     Call         USD         43.00         5/20/13         1,410         (2,820

Pfizer, Inc.

     Call         USD         31.00         5/20/13         680         (3,060

Philip Morris International, Inc.

     Call         USD         92.50         5/20/13         851         (289,340

Phillips 66

     Call         USD         67.50         5/20/13         194         (4,850

Phillips 66

     Call         USD         70.00         5/20/13         260         (3,250

Polaris Industries, Inc.

     Call         USD         85.00         5/20/13         445         (125,713

Rockwell Automation, Inc.

     Call         USD         85.00         5/20/13         143         (15,730

Schlumberger Ltd.

     Call         USD         77.50         5/20/13         546         (17,472

Southern Copper Corp.

     Call         USD         37.00         5/20/13         180         (900

United Technologies Corp.

     Call         USD         92.50         5/20/13         607         (33,689

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    45


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

United Technologies Corp.

     Call         USD         95.00         5/20/13         72       $ (756

The Walt Disney Co.

     Call         USD         62.50         5/20/13         475         (74,813

Wells Fargo & Co.

     Call         USD         37.00         5/20/13         3,420         (362,520

Weyerhaeuser Co.

     Call         USD         31.00         5/20/13         910         (29,575

3M Co.

     Call         USD         107.50         5/22/13         71         (2,862

Royal Dutch Shell Plc — ADR

     Call         USD         66.00         5/22/13         55         (10,860

United Parcel Service, Inc., Class B

     Call         USD         86.00         5/23/13         975         (107,071

ConocoPhillips

     Call         USD         60.50         5/24/13         54         (4,079

Verizon Communications, Inc.

     Call         USD         51.00         5/30/13         340         (105,380

Diageo Plc — ADR

     Call         USD         121.00         6/03/13         290         (79,499

Kraft Foods Group, Inc.

     Call         USD         52.50         6/03/13         269         (12,859

General Mills, Inc.

     Call         USD         50.50         6/05/13         150         (11,183

MeadWestvaco Corp.

     Call         USD         35.50         6/05/13         285         (15,779

NextEra Energy, Inc.

     Call         USD         80.75         6/07/13         62         (10,035

Abbott Laboratories

     Call         USD         35.50         6/10/13         62         (10,562

M&T Bank Corp.

     Call         USD         99.75         6/10/13         192         (34,552

United Technologies Corp.

     Call         USD         95.00         6/10/13         714         (26,415

The Coca-Cola Co.

     Call         USD         43.00         6/12/13         1,895         (81,219

ITC Holdings Corp.

     Call         USD         91.25         6/12/13         25         (5,809

Roper Industries, Inc.

     Call         USD         123.75         6/13/13         149         (16,346

ConocoPhillips

     Call         USD         58.25         6/18/13         650         (145,738

Fifth Third Bancorp

     Call         USD         16.40         6/18/13         2,160         (182,667

Altria Group, Inc.

     Call         USD         35.00         6/24/13         72         (12,528

Altria Group, Inc.

     Call         USD         36.00         6/24/13         1,283         (129,583

AT&T Inc.

     Call         USD         38.00         6/24/13         843         (48,473

Automatic Data Processing, Inc.

     Call         USD         67.50         6/24/13         29         (3,698

Bristol-myers Squibb Co.

     Call         USD         42.00         6/24/13         1,216         (33,440

Citigroup, Inc.

     Call         USD         46.00         6/24/13         1,460         (292,730

Comcast Corp., Special Class A

     Call         USD         40.00         6/24/13         1,380         (120,750

General Electric Co.

     Call         USD         24.00         6/24/13         1,623         (9,738

The Home Depot, Inc.

     Call         USD         77.50         6/24/13         145         (6,815

Intel Corp.

     Call         USD         22.00         6/24/13         3,430         (673,995

International Business Machines Corp.

     Call         USD         190.00         6/24/13         538         (696,710

Johnson & Johnson

     Call         USD         85.00         6/24/13         495         (74,250

Johnson Controls, Inc.

     Call         USD         33.00         6/24/13         700         (162,750

Kimberly-Clark Corp.

     Call         USD         105.00         6/24/13         65         (8,613

Marathon Oil Corp.

     Call         USD         31.00         6/24/13         1,346         (296,120

Mattel, Inc.

     Call         USD         45.00         6/24/13         554         (74,790

Merck & Co., Inc.

     Call         USD         48.00         6/24/13         302         (21,895

Merck & Co., Inc.

     Call         USD         49.00         6/24/13         316         (13,114

Microsoft Corp.

     Call         USD         30.00         6/24/13         1,090         (346,075

Northwest Natural Gas Co.

     Call         USD         45.00         6/24/13         230         (14,950

Pfizer, Inc.

     Call         USD         31.00         6/24/13         340         (4,930

Pfizer, Inc.

     Call         USD         32.00         6/24/13         340         (2,380

Philip Morris International, Inc.

     Call         USD         92.50         6/24/13         851         (348,910

The Procter & Gamble Co.

     Call         USD         82.50         6/24/13         665         (7,980

Prudential Financial, Inc.

     Call         USD         62.50         6/24/13         204         (21,624

Quest Diagnostics, Inc.

     Call         USD         60.00         6/24/13         45         (2,250

Raytheon Co.

     Call         USD         60.00         6/24/13         150         (33,825

Southern Copper Corp.

     Call         USD         33.00         6/24/13         650         (94,250

U.S. Bancorp

     Call         USD         33.00         6/24/13         1,650         (140,250

 

See Notes to Financial Statements.

 

46    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Union Pacific Corp.

     Call         USD         150.00         6/24/13         481       $ (134,199

Wal-mart Stores, Inc.

     Call         USD         80.00         6/24/13         644         (44,436

The Walt Disney Co.

     Call         USD         60.00         6/24/13         42         (16,170

The Walt Disney Co.

     Call         USD         62.50         6/24/13         150         (33,075

Weyerhaeuser Co.

     Call         USD         31.00         6/24/13         372         (26,040

AbbVie, Inc.

     Call         USD         45.50         6/26/13         78         (16,274

AT&T Inc.

     Call         USD         38.00         7/20/13         843         (60,696

Comcast Corp., Special Class A

     Call         USD         40.00         7/22/13         1,380         (148,350

Microsoft Corp.

     Call         USD         31.00         7/22/13         1,963         (486,824

The Procter & Gamble Co.

     Call         USD         82.50         7/22/13         665         (16,625

Total

                  $ (10,572,540
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

MeadWestvaco Corp.

   Credit Suisse First Boston      Call         USD         36.41         5/02/13         67,600       $ (11

Olin Corp.

   Morgan Stanley & Co., Inc.      Call         USD         24.48         5/02/13         60,500         (2,012

The Travelers Cos., Inc.

   Goldman Sachs & Co.      Call         USD         83.88         5/02/13         137,100         (209,763

American Water Works Co., Inc.

   Deutsche Bank Securities Corp.      Call         USD         39.88         5/03/13         27,000         (54,054

Chevron Corp.

   Goldman Sachs & Co.      Call         USD         118.99         5/03/13         140,000         (422,800

Diageo Plc — ADR

   Goldman Sachs & Co.      Call         USD         119.80         5/03/13         57,000         (137,322

Edison International

   Morgan Stanley & Co., Inc.      Call         USD         51.10         5/03/13         11,000         (29,700

EI du Pont de Nemours & Co.

   Barclays Bank      Call         USD         49.54         5/03/13         105,500         (524,230

Graco, Inc.

   Citigroup Global Markets, Inc.      Call         USD         58.94         5/03/13         22,000         (35,186

Liberty Property Trust

   Barclays Bank      Call         USD         39.33         5/03/13         31,000         (113,584

Rockwell Collins, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         64.19         5/03/13         27,900         (562

VF Corp.

   Citigroup Global Markets, Inc.      Call         USD         168.00         5/03/13         63,900         (652,802

American Electric Power Co., Inc.

   Morgan Stanley & Co., Inc.      Call         USD         48.18         5/06/13         81,300         (264,225

General Electric Co.

   Credit Suisse First Boston      Call         USD         23.27         5/06/13         240,300         (472

PPL Corp.

   Morgan Stanley & Co., Inc.      Call         USD         31.25         5/06/13         27,000         (57,510

Prudential Financial, Inc.

   Credit Suisse First Boston      Call         USD         59.94         5/06/13         85,500         (93,668

Wisconsin Energy Corp.

   Morgan Stanley & Co., Inc.      Call         USD         40.85         5/06/13         78,800         (322,292

Mattel, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         41.10         5/07/13         57,700         (263,112

Sempra Energy

   Credit Suisse First Boston      Call         USD         76.51         5/07/13         30,900         (195,906

Public Service Enterprise Group, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         32.25         5/08/13         41,500         (180,940

American Water Works Co., Inc.

   Citigroup Global Markets, Inc.      Call         USD         40.38         5/09/13         38,000         (57,914

The Chubb Corp.

   Credit Suisse First Boston      Call         USD         87.10         5/09/13         59,700         (83,464

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/09/13         100,500         (193,396

Northeast Utilities

   UBS Securities LLC      Call         USD         42.63         5/09/13         38,500         (103,950

Sovran Self Storage, Inc.

   Citigroup Global Markets, Inc.      Call         USD         62.16         5/09/13         16,980         (109,436

Tanger Factory Outlet Centers

   Citigroup Global Markets, Inc.      Call         USD         35.71         5/09/13         28,900         (45,165

Brady Corp., Class A

   Citigroup Global Markets, Inc.      Call         USD         34.61         5/10/13         50,300         (6,094

Brady Corp., Class A

   Deutsche Bank Securities Corp.      Call         USD         34.25         5/10/13         28,000         (6,136

Brady Corp., Class A

   Deutsche Bank Securities Corp.      Call         USD         34.70         5/10/13         33,400         (3,402

Northrop Grumman Corp.

   Morgan Stanley & Co., Inc.      Call         USD         68.72         5/13/13         100,600         (706,212

Pfizer, Inc.

   Credit Suisse First Boston      Call         USD         28.97         5/13/13         239,600         (82,700

PPL Corp.

   UBS Securities LLC      Call         USD         30.73         5/13/13         27,500         (72,875

U.S. Bancorp

   Morgan Stanley & Co., Inc.      Call         USD         34.34         5/13/13         174,300         (4,082

Edison International

   Citigroup Global Markets, Inc.      Call         USD         50.81         5/14/13         11,100         (33,178

Edison International

   Goldman Sachs & Co.      Call         USD         51.18         5/14/13         32,000         (84,742

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    47


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

American Water Works Co., Inc.

   Citigroup Global Markets, Inc.      Call         USD         40.47         5/15/13         26,500       $ (39,611

Raytheon Co.

   Morgan Stanley & Co., Inc.      Call         USD         57.57         5/15/13         156,100         (594,741

Spectra Energy Corp.

   Credit Suisse First Boston      Call         USD         30.50         5/15/13         118,500         (122,391

Sempra Energy

   Credit Suisse First Boston      Call         USD         77.31         5/22/13         14,500         (80,403

SunTrust Banks, Inc.

   Citigroup Global Markets, Inc.      Call         USD         28.92         5/22/13         215,000         (159,936

The Coca-Cola Co.

   Citigroup Global Markets, Inc.      Call         USD         39.31         5/23/13         61,700         (191,833

Deere & Co.

   Morgan Stanley & Co., Inc.      Call         USD         92.74         5/23/13         96,000         (80,315

Enbridge, Inc.

   Citigroup Global Markets, Inc.      Call         CAD         46.79         5/23/13         119,500         (155,179

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/23/13         100,500         (212,652

Chevron Corp.

   JPMorgan Chase Securities      Call         USD         119.93         5/24/13         71,500         (188,621

Occidental Petroleum Corp.

   Citigroup Global Markets, Inc.      Call         USD         82.80         5/28/13         49,000         (335,061

American Water Works Co., Inc.

   Morgan Stanley & Co., Inc.      Call         USD         41.56         5/29/13         41,000         (37,819

Kimberly-Clark Corp.

   Credit Suisse First Boston      Call         USD         100.72         5/29/13         68,500         (244,445

Royal Dutch Shell Plc — ADR

   Citigroup Global Markets, Inc.      Call         USD         67.62         5/29/13         27,100         (20,651

Bristol-Myers Squibb Co.

   Citigroup Global Markets, Inc.      Call         USD         39.41         5/30/13         188,800         (164,947

The Home Depot, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         71.35         5/30/13         252,600         (592,701

Kinder Morgan, Inc.

   Credit Suisse First Boston      Call         USD         37.92         5/30/13         161,800         (236,906

Automatic Data Processing, Inc.

   Citigroup Global Markets, Inc.      Call         USD         64.09         5/31/13         32,900         (115,394

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         56.94         5/31/13         50,500         (239,370

Pfizer, Inc.

   Citigroup Global Markets, Inc.      Call         USD         29.23         5/31/13         203,000         (74,446

BCE, Inc.

   Citigroup Global Markets, Inc.      Call         USD         46.36         6/03/13         9,700         (6,397

BCE, Inc.

   Credit Suisse First Boston      Call         USD         47.03         6/03/13         3,900         (1,316

Kraft Foods Group, Inc.

   Credit Suisse First Boston      Call         USD         51.76         6/03/13         48,000         (30,336

Unilever NV

   UBS Securities LLC      Call         USD         41.27         6/03/13         124,000         (150,735

3M Co.

   Credit Suisse First Boston      Call         USD         108.91         6/05/13         61,800         (14,247

MeadWestvaco Corp.

   Citigroup Global Markets, Inc.      Call         USD         36.44         6/05/13         64,300         (21,555

Deere & Co.

   Morgan Stanley & Co., Inc.      Call         USD         87.01         6/06/13         63,000         (220,790

Edison International

   Morgan Stanley & Co., Inc.      Call         USD         52.42         6/06/13         16,400         (30,157

EI du Pont de Nemours & Co.

   Credit Suisse First Boston      Call         USD         49.60         6/06/13         115,000         (564,650

Enbridge, Inc.

   Citigroup Global Markets, Inc.      Call         CAD         46.79         6/06/13         119,500         (156,368

Mondelez International, Inc. — Class A

   Citigroup Global Markets, Inc.      Call         USD         30.68         6/06/13         53,000         (63,442

Mondelez International, Inc. — Class A

   Morgan Stanley & Co., Inc.      Call         USD         30.70         6/06/13         148,000         (175,481

Olin Corp.

   Credit Suisse First Boston      Call         USD         25.45         6/06/13         57,000         (7,557

NextEra Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         77.39         6/07/13         100,200         (464,928

Pentair Ltd.

   Barclays Bank      Call         USD         53.50         6/07/13         66,800         (129,942

Public Service Enterprise Group, Inc.

   Credit Suisse First Boston      Call         USD         35.48         6/07/13         114,200         (131,648

Abbott Laboratories

   Citigroup Global Markets, Inc.      Call         USD         37.02         6/10/13         74,400         (55,877

Marathon Petroleum Corp.

   Credit Suisse First Boston      Call         USD         82.19         6/10/13         70,200         (129,127

The Toronto-Dominion Bank

   Citigroup Global Markets, Inc.      Call         USD         79.44         6/10/13         52,000         (147,773

Total SA — ADR

   Morgan Stanley & Co., Inc.      Call         USD         47.14         6/10/13         207,100         (694,398

Verizon Communications, Inc.

   Credit Suisse First Boston      Call         USD         52.50         6/10/13         25,600         (47,119

The Dow Chemical Co.

   Morgan Stanley & Co., Inc.      Call         USD         30.98         6/11/13         136,500         (417,014

AT&T Inc.

   Citigroup Global Markets, Inc.      Call         USD         38.90         6/12/13         124,500         (23,399

AbbVie, Inc.

   Deutsche Bank Securities Corp.      Call         USD         41.77         6/14/13         50,200         (222,752

BCE, Inc.

   Citigroup Global Markets, Inc.      Call         USD         45.83         6/14/13         48,000         (49,536

Occidental Petroleum Corp.

   Citigroup Global Markets, Inc.      Call         USD         82.80         6/14/13         49,000         (336,741

Praxair, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         111.35         6/14/13         50,800         (201,055

ACE Ltd.

   Morgan Stanley & Co., Inc.      Call         USD         89.59         6/17/13         105,500         (152,553

 

See Notes to Financial Statements.

 

48    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Wells Fargo & Co.

   Citigroup Global Markets, Inc.      Call         USD         37.88         6/17/13         311,000       $ (180,380

Pentair Ltd.

   Goldman Sachs & Co.      Call         USD         50.44         6/18/13         81,600         (358,501

The Toronto-Dominion Bank

   Morgan Stanley & Co., Inc.      Call         USD         79.73         6/18/13         47,000         (128,518

Honeywell International, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         73.98         6/19/13         60,800         (69,494

Sempra Energy

   Goldman Sachs & Co.      Call         USD         79.97         6/19/13         3,600         (11,297

AbbVie, Inc.

   Citigroup Global Markets, Inc.      Call         USD         43.36         6/26/13         23,800         (79,855

The Chubb Corp.

   Citigroup Global Markets, Inc.      Call         USD         88.85         6/27/13         38,700         (48,283

JPMorgan Chase & Co.

   Morgan Stanley & Co., Inc.      Call         USD         49.50         6/27/13         54,000         (54,868

McDonald’s Corp.

   Morgan Stanley & Co., Inc.      Call         USD         102.87         6/27/13         128,400         (163,174

Wisconsin Energy Corp.

   Deutsche Bank Securities Corp.      Call         USD         43.36         6/28/13         7,300         (12,015

Kraft Foods Group, Inc.

   Goldman Sachs & Co.      Call         USD         50.49         7/01/13         5,800         (10,455

Duke Energy Corp.

   Credit Suisse First Boston      Call         USD         75.88         7/08/13         42,600         (28,430

Prudential Financial, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         57.67         7/08/13         41,200         (151,551

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         61.71         7/09/13         81,400         (58,201

General Electric Co.

   Citigroup Global Markets, Inc.      Call         USD         22.38         7/09/13         207,200         (106,742

Honeywell International, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         73.98         7/19/13         60,800         (105,123

Total

                     $ (15,254,099
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments:

           

Common Stocks1

   $ 1,485,185,549                       $ 1,485,185,549   

Short-Term Securities

     76,237,084                         76,237,084   

Total

   $ 1,561,422,633                       $ 1,561,422,633   
  

 

 

 

 

1 

See above Schedule of Investments for values in each industry.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    49


Table of Contents
Schedule of Investments (concluded)      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

 

      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments2

         

Liabilities:

         

Equity contracts

   $ (7,204,739   $ (18,621,900           $ (25,826,639

Foreign currency exchange contracts

     (836                    (836

Total

   $ (7,205,575   $ (18,621,900           $ (25,827,475
  

 

 

 
         

2    Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

        

Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 5,897,424                     $ 5,897,424   

Foreign currency at value

     125,967                       125,967   

Cash pledged as collateral for options written

     200,000                       200,000   

Total

   $ 6,223,391                     $ 6,223,391   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

50    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Global Opportunities Equity Trust (BOE)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Argentina — 0.4%

     

Arcos Dorados Holdings, Inc., Class A (a)

     312,400       $ 4,254,888   

Australia — 0.2%

     

CSL Ltd.

     32,700         2,137,039   

Belgium — 1.0%

     

Anheuser-Busch InBev NV

     113,359         10,890,468   

Cayman Islands — 0.8%

     

Eurasia Drilling Co. Ltd. — GDR

     238,736         9,334,578   

France — 4.8%

     

AXA SA

     513,100         9,608,633   

BNP Paribas SA

     139,380         7,771,540   

Danone SA

     121,000         9,228,450   

LVMH Moet Hennessy Louis Vuitton SA

     30,300         5,250,529   

Sanofi

     87,100         9,416,871   

Technip SA

     52,200         5,598,991   

Valeo SA

     96,400         5,598,673   
     

 

 

 
                52,473,687   

Germany — 2.2%

     

Deutsche Lufthansa AG

     219,700         4,398,921   

SAP AG — ADR

     129,300         10,324,605   

Volkswagen AG, Preference Shares

     45,400         9,219,769   
     

 

 

 
                23,943,295   

Hong Kong — 1.3%

     

AIA Group Ltd.

     3,267,400         14,534,896   

India — 1.0%

     

ICICI Bank Ltd.

     285,800         6,206,366   

Jubilant Foodworks Ltd. (b)

     246,194         5,075,476   
     

 

 

 
                11,281,842   

Indonesia — 3.4%

     

Alam Sutera Realty Tbk PT

     48,409,000         5,228,023   

Bank Mandiri Persero Tbk PT

     9,534,000         10,314,166   

Global Mediacom Tbk PT

     29,625,500         6,636,103   

Matahari Department Store Tbk PT (b)

     8,998,500         11,198,956   

Tower Bersama Infrastructure Tbk PT (b)

     6,797,100         3,953,479   
     

 

 

 
                37,330,727   

Italy — 2.4%

     

Banca Generali SpA

     378,000         7,790,684   

Eni SpA (a)

     558,200         13,322,230   

Telecom Italia SpA (a)

     6,796,600         5,773,042   

Telecom Italia SpA — ADR (a)

     15,725         131,145   
     

 

 

 
                27,017,101   

Japan — 8.9%

     

Dena Co. Ltd.

     108,200         3,084,452   

Hino Motors Ltd.

     480,700         7,342,630   

Honda Motor Co. Ltd.

     256,400         10,230,992   

ITOCHU Corp.

     872,500         10,818,519   

Jafco Co. Ltd.

     134,300         6,504,410   

Kenedix Realty Investment Corp. — REIT

     1,117         5,240,054   

Nabtesco Corp.

     259,500         5,726,487   

ORIX Corp. (b)

     649,300         9,963,060   

Softbank Corp.

     115,200         5,713,222   

Sumitomo Mitsui Financial Group, Inc.

     189,100         8,938,257   

Tokio Marine Holdings, Inc.

     268,700         8,539,201   

Toyota Motor Corp.

     202,300         11,741,058   

Yahoo Japan Corp.

     9,093         4,547,200   
     

 

 

 
                98,389,542   

Mexico — 0.5%

     

Fomento Economico Mexicano SAB de CV — ADR

     48,100         5,454,059   
Common Stocks    Shares      Value  

Netherlands — 0.8%

     

ING Groep NV (b)

     1,050,300       $ 8,652,209   

Sweden — 1.4%

     

Svenska Cellulosa AB, B Shares

     594,827         15,494,553   

Switzerland — 8.0%

     

GAM Holding AG

     191,000         3,377,821   

Glencore International Plc

     2,181,500         10,740,271   

Nestle SA

     149,000         10,625,564   

Novartis AG

     147,600         10,926,472   

Partners Group Holding AG

     40,700         10,442,191   

Roche Holding AG

     81,100         20,302,624   

Transocean Ltd. (b)

     141,900         7,303,593   

UBS AG

     782,600         13,960,350   
     

 

 

 
                87,678,886   

Taiwan — 0.9%

     

MediaTek, Inc.

     561,000         6,846,198   

Taiwan Semiconductor Manufacturing
Co. Ltd. — ADR

     169,100         3,226,428   
     

 

 

 
                10,072,626   

Thailand — 0.8%

     

Bangkok Bank PCL — NVDR

     1,085,000         8,372,667   

United Kingdom — 13.3%

     

Afren Plc (b)

     2,465,700         5,146,092   

APR Energy Plc

     383,487         4,937,352   

Aveva Group Plc

     165,000         5,695,572   

Babcock International Group Plc

     207,700         3,456,140   

Barclays Plc — ADR (a)

     883,300         15,881,734   

BG Group Plc

     620,600         10,476,559   

British American Tobacco Plc

     187,700         10,405,197   

Crest Nicholson Holdings Plc (b)

     1,292,078         6,402,487   

Diageo Plc

     443,000         13,528,154   

esure Group Plc (b)

     2,895,400         13,369,024   

National Grid Plc

     931,100         11,868,927   

Perform Group Plc (b)

     723,700         5,831,826   

SABMiller Plc

     171,600         9,259,064   

Tullow Oil Plc

     518,600         8,083,795   

Unilever Plc

     267,600         11,594,233   

Vodafone Group Plc — ADR (a)

     348,400         10,657,556   
     

 

 

 
                146,593,712   

United States — 46.4%

     

AbbVie, Inc.

     189,000         8,703,450   

Adobe Systems, Inc. (a)(b)

     191,800         8,646,344   

Air Products & Chemicals, Inc. (a)

     57,600         5,008,896   

Amgen, Inc.

     57,800         6,023,338   

Apple, Inc. (a)

     26,510         11,737,304   

Axiall Corp.

     86,500         4,536,925   

Bank of America Corp. (a)

     1,354,000         16,667,740   

BankUnited, Inc.

     275,800         6,991,530   

Baxter International, Inc. (a)

     79,100         5,526,717   

Becton Dickinson and Co.

     57,200         5,393,960   

The Boeing Co.

     43,000         3,930,630   

Bristol-Myers Squibb Co. (a)

     318,700         12,658,764   

Cabot Oil & Gas Corp.

     118,600         8,070,730   

Cameron International Corp. (a)(b)

     127,400         7,841,470   

Celgene Corp. (a)(b)

     72,753         8,589,947   

Cisco Systems, Inc. (a)

     265,100         5,545,892   

Citigroup, Inc. (a)

     278,640         13,001,342   

Comcast Corp., Class A

     248,600         10,267,180   

Crown Castle International Corp. (a)(b)

     141,100         10,864,700   

Crown Holdings, Inc. (a)(b)

     167,300         7,140,364   

CSX Corp. (a)

     333,100         8,190,929   
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    51


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

United States (concluded)

     

DIRECTV (a)(b)

     97,100       $ 5,491,976   

Eastman Chemical Co. (a)

     129,000         8,597,850   

Eaton Corp. Plc

     88,200         5,416,362   

eBay, Inc. (a)(b)

     193,900         10,158,421   

Eli Lilly & Co. (a)

     236,550         13,100,139   

Facebook, Inc., Class A (a)(b)

     252,200         7,001,072   

Gilead Sciences, Inc. (a)(b)

     204,601         10,360,995   

Google, Inc., Class A (a)(b)

     24,293         20,031,279   

The Hain Celestial Group, Inc. (a)(b)

     127,919         8,346,710   

HCA Holdings, Inc. (a)

     116,300         4,639,207   

Hertz Global Holdings, Inc. (a)(b)

     409,200         9,853,536   

International Paper Co. (a)

     109,900         5,163,102   

Kennedy-Wilson Holdings, Inc.

     600,564         9,987,379   

Kraft Foods Group, Inc.

     176,066         9,065,638   

Las Vegas Sands Corp. (a)

     128,300         7,216,875   

Liberty Global, Inc., Class A (a)(b)

     120,700         8,735,059   

Lowe’s Cos, Inc.

     198,200         7,614,844   

Mead Johnson Nutrition Co. (a)

     168,000         13,623,120   

Merck & Co., Inc. (a)

     111,900         5,259,300   

Microsoft Corp. (a)

     263,900         8,735,090   

Mondelez International, Inc. — Class A (a)

     376,500         11,840,925   

Monsanto Co.

     112,000         11,963,840   

Oasis Petroleum, Inc. (a)(b)

     184,700         6,322,281   

Oracle Corp. (a)

     166,500         5,457,870   

Owens Corning (a)(b)

     259,500         10,914,570   

Pfizer, Inc. (a)

     394,100         11,456,487   

Roper Industries, Inc. (a)

     85,800         10,265,970   

Rowan Cos. Plc, Class A (b)

     271,200         8,822,136   

SanDisk Corp. (a)(b)

     176,469         9,254,034   

Smithfield Foods, Inc. (b)

     229,700         5,880,320   

Time Warner, Inc.

     169,600         10,138,688   
Common Stocks    Shares      Value  

United States (concluded)

     

United Rentals, Inc. (b)

     105,648       $ 5,558,141   

Universal Health Services, Inc., Class B

     70,700         4,707,913   

US Airways Group, Inc. (a)(b)

     335,200         5,664,880   

Visa, Inc. (a)

     64,300         10,831,978   

Weyerhaeuser Co. — REIT (a)

     267,026         8,146,963   

Whirlpool Corp. (a)

     65,300         7,462,484   

WisdomTree Investments, Inc. (b)

     642,600         7,454,160   

Xilinx, Inc. (a)

     152,600         5,785,066   
     

 

 

 
                511,664,812   

Total Long Term Investments

(Cost — $965,818,824) — 98.5%

 

  

     1,085,571,587   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     20,035,651         20,035,651   

Total Short-Term Securities

(Cost — $20,035,651) — 1.8%

  

  

     20,035,651   

Total Investments Before Options Written

(Cost — $985,854,475) — 100.3%

  

  

     1,105,607,238   
     
Options Written                

(Premiums Received — $14,369,571) — (1.7)%

              (18,959,736

Total Investments Net of Options Written — 98.6%

  

     1,086,647,502   

Other Assets Less Liabilities — 1.4%

  

     15,243,976   
     

 

 

 

Net Assets — 100.0%

  

   $ 1,101,891,478   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2012
    

Net

Activity

    Shares Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     54,961,782         (34,926,131     20,035,651       $ 28,309       $ 395   

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency
Purchased
      

Currency

Sold

    Counterparty   Settlement
Date
       Unrealized
Depreciation
 
USD        219,837           EUR           167,000      Citigroup Global Markets, Inc.     5/02/13         $ (94

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Barclays Plc — ADR

     Call         USD         20.25         5/13/13         533       $ (581

Telecom Italia SpA — ADR

     Call         USD         8.40         5/13/13         157         (4,079

Eni SpA

     Call         EUR         18.50         5/17/13         457         (58,310

 

See Notes to Financial Statements.

 

52    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Telecom Italia SpA

     Call         EUR         0.66         5/17/13         1,025       $ (37,951

Telecom Italia SpA

     Call         EUR         0.68         5/17/13         1,025         (28,131

Air Products & Chemicals, Inc.

     Call         USD         87.25         5/18/13         316         (31,493

Cisco Systems, Inc.

     Call         USD         22.25         5/18/13         2,045         (31,888

Whirlpool Corp.

     Call         USD         117.00         5/18/13         360         (52,873

Bank of America Corp.

     Call         USD         12.00         5/20/13         1,024         (45,056

Bank of America Corp.

     Call         USD         13.00         5/20/13         3,100         (17,050

Barclays Plc — ADR

     Call         USD         19.00         5/20/13         850         (6,375

Baxter International, Inc.

     Call         USD         72.50         5/20/13         435         (53,288

Bristol-Myers Squibb Co.

     Call         USD         40.00         5/20/13         195         (9,165

Bristol-Myers Squibb Co.

     Call         USD         41.00         5/20/13         292         (4,964

Cameron International Corp.

     Call         USD         67.50         5/20/13         700         (10,500

Citigroup, Inc.

     Call         USD         48.00         5/20/13         512         (19,200

DIRECTV

     Call         USD         55.00         5/20/13         535         (119,840

Eli Lilly & Co.

     Call         USD         57.50         5/20/13         295         (3,540

Facebook, Inc., Class A

     Call         USD         29.00         5/20/13         1,390         (104,250

Gilead Sciences, Inc.

     Call         USD         46.00         5/20/13         385         (195,388

The Hain Celestial Group, Inc.

     Call         USD         65.00         5/20/13         351         (93,015

HCA Holdings, Inc.

     Call         USD         38.00         5/20/13         505         (122,463

Hertz Global Holdings, Inc.

     Call         USD         25.00         5/20/13         1,530         (49,725

International Paper Co.

     Call         USD         48.00         5/20/13         303         (24,998

International Paper Co.

     Call         USD         49.00         5/20/13         303         (15,150

Las Vegas Sands Corp.

     Call         USD         55.00         5/20/13         530         (138,065

Liberty Global, Inc., Class A

     Call         USD         75.00         5/20/13         665         (51,538

Mead Johnson Nutrition Co.

     Call         USD         85.00         5/20/13         920         (33,120

Mondelez International, Inc. — Class A

     Call         USD         30.00         5/20/13         2,070         (377,775

Owens Corning

     Call         USD         40.00         5/20/13         160         (37,200

Owens Corning

     Call         USD         42.00         5/20/13         1,267         (120,365

SanDisk Corp.

     Call         USD         55.00         5/20/13         485         (22,068

Taiwan Semiconductor Manufacturing Co. Ltd. — ADR

     Call         USD         17.50         5/20/13         930         (151,125

US Airways Group, Inc.

     Call         USD         17.00         5/20/13         920         (38,640

US Airways Group, Inc.

     Call         USD         18.00         5/20/13         920         (11,960

Weyerhaeuser Co. — REIT

     Call         USD         31.00         5/20/13         405         (13,163

Xilinx, Inc.

     Call         USD         39.00         5/20/13         295         (6,785

Apple, Inc.

     Call         USD         425.00         5/24/13         145         (318,275

Visa, Inc.

     Call         USD         165.00         5/29/13         178         (112,253

Visa, Inc.

     Call         USD         168.00         5/29/13         175         (77,775

Arcos Dorados Holdings, Inc., Class A

     Call         USD         12.75         5/31/13         840         (83,180

Bank of America Corp.

     Call         USD         12.50         6/07/13         3,320         (95,228

The Hain Celestial Group, Inc.

     Call         USD         62.50         6/10/13         352         (156,960

Roper Industries, Inc.

     Call         USD         123.75         6/13/13         472         (51,782

Telecom Italia SpA

     Call         EUR         0.70         6/21/13         67         (2,452

Adobe Systems, Inc.

     Call         USD         45.00         6/24/13         1,055         (178,823

Barclays Plc — ADR

     Call         USD         19.00         6/24/13         850         (29,750

Bristol-Myers Squibb Co.

     Call         USD         39.00         6/24/13         776         (116,012

Celgene Corp.

     Call         USD         125.00         6/24/13         200         (53,800

Citigroup, Inc.

     Call         USD         46.00         6/24/13         1,020         (204,510

Crown Holdings, Inc.

     Call         USD         41.00         6/24/13         470         (98,700

Eastman Chemical Co.

     Call         USD         75.00         6/24/13         390         (9,750

eBay, Inc.

     Call         USD         55.00         6/24/13         1,070         (97,370

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    53


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Gilead Sciences, Inc.

     Call         USD         47.00         6/24/13         390       $ (190,125

Gilead Sciences, Inc.

     Call         USD         55.00         6/24/13         350         (36,925

Google, Inc., Class A

     Call         USD         795.00         6/24/13         133         (536,655

HCA Holdings, Inc.

     Call         USD         39.50         6/24/13         150         (32,625

Hertz Global Holdings, Inc.

     Call         USD         24.00         6/24/13         720         (93,600

Las Vegas Sands Corp.

     Call         USD         55.00         6/24/13         175         (59,500

Merck & Co., Inc.

     Call         USD         49.00         6/24/13         616         (25,564

Oracle Corp.

     Call         USD         33.00         6/24/13         1,170         (107,640

Pfizer, Inc.

     Call         USD         31.00         6/24/13         1,920         (27,840

Vodafone Group Plc — ADR

     Call         USD         30.00         6/24/13         950         (123,500

Weyerhaeuser Co. — REIT

     Call         USD         31.00         6/24/13         1,063         (74,410

Xilinx, Inc.

     Call         USD         37.00         6/24/13         950         (151,525

Celgene Corp.

     Call         USD         125.00         7/22/13         200         (75,000

Crown Castle International Corp.

     Call         USD         80.00         7/22/13         180         (24,300

Microsoft Corp.

     Call         USD         32.00         7/22/13         1,452         (262,086

SanDisk Corp.

     Call         USD         55.00         7/22/13         485         (101,365

Total

                  $ (5,750,357
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Smithfield Foods, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         26.82         5/01/13         126,300       $ (7

Transocean Ltd.

   Citigroup Global Markets, Inc.      Call         USD         52.00         5/02/13         39,000         (5,578

Amgen, Inc.

   UBS Securities LLC      Call         USD         93.23         5/03/13         32,000         (351,360

United Rentals, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         55.44         5/03/13         88,800         (2,626

WisdomTree Investments, Inc.

   UBS Securities LLC      Call         USD         8.96         5/03/13         76,000         (200,650

Axiall Corp.

   Barclays Bank      Call         USD         62.78         5/06/13         42,000         (85

Axiall Corp.

   Credit Suisse First Boston      Call         USD         57.14         5/06/13         13,500         (1,774

Eaton Corp. Plc

   Deutsche Bank Securities Corp.      Call         USD         60.95         5/06/13         77,800         (54,822

AIA Group Ltd.

   Morgan Stanley & Co., Inc.      Call         HKD         34.11         5/07/13         1,797,000         (150,029

CSL Ltd.

   Citigroup Global Markets, Inc.      Call         AUD         60.33         5/07/13         18,000         (52,387

Hino Motors Ltd.

   Goldman Sachs & Co.      Call         JPY         1,010.63         5/07/13         265,000         (1,294,948

Becton Dickinson and Co.

   Goldman Sachs & Co.      Call         USD         89.36         5/08/13         30,500         (152,013

Kennedy-Wilson Holdings, Inc.

   Barclays Bank      Call         USD         15.82         5/09/13         48,000         (39,349

WisdomTree Investments, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         9.38         5/10/13         94,000         (208,722

Barclays Plc — ADR

   Banc of America Securities      Call         USD         19.99         5/13/13         131,000         (539

Crown Holdings, Inc.

   Goldman Sachs & Co.      Call         USD         41.49         5/13/13         45,000         (58,226

Afren Plc

   Goldman Sachs & Co.      Call         GBP         1.48         5/14/13         949,700         (17,955

Deutsche Lufthansa AG

   Deutsche Bank Securities Corp.      Call         EUR         16.20         5/14/13         192,900         (24,786

Diageo Plc

   Deutsche Bank Securities Corp.      Call         GBP         20.20         5/14/13         151,500         (14,015

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         35.70         5/14/13         24,000         (83,283

ING Groep NV — CVA

   JPMorgan Chase Securities      Call         EUR         6.20         5/14/13         765,000         (210,428

Partners Group Holding AG

   Banc of America Securities      Call         CHF         234.73         5/14/13         5,500         (25,960

Technip SA

   Morgan Stanley & Co., Inc.      Call         EUR         85.15         5/14/13         29,000         (9,228

Unilever Plc

   Morgan Stanley & Co., Inc.      Call         GBP         27.92         5/14/13         73,600         (27,935

Unilever Plc

   Morgan Stanley & Co., Inc.      Call         GBP         28.47         5/14/13         73,600         (9,311

Kennedy-Wilson Holdings, Inc.

   Barclays Bank      Call         USD         15.78         5/22/13         48,000         (43,768

Oasis Petroleum, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         38.13         5/22/13         51,000         (16,438

Crown Castle International Corp.

   Deutsche Bank Securities Corp.      Call         USD         75.70         5/24/13         59,500         (128,014

CSX Corp.

   Morgan Stanley & Co., Inc.      Call         USD         24.82         5/24/13         183,000         (58,950

Lowe’s Cos, Inc.

   JPMorgan Chase Securities      Call         USD         37.85         5/24/13         109,000         (116,068

 

See Notes to Financial Statements.

 

54    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Afren Plc

   Goldman Sachs & Co.      Call         GBP         1.46         5/28/13         406,400       $ (11,656

Aveva Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         23.05         5/28/13         24,400         (8,001

Aveva Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         22.80         5/28/13         44,400         (20,117

AXA SA

   Goldman Sachs & Co.      Call         EUR         14.41         5/28/13         282,200         (99,250

Babcock International Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         11.04         5/28/13         49,300         (7,012

BG Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         11.83         5/28/13         214,300         (24,040

BG Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         11.65         5/28/13         127,000         (21,458

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         37.01         5/28/13         24,000         (62,741

GAM Holding AG

   Goldman Sachs & Co.      Call         CHF         16.15         5/28/13         75,957         (62,294

National Grid Plc

   Deutsche Bank Securities Corp.      Call         GBP         7.51         5/28/13         256,100         (277,457

Nestle SA

   Deutsche Bank Securities Corp.      Call         CHF         68.82         5/28/13         82,000         (19,642

Partners Group Holding AG

   Goldman Sachs & Co.      Call         CHF         237.31         5/28/13         5,500         (20,248

Roche Holding AG

   Goldman Sachs & Co.      Call         CHF         229.07         5/28/13         12,000         (79,631

Roche Holding AG

   Morgan Stanley & Co., Inc.      Call         CHF         215.74         5/28/13         32,600         (598,251

SABMiller Plc

   Citigroup Global Markets, Inc.      Call         GBP         35.10         5/28/13         94,400         (81,835

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         76.02         5/28/13         47,900         (391,120

Svenska Cellulosa AB, B Shares

   Deutsche Bank Securities Corp.      Call         SEK         157.70         5/28/13         348,100         (623,980

Tullow Oil Plc

   Goldman Sachs & Co.      Call         GBP         12.50         5/28/13         64,800         (188

Tullow Oil Plc

   Morgan Stanley & Co., Inc.      Call         GBP         12.38         5/28/13         220,600         (1,733

UBS AG

   Deutsche Bank Securities Corp.      Call         CHF         15.18         5/28/13         81,000         (127,191

UBS AG

   Deutsche Bank Securities Corp.      Call         CHF         15.27         5/28/13         349,000         (516,194

Vodafone Group Plc — ADR

   Citigroup Global Markets, Inc.      Call         USD         29.39         5/28/13         96,500         (152,211

BankUnited, Inc.

   Goldman Sachs & Co.      Call         USD         25.25         5/29/13         75,000         (37,199

Becton Dickinson and Co.

   UBS Securities LLC      Call         USD         96.55         5/29/13         14,500         (17,290

Fomento Economico Mexicano SAB de CV — ADR

   Goldman Sachs & Co.      Call         USD         125.53         5/29/13         26,500         (5,723

Bristol-Myers Squibb Co.

   Deutsche Bank Securities Corp.      Call         USD         41.29         5/30/13         49,000         (9,891

Dena Co. Ltd.

   Goldman Sachs & Co.      Call         JPY         2,569.54         5/30/13         59,500         (170,087

Honda Motor Co. Ltd.

   Goldman Sachs & Co.      Call         JPY         4,033.60         5/30/13         141,000         (113,044

ITOCHU Corp.

   UBS Securities LLC      Call         JPY         1,254.04         5/30/13         479,900         (106,089

Jafco Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         4,255.98         5/30/13         62,500         (379,719

Jafco Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         5,103.65         5/30/13         11,300         (21,282

MediaTek, Inc.

   JPMorgan Chase Securities      Call         TWD         354.05         5/30/13         308,000         (129,190

Monsanto Co.

   Deutsche Bank Securities Corp.      Call         USD         106.13         5/30/13         61,600         (168,795

Nabtesco Corp.

   Goldman Sachs & Co.      Call         JPY         2,125.92         5/30/13         142,000         (136,775

ORIX Corp.

   Goldman Sachs & Co.      Call         JPY         1,490.09         5/30/13         357,100         (326,084

Softbank Corp.

   UBS Securities LLC      Call         JPY         4,863.31         5/30/13         111,000         (258,833

Sumitomo Mitsui Financial Group, Inc.

   UBS Securities LLC      Call         JPY         4,727.70         5/30/13         104,000         (171,175

Time Warner, Inc.

   Goldman Sachs & Co.      Call         USD         57.02         5/30/13         53,900         (180,511

Tokio Marine Holdings, Inc.

   Goldman Sachs & Co.      Call         JPY         3,310.77         5/30/13         147,800         (76,850

Toyota Motor Corp.

   Goldman Sachs & Co.      Call         JPY         5,606.07         5/30/13         111,300         (245,008

Yahoo Japan Corp.

   Citigroup Global Markets, Inc.      Call         JPY         46,587.34         5/30/13         5,000         (163,173

AbbVie, Inc.

   Goldman Sachs & Co.      Call         USD         40.95         5/31/13         73,600         (375,360

Arcos Dorados Holdings, Inc., Class A

   UBS Securities LLC      Call         USD         12.71         5/31/13         88,000         (89,862

WisdomTree Investments, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         11.03         5/31/13         51,500         (40,269

Kraft Foods Group, Inc.

   Credit Suisse First Boston      Call         USD         51.76         6/03/13         49,500         (31,284

Transocean Ltd.

   Citigroup Global Markets, Inc.      Call         USD         55.00         6/03/13         39,000         (19,989

Anheuser-Busch InBev NV

   Morgan Stanley & Co., Inc.      Call         EUR         78.58         6/04/13         62,400         (29,430

Aveva Group Plc

   Goldman Sachs & Co.      Call         GBP         22.80         6/04/13         11,000         (5,830

Babcock International Group Plc

   Goldman Sachs & Co.      Call         GBP         10.92         6/04/13         49,300         (11,297

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    55


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

BNP Paribas SA

   Goldman Sachs & Co.      Call         EUR         41.10         6/04/13         77,000       $ (211,943

Danone SA

   Goldman Sachs & Co.      Call         EUR         55.91         6/04/13         66,600         (177,303

Eurasia Drilling Co. Ltd. — GDR

   UBS Securities LLC      Call         USD         36.22         6/04/13         23,100         (76,826

Glencore International Plc

   Citigroup Global Markets, Inc.      Call         GBP         3.65         6/04/13         600,000         (7,365

Glencore International Plc

   Morgan Stanley & Co., Inc.      Call         GBP         3.32         6/04/13         600,000         (49,023

LVMH Moet Hennessy Louis Vuitton SA

   Citigroup Global Markets, Inc.      Call         EUR         137.63         6/04/13         16,700         (23,316

National Grid Plc

   Deutsche Bank Securities Corp.      Call         GBP         7.51         6/04/13         256,100         (277,751

Novartis AG

   Citigroup Global Markets, Inc.      Call         CHF         67.52         6/04/13         61,600         (136,866

Novartis AG

   Citigroup Global Markets, Inc.      Call         CHF         69.55         6/04/13         19,600         (19,910

Partners Group Holding AG

   Citigroup Global Markets, Inc.      Call         CHF         240.76         6/04/13         6,000         (16,429

Partners Group Holding AG

   Goldman Sachs & Co.      Call         CHF         236.34         6/04/13         5,400         (26,909

Volkswagen AG, Preference Shares

   Goldman Sachs & Co.      Call         EUR         160.70         6/04/13         25,000         (72,824

BankUnited, Inc.

   Goldman Sachs & Co.      Call         USD         25.50         6/05/13         75,000         (34,896

Kennedy-Wilson Holdings, Inc.

   Deutsche Bank Securities Corp.      Call         USD         15.62         6/05/13         49,000         (53,890

Comcast Corp., Class A

   Deutsche Bank Securities Corp.      Call         USD         42.15         6/07/13         136,700         (91,416

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         40.34         6/11/13         7,200         (8,125

GAM Holding AG

   UBS Securities LLC      Call         CHF         16.93         6/11/13         29,000         (11,696

Kennedy-Wilson Holdings, Inc.

   Barclays Bank      Call         USD         15.86         6/12/13         73,500         (69,248

Universal Health Services, Inc., Class B

   Goldman Sachs & Co.      Call         USD         61.86         6/12/13         14,500         (81,008

Aveva Group Plc

   Goldman Sachs & Co.      Call         GBP         22.80         6/13/13         11,000         (6,976

British American Tobacco Plc

   Banc of America Securities      Call         GBP         36.16         6/13/13         103,300         (103,541

Diageo Plc

   Deutsche Bank Securities Corp.      Call         GBP         19.92         6/13/13         92,200         (45,467

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         37.50         6/13/13         23,000         (59,301

Valeo SA

   Citigroup Global Markets, Inc.      Call         EUR         44.34         6/13/13         53,000         (110,064

WisdomTree Investments, Inc.

   Deutsche Bank Securities Corp.      Call         USD         11.02         6/14/13         132,000         (114,813

Cabot Oil & Gas Corp.

   Credit Suisse First Boston      Call         USD         70.27         6/17/13         65,000         (141,895

Rowan Cos. Plc, Class A

   Goldman Sachs & Co.      Call         USD         31.87         6/18/13         149,100         (265,182

SAP AG — ADR

   Morgan Stanley & Co., Inc.      Call         USD         75.28         6/18/13         71,200         (361,098

Time Warner, Inc.

   Citigroup Global Markets, Inc.      Call         USD         60.20         6/18/13         39,000         (55,797

Babcock International Group Plc

   Banc of America Securities      Call         GBP         10.94         6/19/13         15,700         (4,410

Eli Lilly & Co.

   Morgan Stanley & Co., Inc.      Call         USD         56.06         6/19/13         100,600         (89,936

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         40.34         6/19/13         7,200         (9,185

Kennedy-Wilson Holdings, Inc.

   Deutsche Bank Securities Corp.      Call         USD         15.86         6/19/13         73,600         (71,423

Oasis Petroleum, Inc.

   Citigroup Global Markets, Inc.      Call         USD         36.98         6/19/13         51,000         (43,260

AbbVie, Inc.

   Citigroup Global Markets, Inc.      Call         USD         43.36         6/26/13         30,000         (100,659

Eurasia Drilling Co. Ltd. — GDR

   UBS Securities LLC      Call         USD         39.59         6/26/13         22,800         (38,755

Kraft Foods Group, Inc.

   Goldman Sachs & Co.      Call         USD         50.49         7/01/13         47,300         (85,259

Barclays Plc — ADR

   Banc of America Securities      Call         USD         19.00         7/08/13         131,000         (51,991

Kennedy-Wilson Holdings, Inc.

   Citigroup Global Markets, Inc.      Call         USD         16.41         7/08/13         42,000         (29,802

Universal Health Services, Inc., Class B

   Citigroup Global Markets, Inc.      Call         USD         65.37         7/08/13         24,300         (88,278

Total

                     $ (13,209,379
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

See Notes to Financial Statements.

 

56    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Global Opportunities Equity Trust (BOE)   

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Argentina

   $ 4,254,888                     $ 4,254,888   

Australia

          $ 2,137,039                2,137,039   

Belgium

            10,890,468                10,890,468   

Cayman Islands

     9,334,578                       9,334,578   

France

     5,598,673        46,875,014                52,473,687   

Germany

     10,324,605        13,618,690                23,943,295   

Hong Kong

            14,534,896                14,534,896   

India

            11,281,842                11,281,842   

Indonesia

     16,426,979        20,903,748                37,330,727   

Italy

     7,921,829        19,095,272                27,017,101   

Japan

     7,631,652        90,757,890                98,389,542   

Mexico

     5,454,059                       5,454,059   

Netherlands

            8,652,209                8,652,209   

Sweden

            15,494,553                15,494,553   

Switzerland

     18,043,864        69,635,022                87,678,886   

Taiwan

     3,226,428        6,846,198                10,072,626   

Thailand

            8,372,667                8,372,667   

United Kingdom

     46,310,801        100,282,911                146,593,712   

United States

     511,664,812                       511,664,812   

Short-Term Securities

     20,035,651                       20,035,651   

Total

   $ 666,228,819      $ 439,378,419              $ 1,105,607,238   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (4,925,417   $ (14,034,319           $ (18,959,736

Foreign currency exchange contracts

     (94                    (94

Total

   $ (4,925,511   $ (14,034,319           $ (18,959,830
  

 

 

 

 

1 

Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    57


Table of Contents
Schedule of Investments (concluded)      BlackRock Global Opportunities Equity Trust (BOE)   

 

Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

          

Cash

   $ 2,908,663                      $ 2,908,663   

Foreign currency at value

     4,188,164                        4,188,164   

Liabilities:

          

Cash received as collateral for options written

           $ (900,000             (900,000

Total

   $ 7,996,827       $ (900,000           $ 7,096,827   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

58    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Health Sciences Trust (BME)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Biotechnology — 27.2%

     

ACADIA Pharmaceuticals Inc. (a)(b)

     173,495       $ 2,236,351   

Acorda Therapeutics, Inc. (a)(b)

     69,000         2,730,330   

Alexion Pharmaceuticals, Inc. (a)(b)

     13,260         1,299,480   

Alkermes Plc (a)(b)

     48,600         1,487,646   

Alnylam Pharmaceuticals, Inc. (a)

     67,736         1,622,277   

Amgen, Inc. (b)

     90,700         9,451,847   

Biogen Idec, Inc. (a)(b)

     12,400         2,714,732   

BioMarin Pharmaceutical, Inc. (a)(b)

     28,100         1,843,360   

Celgene Corp. (a)(b)

     76,974         9,088,320   

Celldex Therapeutics, Inc. (a)(b)

     108,900         1,421,145   

Cepheid, Inc. (a)(b)

     19,400         739,722   

ChemoCentryx, Inc. (a)

     5,602         69,633   

CSL Ltd.

     14,775         965,589   

Dyax Corp. (a)

     57,584         158,356   

Exelixis, Inc. (a)(b)

     70,800         367,452   

Genmab A/S (a)

     11,414         298,262   

Gilead Sciences, Inc. (a)(b)

     211,621         10,716,486   

Infinity Pharmaceuticals, Inc. (a)(b)

     61,000         2,628,490   

InterMune, Inc. (a)(b)

     64,900         605,517   

Ironwood Pharmaceuticals, Inc. (a)(b)

     68,800         1,046,448   

Isis Pharmaceuticals, Inc. (a)(b)

     49,450         1,107,186   

Momenta Pharmaceuticals, Inc. (a)(b)

     39,200         482,944   

Onyx Pharmaceuticals, Inc. (a)(b)

     20,800         1,971,840   

Protalix BioTherapeutics, Inc. (a)(b)

     106,500         603,855   

Puma Biotechnology, Inc. (a)

     31,600         1,016,888   

Regeneron Pharmaceuticals, Inc. (a)(b)

     10,100         2,172,914   

Seattle Genetics, Inc. (a)(b)

     107,400         3,968,430   

Synageva BioPharma Corp. (a)(b)

     25,503         1,318,250   

Ultragenyx Pharmaceutical, Inc.
(Acquired 12/18/12, cost $384,116) (a)(c)

     138,700         384,116   

Verastem, Inc. (a)

     15,800         155,156   

Vertex Pharmaceuticals, Inc. (a)(b)

     34,305         2,635,310   
     

 

 

 
                67,308,332   

Diversified Consumer Services — 0.8%

     

Service Corp International

     111,100         1,875,368   

Food & Staples Retailing — 1.7%

     

Brazil Pharma SA

     159,500         1,003,676   

CVS Caremark Corp. (b)

     56,100         3,263,898   
     

 

 

 
                4,267,574   

Health Care Equipment & Supplies — 14.1%

     

Baxter International, Inc. (b)

     43,000         3,004,410   

Becton Dickinson and Co.

     30,100         2,838,430   

Boston Scientific Corp. (a)(b)

     268,000         2,007,320   

CareFusion Corp. (a)(b)

     80,500         2,691,920   

Coloplast A/S, Class B

     25,500         1,387,363   

The Cooper Cos., Inc. (b)

     30,300         3,345,120   

Covidien Plc

     39,900         2,547,216   

DENTSPLY International, Inc. (b)

     71,000         3,006,850   

Given Imaging Ltd. (a)(b)

     26,229         417,828   

Medtronic, Inc.

     52,700         2,460,036   

Sirona Dental Systems, Inc. (a)

     47,800         3,515,212   

Stryker Corp. (b)

     66,000         4,328,280   

Teleflex, Inc. (b)

     25,200         1,968,876   

Thoratec Corp. (a)(b)

     38,900         1,408,180   
     

 

 

 
                34,927,041   

Health Care Providers & Services — 11.1%

     

Aetna, Inc. (b)

     25,411         1,459,608   

AmerisourceBergen Corp. (b)

     27,800         1,504,536   

Brookdale Senior Living, Inc. (a)(b)

     42,700         1,101,233   

Capital Senior Living Corp. (a)(b)

     51,164         1,241,239   

Cardinal Health, Inc.

     24,926         1,102,228   

Catamaran Corp. (a)(b)

     18,000         1,039,140   
Common Stocks    Shares      Value  

Health Care Providers & Services (concluded)

  

Cigna Corp. (b)

     19,600       $ 1,296,932   

Express Scripts Holding Co. (a)(b)

     30,676         1,821,234   

HCA Holdings, Inc. (b)

     87,200         3,478,408   

McKesson Corp. (b)

     24,600         2,603,172   

Team Health Holdings, Inc. (a)(b)

     19,583         730,054   

UnitedHealth Group, Inc.

     70,834         4,245,082   

Universal Health Services, Inc., Class B

     87,700         5,839,943   
     

 

 

 
                27,462,809   

Health Care Technology — 0.8%

     

Cerner Corp. (a)(b)

     21,200         2,051,524   

Industrial Conglomerates — 0.6%

     

Koninklijke Philips Electronics NV

     49,733         1,376,513   

Life Sciences Tools & Services — 4.1%

     

ICON Plc (a)

     76,000         2,441,120   

Illumina, Inc. (a)(b)

     37,700         2,438,813   

Life Technologies Corp. (a)

     5,200         383,188   

Morphosys AG (a)

     8,900         404,746   

Thermo Fisher Scientific, Inc. (b)

     23,600         1,904,048   

Waters Corp. (a)(b)

     28,215         2,607,066   
     

 

 

 
                10,178,981   

Pharmaceuticals — 37.9%

     

AbbVie, Inc.

     151,000         6,953,550   

Actavis, Inc. (a)(b)

     8,300         877,559   

Allergan, Inc. (b)

     33,300         3,781,215   

Bayer AG

     26,400         2,760,028   

Bristol-Myers Squibb Co. (b)

     207,400         8,237,928   

Chugai Pharmaceutical Co. Ltd.

     50,800         1,264,783   

Eli Lilly & Co. (b)

     146,900         8,135,322   

Johnson & Johnson (b)

     90,970         7,753,373   

Merck & Co., Inc. (b)

     103,600         4,869,200   

Novartis AG

     131,600         9,742,030   

Ono Pharmaceutical Co. Ltd.

     23,400         1,543,298   

Pfizer, Inc. (b)

     370,900         10,782,063   

Roche Holding AG

     45,400         11,365,464   

Sanofi

     73,200         7,914,064   

Takeda Pharmaceutical Co. Ltd.

     58,800         3,228,224   

Teva Pharmaceutical Industries Ltd. — ADR (b)

     31,500         1,206,135   

Valeant Pharmaceuticals International, Inc. (a)(b)

     29,100         2,213,928   

Zoetis, Inc. (b)

     36,100         1,192,022   
     

 

 

 
                93,820,186   

Total Long-Term Investments

(Cost — $187,481,776) — 98.3%

  

  

     243,268,328   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (d)(d)

     4,443,975         4,443,975   

Total Short-Term Securities

(Cost — $4,443,975) — 1.8%

              4,443,975   

Total Investments Before Options Written

(Cost — $191,925,751) — 100.1%

              247,712,303   
     
                  
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    59


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   
     (Percentages shown are based on Net Assets)   

 

Options Written          Value  

(Premiums Received — $2,264,803) — (1.5)%

        $ (3,647,998

Total Investments Net of Options Written — 98.6%

     244,064,305   

Other Assets Less Liabilities — 1.4%

     3,349,816   
     

 

 

 

Net Assets — 100.0%

   $ 247,414,121   
     

 

 

 

    

 

 

Notes to Schedule of Investments

 

(a) Non-income producing security.

 

(b) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(c) Restricted security as to resale. As of April 30, 2013 the Trust held 0.16% of its net assets, with a current market value of $384,116 and an original cost of $384,116, in this security.

 

(d) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares/
Beneficial Interest
Held at
October 31, 2012
     Net
Activity
   

Shares/
Beneficial Interest
Held at

April 30, 2013

     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     4,024,895         419,080        4,443,975       $ 5,012       $ 44   

BlackRock Liquidity Series, LLC Money Market Series

   $ 4,185,923       $ (4,185,923           $ 538           

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency
Purchased
       Currency
Sold
    Counterparty   Settlement
Date
       Unrealized
Appreciation
(Depreciation)
 
AUD        6,000           USD           6,204      RBS Securities, Inc.     5/02/13         $ 16   
USD        52,646           DKK           299,668      Brahman Securities, Inc.     5/02/13           (289
Total                         $ (273
                       

 

 

 

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Team Health Holdings, Inc.

     Call         USD         36.00         5/13/13         110       $ (16,241

ACADIA Pharmaceuticals Inc.

     Call         USD         7.00         5/20/13         427         (251,930

ACADIA Pharmaceuticals Inc.

     Call         USD         15.00         5/20/13         110         (2,200

Acorda Therapeutics, Inc.

     Call         USD         31.00         5/20/13         60         (50,100

Acorda Therapeutics, Inc.

     Call         USD         40.00         5/20/13         175         (28,438

Actavis, Inc.

     Call         USD         100.00         5/20/13         26         (18,590

Aetna, Inc.

     Call         USD         55.00         5/20/13         78         (21,723

Alexion Pharmaceuticals, Inc.

     Call         USD         100.00         5/20/13         45         (6,638

Allergan, Inc.

     Call         USD         110.00         5/20/13         165         (78,375

AmerisourceBergen Corp.

     Call         USD         49.00         5/20/13         160         (82,400

AmerisourceBergen Corp.

     Call         USD         55.00         5/20/13         72         (3,240

Amgen, Inc.

     Call         USD         92.50         5/20/13         175         (204,750

Amgen, Inc.

     Call         USD         110.00         5/20/13         100         (4,150

Baxter International, Inc.

     Call         USD         72.50         5/20/13         135         (16,538

Biogen Idec, Inc.

     Call         USD         200.00         5/20/13         21         (41,370

BioMarin Pharmaceutical, Inc.

     Call         USD         65.00         5/20/13         90         (20,025

 

See Notes to Financial Statements.

 

60    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Bristol-Myers Squibb Co.

     Call         USD         40.00         5/20/13         90       $ (4,230

Bristol-Myers Squibb Co.

     Call         USD         41.00         5/20/13         50         (850

Capital Senior Living Corp.

     Call         USD         25.00         5/20/13         168         (8,400

CareFusion Corp.

     Call         USD         34.00         5/20/13         215         (12,363

Catamaran Corp.

     Call         USD         57.50         5/20/13         105         (26,512

Celldex Therapeutics, Inc.

     Call         USD         12.00         5/20/13         100         (13,000

Celldex Therapeutics, Inc.

     Call         USD         13.00         5/20/13         275         (18,563

Cerner Corp.

     Call         USD         95.00         5/20/13         70         (22,050

Cigna Corp.

     Call         USD         62.50         5/20/13         65         (26,812

The Cooper Cos., Inc.

     Call         USD         110.00         5/20/13         95         (16,388

CVS Caremark Corp.

     Call         USD         52.50         5/20/13         160         (90,800

CVS Caremark Corp.

     Call         USD         55.00         5/20/13         24         (8,220

Eli Lilly & Co.

     Call         USD         57.50         5/20/13         750         (9,000

Express Scripts Holding Co.

     Call         USD         60.00         5/20/13         118         (9,558

Gilead Sciences, Inc.

     Call         USD         46.00         5/20/13         123         (62,422

Given Imaging Ltd.

     Call         USD         17.50         5/20/13         80         (800

HCA Holdings, Inc.

     Call         USD         38.00         5/20/13         250         (60,625

Infinity Pharmaceuticals, Inc.

     Call         USD         50.00         5/20/13         150         (6,375

InterMune, Inc.

     Call         USD         10.00         5/20/13         211         (2,216

Ironwood Pharmaceuticals, Inc.

     Call         USD         20.00         5/20/13         165         (825

Isis Pharmaceuticals, Inc.

     Call         USD         19.00         5/20/13         90         (31,500

Isis Pharmaceuticals, Inc.

     Call         USD         21.00         5/20/13         80         (14,800

Johnson & Johnson

     Call         USD         85.00         5/20/13         115         (12,305

McKesson Corp.

     Call         USD         110.00         5/20/13         80         (5,200

Onyx Pharmaceuticals, Inc.

     Call         USD         92.50         5/20/13         67         (35,175

Pfizer, Inc.

     Call         USD         31.00         5/20/13         192         (864

Protalix BioTherapeutics, Inc.

     Call         USD         6.00         5/20/13         350         (3,500

Regeneron Pharmaceuticals, Inc.

     Call         USD         210.00         5/20/13         21         (22,575

Regeneron Pharmaceuticals, Inc.

     Call         USD         220.00         5/20/13         10         (5,750

Seattle Genetics, Inc.

     Call         USD         35.00         5/20/13         370         (98,975

Thoratec Corp.

     Call         USD         37.00         5/20/13         125         (11,562

Valeant Pharmaceuticals International, Inc.

     Call         USD         75.00         5/20/13         95         (36,100

Vertex Pharmaceuticals, Inc.

     Call         USD         55.00         5/20/13         135         (293,625

Waters Corp.

     Call         USD         95.00         5/20/13         117         (6,142

Boston Scientific Corp.

     Call         USD         8.00         5/24/13         595         (4,111

DENTSPLY International, Inc.

     Call         USD         42.50         5/24/13         230         (20,446

Illumina, Inc.

     Call         USD         57.50         5/29/13         125         (95,258

Ironwood Pharmaceuticals, Inc.

     Call         USD         18.00         5/29/13         60         (576

Teleflex, Inc.

     Call         USD         85.75         6/03/13         81         (5,822

Exelixis, Inc.

     Call         USD         5.25         6/06/13         231         (6,011

Brookdale Senior Living, Inc.

     Call         USD         30.00         6/12/13         235         (6,696

Synageva BioPharma Corp.

     Call         USD         55.00         6/13/13         84         (11,790

Zoetis, Inc.

     Call         USD         35.00         6/13/13         172         (7,578

Alkermes Plc

     Call         USD         34.00         6/24/13         155         (7,750

Biogen Idec, Inc.

     Call         USD         220.00         6/24/13         21         (20,265

CareFusion Corp.

     Call         USD         35.00         6/24/13         48         (2,400

Celgene Corp.

     Call         USD         125.00         6/24/13         125         (33,625

Cepheid, Inc.

     Call         USD         40.00         6/24/13         60         (6,150

Gilead Sciences, Inc.

     Call         USD         47.00         6/24/13         116         (56,549

Gilead Sciences, Inc.

     Call         USD         55.00         6/24/13         467         (49,269

HCA Holdings, Inc.

     Call         USD         39.50         6/24/13         40         (8,700

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    61


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Infinity Pharmaceuticals, Inc.

     Call         USD         50.00         6/24/13         48       $ (17,040

Johnson & Johnson

     Call         USD         85.00         6/24/13         115         (17,250

Merck & Co., Inc.

     Call         USD         49.00         6/24/13         102         (4,233

Momenta Pharmaceuticals, Inc.

     Call         USD         15.00         6/24/13         130         (1,950

Pfizer, Inc.

     Call         USD         31.00         6/24/13         247         (3,582

Pfizer, Inc.

     Call         USD         32.00         6/24/13         71         (497

Stryker Corp.

     Call         USD         67.50         6/24/13         245         (19,600

Teva Pharmaceutical Industries Ltd. — ADR

     Call         USD         40.00         6/24/13         102         (3,060

Thermo Fisher Scientific, Inc.

     Call         USD         80.00         6/24/13         184         (51,060

Celgene Corp.

     Call         USD         125.00         7/22/13         125         (46,875

ACADIA Pharmaceuticals Inc.

     Put         USD         11.00         5/20/13         225         (3,938

Amgen, Inc.

     Put         USD         105.00         5/20/13         83         (24,651

Total

                  $ (2,361,522
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Covidien Plc

   Citigroup Global Markets, Inc.      Call         USD         63.65         5/02/13         19,000       $ (6,929

ICON Plc

   Goldman Sachs & Co.      Call         USD         32.41         5/06/13         22,100         (6,915

Sirona Dental Systems, Inc.

   UBS Securities LLC      Call         USD         70.99         5/06/13         15,000         (45,262

CSL Ltd.

   Citigroup Global Markets, Inc.      Call         AUD         60.33         5/07/13         4,800         (13,970

Takeda Pharmaceutical Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         4,947.34         5/07/13         8,800         (36,348

Becton Dickinson and Co.

   Goldman Sachs & Co.      Call         USD         89.36         5/08/13         6,000         (29,904

Brazil Pharma SA

   Citigroup Global Markets, Inc.      Call         BRL         15.03         5/08/13         22,700           

Cardinal Health, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         47.12         5/09/13         12,000         (47

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/09/13         11,800         (22,707

Alnylam Pharmaceuticals, Inc.

   Barclays Bank      Call         USD         25.54         5/13/13         20,000         (4,270

Pfizer, Inc.

   Credit Suisse First Boston      Call         USD         28.97         5/13/13         5,000         (1,726

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/23/13         11,800         (24,968

Boston Scientific Corp.

   UBS Securities LLC      Call         USD         7.51         5/24/13         27,000         (6,115

Bayer AG

   Goldman Sachs & Co.      Call         EUR         77.81         5/28/13         5,800         (21,865

Bayer AG

   Morgan Stanley & Co., Inc.      Call         EUR         80.79         5/28/13         2,700         (4,827

Coloplast A/S, Class B

   Citigroup Global Markets, Inc.      Call         DKK         319.97         5/28/13         8,100         (4,915

Genmab A/S

   Banc of America Securities      Call         DKK         133.35         5/28/13         8,700         (25,300

Koninklijke Philips Electronics NV

   Deutsche Bank Securities Corp.      Call         EUR         23.16         5/28/13         16,300         (2,335

Morphosys AG

   Deutsche Bank Securities Corp.      Call         EUR         31.24         5/28/13         2,900         (13,473

Roche Holding AG

   Morgan Stanley & Co., Inc.      Call         CHF         215.74         5/28/13         13,800         (253,247

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         76.02         5/28/13         23,300         (190,253

Becton Dickinson and Co.

   UBS Securities LLC      Call         USD         96.55         5/29/13         6,000         (7,154

Bristol-Myers Squibb Co.

   Citigroup Global Markets, Inc.      Call         USD         39.41         5/30/13         49,800         (43,508

Medtronic, Inc.

   JPMorgan Chase Securities      Call         USD         46.85         5/30/13         8,500         (6,111

Ono Pharmaceutical Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         6,355.10         5/30/13         7,600         (16,260

Takeda Pharmaceutical Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         5,438.40         5/30/13         10,000         (13,507

UnitedHealth Group, Inc.

   Goldman Sachs & Co.      Call         USD         64.00         5/30/13         29,600         (5,722

Pfizer, Inc.

   Citigroup Global Markets, Inc.      Call         USD         29.23         5/31/13         37,000         (13,569

Novartis AG

   Citigroup Global Markets, Inc.      Call         CHF         67.52         6/04/13         36,400         (80,875

Novartis AG

   Morgan Stanley & Co., Inc.      Call         CHF         68.23         6/04/13         6,200         (10,545

Puma Biotechnology, Inc.

   Deutsche Bank Securities Corp.      Call         USD         32.80         6/06/13         10,000         (16,289

Service Corp International

   Deutsche Bank Securities Corp.      Call         USD         16.83         6/07/13         34,000         (14,529

Medtronic, Inc.

   JPMorgan Chase Securities      Call         USD         46.85         6/11/13         8,500         (9,429

 

See Notes to Financial Statements.

 

62    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Universal Health Services, Inc., Class B

   Goldman Sachs & Co.      Call         USD         61.86         6/12/13         28,500       $ (159,223

Brazil Pharma SA

   UBS Securities LLC      Call         BRL         13.50         6/17/13         30,000         (2,227

Chugai Pharmaceutical Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         2,542.80         6/17/13         16,600         (13,114

AbbVie, Inc.

   Citigroup Global Markets, Inc.      Call         USD         43.36         6/26/13         47,400         (159,038

Total

                     $ (1,286,476
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments:

           

Common Stocks:

           

Biotechnology

   $ 65,660,365       $ 1,263,851       $ 384,116       $ 67,308,332   

Diversified Consumer Services

     1,875,368                         1,875,368   

Food & Staples Retailing

     4,267,574                         4,267,574   

Health Care Equipment & Supplies

     34,927,041                         34,927,041   

Health Care Providers & Services

     27,462,809                         27,462,809   

Health Care Technology

     2,051,524                         2,051,524   

Industrial Conglomerates

             1,376,513                 1,376,513   

Life Sciences Tools & Services

     9,774,235         404,746                 10,178,981   

Pharmaceuticals

     56,002,295         37,817,891                 93,820,186   

Short-Term Securities

     4,443,975                         4,443,975   

Total

   $ 206,465,186       $ 40,863,001       $ 384,116       $ 247,712,303   
  

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    63


Table of Contents
Schedule of Investments (concluded)      BlackRock Health Sciences Trust (BME)   

 

      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Assets:

         

Foreign currency exchange contracts

   $ 16                     $ 16   

Liabilities:

         

Equity contracts

     (2,186,992   $ (1,461,006             (3,647,998

Foreign currency exchange contracts

     (289                    (289

Total

   $ (2,187,265   $ (1,461,006           $ (3,648,271
  

 

 

 
1 Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.    
Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Foreign currency at value

   $ 49,761                     $ 49,761   

Cash pledged as collateral for options written

     1,174,951                       1,174,951   

Total

   $ 1,224,712                     $ 1,224,712   
  

 

 

 

Certain of the Trust’s investments that are categorized as Level 3 were valued utilizing transaction prices or third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

64    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock International Growth and Income Trust (BGY)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Australia — 0.8%

     

CSL Ltd.

     114,660       $ 7,493,360   

Belgium — 3.2%

     

Ageas

     142,800         5,229,798   

Anheuser-Busch InBev NV

     143,046         13,742,516   

KBC Groep NV

     304,646         11,924,136   
     

 

 

 
                30,896,450   

Canada — 0.4%

     

Gildan Activewear, Inc. (a)

     88,000         3,538,518   

Cayman Islands — 1.0%

     

Eurasia Drilling Co. Ltd. — GDR

     240,101         9,387,949   

China — 0.2%

     

Tencent Holdings Ltd.

     56,900         1,962,951   

Finland — 1.0%

     

Konecranes OYJ

     251,800         9,157,323   

France — 6.3%

     

Publicis Groupe SA

     108,500         7,547,404   

Rexel SA

     448,576         9,868,518   

Safran SA

     103,200         5,068,057   

Sanofi

     265,800         28,737,134   

Technip SA

     43,100         4,622,921   

Valeo SA

     80,800         4,692,663   
     

 

 

 
                60,536,697   

Germany — 7.0%

     

Bayer AG

     134,000         14,009,235   

Brenntag AG

     27,600         4,705,227   

Deutsche Lufthansa AG

     277,300         5,552,211   

Deutsche Wohnen AG

     525,000         9,258,711   

KUKA AG (b)

     112,200         5,068,231   

LEG Immobilien AG (b)

     95,700         5,268,144   

Linde AG

     26,300         4,979,738   

SAP AG

     55,600         4,432,542   

SAP AG — ADR (a)

     110,100         8,791,485   

Volkswagen AG, Preference Shares

     24,900         5,056,657   
     

 

 

 
                67,122,181   

Hong Kong — 5.1%

     

AIA Group Ltd.

     3,588,000         15,961,072   

Cheung Kong Holdings Ltd.

     505,000         7,621,315   

Jardine Matheson Holdings Ltd.

     107,600         6,986,468   

Melco Crown Entertainment Ltd. — ADR (a)(b)

     344,200         8,470,762   

Wharf Holdings Ltd.

     1,103,600         9,857,467   
     

 

 

 
                48,897,084   

India — 0.6%

     

Jubilant Foodworks Ltd. (b)

     280,533         5,783,401   

Indonesia — 2.4%

     

Global Mediacom Tbk PT

     16,672,000         3,734,523   

Indofood Sukses Makmur Tbk PT

     8,482,300         6,420,242   

Matahari Department Store Tbk PT (b)

     7,734,100         9,625,365   

Tower Bersama Infrastructure Tbk PT (b)

     5,636,700         3,278,542   
     

 

 

 
                23,058,672   

Ireland — 3.0%

     

Accenture Plc, Class A (a)

     79,600         6,482,624   

Bank of Ireland (b)

     16,364,200         3,645,799   

DCC Plc

     413,689         15,134,403   

Kingspan Group Plc

     251,913         3,045,203   
     

 

 

 
                28,308,029   

Italy — 3.5%

     

Banca Generali SpA

     465,700         9,598,205   

Eni SpA (a)

     800,500         19,105,061   
Common Stocks    Shares      Value  

Italy (concluded)

     

Telecom Italia SpA (a)

     5,840,100       $ 4,960,589   

Telecom Italia SpA — ADR (a)

     13,517         112,732   
     

 

 

 
                33,776,587   

Japan — 12.2%

     

Honda Motor Co. Ltd.

     382,000         15,242,741   

Hulic Co. Ltd.

     491,500         5,465,996   

ITOCHU Corp.

     704,600         8,736,651   

JGC Corp.

     208,000         6,163,324   

Kenedix Realty Investment Corp. — REIT

     969         4,545,758   

Kubota Corp.

     345,800         4,966,975   

Nabtesco Corp.

     246,400         5,437,404   

ORIX Corp. (b)

     1,241,600         19,051,494   

Softbank Corp.

     148,700         7,374,618   

Sumitomo Mitsui Financial Group, Inc.

     245,200         11,589,956   

Tokio Marine Holdings, Inc.

     217,200         6,902,547   

Toyota Motor Corp.

     232,100         13,470,586   

Yahoo Japan Corp.

     15,683         7,842,707   
     

 

 

 
                116,790,757   

Malaysia — 0.4%

     

Astro Malaysia Holdings Bhd

     4,030,800         3,910,789   

Mexico — 1.0%

     

Fomento Economico Mexicano SAB de CV — ADR (a)

     85,700         9,717,523   

Netherlands — 4.4%

     

Aalberts Industries NV

     226,752         5,081,039   

ASML Holding NV

     104,732         7,793,414   

European Aeronautic Defence and Space Co. NV

     270,300         14,280,403   

ING Groep NV (b)

     620,500         5,111,583   

Ziggo NV

     261,600         9,355,085   
     

 

 

 
                41,621,524   

Spain — 0.4%

     

Duro Felguera SA

     583,500         4,155,408   

Sweden — 1.5%

     

Svenska Cellulosa AB, B Shares

     555,440         14,468,568   

Switzerland — 18.8%

     

GAM Holding AG

     443,044         7,835,200   

Glencore International Plc

     3,345,600         16,471,534   

Holcim Ltd.

     89,479         6,979,810   

Nestle SA

     288,400         20,566,527   

Novartis AG

     294,600         21,808,527   

Partners Group Holding AG

     33,600         8,620,581   

Roche Holding AG

     174,700         43,734,508   

Swiss Re AG

     229,688         18,278,936   

Syngenta AG

     48,400         20,691,939   

Transocean Ltd. (b)

     163,600         8,420,492   

UBS AG

     321,300         5,731,485   
     

 

 

 
                179,139,539   

Taiwan — 0.8%

     

MediaTek, Inc.

     611,000         7,456,376   

Thailand — 0.9%

     

Bangkok Bank PCL — NVDR

     611,100         4,715,702   

Charoen Pokphand Foods PCL

     3,221,600         3,485,036   
     

 

 

 
                8,200,738   

United Kingdom — 23.5%

     

Aberdeen Asset Management Plc

     1,706,987         11,915,295   

APR Energy Plc

     822,449         10,588,938   

Aveva Group Plc

     135,056         4,661,947   

Babcock International Group Plc

     585,500         9,742,754   
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    65


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

United Kingdom (concluded)

     

Barclays Plc — ADR (a)

     1,168,200       $ 21,004,236   

BG Group Plc

     522,500         8,820,500   

British American Tobacco Plc

     268,000         14,856,648   

Crest Nicholson Holdings Plc (b)

     2,869,300         14,217,915   

Diageo Plc

     607,600         18,554,641   

Domino’s Pizza Group Plc

     491,000         4,969,683   

DS Smith Plc

     1,955,549         7,086,841   

esure Group Plc (b)

     2,937,687         13,564,277   

Hargreaves Lansdown Plc

     430,677         6,558,977   

HSBC Holdings Plc

     606,600         6,643,477   

Inchcape Plc

     622,520         4,852,992   

Intertek Group Plc

     233,000         11,986,615   

Jardine Lloyd Thompson Group Plc

     360,900         4,758,718   

Perform Group Plc (b)

     793,444         6,393,847   

Rexam Plc

     1,015,150         8,151,102   

Rotork Plc

     227,762         10,304,245   

SABMiller Plc

     145,800         7,866,967   

Travis Perkins Plc

     213,500         4,763,774   

Tullow Oil Plc

     187,600         2,924,258   

Unilever Plc

     218,700         9,475,556   
     

 

 

 
                224,664,203   
Common Stocks    Shares      Value  

United States — 0.8%

     

Sirona Dental Systems, Inc. (a)(b)

     96,600       $ 7,103,963   

Total Long-Term Investments

(Cost — $836,661,912) — 99.2%

              947,148,590   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     15,189,301         15,189,301   

Total Short-Term Securities

(Cost — $15,189,301) — 1.6%

              15,189,301   

Total Investments Before Options Written

(Cost — $851,851,213) — 100.8%

              962,337,891   
     
Options Written                

(Premiums Received — $11,758,694) — (1.8)%

              (17,250,586

Total Investments Net of Options Written — 99.0%

        945,087,305   

Other Assets Less Liabilities — 1.0%

        9,777,074   
     

 

 

 

Net Assets — 100.0%

      $ 954,864,379   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2012
    

Net

Activity

     Shares Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     11,164,990         4,024,311         15,189,301       $ 6,767       $ 108   

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency

Purchased

       Currency
Sold
    Counterparty   Settlement
Date
       Unrealized
Appreciation
(Depreciation)
 
GBP        248,000           USD           385,318      RBS Securities Inc.     5/01/13         $ (87
EUR        3,306,000           USD           4,343,337      Credit Suisse First Boston     5/02/13           10,501   
GBP        607,000           USD           941,427      Goldman Sachs & co.     5/02/13           1,457   
Total                         $ 11,871   
                       

 

 

 

See Notes to Financial Statements.

 

66    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Barclays Plc — ADR

     Call         USD         20.25         5/13/13         650       $ (709

Telecom Italia SpA — ADR

     Call         USD         8.40         5/13/13         135         (3,508

Eni SpA

     Call         EUR         18.50         5/17/13         523         (66,731

Telecom Italia SpA

     Call         EUR         0.66         5/17/13         880         (32,582

Telecom Italia SpA

     Call         EUR         0.68         5/17/13         880         (24,151

Accenture Plc, Class A

     Call         USD         80.00         5/20/13         450         (96,750

Barclays Plc — ADR

     Call         USD         18.00         5/20/13         675         (25,312

Barclays Plc — ADR

     Call         USD         19.00         5/20/13         740         (5,550

Melco Crown Entertainment Ltd. — ADR

     Call         USD         22.00         5/20/13         1,045         (292,600

Sirona Dental Systems, Inc.

     Call         USD         75.00         5/20/13         165         (28,875

Telecom Italia SpA

     Call         EUR         0.70         6/21/13         58         (2,122

Barclays Plc — ADR

     Call         USD         18.00         6/24/13         675         (50,625

Barclays Plc — ADR

     Call         USD         19.00         6/24/13         500         (17,500

Gildan Activewear, Inc.

     Call         CAD         42.00         6/24/13         485         (51,030

Melco Crown Entertainment Ltd. — ADR

     Call         USD         24.00         6/24/13         848         (152,640

Total

                  $ (850,685
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Transocean Ltd.

   Citigroup Global Markets, Inc.      Call         USD         52.00         5/02/13         46,100       $ (6,594

Sirona Dental Systems, Inc.

   UBS Securities LLC      Call         USD         70.99         5/06/13         37,800         (114,060

AIA Group Ltd.

   Morgan Stanley & Co., Inc.      Call         HKD         34.11         5/07/13         2,919,600         (243,754

CSL Ltd.

   Citigroup Global Markets, Inc.      Call         AUD         60.33         5/07/13         55,000         (160,072

Hulic Co. Ltd.

   JPMorgan Chase Securities      Call         JPY         768.75         5/07/13         491,500         (1,579,346

Jardine Matheson Holdings Ltd.

   UBS Securities LLC      Call         USD         69.26         5/07/13         60,800         (1,703

JGC Corp.

   Banc of America Securities      Call         JPY         2,505.12         5/07/13         56,000         (218,221

JGC Corp.

   UBS Securities LLC      Call         JPY         2,604.35         5/07/13         103,000         (296,892

Kubota Corp.

   UBS Securities LLC      Call         JPY         1,173.97         5/07/13         345,000         (789,311

Nabtesco Corp.

   Goldman Sachs & Co.      Call         JPY         1,772.19         5/07/13         139,000         (538,704

Barclays Plc — ADR

   Banc of America Securities      Call         USD         19.99         5/13/13         159,000         (654

Babcock International Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         10.93         5/14/13         84,000         (9,234

Bank of Ireland

   JPMorgan Chase Securities      Call         EUR         0.17         5/14/13         9,000,000         (77,165

Deutsche Lufthansa AG

   Deutsche Bank Securities Corp.      Call         EUR         16.20         5/14/13         252,900         (32,495

Deutsche Wohnen AG

   Citigroup Global Markets, Inc.      Call         EUR         14.39         5/14/13         52,700         (1,502

Diageo Plc

   Deutsche Bank Securities Corp.      Call         GBP         20.20         5/14/13         263,000         (24,329

DS Smith Plc

   Morgan Stanley & Co., Inc.      Call         GBP         2.37         5/14/13         362,700         (23,493

Duro Felguera SA

   Goldman Sachs & Co.      Call         EUR         5.43         5/14/13         55,000         (4,546

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         35.70         5/14/13         20,800         (72,179

Hargreaves Lansdown Plc

   Goldman Sachs & Co.      Call         GBP         8.79         5/14/13         242,800         (384,322

Inchcape Plc

   Goldman Sachs & Co.      Call         GBP         5.23         5/14/13         127,200         (3,861

ING Groep NV

   JPMorgan Chase Securities      Call         EUR         5.95         5/14/13         340,000         (165,584

Intertek Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         34.68         5/14/13         59,100         (4,258

Jardine Lloyd Thompson Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         8.59         5/14/13         30,000         (3,210

Konecranes OYJ

   Morgan Stanley & Co., Inc.      Call         EUR         26.99         5/14/13         70,200         (91,780

Linde AG

   Deutsche Bank Securities Corp.      Call         EUR         134.59         5/14/13         14,800         (182,193

Partners Group Holding AG

   Banc of America Securities      Call         CHF         234.73         5/14/13         4,800         (22,656

Publicis Groupe SA

   Morgan Stanley & Co., Inc.      Call         EUR         52.63         5/14/13         61,100         (79,931

Rexam Plc

   Citigroup Global Markets, Inc.      Call         GBP         5.32         5/14/13         420,000         (19,277

Rotork Plc

   Goldman Sachs & Co.      Call         GBP         29.34         5/14/13         30,900         (21,473

Technip SA

   Morgan Stanley & Co., Inc.      Call         EUR         85.15         5/14/13         24,400         (7,764

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    67


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Unilever Plc

   Morgan Stanley & Co., Inc.      Call         GBP         28.47         5/14/13         78,500       $ (9,931

Ageas

   Deutsche Bank Securities Corp.      Call         EUR         27.42         5/28/13         38,600         (60,934

Ageas

   UBS Securities LLC      Call         EUR         26.75         5/28/13         42,000         (81,082

ASML Holding NV

   Morgan Stanley & Co., Inc.      Call         EUR         54.34         5/28/13         78,400         (321,756

Aveva Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         23.05         5/28/13         14,600         (4,787

Aveva Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         22.80         5/28/13         9,600         (4,350

Babcock International Group Plc

   Deutsche Bank Securities Corp.      Call         GBP         11.04         5/28/13         40,100         (5,704

Bayer AG

   UBS Securities LLC      Call         EUR         80.73         5/28/13         50,000         (88,991

Bayer AG

   UBS Securities LLC      Call         EUR         82.44         5/28/13         23,700         (23,515

BG Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         11.65         5/28/13         297,900         (50,332

Deutsche Wohnen AG

   Citigroup Global Markets, Inc.      Call         EUR         13.89         5/28/13         59,000         (13,380

Domino’s Pizza Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         6.45         5/28/13         135,000         (48,375

DS Smith Plc

   Morgan Stanley & Co., Inc.      Call         GBP         2.37         5/28/13         362,700         (32,293

DS Smith Plc

   Morgan Stanley & Co., Inc.      Call         GBP         2.38         5/28/13         350,200         (28,912

Duro Felguera SA

   Citigroup Global Markets, Inc.      Call         EUR         5.43         5/28/13         60,000         (6,700

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         37.01         5/28/13         20,800         (54,375

GAM Holding AG

   Citigroup Global Markets, Inc.      Call         CHF         16.89         5/28/13         56,300         (18,555

GAM Holding AG

   Goldman Sachs & Co.      Call         CHF         16.15         5/28/13         94,043         (77,127

Holcim Ltd.

   Goldman Sachs & Co.      Call         CHF         76.22         5/28/13         87,100         (53,899

Inchcape Plc

   Citigroup Global Markets, Inc.      Call         GBP         5.13         5/28/13         111,900         (11,772

Inchcape Plc

   Citigroup Global Markets, Inc.      Call         GBP         5.23         5/28/13         111,900         (6,898

Jardine Lloyd Thompson Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         8.24         5/28/13         30,000         (14,258

Nestle SA

   Deutsche Bank Securities Corp.      Call         CHF         68.82         5/28/13         162,700         (38,973

Partners Group Holding AG

   Goldman Sachs & Co.      Call         CHF         237.31         5/28/13         4,800         (17,671

Rexam Plc

   Morgan Stanley & Co., Inc.      Call         GBP         5.30         5/28/13         269,000         (26,650

Rexel SA

   Deutsche Bank Securities Corp.      Call         EUR         17.87         5/28/13         126,500         (15,107

Roche Holding AG

   Deutsche Bank Securities Corp.      Call         CHF         233.41         5/28/13         8,400         (35,815

Roche Holding AG

   Morgan Stanley & Co., Inc.      Call         CHF         215.74         5/28/13         57,400         (1,053,361

Roche Holding AG

   Morgan Stanley & Co., Inc.      Call         CHF         221.39         5/28/13         9,200         (118,407

Rotork Plc

   Morgan Stanley & Co., Inc.      Call         GBP         29.49         5/28/13         34,000         (29,980

SABMiller Plc

   Citigroup Global Markets, Inc.      Call         GBP         35.10         5/28/13         83,000         (71,952

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         76.02         5/28/13         70,400         (574,840

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         79.40         5/28/13         27,300         (120,606

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         79.58         5/28/13         31,000         (131,854

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         82.37         5/28/13         17,400         (36,037

Svenska Cellulosa AB, B Shares

   Deutsche Bank Securities Corp.      Call         SEK         157.70         5/28/13         313,300         (561,600

Swiss Re AG

   Banc of America Securities      Call         CHF         75.62         5/28/13         10,974         (11,296

Swiss Re AG

   Goldman Sachs & Co.      Call         CHF         73.68         5/28/13         122,404         (242,433

Syngenta AG

   Deutsche Bank Securities Corp.      Call         CHF         418.62         5/28/13         27,300         (43,924

Travis Perkins Plc

   Goldman Sachs & Co.      Call         GBP         14.98         5/28/13         58,700         (11,515

Tullow Oil Plc

   Morgan Stanley & Co., Inc.      Call         GBP         12.38         5/28/13         187,000         (1,469

UBS AG

   Deutsche Bank Securities Corp.      Call         CHF         15.27         5/28/13         321,300         (475,224

Fomento Economico Mexicano SAB de CV — ADR

   Goldman Sachs & Co.      Call         USD         125.53         5/29/13         29,500         (6,371

Cheung Kong Holdings Ltd.

   JPMorgan Chase Securities      Call         HKD         115.52         5/30/13         278,000         (109,931

Honda Motor Co. Ltd.

   Goldman Sachs & Co.      Call         JPY         4,033.60         5/30/13         210,100         (168,442

ITOCHU Corp.

   UBS Securities LLC      Call         JPY         1,254.04         5/30/13         387,500         (85,663

MediaTek, Inc.

   JPMorgan Chase Securities      Call         TWD         354.05         5/30/13         336,000         (140,935

ORIX Corp.

   Goldman Sachs & Co.      Call         JPY         1,490.09         5/30/13         682,900         (623,586

Softbank Corp.

   UBS Securities LLC      Call         JPY         4,863.31         5/30/13         129,900         (302,905

Sumitomo Mitsui Financial Group, Inc.

   UBS Securities LLC      Call         JPY         4,727.70         5/30/13         134,900         (222,034

 

See Notes to Financial Statements.

 

68    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   

 

• Over-the-counter options written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Tokio Marine Holdings, Inc.

   Goldman Sachs & Co.      Call         JPY         3,310.77         5/30/13         119,500       $ (62,139

Toyota Motor Corp.

   Goldman Sachs & Co.      Call         JPY         5,606.07         5/30/13         127,700         (281,110

Wharf Holdings Ltd.

   Citigroup Global Markets, Inc.      Call         HKD         68.48         5/30/13         607,000         (185,568

Yahoo Japan Corp.

   Citigroup Global Markets, Inc.      Call         JPY         46,587.34         5/30/13         8,600         (280,658

Transocean Ltd.

   Citigroup Global Markets, Inc.      Call         USD         55.00         6/03/13         46,100         (23,628

Aalberts Industries NV

   Banc of America Securities      Call         EUR         17.47         6/04/13         23,500         (6,466

Aberdeen Asset Management Plc

   Goldman Sachs & Co.      Call         GBP         4.36         6/04/13         407,200         (145,463

Anheuser-Busch InBev NV

   Citigroup Global Markets, Inc.      Call         EUR         74.74         6/04/13         24,400         (41,474

Anheuser-Busch InBev NV

   Morgan Stanley & Co., Inc.      Call         EUR         78.58         6/04/13         54,300         (25,610

Aveva Group Plc

   Goldman Sachs & Co.      Call         GBP         22.80         6/04/13         8,700         (4,611

Babcock International Group Plc

   Goldman Sachs & Co.      Call         GBP         10.92         6/04/13         32,000         (7,332

Deutsche Wohnen AG

   Goldman Sachs & Co.      Call         EUR         14.79         6/04/13         59,000         (2,403

Domino’s Pizza Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         6.51         6/04/13         135,000         (46,980

Duro Felguera SA

   Goldman Sachs & Co.      Call         EUR         5.38         6/04/13         60,000         (9,163

Eurasia Drilling Co. Ltd. — GDR

   UBS Securities LLC      Call         USD         36.22         6/04/13         20,100         (66,849

GAM Holding AG

   Citigroup Global Markets, Inc.      Call         CHF         16.89         6/04/13         56,300         (21,212

Glencore International Plc

   Citigroup Global Markets, Inc.      Call         GBP         3.65         6/04/13         1,102,600         (13,535

Glencore International Plc

   Morgan Stanley & Co., Inc.      Call         GBP         3.32         6/04/13         737,500         (60,258

HSBC Holdings Plc

   Goldman Sachs & Co.      Call         GBP         7.16         6/04/13         345,500         (54,153

Intertek Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         34.86         6/04/13         73,600         (16,450

Jardine Lloyd Thompson Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         8.59         6/04/13         30,000         (5,952

KBC Groep NV

   Citigroup Global Markets, Inc.      Call         EUR         27.28         6/04/13         167,600         (573,529

Konecranes OYJ

   Goldman Sachs & Co.      Call         EUR         28.44         6/04/13         33,300         (28,420

Konecranes OYJ

   Morgan Stanley & Co., Inc.      Call         EUR         27.21         6/04/13         35,000         (53,815

Novartis AG

   Citigroup Global Markets, Inc.      Call         CHF         67.52         6/04/13         96,600         (214,631

Novartis AG

   Citigroup Global Markets, Inc.      Call         CHF         69.55         6/04/13         33,600         (34,131

Novartis AG

   Morgan Stanley & Co., Inc.      Call         CHF         68.23         6/04/13         31,900         (54,256

Partners Group Holding AG

   Citigroup Global Markets, Inc.      Call         CHF         240.76         6/04/13         4,200         (11,501

Partners Group Holding AG

   Goldman Sachs & Co.      Call         CHF         236.34         6/04/13         4,700         (23,421

Rexam Plc

   Morgan Stanley & Co., Inc.      Call         GBP         5.30         6/04/13         269,000         (29,843

Rexel SA

   Deutsche Bank Securities Corp.      Call         EUR         17.87         6/04/13         126,500         (20,153

Roche Holding AG

   Goldman Sachs & Co.      Call         CHF         232.16         6/04/13         21,100         (110,252

Safran SA

   Citigroup Global Markets, Inc.      Call         EUR         36.55         6/04/13         56,700         (109,416

SAP AG

   Goldman Sachs & Co.      Call         EUR         63.62         6/04/13         31,500         (18,398

Volkswagen AG, Preference Shares

   Goldman Sachs & Co.      Call         EUR         160.70         6/04/13         21,300         (62,046

Ziggo NV

   Banc of America Securities      Call         EUR         27.87         6/04/13         35,300         (20,045

Ziggo NV

   Deutsche Bank Securities Corp.      Call         EUR         28.90         6/04/13         108,600         (85,418

Fomento Economico Mexicano SAB de CV — ADR

   Deutsche Bank Securities Corp.      Call         USD         123.98         6/10/13         17,500         (5,478

Aalberts Industries NV

   Banc of America Securities      Call         EUR         17.47         6/11/13         23,500         (7,440

Aalberts Industries NV

   UBS Securities LLC      Call         EUR         17.52         6/11/13         27,100         (7,955

Aveva Group Plc

   Banc of America Securities      Call         GBP         22.73         6/11/13         17,300         (11,183

Duro Felguera SA

   Goldman Sachs & Co.      Call         EUR         5.39         6/11/13         43,000         (6,879

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         40.34         6/11/13         16,500         (18,620

GAM Holding AG

   UBS Securities LLC      Call         CHF         16.93         6/11/13         37,000         (14,923

KUKA AG

   Goldman Sachs & Co.      Call         EUR         33.15         6/11/13         30,900         (107,428

Travis Perkins Plc

   Goldman Sachs & Co.      Call         GBP         14.98         6/11/13         58,700         (17,650

Aberdeen Asset Management Plc

   Banc of America Securities      Call         GBP         4.23         6/13/13         531,700         (272,155

Aveva Group Plc

   Goldman Sachs & Co.      Call         GBP         22.80         6/13/13         8,700         (5,518

Babcock International Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         10.44         6/13/13         77,500         (49,381

British American Tobacco Plc

   Banc of America Securities      Call         GBP         36.16         6/13/13         147,400         (147,744

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    69


Table of Contents
Schedule of Investments (continued)      BlackRock International Growth and Income Trust (BGY)   
 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
             Strike
Price
     Expiration
Date
     Contracts      Market
Value
 

Deutsche Wohnen AG

   Goldman Sachs & Co.      Call         EUR         13.79         6/13/13         59,000       $ (19,275

Diageo Plc

   Goldman Sachs & Co.      Call         GBP         20.05         6/13/13         71,200         (29,694

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         37.50         6/13/13         20,000         (51,566

European Aeronautic Defence and Space Co. NV

   Goldman Sachs & Co.      Call         EUR         39.25         6/13/13         101,000         (273,607

European Aeronautic Defence and Space Co. NV

   Morgan Stanley & Co., Inc.      Call         EUR         39.23         6/13/13         24,200         (64,347

Jardine Lloyd Thompson Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         8.46         6/13/13         40,000         (12,715

Rotork Plc

   Morgan Stanley & Co., Inc.      Call         GBP         29.65         6/13/13         29,700         (32,170

Unilever Plc

   Citigroup Global Markets, Inc.      Call         GBP         27.86         6/13/13         41,800         (32,939

Valeo SA

   Citigroup Global Markets, Inc.      Call         EUR         44.34         6/13/13         45,000         (93,451

SAP AG — ADR

   Morgan Stanley & Co., Inc.      Call         USD         75.28         6/18/13         60,500         (306,832

Aalberts Industries NV

   UBS Securities LLC      Call         EUR         17.52         6/19/13         27,100         (9,298

Aveva Group Plc

   Banc of America Securities      Call         GBP         20.89         6/19/13         15,400         (36,400

Babcock International Group Plc

   Banc of America Securities      Call         GBP         10.94         6/19/13         88,500         (24,858

Duro Felguera SA

   Citigroup Global Markets, Inc.      Call         EUR         5.40         6/19/13         60,000         (10,050

Eurasia Drilling Co. Ltd. — GDR

   Morgan Stanley & Co., Inc.      Call         USD         40.34         6/19/13         16,500         (21,048

Jardine Lloyd Thompson Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         8.47         6/19/13         40,000         (12,816

KUKA AG

   Goldman Sachs & Co.      Call         EUR         33.15         6/19/13         30,900         (112,740

Rotork Plc

   Goldman Sachs & Co.      Call         GBP         27.73         6/19/13         23,200         (65,172

Aalberts Industries NV

   Banc of America Securities      Call         EUR         17.47         6/26/13         23,500         (9,225

Brenntag AG

   Deutsche Bank Securities Corp.      Call         EUR         128.27         6/26/13         7,000         (40,997

Brenntag AG

   Goldman Sachs & Co.      Call         EUR         127.72         6/26/13         8,200         (51,340

Deutsche Wohnen AG

   Goldman Sachs & Co.      Call         EUR         13.62         6/26/13         59,000         (28,216

Duro Felguera SA

   Goldman Sachs & Co.      Call         EUR         5.35         6/26/13         43,000         (8,922

Eurasia Drilling Co. Ltd. — GDR

   UBS Securities LLC      Call         USD         39.59         6/26/13         17,300         (29,406

Barclays Plc — ADR

   Banc of America Securities      Call         USD         19.00         7/08/13         159,000         (63,104

Total

                     $ (16,399,901
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

70    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (concluded)      BlackRock International Growth and Income Trust (BGY)   

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Australia

          $ 7,493,360              $ 7,493,360   

Belgium

            30,896,450                30,896,450   

Canada

   $ 3,538,518                       3,538,518   

Cayman Islands

     9,387,949                       9,387,949   

China

            1,962,951                1,962,951   

Finland

            9,157,323                9,157,323   

France

     27,176,642        33,360,055                60,536,697   

Germany

     23,833,087        43,289,094                67,122,181   

Hong Kong

     15,457,230        33,439,854                48,897,084   

India

            5,783,401                5,783,401   

Indonesia

     9,625,365        13,433,307                23,058,672   

Ireland

     6,482,624        21,825,405                28,308,029   

Italy

     9,710,937        24,065,650                33,776,587   

Japan

     7,842,707        108,948,050                116,790,757   

Malaysia

            3,910,789                3,910,789   

Mexico

     9,717,523                       9,717,523   

Netherlands

     5,081,039        36,540,485                41,621,524   

Spain

            4,155,408                4,155,408   

Sweden

            14,468,568                14,468,568   

Switzerland

     24,892,026        154,247,513                179,139,539   

Taiwan

            7,456,376                7,456,376   

Thailand

     3,485,036        4,715,702                8,200,738   

United Kingdom

     55,873,269        168,790,934                224,664,203   

United States

     7,103,963                       7,103,963   

Short-Term Securities

     15,189,301                       15,189,301   

Total

   $ 234,397,216      $ 727,940,675              $ 962,337,891   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Assets:

         

Foreign currency exchange contracts

   $ 11,958                     $ 11,958   

Liabilities:

         

Equity contracts

     (720,882   $ (16,529,704             (17,250,586

Foreign currency exchange contracts

     (87                    (87

Total

   $ (709,011   $ (17,321,131           $ (18,030,142
  

 

 

 

1    Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

         

Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 4,011,467                     $ 4,011,467   

Foreign currency at value

     1,835,803                       1,835,803   

Cash pledged as collateral for options written

     726,000                       726,000   

Liabilities:

         

Cash received as collateral for options written

          $ (50,000             (50,000

Total

   $ 6,573,270      $ (50,000           $ 6,523,270   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    71


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Real Asset Equity Trust (BCF)  
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Chemicals — 14.3%

     

Agrium, Inc.

     68,900       $ 6,316,063   

Air Products & Chemicals, Inc. (a)

     93,700         8,148,152   

Celanese Corp. (a)

     92,800         4,585,248   

The Dow Chemical Co.

     165,525         5,612,953   

EI du Pont de Nemours & Co. (a)

     370,800         20,212,308   

Monsanto Co.

     66,000         7,050,120   

The Mosaic Co. (a)

     19,000         1,170,210   

Olin Corp.

     172,700         4,174,159   

Potash Corp of Saskatchewan, Inc. (a)

     181,000         7,620,100   

Praxair, Inc.

     163,200         18,653,760   
     

 

 

 
                83,543,073   

Energy Equipment & Services — 5.3%

     

Atwood Oceanics, Inc. (b)

     27,000         1,324,350   

Core Laboratories NV

     27,600         3,995,928   

Halliburton Co. (a)

     151,400         6,475,378   

Key Energy Services, Inc. (b)

     252,200         1,498,068   

National Oilwell Varco, Inc. (a)

     46,800         3,052,296   

Schlumberger Ltd. (a)

     122,700         9,132,561   

Seadrill Ltd.

     79,877         3,077,951   

Technip SA

     23,600         2,531,344   
     

 

 

 
                31,087,876   

Machinery — 4.4%

     

Caterpillar, Inc. (a)

     223,100         18,889,877   

Deere & Co.

     72,900         6,509,970   
     

 

 

 
                25,399,847   

Metals & Mining — 36.4%

     

African Rainbow Minerals Ltd.

     224,750         4,434,518   

Agnico-Eagle Mines Ltd. (a)

     97,550         3,149,890   

Alcoa, Inc. (a)

     266,250         2,263,125   

Allegheny Technologies, Inc. (a)

     37,500         1,011,750   

Alumina Ltd. (b)

     1,770,066         1,770,057   

Anglo American Platinum Ltd. (b)

     50,444         1,922,552   

Anglo American Plc

     77,945         1,905,815   

Barrick Gold Corp. (a)

     91,700         1,807,407   

BHP Billiton Plc

     778,600         21,904,189   

Carpenter Technology Corp. (a)

     39,866         1,792,375   

Cia de Minas Buenaventura SA — ADR (a)

     193,900         3,881,878   

Detour Gold Corp. (a)(b)

     131,900         1,586,806   

Dominion Diamond Corp. (a)(b)

     126,700         2,008,436   

Eldorado Gold Corp. (a)

     443,500         3,508,556   

Eramet

     13,550         1,454,240   

First Quantum Minerals Ltd. (a)

     513,500         8,965,671   

Freeport-McMoRan Copper & Gold, Inc. (a)

     117,400         3,572,482   

Fresnillo Plc

     475,000         8,585,537   

Glencore International Plc

     225,000         1,107,752   

Goldcorp, Inc. (a)

     224,150         6,630,357   

IAMGOLD Corp. (a)

     243,500         1,307,593   

Iluka Resources Ltd.

     821,486         7,631,890   

Impala Platinum Holdings Ltd.

     370,200         5,073,386   

Industrias Penoles SAB de CV

     368,569         15,479,091   

Jiangxi Copper Co. Ltd., Class H

     1,417,500         2,766,851   

Kazakhmys Plc

     268,500         1,459,427   

Kinross Gold Corp. (a)

     240,900         1,310,496   

Minsur SA

     3,846,986         2,387,082   

MMC Norilsk Nickel OJSC — ADR (b)

     70,520         1,088,524   

Nevsun Resources Ltd. (a)

     699,750         2,618,549   

New Gold, Inc. (b)

     300,000         2,406,075   

Newcrest Mining Ltd.

     314,085         5,502,266   

Newmont Mining Corp. (a)

     61,550         1,994,220   

OZ Minerals Ltd.

     398,659         1,786,858   

Rio Tinto Plc

     479,104         22,000,499   

Silver Wheaton Corp.

     80,000         1,962,400   
Common Stocks    Shares      Value  

Metals & Mining (concluded)

     

Southern Copper Corp. (a)

     68,806       $ 2,293,304   

Teck Resources Ltd., Class B (a)

     406,500         10,813,638   

United States Steel Corp. (a)

     41,500         738,700   

Vale SA — ADR

     701,100         11,981,799   

Vedanta Resources Plc

     432,700         8,187,653   

Xstrata Plc

     1,077,996         16,222,193   

Zijin Mining Group Co Ltd., Class H

     5,551,731         1,646,793   
     

 

 

 
                211,922,680   

Oil, Gas & Consumable Fuels — 25.3%

     

Alpha Natural Resources, Inc. (a)(b)

     391,712         2,906,503   

Anadarko Petroleum Corp. (a)

     92,200         7,814,872   

Apache Corp. (a)

     88,500         6,538,380   

Bill Barrett Corp. (b)

     86,100         1,709,946   

Cairn Energy Plc (b)

     470,000         2,110,520   

Chevron Corp. (a)

     132,200         16,129,721   

Cobalt International Energy, Inc. (b)

     47,500         1,327,150   

Concho Resources, Inc. (a)(b)

     46,400         3,996,432   

CONSOL Energy, Inc. (a)

     245,979         8,274,734   

Continental Resources, Inc. (a)(b)

     40,400         3,228,768   

Crew Energy, Inc. (a)(b)

     139,000         964,425   

DeeThree Exploration Ltd. (b)

     274,369         2,135,146   

Denbury Resources, Inc. (a)(b)

     300,800         5,381,312   

Energy XXI (Bermuda) Ltd. (a)

     190,100         4,322,874   

EOG Resources, Inc. (a)

     49,200         5,961,072   

EQT Corp.

     49,600         3,725,952   

Exxon Mobil Corp. (a)

     111,800         9,949,082   

Gulfport Energy Corp. (a)(b)

     107,700         5,620,863   

Kodiak Oil & Gas Corp. (a)(b)

     181,200         1,418,796   

Noble Energy, Inc. (a)

     70,700         8,009,603   

Peabody Energy Corp. (a)

     165,900         3,327,954   

PetroChina Co. Ltd. — ADR (a)

     12,700         1,623,822   

Pioneer Natural Resources Co. (a)

     33,800         4,131,374   

Plains Exploration & Production Co. (a)(b)

     131,100         5,925,720   

Range Resources Corp.

     90,700         6,668,264   

Rex Energy Corp. (b)

     114,400         1,838,408   

Rosetta Resources, Inc. (a)(b)

     66,600         2,857,806   

Royal Dutch Shell Plc — ADR

     57,400         3,901,478   

Southwestern Energy Co. (a)(b)

     56,200         2,103,004   

Suncor Energy, Inc. (a)

     124,100         3,865,715   

Total SA — ADR

     40,600         2,039,744   

Valero Energy Corp.

     45,700         1,842,624   

Whiting Petroleum Corp. (a)(b)

     124,500         5,540,250   
     

 

 

 
                147,192,314   

Paper & Forest Products — 6.5%

     

Fibria Celulose SA — ADR (b)

     246,800         2,638,292   

International Paper Co. (a)

     350,000         16,443,000   

MeadWestvaco Corp.

     430,400         14,840,192   

Mondi Plc

     322,512         4,286,022   
     

 

 

 
                38,207,506   
 

 

See Notes to Financial Statements.

 

72    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Real Estate Investment Trusts (REITs) — 2.4%

     

Weyerhaeuser Co. (a)

     450,800       $ 13,753,908   

Total Long-Term Investments

(Cost — $507,427,694) — 94.6%

              551,107,204   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     30,302,399         30,302,399   

Total Short-Term Securities

(Cost — $30,302,399) — 5.2%

              30,302,399   
      Value  

Total Investments Before Options Written

(Cost — $537,730,093) — 99.8%

   $ 581,409,603   
  
Options Written        

(Premiums Received — $5,614,413) — (0.7)%

     (4,422,630

Total Investments Net of Options Written — 99.1%

     576,986,973   

Other Assets Less Liabilities — 0.9%

     5,397,022   
  

 

 

 

Net Assets — 100.0%

   $ 582,383,995   
  

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares/
Beneficial Interest
Held at
October 31, 2012
     Net
Activity
    Shares/
Beneficial Interest
Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     26,727,621         3,574,778        30,302,399       $ 18,311       $ 306   

BlackRock Liquidity Series, LLC, Money Market Series

   $ 3,731,016       $ (3,731,016           $ 3,962           

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency
Purchased

      

Currency

Sold

    Counterparty   Settlement
Date
       Unrealized
Depreciation
 
USD        12,817           CAD           13,000      Goldman Sachs & Co.     5/01/13         $ (87

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Carpenter Technology Corp.

     Call         USD         50.00         5/01/13         132       $   

Celanese Corp.

     Call         USD         47.50         5/02/13         306         (58,446

Exxon Mobil Corp.

     Call         USD         90.00         5/03/13         150         (457

Air Products & Chemicals, Inc.

     Call         USD         90.40         5/18/13         310         (1,844

Chevron Corp.

     Call         USD         116.00         5/18/13         105         (63,620

Alpha Natural Resources, Inc.

     Call         USD         9.00         5/20/13         500         (2,750

Anadarko Petroleum Corp.

     Call         USD         90.00         5/20/13         165         (11,138

Barrick Gold Corp.

     Call         USD         20.00         5/20/13         75         (4,950

Barrick Gold Corp.

     Call         USD         21.00         5/20/13         75         (2,550

Caterpillar, Inc.

     Call         USD         87.50         5/20/13         747         (26,519

Chevron Corp.

     Call         USD         120.00         5/20/13         31         (7,719

Concho Resources, Inc.

     Call         USD         100.00         5/20/13         154         (1,925

CONSOL Energy, Inc.

     Call         USD         36.00         5/20/13         810         (18,225

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    73


Table of Contents
Schedule of Investments (continued)    BlackRock Real Asset Equity Trust (BCF)

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (continued)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Continental Resources, Inc.

     Call         USD         95.00         5/20/13         135       $ (675

Crew Energy, Inc.

     Call         CAD         7.50         5/20/13         435         (4,534

Denbury Resources, Inc.

     Call         USD         18.00         5/20/13         290         (12,325

Denbury Resources, Inc.

     Call         USD         19.00         5/20/13         412         (3,090

Detour Gold Corp.

     Call         CAD         23.00         5/20/13         215         (2,134

EI du Pont de Nemours & Co.

     Call         USD         50.00         5/20/13         73         (33,215

Eldorado Gold Corp.

     Call         CAD         10.00         5/20/13         270         (1,474

Eldorado Gold Corp.

     Call         CAD         11.00         5/20/13         270         (2,412

Exxon Mobil Corp.

     Call         USD         87.50         5/20/13         220         (36,520

First Quantum Minerals Ltd.

     Call         CAD         22.00         5/20/13         1,700         (10,125

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         31.00         5/20/13         194         (10,864

Gulfport Energy Corp.

     Call         USD         45.00         5/20/13         400         (306,000

Halliburton Co.

     Call         USD         42.00         5/20/13         165         (24,172

IAMGOLD Corp.

     Call         CAD         8.00         5/20/13         400         (1,985

International Paper Co.

     Call         USD         48.00         5/20/13         577         (47,603

International Paper Co.

     Call         USD         49.00         5/20/13         577         (28,850

Kinross Gold Corp.

     Call         USD         6.00         5/20/13         400         (3,400

Kodiak Oil & Gas Corp.

     Call         USD         9.00         5/20/13         149         (1,490

National Oilwell Varco, Inc.

     Call         USD         70.00         5/20/13         155         (2,790

Newmont Mining Corp.

     Call         USD         43.00         5/20/13         202         (404

Noble Energy, Inc.

     Call         USD         115.00         5/20/13         117         (16,088

Pioneer Natural Resources Co.

     Call         USD         135.00         5/20/13         110         (4,950

Plains Exploration & Production Co.

     Call         USD         48.00         5/20/13         432         (10,152

Rosetta Resources, Inc.

     Call         USD         50.00         5/20/13         220         (2,200

Schlumberger Ltd.

     Call         USD         77.50         5/20/13         172         (5,504

Southwestern Energy Co.

     Call         USD         40.00         5/20/13         185         (5,272

Suncor Energy, Inc.

     Call         USD         31.00         5/20/13         205         (13,632

Teck Resources Ltd., Class B

     Call         CAD         30.00         5/20/13         670         (4,655

United States Steel Corp.

     Call         USD         22.00         5/20/13         135         (270

Weyerhaeuser Co.

     Call         USD         31.00         5/20/13         835         (27,138

Whiting Petroleum Corp.

     Call         USD         52.50         5/20/13         280         (2,800

Schlumberger Ltd.

     Call         USD         76.50         5/29/13         230         (18,446

Noble Energy, Inc.

     Call         USD         113.00         6/05/13         117         (37,720

Agnico-Eagle Mines Ltd.

     Call         USD         41.50         6/06/13         322         (1,859

The Mosaic Co.

     Call         USD         60.00         6/11/13         62         (18,086

Apache Corp.

     Call         USD         71.00         6/12/13         145         (60,168

Alcoa, Inc.

     Call         USD         8.40         6/22/13         440         (14,704

Allegheny Technologies, Inc.

     Call         USD         29.10         6/22/13         60         (3,358

Alpha Natural Resources, Inc.

     Call         USD         8.00         6/24/13         500         (23,000

Caterpillar, Inc.

     Call         USD         82.50         6/24/13         381         (140,970

Caterpillar, Inc.

     Call         USD         87.50         6/24/13         747         (87,399

Cia de Minas Buenaventura SA — ADR

     Call         USD         22.00         6/24/13         640         (25,600

Denbury Resources, Inc.

     Call         USD         18.00         6/24/13         290         (20,300

Detour Gold Corp.

     Call         CAD         12.00         6/24/13         220         (27,843

Dominion Diamond Corp.

     Call         CAD         15.50         6/24/13         418         (41,076

Eldorado Gold Corp.

     Call         CAD         8.00         6/24/13         540         (33,500

Energy XXI (Bermuda) Ltd.

     Call         USD         24.00         6/24/13         377         (30,160

EOG Resources, Inc.

     Call         USD         120.00         6/24/13         162         (98,820

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         32.00         6/24/13         194         (14,744

Goldcorp, Inc.

     Call         USD         30.00         6/24/13         370         (48,285

Goldcorp, Inc.

     Call         USD         31.00         6/24/13         369         (33,948

 

See Notes to Financial Statements.

 

74    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Halliburton Co.

     Call         USD         42.00         6/24/13         165       $ (34,732

Kodiak Oil & Gas Corp.

     Call         USD         9.00         6/24/13         447         (7,822

Nevsun Resources Ltd.

     Call         CAD         4.00         6/24/13         578         (12,909

Peabody Energy Corp.

     Call         USD         22.00         6/24/13         550         (25,025

PetroChina Co. Ltd.—ADR

     Call         USD         130.00         6/24/13         41         (8,508

Potash Corp of Saskatchewan, Inc.

     Call         USD         40.00         6/24/13         600         (156,300

Southern Copper Corp.

     Call         USD         33.00         6/24/13         230         (33,350

Suncor Energy, Inc.

     Call         USD         32.00         6/24/13         205         (13,325

Weyerhaeuser Co.

     Call         USD         31.00         6/24/13         652         (45,640

Halliburton Co.

     Call         USD         42.00         7/22/13         170         (42,415

Total

                  $ (1,986,878
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
  

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Vale SA — ADR

   Morgan Stanley & Co., Inc.    Call    USD      18.03         5/01/13         231,300       $ (5

MeadWestvaco Corp.

   Credit Suisse First Boston    Call    USD      36.41         5/02/13         72,700         (12

Nevsun Resources Ltd.

   Deutsche Bank Securities Corp.    Call    CAD      3.93         5/02/13         57,700         (772

Olin Corp.

   Morgan Stanley & Co., Inc.    Call    USD      24.48         5/02/13         28,500         (948

Bill Barrett Corp.

   Banc of America Securities    Call    USD      18.30         5/03/13         28,400         (45,950

EI du Pont de Nemours & Co.

   Barclays Bank    Call    USD      49.54         5/03/13         64,500         (320,500

Range Resources Corp.

   Citigroup Global Markets, Inc.    Call    USD      80.78         5/03/13         15,000         (1

Anadarko Petroleum Corp.

   Morgan Stanley & Co., Inc.    Call    USD      86.97         5/06/13         14,000         (7,867

Cobalt International Energy, Inc.

   UBS Securities LLC    Call    USD      28.22         5/06/13         15,600         (5,873

Core Laboratories NV

   Deutsche Bank Securities Corp.    Call    USD      138.17         5/06/13         9,100         (61,619

Alumina Ltd.

   Goldman Sachs & Co.    Call    AUD      1.18         5/07/13         584,200         (5

Iluka Resources Ltd.

   Goldman Sachs & Co.    Call    AUD      9.84         5/07/13         271,100         (4,333

Jiangxi Copper Co. Ltd., Class H

   JPMorgan Chase Securities    Call    HKD      17.72         5/07/13         468,000         (276

OZ Minerals Ltd.

   Goldman Sachs & Co.    Call    AUD      6.07         5/07/13         176,100           

Zijin Mining Group Co Ltd., Class H

   JPMorgan Chase Securities    Call    HKD      2.63         5/07/13         1,832,000         (391

EQT Corp.

   Goldman Sachs & Co.    Call    USD      60.25         5/08/13         16,500         (245,355

Fibria Celulose SA — ADR

   Goldman Sachs & Co.    Call    USD      11.60         5/08/13         40,800         (494

Industrias Penoles SAB de CV

   Deutsche Bank Securities Corp.    Call    MXN      587.70         5/08/13         42,700         (78

Silver Wheaton Corp.

   Morgan Stanley & Co., Inc.    Call    USD      32.29         5/09/13         26,500         (27

Agrium, Inc.

   Deutsche Bank Securities Corp.    Call    USD      104.55         5/10/13         22,700         (678

Nevsun Resources Ltd.

   Deutsche Bank Securities Corp.    Call    CAD      3.93         5/10/13         57,700         (4,366

Rex Energy Corp.

   JPMorgan Chase Securities    Call    USD      16.84         5/13/13         37,500         (9,964

African Rainbow Minerals Ltd.

   Citigroup Global Markets, Inc.    Call    ZAR      190.50         5/14/13         32,200         (962

Eramet

   Goldman Sachs & Co.    Call    EUR      94.34         5/14/13         2,300         (40

Fresnillo Plc

   Morgan Stanley & Co., Inc.    Call    GBP      14.20         5/14/13         41,200         (57

Impala Platinum Holdings Ltd.

   UBS Securities LLC    Call    ZAR      135.96         5/14/13         123,000         (2,085

Kazakhmys Plc

   Morgan Stanley & Co., Inc.    Call    GBP      5.61         5/14/13         89,000         (1

MMC Norilsk Nickel OJSC — ADR

   Morgan Stanley & Co., Inc.    Call    USD      17.03         5/14/13         2,300         (8

Rio Tinto Plc

   Deutsche Bank Securities Corp.    Call    GBP      34.03         5/14/13         159,000         (2,499

Seadrill Ltd.

   Morgan Stanley & Co., Inc.    Call    NOK      214.02         5/14/13         26,400         (38,483

Technip SA

   Goldman Sachs & Co.    Call    EUR      82.74         5/14/13         3,900         (3,767

Vedanta Resources Plc

   UBS Securities LLC    Call    GBP      11.85         5/14/13         143,000         (118,439

Xstrata Plc

   Citigroup Global Markets, Inc.    Call    GBP      10.96         5/14/13         355,800         (3,768

Minsur SA

   Citigroup Global Markets, Inc.    Call    PEN      2.13         5/15/13         319,500         (3

Deere & Co.

   Morgan Stanley & Co., Inc.    Call    USD      92.74         5/23/13         24,000         (20,079

Nevsun Resources Ltd.

   Deutsche Bank Securities Corp.    Call    CAD      3.93         5/23/13         57,700         (8,236

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013   

75


Table of Contents
Schedule of Investments (continued)      BlackRock Real Asset Equity Trust (BCF)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
  

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Chevron Corp.

   JPMorgan Chase Securities    Call    USD      119.93         5/24/13         19,000       $ (50,124

Anglo American Platinum Ltd.

   Morgan Stanley & Co., Inc.    Call    ZAR      428.12         5/28/13         16,700         (135

Cairn Energy Plc

   Citigroup Global Markets, Inc.    Call    GBP      2.88         5/28/13         54,000         (8,147

Eramet

   Citigroup Global Markets, Inc.    Call    EUR      83.56         5/28/13         2,200         (5,101

Fresnillo Plc

   Morgan Stanley & Co., Inc.    Call    GBP      13.26         5/28/13         115,600         (22,952

Technip SA

   Goldman Sachs & Co.    Call    EUR      82.52         5/28/13         3,900         (6,417

Atwood Oceanics, Inc.

   Morgan Stanley & Co., Inc.    Call    USD      53.38         5/29/13         9,000         (4,795

Royal Dutch Shell Plc — ADR

   Citigroup Global Markets, Inc.    Call    USD      67.62         5/29/13         19,000         (14,479

DeeThree Exploration Ltd.

   Morgan Stanley & Co., Inc.    Call    CAD      7.18         5/30/13         49,500         (41,921

Monsanto Co.

   Deutsche Bank Securities Corp.    Call    USD      106.13         5/30/13         21,800         (59,736

Newcrest Mining Ltd.

   JPMorgan Chase Securities    Call    AUD      20.12         5/30/13         103,700         (7,986

Caterpillar, Inc.

   Morgan Stanley & Co., Inc.    Call    USD      87.86         5/31/13         35,600         (19,060

African Rainbow Minerals Ltd.

   Morgan Stanley & Co., Inc.    Call    ZAR      182.33         6/04/13         42,000         (14,730

BHP Billiton Plc

   Morgan Stanley & Co., Inc.    Call    GBP      19.38         6/04/13         257,000         (62,094

Glencore International Plc

   Citigroup Global Markets, Inc.    Call    GBP      3.65         6/04/13         74,300         (912

Industrias Penoles SAB de CV

   UBS Securities LLC    Call    MXN      500.11         6/04/13         42,700         (94,287

Mondi Plc

   Deutsche Bank Securities Corp.    Call    GBP      8.94         6/04/13         106,500         (15,024

Chevron Corp.

   Morgan Stanley & Co., Inc.    Call    USD      118.78         6/05/13         11,000         (39,077

MeadWestvaco Corp.

   Citigroup Global Markets, Inc.    Call    USD      36.44         6/05/13         69,300         (23,231

EI du Pont de Nemours & Co.

   Credit Suisse First Boston    Call    USD      49.60         6/06/13         50,500         (247,955

New Gold, Inc.

   Morgan Stanley & Co., Inc.    Call    CAD      7.10         6/06/13         50,000         (60,069

Olin Corp.

   Credit Suisse First Boston    Call    USD      25.45         6/06/13         28,400         (3,765

DeeThree Exploration Ltd.

   UBS Securities LLC    Call    CAD      6.69         6/07/13         41,000         (51,428

Fibria Celulose SA — ADR

   JPMorgan Chase Securities    Call    USD      12.49         6/07/13         40,600         (1,784

Minsur SA

   Credit Suisse First Boston    Call    PEN      2.14         6/10/13         319,500         (34

Total SA — ADR

   Morgan Stanley & Co., Inc.    Call    USD      47.14         6/10/13         13,300         (44,594

Cairn Energy Plc

   Citigroup Global Markets, Inc.    Call    GBP      2.88         6/11/13         54,000         (9,881

The Dow Chemical Co.

   Morgan Stanley & Co., Inc.    Call    USD      30.98         6/11/13         54,500         (166,500

Key Energy Services, Inc.

   Credit Suisse First Boston    Call    USD      7.68         6/12/13         41,600         (1,540

Anglo American Plc

   Banc of America Securities    Call    GBP      17.29         6/13/13         25,800         (7,053

MMC Norilsk Nickel OJSC — ADR

   Morgan Stanley & Co., Inc.    Call    USD      16.59         6/13/13         21,000         (2,215

Praxair, Inc.

   Morgan Stanley & Co., Inc.    Call    USD      111.35         6/14/13         53,800         (212,928

Range Resources Corp.

   Morgan Stanley & Co., Inc.    Call    USD      76.57         6/14/13         15,000         (26,925

Valero Energy Corp.

   Citigroup Global Markets, Inc.    Call    USD      41.50         6/14/13         18,300         (24,396

Minsur SA

   Credit Suisse First Boston    Call    PEN      2.14         6/17/13         319,500         (67

Energy XXI (Bermuda) Ltd.

   Credit Suisse First Boston    Call    USD      33.00         6/24/13         250         (1,250

Cairn Energy Plc

   Citigroup Global Markets, Inc.    Call    GBP      2.88         6/26/13         54,000         (11,325

Key Energy Services, Inc.

   Credit Suisse First Boston    Call    USD      7.68         6/26/13         41,600         (2,704

New Gold, Inc.

   Morgan Stanley & Co., Inc.    Call    CAD      7.10         6/26/13         50,000         (60,970

Industrias Penoles SAB de CV

   Credit Suisse First Boston    Call    MXN      522.98         6/27/13         36,200         (69,165

Minsur SA

   Citigroup Global Markets, Inc.    Call    PEN      1.86         6/27/13         319,500         (1,984

Valero Energy Corp.

   Citigroup Global Markets, Inc.    Call    USD      41.50         6/28/13         18,300         (29,071

Total

                     $ (2,435,752
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

See Notes to Financial Statements.

 

76    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (concluded)      BlackRock Real Asset Equity Trust (BCF)   

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Chemicals

   $ 83,543,073                     $ 83,543,073   

Energy Equipment & Services

     25,478,581      $ 5,609,295                31,087,876   

Machinery

     25,399,847                       25,399,847   

Metals & Mining

     96,579,432        115,343,248                211,922,680   

Oil, Gas & Consumable Fuels

     145,081,794        2,110,520                147,192,314   

Paper & Forest Products

     33,921,484        4,286,022                38,207,506   

Real Estate Investment Trusts (REITs)

     13,753,908                       13,753,908   

Short-Term Securities

     30,302,399                       30,302,399   

Total

   $ 454,060,518      $ 127,349,085              $ 581,409,603   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (1,709,419   $ (2,713,211           $ (4,422,630

Foreign currency exchange contracts

     (87                    (87

Total

   $ (1,709,506   $ (2,713,211           $ (4,422,717
  

 

 

 

 

1 

Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

          

Cash

   $ 14,994                      $ 14,994   

Foreign currency at value

     17,395                        17,395   

Liabilities:

          

Cash received as collateral for options written

           $ (828,711             (828,711

Total

   $ 32,389         (828,711           $ (796,322
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    77


Table of Contents
Consolidated Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Resources & Commodities Strategy Trust (BCX)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Chemicals — 15.6%

     

Agrium, Inc.

     76,800       $ 7,040,256   

CF Industries Holdings, Inc. (a)

     22,200         4,140,522   

Israel Chemicals Ltd.

     437,400         5,212,277   

K+S AG

     21,000         929,681   

Monsanto Co.

     250,700         26,779,774   

The Mosaic Co. (a)

     146,300         9,010,617   

Potash Corp of Saskatchewan, Inc. (a)

     461,500         19,429,150   

Syngenta AG

     55,800         23,855,582   

Yara International ASA

     99,800         4,688,000   
     

 

 

 
                101,085,859   

Food Products — 6.9%

     

Archer-Daniels-Midland Co. (a)

     307,200         10,426,368   

Astra Agro Lestari Tbk PT

     2,000,000         3,641,039   

Bunge Ltd. (a)

     139,900         10,102,179   

Golden Agri-Resources Ltd.

     16,000,000         6,884,793   

Ingredion, Inc. (a)

     152,500         10,981,525   

SLC Agricola SA

     309,800         2,729,863   
     

 

 

 
                44,765,767   

Machinery — 5.7%

     

AGCO Corp. (a)

     241,100         12,838,575   

CNH Global NV

     264,000         10,858,320   

Deere & Co.

     149,900         13,386,070   
     

 

 

 
                37,082,965   

Metals & Mining — 23.1%

     

Antofagasta Plc

     331,000         4,644,615   

Augusta Resource Corp. (b)

     869,829         2,183,271   

BHP Billiton Ltd. — ADR (a)

     385,600         25,920,032   

Eldorado Gold Corp.

     368,300         2,916,936   

First Quantum Minerals Ltd. (a)

     449,000         7,839,506   

Freeport-McMoRan Copper & Gold, Inc. (a)

     428,800         13,048,384   

Fresnillo Plc

     233,700         4,224,084   

Glencore International Plc

     1,010,000         4,972,576   

Goldcorp, Inc. (a)

     156,029         4,615,338   

Iluka Resources Ltd.

     85,700         796,183   

Labrador Iron Ore Royalty Corp.

     190,000         6,225,520   

MMC Norilsk Nickel OJSC — ADR (b)

     412,000         6,359,501   

Nevsun Resources Ltd. (a)

     2,299,750         8,605,943   

Newcrest Mining Ltd.

     212,000         3,713,900   

Rio Tinto Plc — ADR (a)

     276,000         12,712,560   

Southern Copper Corp. (a)

     226,000         7,532,580   

Teck Resources Ltd., Class B (a)

     415,200         11,045,074   

Vedanta Resources Plc

     253,000         4,787,327   

Xstrata Plc

     1,130,000         17,004,774   
     

 

 

 
                149,148,104   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels — 41.9%

     

Anadarko Petroleum Corp.

     31,300       $ 2,652,988   

BP Plc — ADR

     290,000         12,644,000   

Cairn Energy Plc (b)

     2,000,000         8,980,934   

Canadian Oil Sands Ltd. (a)

     596,000         11,707,618   

Chevron Corp. (a)

     326,700         39,860,667   

ConocoPhillips (a)

     318,000         19,223,100   

Cosan Ltd., Class A (a)

     352,000         7,304,000   

Devon Energy Corp. (a)

     103,000         5,671,180   

Enbridge, Inc. (a)

     223,000         10,611,564   

Eni SpA — ADR

     200,000         9,562,000   

Exxon Mobil Corp. (a)

     349,200         31,075,308   

Hess Corp. (a)

     174,000         12,559,320   

Imperial Oil Ltd. (a)

     159,000         6,325,594   

Inpex Corp.

     1,790         8,662,363   

Occidental Petroleum Corp. (a)

     85,800         7,658,508   

Royal Dutch Shell Plc — ADR (a)

     258,300         17,556,651   

Southwestern Energy Co. (a)(b)

     433,900         16,236,538   

Statoil ASA

     625,400         15,310,651   

Suncor Energy, Inc. (a)

     218,900         6,818,735   

Total SA — ADR (a)

     120,000         6,028,800   

Ultra Petroleum Corp. (a)(b)

     683,000         14,616,200   
     

 

 

 
                271,066,719   

Real Estate Investment Trusts (REITs) — 0.6%

  

Plum Creek Timber Co., Inc.

     70,300         3,623,262   

Total Long-Term Investments

(Cost — $617,517,959) — 93.8%

  

  

     606,772,676   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.08% (c)(d)

     34,574,081         34,574,081   

Total Short-Term Securities

(Cost — $34,574,081) — 5.4%

  

  

     34,574,081   

Total Investments Before Options Written

(Cost — $652,092,040) — 99.2%

  

  

     641,346,757   
     
Options Written                

(Premiums Received — $4,832,439) — (0.7)%

  

     (4,553,969

Total Investments Net of Options Written — 98.5%

  

     636,792,788   

Other Assets Less Liabilities — 1.5%

        9,793,189   
     

 

 

 

Net Assets — 100.0%

      $ 646,585,977   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2012
     Net
Activity
     Shares Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     7,260,037         27,314,044         34,574,081       $ 8,579       $ 142   

 

See Notes to Financial Statements.

 

78    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Consolidated Schedule of Investments (continued)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency
Purchased
       Currency
Sold
    Counterparty   Settlement
Date
       Unrealized
Depreciation
 
USD        1,278,663           AUD           1,241,156      UBS AG     5/01/13         $ (8,042
USD        1,399,093           AUD           1,354,110      The Bank of New York Mellon Corp.     5/02/13           (4,711
Total                         $ (12,753
                       

 

 

 

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Exxon Mobil Corp.

     Call         USD         89.30         5/03/13         390       $ (6,423

Exxon Mobil Corp.

     Call         USD         90.00         5/03/13         830         (2,528

Suncor Energy, Inc.

     Call         USD         30.50         5/10/13         230         (18,898

Southern Copper Corp.

     Call         USD         36.20         5/18/13         230         (2,103

Archer-Daniels-Midland Co.

     Call         USD         33.00         5/20/13         638         (86,449

Archer-Daniels-Midland Co.

     Call         USD         34.00         5/20/13         438         (32,850

BHP Billiton Ltd. — ADR

     Call         USD         72.50         5/20/13         742         (12,985

BHP Billiton Ltd. — ADR

     Call         USD         75.00         5/20/13         608         (4,256

Bunge Ltd.

     Call         USD         77.50         5/20/13         100         (750

Canadian Oil Sands Ltd.

     Call         CAD         22.00         5/20/13         2,080         (10,323

Chevron Corp.

     Call         USD         120.00         5/20/13         690         (171,810

Devon Energy Corp.

     Call         USD         55.00         5/20/13         180         (26,550

Enbridge, Inc.

     Call         CAD         48.00         5/20/13         380         (17,728

First Quantum Minerals Ltd.

     Call         CAD         22.00         5/20/13         785         (4,675

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         31.00         5/20/13         750         (42,000

Hess Corp.

     Call         USD         72.50         5/20/13         205         (37,618

Hess Corp.

     Call         USD         75.00         5/20/13         405         (37,868

Imperial Oil Ltd.

     Call         CAD         44.00         5/20/13         275         (2,457

Potash Corp of Saskatchewan, Inc.

     Call         USD         41.00         5/20/13         550         (76,175

Rio Tinto Plc — ADR

     Call         USD         47.50         5/20/13         180         (11,700

Rio Tinto Plc — ADR

     Call         USD         50.00         5/20/13         180         (2,700

Southern Copper Corp.

     Call         USD         38.00         5/20/13         560         (2,800

Southwestern Energy Co.

     Call         USD         39.00         5/20/13         490         (24,745

Southwestern Energy Co.

     Call         USD         40.00         5/20/13         110         (3,135

Suncor Energy, Inc.

     Call         USD         31.00         5/20/13         268         (17,822

Teck Resources Ltd., Class B

     Call         CAD         30.00         5/20/13         525         (3,648

Total SA — ADR

     Call         USD         50.00         5/20/13         420         (40,950

Ultra Petroleum Corp.

     Call         USD         21.00         5/20/13         695         (72,975

CF Industries Holdings, Inc.

     Call         USD         190.00         6/10/13         77         (39,049

The Mosaic Co.

     Call         USD         60.00         6/11/13         512         (149,358

ConocoPhillips

     Call         USD         58.25         6/18/13         465         (104,259

Chevron Corp.

     Call         USD         120.00         6/24/13         333         (106,560

Cosan Ltd., Class A

     Call         USD         22.50         6/24/13         580         (14,500

First Quantum Minerals Ltd.

     Call         CAD         18.00         6/24/13         786         (70,217

Freeport-McMoRan Copper & Gold, Inc.

     Call         USD         32.00         6/24/13         750         (57,000

Goldcorp, Inc.

     Call         USD         30.00         6/24/13         270         (35,235

Goldcorp, Inc.

     Call         USD         31.00         6/24/13         276         (25,392

Imperial Oil Ltd.

     Call         CAD         40.00         6/24/13         281         (26,637

Nevsun Resources Ltd.

     Call         CAD         4.00         6/24/13         2,032         (45,382

Potash Corp of Saskatchewan, Inc.

     Call         USD         40.00         6/24/13         1,065         (277,432

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    79


Table of Contents
Consolidated Schedule of Investments (continued)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Suncor Energy, Inc.

     Call         USD         32.00         6/24/13         268       $ (17,420

Devon Energy Corp.

     Call         USD         57.50         7/22/13         180         (29,700

Ingredion, Inc.

     Call         USD         70.00         7/22/13         111         (41,625

Ingredion, Inc.

     Call         USD         75.00         7/22/13         112         (15,400

Total

                  $ (1,830,087
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Eni SpA — ADR

   Deutsche Bank Securities Corp.      Call         USD         47.50         5/02/13         35,000       $ (13,205

Nevsun Resources Ltd.

   Deutsche Bank Securities Corp.      Call         CAD         3.93         5/02/13         87,500         (1,170

Nevsun Resources Ltd.

   Morgan Stanley & Co., Inc.      Call         CAD         4.00         5/02/13         113,000         (608

Anadarko Petroleum Corp.

   Morgan Stanley & Co., Inc.      Call         USD         86.97         5/06/13         11,000         (6,181

Golden Agri-Resources Ltd.

   Goldman Sachs & Co.      Call         SGD         0.58         5/07/13         5,600,000         (227

Iluka Resources Ltd.

   Goldman Sachs & Co.      Call         AUD         9.84         5/07/13         68,500         (1,095

Inpex Corp.

   Morgan Stanley & Co., Inc.      Call         JPY         525,770.00         5/07/13         625         (214

Newcrest Mining Ltd.

   UBS Securities LLC      Call         AUD         23.30         5/07/13         74,200         (1

AGCO Corp.

   Goldman Sachs & Co.      Call         USD         51.48         5/08/13         42,000         (79,270

SLC Agricola SA

   JPMorgan Chase Securities      Call         BRL         19.44         5/08/13         31,500         (115

Plum Creek Timber Co., Inc.

   Morgan Stanley & Co., Inc.      Call         USD         50.40         5/09/13         24,400         (30,393

Agrium, Inc.

   Deutsche Bank Securities Corp.      Call         USD         104.55         5/10/13         26,800         (800

Labrador Iron Ore Royalty Corp.

   UBS Securities LLC      Call         CAD         36.41         5/10/13         33,000         (118

Nevsun Resources Ltd.

   Deutsche Bank Securities Corp.      Call         CAD         3.93         5/10/13         87,500         (6,621

Nevsun Resources Ltd.

   Morgan Stanley & Co., Inc.      Call         CAD         4.00         5/10/13         113,000         (6,282

Southwestern Energy Co.

   Morgan Stanley & Co., Inc.      Call         USD         39.27         5/10/13         49,000         (10,635

Southwestern Energy Co.

   UBS Securities LLC      Call         USD         38.56         5/10/13         43,000         (16,446

Ultra Petroleum Corp.

   Morgan Stanley & Co., Inc.      Call         USD         20.53         5/10/13         99,500         (109,564

Ultra Petroleum Corp.

   Morgan Stanley & Co., Inc.      Call         USD         21.63         5/10/13         70,000         (36,248

CNH Global NV

   Morgan Stanley & Co., Inc.      Call         USD         44.91         5/13/13         38,500         (3,809

Antofagasta Plc

   Morgan Stanley & Co., Inc.      Call         GBP         10.88         5/14/13         57,000         (116

Cairn Energy Plc

   Citigroup Global Markets, Inc.      Call         GBP         2.93         5/14/13         233,000         (17,158

Glencore International Plc

   Morgan Stanley & Co., Inc.      Call         GBP         3.84         5/14/13         175,000         (979

MMC Norilsk Nickel OJSC — ADR

   Morgan Stanley & Co., Inc.      Call         USD         16.95         5/14/13         76,000         (332

Vedanta Resources Plc

   JPMorgan Chase Securities      Call         GBP         11.55         5/14/13         44,000         (50,476

Xstrata Plc

   Goldman Sachs & Co.      Call         GBP         11.50         5/14/13         197,000         (863

SLC Agricola SA

   Credit Suisse First Boston      Call         BRL         18.02         5/15/13         26,300         (4,016

AGCO Corp.

   Goldman Sachs & Co.      Call         USD         51.48         5/22/13         42,000         (89,934

Royal Dutch Shell Plc — ADR

   Morgan Stanley & Co., Inc.      Call         USD         65.56         5/22/13         58,500         (143,189

CNH Global NV

   Credit Suisse First Boston      Call         USD         42.04         5/23/13         53,900         (52,821

Cosan Ltd., Class A

   Morgan Stanley & Co., Inc.      Call         USD         21.06         5/23/13         65,200         (28,085

Enbridge, Inc.

   Citigroup Global Markets, Inc.      Call         CAD         46.79         5/23/13         18,500         (24,024

Eni SpA — ADR

   Deutsche Bank Securities Corp.      Call         USD         47.50         5/23/13         35,000         (33,987

Ingredion, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         69.72         5/23/13         31,000         (93,348

Nevsun Resources Ltd.

   Deutsche Bank Securities Corp.      Call         CAD         3.93         5/23/13         87,500         (12,489

Nevsun Resources Ltd.

   Morgan Stanley & Co., Inc.      Call         CAD         4.00         5/23/13         113,000         (13,410

BP Plc — ADR

   Credit Suisse First Boston      Call         USD         41.49         5/24/13         101,500         (213,840

Chevron Corp.

   JPMorgan Chase Securities      Call         USD         119.93         5/24/13         12,000         (31,657

ConocoPhillips

   Credit Suisse First Boston      Call         USD         60.23         5/24/13         64,800         (57,308

Labrador Iron Ore Royalty Corp.

   UBS Securities LLC      Call         CAD         36.41         5/24/13         33,000         (1,763

Cairn Energy Plc

   Citigroup Global Markets, Inc.      Call         GBP         2.93         5/28/13         233,000         (26,230

Fresnillo Plc

   Morgan Stanley & Co., Inc.      Call         GBP         13.26         5/28/13         81,700         (16,221

 

See Notes to Financial Statements.

 

80    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Consolidated Schedule of Investments (continued)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Israel Chemicals Ltd.

   Morgan Stanley & Co., Inc.      Call         ILS         48.19         5/28/13         180,000       $ (2,204

K+S AG

   Citigroup Global Markets, Inc.      Call         EUR         35.46         5/28/13         2,400         (945

K+S AG

   Citigroup Global Markets, Inc.      Call         EUR         37.22         5/28/13         4,900         (1,006

Occidental Petroleum Corp.

   Citigroup Global Markets, Inc.      Call         USD         82.80         5/28/13         15,000         (102,570

Syngenta AG

   Deutsche Bank Securities Corp.      Call         CHF         403.54         5/28/13         3,000         (14,270

Syngenta AG

   Deutsche Bank Securities Corp.      Call         CHF         418.62         5/28/13         16,600         (26,709

Royal Dutch Shell Plc — ADR

   Citigroup Global Markets, Inc.      Call         USD         67.62         5/29/13         32,000         (24,385

Monsanto Co.

   Deutsche Bank Securities Corp.      Call         USD         106.13         5/30/13         87,800         (240,587

Glencore International Plc

   Morgan Stanley & Co., Inc.      Call         GBP         3.34         6/04/13         176,000         (12,586

Deere & Co.

   Morgan Stanley & Co., Inc.      Call         USD         87.01         6/06/13         52,400         (183,641

Enbridge, Inc.

   Citigroup Global Markets, Inc.      Call         CAD         46.79         6/06/13         18,500         (24,208

Antofagasta Plc

   Deutsche Bank Securities Corp.      Call         GBP         9.30         6/11/13         58,000         (28,120

Bunge Ltd.

   Morgan Stanley & Co., Inc.      Call         USD         68.17         6/11/13         39,000         (175,462

Rio Tinto Plc — ADR

   Citigroup Global Markets, Inc.      Call         USD         46.25         6/11/13         60,000         (106,844

Vedanta Resources Plc

   Banc of America Securities      Call         GBP         12.04         6/11/13         44,000         (39,535

Xstrata Plc

   Citigroup Global Markets, Inc.      Call         GBP         10.13         6/11/13         195,000         (51,764

Yara International ASA

   Morgan Stanley & Co., Inc.      Call         NOK         267.51         6/11/13         35,000         (47,001

MMC Norilsk Nickel OJSC — ADR

   Morgan Stanley & Co., Inc.      Call         USD         16.59         6/13/13         68,000         (7,171

Statoil ASA

   Citigroup Global Markets, Inc.      Call         NOK         139.27         6/13/13         183,400         (105,543

Statoil ASA

   Deutsche Bank Securities Corp.      Call         NOK         140.70         6/13/13         35,500         (15,356

Eldorado Gold Corp.

   Citigroup Global Markets, Inc.      Call         USD         7.47         6/14/13         129,000         (108,524

Occidental Petroleum Corp.

   Citigroup Global Markets, Inc.      Call         USD         82.80         6/14/13         15,000         (103,084

SLC Agricola SA

   UBS Securities LLC      Call         BRL         18.33         6/17/13         16,000         (4,382

Cairn Energy Plc

   Citigroup Global Markets, Inc.      Call         GBP         2.91         6/19/13         233,000         (40,661

SLC Agricola SA

   Credit Suisse First Boston      Call         BRL         16.86         6/27/13         32,900         (22,076

Total

                     $ (2,723,882
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    81


Table of Contents
Consolidated Schedule of Investments (concluded)      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Chemicals

   $ 66,400,319      $ 34,685,540              $ 101,085,859   

Food Products

     44,765,767                       44,765,767   

Machinery

     37,082,965                       37,082,965   

Metals & Mining

     107,617,720        41,530,384                149,148,104   

Oil, Gas & Consumable Fuels

     238,112,771        32,953,948                271,066,719   

Real Estate Investment Trusts (REITs)

     3,623,262                       3,623,262   

Short-Term Securities

     34,574,081                       34,574,081   

Total

   $ 532,176,885      $ 109,169,872              $ 641,346,757   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (1,507,468   $ (3,046,501           $ (4,553,969

Foreign currency exchange contracts

     (12,753                    (12,753

Total

   $ (1,520,221   $ (4,866,640           $ (6,386,861
  

 

 

 

1    Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

        

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash.

   $ 7,143,548                     $ 7,143,548   

Foreign currency at value

     371,171                       371,171   

Liabilities:

         

Cash received as collateral for options written

          $ (448,000             (448,000

Total

   $ 7,514,719      $ (448,000           $ 7,066,719   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

82    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Australia — 4.1%

     

Australia & New Zealand Banking Group Ltd.

     19,000       $ 627,897   

BHP Billiton Ltd. — ADR (a)

     8,012         538,567   

National Australia Bank Ltd.

     35,100         1,238,604   

Santos Ltd.

     71,100         913,283   

Treasury Wine Estates Ltd.

     36,266         219,806   
     

 

 

 
                3,538,157   

Belgium — 0.5%

     

Mobistar SA

     4,620         110,187   

Solvay SA

     2,400         351,629   
     

 

 

 
                461,816   

Canada — 3.0%

     

Bank of Nova Scotia (a)

     12,200         703,457   

Enbridge, Inc.

     25,200         1,199,154   

Suncor Energy, Inc. (a)

     3,550         110,681   

TransCanada Corp. (a)

     10,900         540,321   
     

 

 

 
                2,553,613   

France — 3.1%

     

Bouygues SA

     8,323         232,569   

Sanofi

     3,400         367,593   

Total SA — ADR

     29,800         1,497,152   

Vinci SA

     12,100         583,303   
     

 

 

 
                2,680,617   

Germany — 2.8%

     

Allianz SE

     3,900         576,890   

BASF SE

     10,200         954,848   

SAP AG — ADR

     5,750         459,138   

Siemens AG — ADR (a)

     4,000         418,040   
     

 

 

 
                2,408,916   

Hong Kong — 2.2%

     

Hang Seng Bank Ltd.

     18,000         301,508   

Hopewell Holdings Ltd.

     140,684         544,551   

Power Assets Holdings Ltd.

     105,400         1,030,687   
     

 

 

 
                1,876,746   

Italy — 0.2%

     

Enel SpA (a)

     55,400         214,253   

Japan — 2.1%

     

Canon, Inc. — ADR (a)

     10,100         363,701   

Oracle Corp Japan

     10,000         428,409   

Ricoh Co. Ltd.

     36,000         400,575   

Takeda Pharmaceutical Co. Ltd.

     11,600         636,860   
     

 

 

 
                1,829,545   

Netherlands — 0.6%

     

Royal Dutch Shell Plc — ADR

     6,950         472,392   

Singapore — 1.0%

     

Keppel Corp. Ltd.

     56,800         495,452   

Keppel REIT

     11,360         13,942   

United Overseas Bank Ltd.

     20,347         353,576   
     

 

 

 
                862,970   

Spain — 0.3%

     

Iberdrola SA

     43,030         231,354   

Sweden — 2.8%

     

Hennes & Mauritz AB, B Shares

     23,300         827,468   

Ratos AB, B Shares

     40,100         387,481   

Scania AB, B Shares

     38,700         827,650   

TeliaSonera AB

     54,900         378,797   
     

 

 

 
                2,421,396   

Switzerland — 0.9%

     

Nestle SA

     5,800         413,613   
Common Stocks    Shares      Value  

Switzerland (concluded)

     

Zurich Insurance Group AG

     1,134       $ 316,887   
     

 

 

 
                730,500   

United Kingdom — 6.3%

     

AstraZeneca Plc

     17,700         919,002   

BHP Billiton Plc

     14,150         398,079   

British American Tobacco Plc

     17,300         959,030   

GlaxoSmithKline Plc

     32,425         836,613   

HSBC Holdings Plc — ADR (a)

     24,100         1,322,126   

Man Strategic Holdings Plc (b)

     76,400         121,483   

SSE Plc

     35,000         847,415   
     

 

 

 
                5,403,748   

United States — 66.8%

     

3M Co.

     12,300         1,287,933   

Abbott Laboratories

     11,200         413,504   

AbbVie, Inc.

     10,500         483,525   

Aflac, Inc.

     4,600         250,424   

Altria Group, Inc. (a)

     42,700         1,558,977   

Ameren Corp. (a)

     23,700         859,125   

American Express Co. (a)

     9,100         622,531   

AT&T Inc. (a)

     65,150         2,440,519   

Automatic Data Processing, Inc.

     14,300         962,962   

Bank of America Corp. (a)

     18,500         227,735   

Bristol-Myers Squibb Co.

     38,600         1,533,192   

Chevron Corp.

     16,900         2,061,969   

The Chubb Corp.

     6,500         572,455   

Cincinnati Financial Corp. (a)

     11,800         577,138   

The Coca-Cola Co. (a)

     22,400         948,192   

Dominion Resources, Inc. (a)

     24,600         1,517,328   

Emerson Electric Co. (a)

     28,100         1,559,831   

Equity Residential — REIT

     11,000         638,660   

Exxon Mobil Corp. (a)

     28,300         2,518,417   

Frontier Communications Corp.

     208,300         866,528   

General Electric Co.

     55,800         1,243,782   

General Mills, Inc. (a)

     36,800         1,855,456   

Genuine Parts Co. (a)

     6,400         488,512   

The Goldman Sachs Group, Inc. (a)

     2,700         394,389   

HCP, Inc. — REIT (a)

     12,300         655,590   

Health Care REIT, Inc.

     10,900         817,173   

The Home Depot, Inc.

     20,800         1,525,680   

Honeywell International, Inc.

     12,700         933,958   

Hudson City Bancorp, Inc.

     27,400         227,694   

Intel Corp. (a)

     44,400         1,063,380   

International Business Machines Corp. (a)

     7,425         1,503,860   

Johnson & Johnson (a)

     16,900         1,440,387   

Kraft Foods Group, Inc. (a)

     10,233         526,897   

Liberty Property Trust — REIT

     7,600         326,724   

M&T Bank Corp. (a)

     4,800         480,960   

McDonald’s Corp.

     13,000         1,327,820   

Merck & Co., Inc. (a)

     18,200         855,400   

MetLife, Inc. (a)

     7,400         288,526   

Microchip Technology, Inc. (a)

     20,600         750,252   

Microsoft Corp. (a)

     38,000         1,257,800   

Mondelez International, Inc. — Class A (a)

     31,100         978,095   

NextEra Energy, Inc. (a)

     16,300         1,337,089   

PepsiCo, Inc.

     8,100         668,007   

Pfizer, Inc. (a)

     46,200         1,343,034   

Philip Morris International, Inc. (a)

     12,000         1,147,080   

PPG Industries, Inc. (a)

     6,200         912,268   

The Procter & Gamble Co. (a)

     16,100         1,235,997   

Prudential Financial, Inc.

     14,800         894,216   

Reynolds American, Inc. (a)

     13,800         654,396   

T Rowe Price Group, Inc. (a)

     6,100         442,250   
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    83


Table of Contents
Schedule of Investments (continued)      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

United States (concluded)

     

U.S. Bancorp (a)

     23,800       $ 792,064   

United Technologies Corp. (a)

     10,200         931,158   

Ventas, Inc. — REIT

     11,213         892,891   

Verizon Communications, Inc. (a)

     30,100         1,622,691   

Wal-Mart Stores, Inc. (a)

     9,050         703,366   

The Walt Disney Co. (a)

     26,800         1,684,112   

Wells Fargo & Co. (a)

     33,500         1,272,330   
     

 

 

 
                57,376,229   

Total Long-Term Investments

(Cost — $76,429,745) — 96.7%

              83,062,252   
     
                  
Short-Term Securities    Shares      Value  

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     3,450,193       $ 3,450,193   

Total Short-Term Securities

(Cost — $3,450,193) — 4.0%

              3,450,193   

Total Investments Before Options Written

(Cost — $79,879,938) — 100.7%

              86,512,445   
     
Options Written                

(Premiums Received — $580,729) — (1.2)%

              (1,012,745

Total Investments Net of Options Written — 99.5%

        85,499,700   

Other Assets Less Liabilities — 0.5%

        448,008   
     

 

 

 

Net Assets — 100.0%

      $ 85,947,708   
     

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2012
     Net
Activity
     Shares Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     2,623,356         826,837         3,450,193       $ 2,103       $ 19   

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency
Purchased
      

Currency
Sold

    Counterparty   Settlement
Date
       Unrealized
Depreciation
 
USD        6,901           CAD           7,000      Goldman Sachs & Co.     5/01/13         $ (47
USD        26,328           EUR           20,000      Citigroup Global Markets, Inc.     5/02/13           (11
Total                         $ (58
                       

 

 

 

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Exxon Mobil Corp.

     Call         USD         90.00         5/03/13         67       $ (204

American Express Co.

     Call         USD         65.85         5/06/13         35         (8,994

Enel SpA

     Call         EUR         2.90         5/17/13         22         (1,415

Verizon Communications, Inc.

     Call         USD         49.10         5/18/13         120         (57,720

Ameren Corp.

     Call         USD         35.00         5/20/13         95         (12,825

Bank of America Corp.

     Call         USD         13.00         5/20/13         37         (204

Bank of Nova Scotia

     Call         CAD         59.50         5/20/13         49         (584

BHP Billiton Ltd. — ADR

     Call         USD         75.00         5/20/13         33         (231

Canon, Inc. — ADR

     Call         USD         40.00         5/20/13         40         (1,400

Dominion Resources, Inc.

     Call         USD         60.00         5/20/13         28         (5,250

Exxon Mobil Corp.

     Call         USD         90.00         5/20/13         46         (1,610

General Mills, Inc.

     Call         USD         49.00         5/20/13         77         (12,474

Genuine Parts Co.

     Call         USD         75.00         5/20/13         25         (4,688

The Goldman Sachs Group, Inc.

     Call         USD         155.00         5/20/13         11         (297

HSBC Holdings Plc — ADR

     Call         USD         57.50         5/20/13         96         (816

 

See Notes to Financial Statements.

 

84    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts     

Market

Value

 

Intel Corp.

     Call         USD         22.00         5/20/13         112       $ (21,784

International Business Machines Corp.

     Call         USD         215.00         5/20/13         30         (270

Johnson & Johnson

     Call         USD         85.00         5/20/13         33         (3,531

Merck & Co., Inc.

     Call         USD         48.00         5/20/13         11         (424

Mondelez International, Inc. — Class A

     Call         USD         29.00         5/20/13         44         (11,880

NextEra Energy, Inc.

     Call         USD         80.00         5/20/13         21         (4,725

Pfizer, Inc.

     Call         USD         31.00         5/20/13         25         (112

Philip Morris International, Inc.

     Call         USD         92.50         5/20/13         24         (8,160

PPG Industries, Inc.

     Call         USD         145.00         5/20/13         25         (9,125

Reynolds American, Inc.

     Call         USD         44.00         5/20/13         55         (19,250

Siemens AG — ADR

     Call         USD         105.00         5/20/13         16         (2,800

T Rowe Price Group, Inc.

     Call         USD         75.00         5/20/13         24         (600

United Technologies Corp.

     Call         USD         92.50         5/20/13         20         (1,110

Wells Fargo & Co.

     Call         USD         37.00         5/20/13         105         (11,130

HCP, Inc. — REIT

     Call         USD         49.25         5/22/13         25         (10,125

Cincinnati Financial Corp.

     Call         USD         47.30         5/23/13         47         (8,056

Kraft Foods Group, Inc.

     Call         USD         52.50         6/03/13         31         (1,482

General Mills, Inc.

     Call         USD         48.60         6/05/13         70         (13,829

Bank of America Corp.

     Call         USD         12.50         6/07/13         37         (1,061

M&T Bank Corp.

     Call         USD         99.75         6/10/13         19         (3,419

United Technologies Corp.

     Call         USD         95.00         6/10/13         20         (740

The Coca-Cola Co.

     Call         USD         43.00         6/12/13         65         (2,786

MetLife, Inc.

     Call         USD         39.00         6/12/13         29         (3,348

Microchip Technology, Inc.

     Call         USD         37.50         6/13/13         83         (3,639

Enel SpA

     Call         EUR         3.10         6/21/13         22         (548

Altria Group, Inc.

     Call         USD         36.00         6/24/13         170         (17,170

AT&T Inc.

     Call         USD         38.00         6/24/13         65         (3,738

Emerson Electric Co.

     Call         USD         55.00         6/24/13         112         (19,320

Intel Corp.

     Call         USD         22.00         6/24/13         66         (12,969

Johnson & Johnson

     Call         USD         85.00         6/24/13         33         (4,950

Merck & Co., Inc.

     Call         USD         48.00         6/24/13         11         (798

Merck & Co., Inc.

     Call         USD         49.00         6/24/13         14         (581

Microsoft Corp.

     Call         USD         30.00         6/24/13         152         (48,260

Pfizer, Inc.

     Call         USD         31.00         6/24/13         13         (188

Pfizer, Inc.

     Call         USD         32.00         6/24/13         13         (91

Philip Morris International, Inc.

     Call         USD         92.50         6/24/13         24         (9,840

The Procter & Gamble Co.

     Call         USD         82.50         6/24/13         33         (396

Suncor Energy, Inc.

     Call         CAD         29.00         6/24/13         14         (3,599

TransCanada Corp.

     Call         CAD         49.50         6/24/13         43         (5,975

U.S. Bancorp

     Call         USD         33.00         6/24/13         46         (3,910

Wal-mart Stores, Inc.

     Call         USD         80.00         6/24/13         36         (2,484

The Walt Disney Co.

     Call         USD         62.50         6/24/13         107         (23,594

AT&T Inc.

     Call         USD         38.00         7/20/13         65         (4,680

The Procter & Gamble Co.

     Call         USD         82.50         7/22/13         33         (825

Total

                  $ (416,014
                 

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    85


Table of Contents
Schedule of Investments (continued)      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Liberty Property Trust — REIT

   Barclays Bank      Call         USD         39.33         5/03/13         1,500       $ (5,496

General Electric Co.

   Credit Suisse First Boston      Call         USD         23.27         5/06/13         22,300         (44

Prudential Financial, Inc.

   Credit Suisse First Boston      Call         USD         59.94         5/06/13         6,000         (6,573

Hang Seng Bank Ltd.

   Citigroup Global Markets, Inc.      Call         HKD         127.54         5/07/13         7,200         (2,384

Hopewell Holdings Ltd.

   Morgan Stanley & Co., Inc.      Call         HKD         34.02         5/07/13         56,000         (1

Keppel Corp. Ltd.

   Citigroup Global Markets, Inc.      Call         SGD         11.28         5/07/13         23,597         (3

National Australia Bank Ltd.

   Morgan Stanley & Co., Inc.      Call         AUD         31.06         5/07/13         14,000         (43,286

Oracle Corp Japan

   UBS Securities LLC      Call         JPY         4,014.75         5/07/13         4,000         (6,980

Ricoh Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         1,050.60         5/07/13         14,000         (6,806

Santos Ltd.

   UBS Securities LLC      Call         AUD         13.48         5/07/13         28,500         (28

Takeda Pharmaceutical Co. Ltd.

   Citigroup Global Markets, Inc.      Call         JPY         4,947.34         5/07/13         4,600         (19,000

Treasury Wine Estates Ltd.

   Goldman Sachs & Co.      Call         AUD         5.63         5/07/13         14,500         (3,693

United Overseas Bank Ltd.

   Citigroup Global Markets, Inc.      Call         SGD         19.65         5/07/13         8,000         (11,437

The Chubb Corp.

   Credit Suisse First Boston      Call         USD         87.10         5/09/13         2,600         (3,635

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/09/13         1,800         (3,464

Ventas, Inc. — REIT

   UBS Securities LLC      Call         USD         75.76         5/09/13         4,400         (17,028

Equity Residential — REIT

   Deutsche Bank Securities Corp.      Call         USD         57.19         5/10/13         4,400         (5,475

Pfizer, Inc.

   Credit Suisse First Boston      Call         USD         28.97         5/13/13         10,200         (3,521

U.S. Bancorp

   Morgan Stanley & Co., Inc.      Call         USD         34.34         5/13/13         4,800         (112

GlaxoSmithKline Plc

   Deutsche Bank Securities Corp.      Call         GBP         14.88         5/14/13         13,000         (35,700

Man Strategic Holdings Plc

   Goldman Sachs & Co.      Call         GBP         1.01         5/14/13         31,000         (2,365

Scottish & Southern Energy Plc

   Goldman Sachs & Co.      Call         GBP         14.82         5/14/13         14,000         (16,745

Vinci SA

   Morgan Stanley & Co., Inc.      Call         EUR         36.30         5/14/13         4,900         (4,820

The Coca-Cola Co.

   Citigroup Global Markets, Inc.      Call         USD         39.31         5/23/13         2,300         (7,151

Enbridge, Inc.

   Citigroup Global Markets, Inc.      Call         CAD         46.79         5/23/13         5,000         (6,493

Merck & Co., Inc.

   Credit Suisse First Boston      Call         USD         45.13         5/23/13         1,800         (3,809

Chevron Corp.

   JPMorgan Chase Securities      Call         USD         119.93         5/24/13         6,700         (17,675

Allianz SE

   Deutsche Bank Securities Corp.      Call         EUR         112.67         5/28/13         1,600         (4,469

Bouygues SA

   Goldman Sachs & Co.      Call         EUR         22.75         5/28/13         3,300         (291

Hennes & Mauritz AB, B Shares

   Citigroup Global Markets, Inc.      Call         SEK         233.92         5/28/13         9,400         (2,961

Mobistar SA

   Deutsche Bank Securities Corp.      Call         EUR         19.26         5/28/13         1,900         (156

Nestle SA

   Deutsche Bank Securities Corp.      Call         CHF         68.82         5/28/13         2,400         (575

Ratos AB, B Shares

   Citigroup Global Markets, Inc.      Call         SEK         64.62         5/28/13         16,000         (2,132

Sanofi

   Citigroup Global Markets, Inc.      Call         EUR         76.02         5/28/13         1,400         (11,430

Scania AB, B Shares

   Goldman Sachs & Co.      Call         SEK         139.12         5/28/13         15,500         (3,655

Solvay SA

   Morgan Stanley & Co., Inc.      Call         EUR         115.29         5/28/13         1,000         (2,620

TeliaSonera AB

   Morgan Stanley & Co., Inc.      Call         SEK         45.17         5/28/13         22,000         (1,627

Zurich Insurance Group AG

   Goldman Sachs & Co.      Call         CHF         251.69         5/28/13         450         (4,842

Health Care REIT, Inc.

   Goldman Sachs & Co.      Call         USD         67.37         5/29/13         4,400         (33,440

Royal Dutch Shell Plc — ADR

   Citigroup Global Markets, Inc.      Call         USD         67.62         5/29/13         2,800         (2,134

Australia & New Zealand Banking Group Ltd.

   JPMorgan Chase Securities      Call         AUD         28.67         5/30/13         7,600         (25,529

Bristol-Myers Squibb Co.

   Citigroup Global Markets, Inc.      Call         USD         39.41         5/30/13         15,400         (13,454

The Home Depot, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         71.35         5/30/13         8,300         (19,475

Power Assets Holdings Ltd.

   JPMorgan Chase Securities      Call         HKD         74.48         5/30/13         42,000         (11,438

Automatic Data Processing, Inc.

   Citigroup Global Markets, Inc.      Call         USD         64.09         5/31/13         5,700         (19,992

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         56.94         5/31/13         3,500         (16,590

Kraft Foods Group, Inc.

   Credit Suisse First Boston      Call         USD         51.76         6/03/13         900         (569

AstraZeneca Plc

   Goldman Sachs & Co.      Call         GBP         33.52         6/04/13         7,100         (5,263

BASF SE

   Goldman Sachs & Co.      Call         EUR         71.30         6/04/13         4,100         (9,558

BHP Billiton Plc

   Morgan Stanley & Co., Inc.      Call         GBP         19.38         6/04/13         5,700         (1,377

3M Co.

   Credit Suisse First Boston      Call         USD         108.91         6/05/13         4,900         (1,130

 

See Notes to Financial Statements.

 

86    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (concluded)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

PepsiCo, Inc.

   Deutsche Bank Securities Corp.      Call         USD         79.99         6/05/13         3,200       $ (8,588

Enbridge, Inc.

   Citigroup Global Markets, Inc.      Call         CAD         46.79         6/06/13         5,000         (6,543

Mondelez International, Inc. — Class A

   Morgan Stanley & Co., Inc.      Call         USD         30.70         6/06/13         8,000         (9,485

NextEra Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         77.39         6/07/13         4,400         (20,416

Abbott Laboratories

   Credit Suisse First Boston      Call         USD         37.02         6/10/13         4,400         (3,305

HCP, Inc. — REIT

   Morgan Stanley & Co., Inc.      Call         USD         51.62         6/10/13         2,500         (4,200

Total SA — ADR

   Morgan Stanley & Co., Inc.      Call         USD         47.14         6/10/13         11,900         (39,900

AT&T Inc.

   Citigroup Global Markets, Inc.      Call         USD         38.90         6/12/13         13,000         (2,443

British American Tobacco Plc

   Banc of America Securities      Call         GBP         36.16         6/13/13         7,000         (7,016

Iberdrola SA

   Citigroup Global Markets, Inc.      Call         EUR         3.87         6/13/13         17,000         (6,391

Wells Fargo & Co.

   Citigroup Global Markets, Inc.      Call         USD         37.88         6/17/13         2,900         (1,682

SAP AG — ADR

   Morgan Stanley & Co., Inc.      Call         USD         75.28         6/18/13         2,300         (11,665

Honeywell International, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         73.98         6/19/13         2,500         (2,858

AbbVie, Inc.

   Citigroup Global Markets, Inc.      Call         USD         43.36         6/26/13         4,200         (14,092

Frontier Communications Corp.

   Goldman Sachs & Co.      Call         USD         4.15         6/26/13         83,000         (13,276

McDonald’s Corp.

   Morgan Stanley & Co., Inc.      Call         USD         102.87         6/27/13         5,200         (6,608

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         61.71         7/09/13         3,600         (2,574

Hudson City Bancorp, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         8.39         7/09/13         11,000         (2,035

Liberty Property Trust — REIT

   Barclays Bank      Call         USD         43.04         7/09/13         1,500         (900

Honeywell International, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         73.98         7/19/13         2,500         (4,323

Total

                     $ (596,731
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    87


Table of Contents
Schedule of Investments (concluded)      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Australia

   $ 538,567      $ 2,999,590              $ 3,538,157   

Belgium

     110,187        351,629                461,816   

Canada

     2,553,613                       2,553,613   

France

     1,497,152        1,183,465                2,680,617   

Germany

     877,178        1,531,738                2,408,916   

Hong Kong

            1,876,746                1,876,746   

Italy

            214,253                214,253   

Japan

     363,701        1,465,844                1,829,545   

Netherlands

     472,392                       472,392   

Singapore

            862,970                862,970   

Spain

            231,354                231,354   

Sweden

            2,421,396                2,421,396   

Switzerland

            730,500                730,500   

United Kingdom

     1,322,126        4,081,622                5,403,748   

United States

     57,376,229                       57,376,229   

Short-Term Securities

     3,450,193                       3,450,193   

Total

   $ 68,561,338      $ 17,951,107              $ 86,512,445   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (298,647   $ (714,098           $ (1,012,745

Foreign currency exchange contracts

     (58                    (58

Total

   $ (298,705   $ (714,098           $ (1,012,803
  

 

 

 

1    Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

        

Certain of the Trust’s assets are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 12,362                     $ 12,362   

Foreign currency at value

     40,391                       40,391   

Total

   $ 52,753                     $ 52,753   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

88    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments April 30, 2013 (Unaudited)      BlackRock Utility and Infrastructure Trust (BUI)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Construction & Engineering — 1.6%

     

Ferrovial SA

     153,500       $ 2,539,267   

Vinci SA

     65,200         3,143,088   
     

 

 

 
                5,682,355   

Diversified Telecommunication Services — 6.4%

  

BT Group Plc

     1,091,100         4,691,325   

Swisscom AG

     2,000         942,039   

Telenor ASA

     240,300         5,415,147   

Verizon Communications, Inc. (a)

     224,700         12,113,577   
     

 

 

 
                23,162,088   

Electric Utilities — 22.0%

  

  

American Electric Power Co., Inc.

     98,100         5,045,283   

Cia Energetica de Minas Gerais — ADR

     371,500         4,766,345   

Cleco Corp.

     35,400         1,753,008   

Duke Energy Corp.

     113,468         8,532,794   

E.ON SE

     40,200         730,054   

Edison International

     121,900         6,558,220   

EDP — Energias de Portugal SA

     778,000         2,673,989   

EDP — Energias do Brasil SA

     657,900         4,014,974   

Enel SpA (a)

     604,300         2,337,059   

Exelon Corp. (a)

     67,400         2,528,174   

Iberdrola SA

     334,700         1,799,538   

ITC Holdings Corp.

     31,700         2,923,374   

NextEra Energy, Inc. (a)

     117,100         9,605,713   

Northeast Utilities

     70,400         3,191,232   

NV Energy, Inc.

     191,900         4,150,797   

Pepco Holdings, Inc. (a)

     101,100         2,284,860   

Pinnacle West Capital Corp.

     40,400         2,460,360   

Power Assets Holdings Ltd.

     270,400         2,644,192   

PPL Corp.

     77,100         2,573,598   

Red Electrica Corp SA

     17,000         904,258   

The Southern Co. (a)

     61,300         2,956,499   

Spark Infrastructure Group

     648,100         1,202,897   

Terna Rete Elettrica Nazionale SpA (a)

     233,300         1,091,992   

Westar Energy, Inc.

     86,300         3,017,048   
     

 

 

 
                79,746,258   

Gas Utilities — 0.9%

     

Snam SpA (a)

     670,300         3,296,196   

Independent Power Producers & Energy Traders — 5.2%

  

EDP Renovaveis SA (b)

     310,500         1,618,309   

Enel Green Power SpA (a)

     790,000         1,685,244   

NRG Energy, Inc. (a)

     174,601         4,866,130   

Tractebel Energia SA

     603,300         10,722,653   
     

 

 

 
                18,892,336   

Machinery — 0.6%

     

Xylem, Inc.

     81,100         2,250,525   

Multi-Utilities — 15.5%

     

CenterPoint Energy, Inc.

     73,300         1,809,044   

CMS Energy Corp. (a)

     261,800         7,838,292   

Consolidated Edison, Inc. (a)

     35,400         2,253,210   

Dominion Resources, Inc. (a)

     87,300         5,384,664   

National Grid Plc

     944,600         12,041,014   

NorthWestern Corp.

     67,500         2,903,850   

PG&E Corp.

     108,700         5,265,428   

Public Service Enterprise Group, Inc.

     154,101         5,641,638   

Sempra Energy

     73,800         6,114,330   

Wisconsin Energy Corp.

     110,900         4,983,846   

Xcel Energy, Inc.

     55,500         1,764,345   
     

 

 

 
                55,999,661   
Common Stocks    Shares      Value  

Oil, Gas & Consumable Fuels — 18.0%

     

Access Midstream Partners LP

     35,576       $ 1,468,222   

Delek Logistics Partners LP

     37,600         1,135,520   

Enbridge, Inc.

     150,100         7,144,760   

Energy Transfer Partners LP

     28,196         1,403,879   

Enterprise Products Partners LP

     109,977         6,670,105   

EQT Midstream Partners LP

     55,400         2,565,020   

Genesis Energy LP

     36,469         1,753,065   

Kinder Morgan, Inc.

     67,300         2,631,430   

Magellan Midstream Partners LP

     73,300         3,887,099   

MarkWest Energy Partners LP

     49,353         3,119,110   

MPLX LP

     60,300         2,307,681   

ONEOK Partners LP

     111,045         6,007,535   

Pembina Pipeline Corp. (a)

     81,800         2,685,122   

Plains All American Pipeline LP

     146,770         8,427,533   

Rose Rock Midstream LP

     18,300         720,654   

Tesoro Logistics LP

     88,100         5,250,760   

TransCanada Corp. (a)

     104,400         5,175,181   

Western Gas Partners LP

     23,114         1,397,472   

Williams Partners LP

     27,890         1,524,189   
     

 

 

 
                65,274,337   

Real Estate Investment Trusts (REITs) — 3.4%

  

American Tower Corp. — REIT (a)

     148,700         12,489,309   

Transportation Infrastructure — 12.4%

     

Abertis Infraestructuras SA

     255,900         4,774,927   

Aeroports de Paris

     27,200         2,461,901   

Atlantia SpA (a)

     373,570         6,678,883   

CCR SA

     1,143,000         11,180,062   

China Merchants Holdings International Co. Ltd.

     641,000         2,033,417   

Fraport AG Frankfurt Airport Services Worldwide

     30,000         1,794,956   

Gemina SpA (b)

     1,653,430         3,161,156   

Groupe Eurotunnel SA

     191,300         1,602,756   

Santos Brasil Participacoes SA

     110,200         1,714,620   

Sydney Airport

     588,200         2,110,410   

Transurban Group

     1,038,800         7,348,790   
     

 

 

 
                44,861,878   

Water Utilities — 7.5%

     

American Water Works Co., Inc.

     174,200         7,295,496   

Aqua America, Inc.

     45,100         1,431,023   

Cia de Saneamento Basico do Estado de Sao Paulo

     425,700         5,993,737   

Cia de Saneamento de Minas Gerais — COPASA

     331,100         7,628,994   

Guangdong Investment Ltd.

     4,360,000         4,221,243   

Severn Trent Plc

     24,500         694,356   
     

 

 

 
                27,264,849   

Wireless Telecommunication Services — 1.9%

  

Crown Castle International Corp. (b)

     23,000         1,771,000   

Rogers Communications, Inc., Class B (a)

     66,600         3,284,882   
 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    89


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Wireless Telecommunication Services (concluded)

  

SBA Communications Corp., Class A (b)

     23,200       $ 1,832,568   
     

 

 

 
                6,888,450   

Total Long-Term Investments

(Cost — $ 296,054,079) — 95.4%

  

  

     345,808,242   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.08% (c)(d)

     12,319,145         12,319,145   

Total Short-Term Securities

(Cost — $ 12,319,145) — 3.4%

  

  

     12,319,145   
        Value  

Total Investments Before Options Written

(Cost — $308,373,224) — 98.8%

   $ 358,127,387   
  
Options Written        

(Premiums Received — $2,178,471) — (1.5)%

     (5,300,906

Total Investments Net of Options Written — 97.3%

     352,826,481   

Other Assets Less Liabilities — 2.7%

     9,750,914   
  

 

 

 

Net Assets — 100.0%

   $ 362,577,395   
  

 

 

 
 
Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in issuers considered to be an affiliate of the Trust during the six months ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held at
October 31, 2012
    

Net

Activity

     Shares Held at
April 30, 2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     7,229,592         5,089,553         12,319,145       $ 6,352       $ 214   

 

Ÿ  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

Ÿ  

Foreign currency exchange contracts as of April 30, 2013 were as follows:

 

Currency
Purchased
       Currency
Sold
    Counterparty  

Settlement

Date

      

Unrealized

Depreciation

 
USD        700,987           CAD           711,000      Goldman Sachs Group, Inc.     5/01/13         $ (4,755
USD        772,208           CAD           778,000      Citigroup Global Markets, Inc.     5/02/13           (38
USD        10,531           EUR           8,000      Citigroup Global Markets, Inc.     5/02/13           (5
USD        577,415           HKD           4,481,000      Citigroup Global Markets, Inc.     5/02/13           (23
Total                         $ (4,821
                       

 

 

 

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows:

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Atlantia SpA

     Call         EUR         13.00         5/17/13         130       $ (53,578

Atlantia SpA

     Call         EUR         13.50         5/17/13         94         (17,173

Enel Green Power SpA

     Call         EUR         1.65         5/17/13         62         (1,760

Enel SpA

     Call         EUR         2.90         5/17/13         120         (7,718

Snam SpA

     Call         EUR         3.80         5/17/13         21         (458

Snam SpA

     Call         EUR         3.90         5/17/13         9         (30

Terna Rete Elettrica Nazionale SpA

     Call         EUR         3.40         5/17/13         8         (8,966

Terna Rete Elettrica Nazionale SpA

     Call         EUR         3.50         5/17/13         8         (4,608

American Tower Corp. — REIT

     Call         USD         77.00         5/18/13         74         (51,726

 

See Notes to Financial Statements.

 

90    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Ÿ  

Exchange-traded options written as of April 30, 2013 were as follows: (concluded)

 

Description    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Verizon Communications, Inc.

     Call         USD         49.10         5/18/13         670       $ (322,270

American Tower Corp. — REIT

     Call         USD         80.00         5/20/13         447         (189,975

Dominion Resources, Inc.

     Call         USD         57.50         5/20/13         40         (17,000

Exelon Corp.

     Call         USD         35.00         5/20/13         108         (27,000

NRG Energy, Inc.

     Call         USD         27.00         5/20/13         337         (38,755

Rogers Communications, Inc., Class B

     Call         CAD         50.50         5/20/13         224         (5,559

Atlantia SpA

     Call         EUR         13.00         6/21/13         15         (5,690

Atlantia SpA

     Call         EUR         13.50         6/21/13         21         (4,729

Enel SpA

     Call         EUR         3.10         6/21/13         290         (7,218

Exelon Corp.

     Call         USD         37.00         6/24/13         115         (11,500

NRG Energy, Inc.

     Call         USD         28.00         6/24/13         113         (9,605

Pembina Pipeline Corp.

     Call         CAD         32.00         6/24/13         270         (31,490

TransCanada Corp.

     Call         CAD         49.50         6/24/13         344         (47,804

Total

                  $ (864,612
                 

 

 

 

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows:

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Cia Energetica de Minas Gerais — ADR

   Citigroup Global Markets, Inc.      Call         USD         13.13         5/02/13         61,000       $ (2,508

EQT Midstream Partners LP

   Citigroup Global Markets, Inc.      Call         USD         39.44         5/02/13         18,000         (123,462

NorthWestern Corp.

   Deutsche Bank Securities Corp.      Call         USD         37.59         5/02/13         26,300         (142,756

SBA Communications Corp., Class A

   Deutsche Bank Securities Corp.      Call         USD         73.98         5/02/13         7,600         (38,056

American Water Works Co., Inc.

   Deutsche Bank Securities Corp.      Call         USD         39.88         5/03/13         10,000         (20,020

Edison International

   Morgan Stanley & Co., Inc.      Call         USD         51.10         5/03/13         20,400         (55,080

American Electric Power Co., Inc.

   Morgan Stanley & Co., Inc.      Call         USD         48.18         5/06/13         18,800         (61,100

PPL Corp.

   Morgan Stanley & Co., Inc.      Call         USD         31.25         5/06/13         14,600         (31,098

Wisconsin Energy Corp.

   Morgan Stanley & Co., Inc.      Call         USD         40.85         5/06/13         36,500         (149,285

China Merchants Holdings International Co. Ltd.

   Citigroup Global Markets, Inc.      Call         HKD         27.93         5/07/13         206,000         (3

Duke Energy Corp.

   Morgan Stanley & Co., Inc.      Call         USD         70.17         5/07/13         14,000         (70,420

Guangdong Investment Ltd.

   JPMorgan Chase Securities      Call         HKD         7.00         5/07/13         1,438,000         (96,072

Santos Brasil Participacoes SA

   Credit Suisse First Boston      Call         BRL         30.43         5/07/13         12,100         (6,255

Sempra Energy

   Credit Suisse First Boston      Call         USD         76.51         5/07/13         21,400         (135,676

American Electric Power Co., Inc.

   Credit Suisse First Boston      Call         USD         46.78         5/08/13         13,500         (62,732

Public Service Enterprise Group, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         32.25         5/08/13         6,000         (26,160

American Water Works Co., Inc.

   Citigroup Global Markets, Inc.      Call         USD         40.38         5/09/13         19,400         (29,567

Northeast Utilities

   UBS Securities LLC      Call         USD         42.63         5/09/13         5,500         (14,850

Plains All American Pipeline LP

   JPMorgan Chase Securities      Call         USD         54.01         5/09/13         10,000         (34,110

Western Gas Partners LP

   Goldman Sachs & Co.      Call         USD         57.99         5/09/13         7,500         (18,589

Energy Transfer Partners LP

   JPMorgan Chase Securities      Call         USD         46.55         5/10/13         9,000         (29,196

NV Energy, Inc.

   UBS Securities LLC      Call         USD         20.27         5/10/13         30,000         (41,225

Pinnacle West Capital Corp.

   JPMorgan Chase Securities      Call         USD         57.51         5/10/13         13,500         (45,819

Access Midstream Partners LP

   Morgan Stanley & Co., Inc.      Call         USD         39.79         5/13/13         9,000         (14,021

Pepco Holdings, Inc.

   Goldman Sachs & Co.      Call         USD         20.60         5/13/13         37,500         (75,000

PPL Corp.

   UBS Securities LLC      Call         USD         30.73         5/13/13         3,000         (7,950

BT Group Plc

   Morgan Stanley & Co., Inc.      Call         GBP         2.69         5/14/13         645,000         (118,291

Edison International

   Citigroup Global Markets, Inc.      Call         USD         50.81         5/14/13         20,700         (61,872

National Grid Plc

   Deutsche Bank Securities Corp.      Call         GBP         7.39         5/14/13         157,400         (199,357

Severn Trent Plc

   UBS Securities LLC      Call         GBP         16.22         5/14/13         8,100         (25,504

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    91


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Ÿ  

Over-the-counter written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

Spark Infrastructure Group

   Morgan Stanley & Co., Inc.      Call         AUD         1.68         5/14/13         213,000       $ (24,995

Vinci SA

   Morgan Stanley & Co., Inc.      Call         EUR         36.30         5/14/13         21,600         (21,249

American Water Works Co., Inc.

   Citigroup Global Markets, Inc.      Call         USD         40.47         5/15/13         9,800         (14,649

Cia de Saneamento Basico do Estado de Sao Paulo

   Credit Suisse First Boston      Call         BRL         29.15         5/15/13         140,400         (15,715

NV Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         20.20         5/15/13         33,000         (48,333

PG&E Corp.

   Credit Suisse First Boston      Call         USD         43.01         5/15/13         36,000         (195,630

Tesoro Logistics LP

   Citigroup Global Markets, Inc.      Call         USD         54.29         5/15/13         14,500         (77,024

Xcel Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         30.60         5/17/13         18,300         (27,379

Sempra Energy

   Credit Suisse First Boston      Call         USD         77.31         5/22/13         2,900         (16,081

CCR SA

   Deutsche Bank Securities Corp.      Call         BRL         19.93         5/23/13         192,600         (34,540

Cia de Saneamento de Minas Gerais — COPASA

   Deutsche Bank Securities Corp.      Call         BRL         48.25         5/23/13         35,700         (4,955

EDP — Energias do Brasil SA

   Credit Suisse First Boston      Call         BRL         12.26         5/23/13         87,100         (15,161

Santos Brasil Participacoes SA

   Citigroup Global Markets, Inc.      Call         BRL         29.37         5/23/13         12,100         (12,987

Tractebel Energia SA

   Citigroup Global Markets, Inc.      Call         BRL         33.80         5/23/13         97,500         (110,239

Crown Castle International Corp.

   JPMorgan Chase Securities      Call         USD         72.47         5/24/13         7,500         (35,197

Ferrovial SA

   Citigroup Global Markets, Inc.      Call         EUR         12.69         5/28/13         50,700         (21,803

National Grid Plc

   Deutsche Bank Securities Corp.      Call         GBP         7.48         5/28/13         157,400         (176,680

American Water Works Co., Inc.

   Morgan Stanley & Co., Inc.      Call         USD         41.56         5/29/13         18,000         (16,604

Delek Logistics Partners LP

   JPMorgan Chase Securities      Call         USD         29.00         5/29/13         12,500         (17,482

MPLX LP

   Goldman Sachs & Co.      Call         USD         38.05         5/29/13         20,000         (26,507

Access Midstream Partners LP

   Morgan Stanley & Co., Inc.      Call         USD         39.79         5/30/13         9,000         (15,588

CenterPoint Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         24.05         5/30/13         24,100         (21,209

China Merchants Holdings International Co. Ltd.

   JPMorgan Chase Securities      Call         HKD         25.25         5/30/13         204,000         (16,666

Kinder Morgan, Inc.

   Banc of America Securities      Call         USD         39.95         5/30/13         22,000         (7,563

Power Assets Holdings Ltd.

   JPMorgan Chase Securities      Call         HKD         74.48         5/30/13         89,000         (24,239

Sydney Airport

   UBS Securities LLC      Call         AUD         3.38         5/30/13         194,100         (22,920

Transurban Group

   JPMorgan Chase Securities      Call         AUD         6.60         5/30/13         342,800         (87,132

Williams Partners LP

   UBS Securities LLC      Call         USD         53.50         5/30/13         10,000         (14,291

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         56.94         5/31/13         14,300         (67,782

Plains All American Pipeline LP

   Deutsche Bank Securities Corp.      Call         USD         57.07         5/31/13         28,600         (26,261

Westar Energy, Inc.

   Deutsche Bank Securities Corp.      Call         USD         33.46         5/31/13         28,400         (42,572

Cia Energetica de Minas Gerais — ADR

   Citigroup Global Markets, Inc.      Call         USD         12.57         6/03/13         61,500         (35,343

CMS Energy Corp.

   Citigroup Global Markets, Inc.      Call         USD         28.11         6/03/13         86,000         (157,552

Northeast Utilities

   Morgan Stanley & Co., Inc.      Call         USD         43.23         6/03/13         17,800         (38,975

Xylem, Inc.

   Deutsche Bank Securities Corp.      Call         USD         27.67         6/03/13         21,700         (17,193

Aeroports de Paris

   Citigroup Global Markets, Inc.      Call         EUR         67.37         6/04/13         9,000         (25,133

EDP Renovaveis SA

   Citigroup Global Markets, Inc.      Call         EUR         3.81         6/04/13         102,400         (29,378

Magellan Midstream Partners LP

   Deutsche Bank Securities Corp.      Call         USD         53.25         6/04/13         12,000         (12,330

Red Electrica Corp SA

   Goldman Sachs & Co.      Call         EUR         38.62         6/04/13         5,600         (15,844

Swisscom AG

   Citigroup Global Markets, Inc.      Call         CHF         419.28         6/04/13         600         (12,364

Tractebel Energia SA

   UBS Securities LLC      Call         BRL         35.25         6/04/13         39,000         (28,381

Aqua America, Inc.

   Citigroup Global Markets, Inc.      Call         USD         30.55         6/05/13         36,000         (46,810

Cleco Corp.

   JPMorgan Chase Securities      Call         USD         47.84         6/05/13         11,600         (20,880

MarkWest Energy Partners LP

   Deutsche Bank Securities Corp.      Call         USD         61.36         6/05/13         16,200         (35,767

The Southern Co.

   Citigroup Global Markets, Inc.      Call         USD         47.14         6/05/13         20,200         (22,079

Enbridge, Inc.

   Deutsche Bank Securities Corp.      Call         USD         47.16         6/07/13         49,500         (44,548

Genesis Energy LP

   JPMorgan Chase Securities      Call         USD         45.88         6/07/13         12,000         (31,305

 

See Notes to Financial Statements.

 

92    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Ÿ  

Over-the-counter options written as of April 30, 2013 were as follows: (continued)

 

Description    Counterparty    Put/
Call
    

Strike

Price

     Expiration
Date
     Contracts      Market
Value
 

NextEra Energy, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         77.39         6/07/13         38,600       $ (179,100

Public Service Enterprise Group, Inc.

   Credit Suisse First Boston      Call         USD         35.48         6/07/13         44,800         (51,645

Consolidated Edison, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         61.61         6/10/13         11,500         (23,460

EDP — Energias do Brasil SA

   Credit Suisse First Boston      Call         BRL         12.24         6/10/13         87,100         (20,603

EDP — Energias do Brasil SA

   Deutsche Bank Securities Corp.      Call         BRL         11.98         6/10/13         45,000         (13,743

Santos Brasil Participacoes SA

   Deutsche Bank Securities Corp.      Call         BRL         30.40         6/10/13         6,100         (5,100

Verizon Communications, Inc.

   Credit Suisse First Boston      Call         USD         49.50         6/10/13         7,100         (31,311

EDP — Energias de Portugal SA

   Citigroup Global Markets, Inc.      Call         EUR         2.65         6/11/13         256,800         (17,074

Groupe Eurotunnel SA

   Banc of America Securities      Call         EUR         6.23         6/11/13         63,100         (19,258

ONEOK Partners LP

   Deutsche Bank Securities Corp.      Call         USD         57.47         6/11/13         34,400         (8,576

ONEOK Partners LP

   JPMorgan Chase Securities      Call         USD         56.98         6/11/13         2,200         (484

Abertis Infraestructuras SA

   Goldman Sachs & Co.      Call         EUR         13.14         6/13/13         84,500         (120,086

Enterprise Products Partners LP

   Deutsche Bank Securities Corp.      Call         USD         60.75         6/13/13         36,200         (36,167

Iberdrola SA

   Citigroup Global Markets, Inc.      Call         EUR         3.87         6/13/13         110,500         (41,544

Telenor ASA

   Goldman Sachs & Co.      Call         NOK         129.14         6/13/13         79,300         (32,275

CCR SA

   Deutsche Bank Securities Corp.      Call         BRL         20.48         6/17/13         95,000         (17,149

Cia de Saneamento de Minas Gerais — COPASA

   UBS Securities LLC      Call         BRL         48.58         6/17/13         37,900         (10,124

Santos Brasil Participacoes SA

   Credit Suisse First Boston      Call         BRL         30.59         6/17/13         6,100         (5,031

Tesoro Logistics LP

   Citigroup Global Markets, Inc.      Call         USD         54.29         6/17/13         14,500         (77,024

Tractebel Energia SA

   UBS Securities LLC      Call         BRL         36.66         6/17/13         62,500         (30,901

Magellan Midstream Partners LP

   Deutsche Bank Securities Corp.      Call         USD         53.25         6/18/13         12,000         (15,293

Fraport AG Frankfurt Airport Services Worldwide

   Citigroup Global Markets, Inc.      Call         EUR         45.40         6/19/13         9,900         (14,619

Cia de Saneamento de Minas Gerais — COPASA

   Deutsche Bank Securities Corp.      Call         BRL         48.01         6/26/13         35,700         (14,290

PPL Corp.

   Morgan Stanley & Co., Inc.      Call         USD         32.75         6/26/13         7,800         (5,867

CCR SA

   Deutsche Bank Securities Corp.      Call         BRL         20.09         6/27/13         89,600         (25,196

Xylem, Inc.

   UBS Securities LLC      Call         USD         27.85         6/28/13         5,000         (4,688

Duke Energy Corp.

   Credit Suisse First Boston      Call         USD         75.88         7/08/13         23,400         (15,617

NRG Energy, Inc.

   Goldman Sachs & Co.      Call         USD         27.49         7/08/13         12,600         (14,915

Plains All American Pipeline LP

   Deutsche Bank Securities Corp.      Call         USD         58.58         7/08/13         5,000         (3,840

Dominion Resources, Inc.

   Morgan Stanley & Co., Inc.      Call         USD         61.71         7/09/13         10,600         (7,579

Plains All American Pipeline LP

   Deutsche Bank Securities Corp.      Call         USD         58.58         7/24/13         5,000         (4,386

Total

                     $ (4,436,294
                    

 

 

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  Ÿ  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  Ÿ  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    93


Table of Contents
Schedule of Investments (concluded)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Construction & Engineering

          $ 5,682,355              $ 5,682,355   

Diversified Telecommunication Services

   $ 12,113,577        11,048,511                23,162,088   

Electric Utilities

     67,266,537        12,479,721                79,746,258   

Gas Utilities

     3,296,196                       3,296,196   

Independent Power Producers & Energy Traders

     15,588,783        3,303,553                18,892,336   

Machinery

     2,250,525                       2,250,525   

Multi-Utilities

     43,958,647        12,041,014                55,999,661   

Oil, Gas & Consumable Fuels

     65,274,337                       65,274,337   

Real Estate Investment Trusts (REITs)

     12,489,309                       12,489,309   

Transportation Infrastructure

     12,894,682        31,967,196                44,861,878   

Water Utilities

     22,349,250        4,915,599                27,264,849   

Wireless Telecommunication Services

     6,888,450                       6,888,450   

Short-Term Securities

     12,319,145                       12,319,145   

Total

   $ 276,689,438      $ 81,437,949              $ 358,127,387   
  

 

 

 
         
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (378,688   $ (4,922,218           $ (5,300,906

Foreign currency exchange contracts

     (4,821                    (4,821

Total

   $ (383,509   $ (4,922,218           $ (5,305,727
  

 

 

 

1   Derivative financial instruments are foreign currency exchange contracts and options written. Foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options written are shown at value.

       

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilites are categorized within the disclosure hierarchy as follows:    
         
      Level 1     Level 2     Level 3      Total  

Assets:

         

Cash

   $ 415,253                     $ 415,253   

Foreign currency at value

     56,660                       56,660   

Liabilities:

         

Cash received as collateral for options written

          $ (30,000             (30,000

Total

   $ 471,913      $ (30,000           $ 441,913   
  

 

 

 

There were no transfers between levels during the six months ended April 30, 2013.

 

See Notes to Financial Statements.

 

94    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Assets and Liabilities     

 

April 30, 2013 (Unaudited)    BlackRock
EcoSolutions
Investment
Trust (BQR)
    BlackRock
Energy and
Resources
Trust (BGR)
    BlackRock
Enhanced
Capital and
Income
Fund, Inc. (CII)
    BlackRock
Enhanced
Equity
Dividend
Trust (BDJ)
   

BlackRock
Global
Opportunities
Equity

Trust (BOE)

    BlackRock
Health
Sciences
Trust (BME)
 
            
Assets                                                 

Investments at value — unaffiliated1,2

   $ 113,167,673      $ 819,601,580      $ 603,908,034      $ 1,485,185,549      $ 1,085,571,587      $ 243,268,328   

Investments at value — affiliated3

     6,030,375        24,262,068        31,924,863        76,237,084        20,035,651        4,443,975   

Cash

     1,865,546                      5,897,424        2,908,663          

Cash pledged as collateral for options written

     100,000               900,000        200,000               1,174,951   

Foreign currency at value4

     80,750        24        6,104        125,967        4,188,164        49,761   

Investments sold receivable

     205,140        11,373,903        22,177,902        48,341,695        18,888,142        5,753,040   

Dividends receivable — affiliated

     452        2,080        1,738        5,897        3,618        264   

Unrealized appreciation on foreign currency exchange contracts

                                        16   

Dividends receivable

     284,541        561,375        1,195,926        1,711,831        2,767,523        380,462   

Other assets

     6,950        35,152        12,003        93,008        1,048,641        16,175   
  

 

 

 

Total assets

     121,741,427        855,836,182        660,126,570        1,617,798,455        1,135,411,989        255,086,972   
  

 

 

 
            
Liabilities                                                 

Bank overdraft

                   2,951,603                        

Investments purchased payable

            9,745,915        5,530,489        29,860,241        11,868,657        3,694,830   

Options written at value5

     1,473,747        10,022,464        11,057,747        25,826,639        18,959,736        3,647,998   

Collateral on securities loaned, at value

            6,500                               

Cash received as collateral for options written

            397,000                      900,000          

Investment advisory fees payable

     116,240        806,563        437,175        1,021,856        886,749        201,247   

Officer’s and Trustees’ fees payable

     595        321,834        47,435        585,447        460,077        18,326   

Unrealized depreciation on foreign currency exchange contracts

                          836        94        289   

Other accrued expenses payable

     110,450        241,905        195,303        368,882        445,198        110,161   
  

 

 

 

Total liabilities

     1,701,032        21,542,181        20,219,752        57,663,901        33,520,511        7,672,851   
  

 

 

 

Net Assets

   $ 120,040,395      $ 834,294,001      $ 639,906,818      $ 1,560,134,554      $ 1,101,891,478      $ 247,414,121   
  

 

 

 
            
Net Assets Consist of                                                 

Paid-in capital

   $ 180,442,276      $ 671,744,850      $ 761,471,377      $ 1,633,616,164      $ 1,229,456,515      $ 180,799,761   

Distributions in excess of net investment income

     (3,966,200     (17,679,999     (19,481,880     (33,272,327     (39,526,588     (11,795,654

Accumulated net realized gain (loss)

     (62,723,062     13,788,229        (143,040,236     (233,416,593     (204,293,463     24,009,949   

Net unrealized appreciation/depreciation

     6,287,381        166,440,921        40,957,557        193,207,310        116,255,014        54,400,065   
  

 

 

 

Net Assets

   $ 120,040,395      $ 834,294,001      $ 639,906,818      $ 1,560,134,554      $ 1,101,891,478      $ 247,414,121   
  

 

 

 

Net asset value6,7

   $ 9.55      $ 28.03      $ 14.50      $ 8.69      $ 15.86      $ 31.98   
  

 

 

 

1 Investments at cost — unaffiliated

   $ 106,563,780      $ 650,154,284      $ 559,283,203      $ 1,281,152,986      $ 965,818,824      $ 187,481,776   

2 Securities on loan at value

          $ 910                               

3 Investments at cost — affiliated

   $ 6,030,375      $ 24,262,068      $ 31,924,863      $ 76,237,084      $ 20,035,651      $ 4,443,975   

4 Foreign currency at cost

   $ 81,258      $ 22      $ 9,777      $ 124,814      $ 4,059,530      $ 49,502   

5 Premiums received

   $ 1,159,044      $ 7,013,209      $ 7,424,954      $ 14,999,846      $ 14,369,571      $ 2,264,803   

6 Shares outstanding, unlimited number of shares authorized, $0.001 par value

     12,564,457        29,766,217               179,482,756        69,483,161        7,737,048   

7 Shares outstanding, 200 million shares authorized, $0.10 par value

                   44,121,400                        

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    95


Table of Contents
Statements of Assets and Liabilities (concluded)     

 

April 30, 2013 (Unaudited)   

BlackRock
International
Growth and
Income

Trust (BGY)

   

BlackRock
Real Asset
Equity

Trust (BCF)

    BlackRock
Resources &
Commodities
Strategy
Trust (BCX)1
    BlackRock
S&P Quality
Rankings
Global Equity
Managed
Trust (BQY)
    BlackRock
Utility and
Infrastructure
Trust (BUI)
 
          
Assets                                         

Investments at value — unaffiliated2

   $ 947,148,590      $ 551,107,204      $ 606,772,676      $ 83,062,252      $ 345,808,242   

Investments at value — affiliated3

     15,189,301        30,302,399        34,574,081        3,450,193        12,319,145   

Cash

     2,150,467        14,994        7,143,548        12,362        415,253   

Cash pledged as collateral for options written

     2,587,000                               

Foreign currency at value4

     1,835,803        17,395        371,171        40,391        56,660   

Investments sold receivable

     6,818,177        5,680,002        2,690,510        1,354,538        10,232,852   

Dividends receivable — affiliated

     976        2,331        2,529        304        896   

Unrealized appreciation on foreign currency exchange contracts

     11,958                               

Dividends receivable

     4,367,746        1,165,193        833,222        269,353        1,279,429   

Other assets

     77,947        380,833        13,424        9,072        6,698   
  

 

 

 

Total assets

     980,187,965        588,670,351        652,401,161        88,198,465        370,119,175   
  

 

 

 
          
Liabilities                                         

Investments purchased payable

     6,453,043                      1,006,723        1,743,732   

Options written at value5

     17,250,586        4,422,630        4,553,969        1,012,745        5,300,906   

Cash received as collateral for options written

     50,000        828,711        448,000               30,000   

Investment advisory fees payable

     765,218        522,963        520,905        51,797        290,426   

Officer’s and Trustees’ fees payable

     413,244        260,316        5,418        14,976        3,480   

Unrealized depreciation on foreign currency exchange contracts

     87        87        12,753        58        4,821   

Other accrued expenses payable

     391,408        251,649        274,139        164,458        168,415   
  

 

 

 

Total liabilities

     25,323,586        6,286,356        5,815,184        2,250,757        7,541,780   
  

 

 

 

Net Assets

   $ 954,864,379      $ 582,383,995      $ 646,585,977      $ 85,947,708      $ 362,577,395   
  

 

 

 
          
Net Assets Consist of                                         

Paid-in capital

   $ 1,476,621,277      $ 665,020,294      $ 813,373,637      $ 82,951,843      $ 319,013,368   

Distributions in excess of net investment income

     (29,297,601     (26,229,760     (24,808,925     (1,888,353     (6,383,429

Accumulated net realized gain (loss)

     (597,380,938     (101,633,817     (131,511,166     (1,317,447     3,308,377   

Net unrealized appreciation/depreciation

     104,921,641        45,227,278        (10,467,569     6,201,665        46,639,079   
  

 

 

 

Net Assets

   $ 954,864,379      $ 582,383,995      $ 646,585,977      $ 85,947,708      $ 362,577,395   
  

 

 

 

Net asset value6

   $ 8.68      $ 10.19      $ 13.88      $ 14.25      $ 21.45   
  

 

 

 

1 Consolidated Statement of Assets and Liabilities

          

2 Investments at cost — unaffiliated

   $ 836,661,912      $ 507,427,694      $ 617,517,959      $ 76,429,745      $ 296,054,079   

3 Investments at cost — affiliated

   $ 15,189,301      $ 30,302,399      $ 34,574,081      $ 3,450,193      $ 12,319,145   

4 Foreign currency at cost

   $ 1,823,849      $ 17,307      $ 371,167      $ 40,146      $ 56,496   

5 Premiums received

   $ 11,758,694      $ 5,614,413      $ 4,832,439      $ 580,729      $ 2,178,471   

6 Shares outstanding, unlimited number of shares authorized, $0.001 par value

     109,989,277        57,173,280        46,575,310        6,033,028        16,906,964   

 

See Notes to Financial Statements.

 

96    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Operations     

 

Six Months Ended April 30, 2013 (Unaudited)    BlackRock
EcoSolutions
Investment
Trust (BQR)
    BlackRock
Energy and
Resources
Trust (BGR)
    BlackRock
Enhanced
Capital and
Income
Fund, Inc. (CII)
    BlackRock
Enhanced
Equity
Dividend
Trust (BDJ)
    BlackRock
Global
Opportunities
Equity
Trust (BOE)
    BlackRock
Health
Sciences
Trust (BME)
 
            
Investment Income                                                 

Dividends — unaffiliated

   $ 1,493,389      $ 6,236,849      $ 9,973,858      $ 24,266,070      $ 10,745,804      $ 2,087,822   

Foreign taxes withheld

     (113,713     (239,155     (141,225     (360,777     (472,093     (107,933

Dividends — affiliated

     4,471        13,590        15,738        50,687        28,309        5,012   

Securities lending — affiliated

     878        1,322               202               538   
  

 

 

 

Total income

     1,385,025        6,012,606        9,848,371        23,956,182        10,302,020        1,985,439   
  

 

 

 
            
Expenses                                                 

Investment advisory

     703,154        4,773,917        2,637,047        6,091,687        5,272,948        1,136,727   

Custodian

     57,506        60,339        39,205        130,778        151,077        57,075   

Professional

     32,537        60,706        97,412        63,209        89,233        34,591   

Transfer agent

     18,950        60,628        34,117        100,738        86,494        19,204   

Printing

     4,346        22,225        7,857        42,923        29,850        7,126   

Registration

     6,376        5,992        7,623        13,253        8,559        4,502   

Officer and Trustees

     4,978        56,139        30,158        104,919        73,633        11,274   

Insurance

     3,049        17,340        8,821        24,808        15,931        4,284   

Miscellaneous

     18,714        10,219        4,431        24,006        37,954        8,776   
  

 

 

 

Total expenses

     849,610        5,067,505        2,866,671        6,596,321        5,765,679        1,283,559   

Less fees waived by advisor

     (2,743     (70,068     (9,260     (30,300     (17,572     (2,834
  

 

 

 

Total expenses after fees waived

     846,867        4,997,437        2,857,411        6,566,021        5,748,107        1,280,725   
  

 

 

 

Net investment income

     538,158        1,015,169        6,990,960        17,390,161        4,553,913        704,714   
  

 

 

 
            
Realized and Unrealized Gain (Loss)                                                 

Net realized gain (loss) from:

            

Investments — unaffiliated

     (285,446     28,346,650        7,141,579        15,518,412        19,561,820        16,174,422   

Capital gain distributions received from affiliated investment companies

     77        108        347        660        395        44   

Options written

     1,108,762        14,006,774        12,400,200        24,837,447        12,888,293        1,350,971   

Foreign currency transactions

     9,757        (23,725     (70,958     (13,162     (395,041     (1,285
  

 

 

 
     833,150        42,329,807        19,471,168        40,343,357        32,055,467        17,524,152   
  

 

 

 

Net change in unrealized appreciation/depreciation on:

            

Investments — unaffiliated

     8,918,664        50,509,740        23,166,579        77,200,977        74,736,756        23,842,255   

Investments — affiliated

            (447,115                            

Options written

     (609,441     (7,464,153     (5,874,915     (14,644,889     (7,272,598     (1,416,507

Foreign currency translations

     (1,708     4,430        (31,279     4,081        (83,214     966   
  

 

 

 
     8,307,515        42,602,902        17,260,385        62,560,169        67,380,944        22,426,714   
  

 

 

 

Total realized and unrealized gain

     9,140,665        84,932,709        36,731,553        102,903,526        99,436,411        39,950,866   
  

 

 

 

Net Increase in Net Assets Resulting from Operations

   $ 9,678,823      $ 85,947,878      $ 43,722,513      $ 120,293,687      $ 103,990,324      $ 40,655,580   
  

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    97


Table of Contents
Statements of Operations (concluded)     

 

Six Months Ended April 30, 2013 (Unaudited)    BlackRock
International
Growth and
Income
Trust (BGY)
    BlackRock
Real Asset
Equity
Trust (BCF)
    BlackRock
Resources &
Commodities
Strategy
Trust (BCX)1
    BlackRock
S&P Quality
Rankings
Global Equity
Managed
Trust (BQY)
    BlackRock
Utility and
Infrastructure
Trust (BUI)
 
          
Investment Income                                         

Dividends — unaffiliated

   $ 14,369,280      $ 6,122,548      $ 8,162,659      $ 1,548,757      $ 6,793,259   

Foreign taxes withheld

     (920,269     (167,099     (454,851     (46,852     (148,897

Dividends — affiliated

     6,767        18,311        8,579        2,103        6,352   

Securities lending — affiliated

            3,962                        
  

 

 

 

Total income

     13,455,778        5,977,722        7,716,387        1,504,008        6,650,714   
  

 

 

 
          
Expenses                                         

Investment advisory

     4,630,694        3,687,994        4,037,812        305,635        1,692,855   

Custodian

     139,769        83,822        74,726        51,538        56,266   

Professional

     76,613        61,334        61,137        27,031        65,653   

Officer and Trustees

     68,018        45,291        31,790        4,937        16,059   

Transfer agent

     76,673        60,042        50,333        12,044        23,500   

Printing

     25,433        18,048        2,569        3,538        10,491   

Insurance

     25,827        17,618        9,189        902        4,238   

Registration

     20,917        12,004        9,132        1,196        5,449   

Licensing

                          61,127          

Miscellaneous

     46,645        17,897        18,458        20,448        4,202   
  

 

 

 

Total expenses

     5,110,589        4,004,050        4,295,146        488,396        1,878,713   

Less fees waived by advisor

     (4,062     (318,651     (678,792     (1,378     (4,075
  

 

 

 

Total expenses after fees waived

     5,106,527        3,685,399        3,616,354        487,018        1,874,638   
  

 

 

 

Net investment income

     8,349,251        2,292,323        4,100,033        1,016,990        4,776,076   
  

 

 

 
          
Realized and Unrealized Gain (Loss)                                         

Net realized gain (loss) from:

          

Investments — unaffiliated

     33,104,899        (15,392,365     (69,869,594     2,346,106        5,983,457   

Capital gain distributions received from affiliated investment companies

     108        306        142        19        214   

Options written

     1,057,982        10,145,589        12,961,773        784,649        2,343,252   

Foreign currency transactions

     (397,109     33,220        (71,348     12,041        44,224   
  

 

 

 
     33,765,880        (5,213,250     (56,979,027     3,142,815        8,371,147   
  

 

 

 

Net change in unrealized appreciation/depreciation on:

          

Investments — unaffiliated

     42,579,705        (19,545,948     9,102,350        4,160,295        22,640,329   

Investments — affiliated

                   (447,115              

Options written

     (3,388,215     (629,011     (196,596     (666,693     (2,899,696

Foreign currency translations

     475        6,226        4,066        3,985        7,869   
  

 

 

 
     39,191,965        (20,168,733     8,462,705        3,497,587        19,748,502   
  

 

 

 

Total realized and unrealized gain (loss)

     72,957,845        (25,381,983     (48,516,322     6,640,402        28,119,649   
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 81,307,096      $ (23,089,660   $ (44,416,289   $ 7,657,392      $ 32,895,725   
  

 

 

 

 

  1

Consolidated Statement of Operations.

 

See Notes to Financial Statements.

 

98    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Changes in Net Assets     

 

     BlackRock
EcoSolutions
Investment Trust (BQR)
    BlackRock
Energy and
Resources Trust (BGR)
 
Increase (Decrease) in Net Assets:   

Six Months

Ended

April 30,
2013
(Unaudited)

   

Year Ended
October 31,

2012

   

Six Months

Ended
April 30,
2013
(Unaudited)

   

Year Ended
October 31,

2012

 
        
Operations                                 

Net investment income

   $ 538,158      $ 1,050,708      $ 1,015,169      $ 3,949,494   

Net realized gain (loss)

     833,150        (10,096,552     42,329,807        17,530,915   

Net change in unrealized appreciation/depreciation

     8,307,515        17,094,270        42,602,902        (39,725,443
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     9,678,823        8,048,426        85,947,878        (18,245,034
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders From                                 

Net investment income

     (4,504,358     (875,247 )1      (24,110,635     (854,435 )1 

Net realized gains

                          (42,914,124 )1 

Tax return of capital

            (10,214,472 )1             (8,858,114 )1 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (4,504,358     (11,089,719     (24,110,635     (52,626,673
  

 

 

   

 

 

 
        
Capital Share Transactions                                 

Reinvestment of dividends

            410,321                 
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     5,174,465        (2,630,972     61,837,243        (70,871,707

Beginning of period

     114,865,930        117,496,902        772,456,758        843,328,465   
  

 

 

   

 

 

 

End of period

   $ 120,040,395      $ 114,865,930      $ 834,294,001      $ 772,456,758   
  

 

 

   

 

 

 

Undistributed (distributions in excess of) net investment income

   $ (3,966,200          $ (17,679,999   $ 5,415,467   
  

 

 

   

 

 

 

 

  1 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    99


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
Enhanced Capital and
Income Fund, Inc. (CII)
    BlackRock
Enhanced Equity
Dividend Trust (BDJ)
 
Increase (Decrease) in Net Assets:    Six Months
Ended
April 30,
2013
(Unaudited)
    Year Ended
October 31,
2012
    Six Months
Ended
April 30,
2013
(Unaudited)
    Year Ended
October 31,
2012
 
        
Operations                                 

Net investment income

   $ 6,990,960      $ 14,639,943      $ 17,390,161      $ 26,040,412   

Net realized gain (loss)

     19,471,168        (26,063,030     40,343,357        9,034,889   

Net change in unrealized appreciation/depreciation

     17,260,385        82,820,459        62,560,169        71,225,395   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     43,722,513        71,397,372        120,293,687        106,300,696   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders From                                 

Net investment income

     (26,472,840     (23,479,014 )1      (50,255,172     (60,552,719 )1 

Net realized gains

            (5,739,106 )1               

Tax return of capital

            (31,669,412 )1             (43,164,839 )1 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (26,472,840     (60,887,532     (50,255,172     (103,717,558
  

 

 

   

 

 

 
        
Capital Share Transactions                                 

Net proceeds from the issuance of shares due to reorganization

                          911,800,774   

Refund of offering costs previously charged to paid-in capital

            2,075                 
  

 

 

   

 

 

 

Net increase in net assets derived from shares transactions

            2,075               911,800,774   
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase in net assets

     17,249,673        10,511,915        70,038,515        914,383,912   

Beginning of period

     622,657,145        612,145,230        1,490,096,039        575,712,127   
  

 

 

   

 

 

 

End of period

   $ 639,906,818      $ 622,657,145      $ 1,560,134,554      $ 1,490,096,039   
  

 

 

   

 

 

 

Distributions in excess of net investment income

   $ (19,481,880          $ (33,272,327   $ (407,316
  

 

 

   

 

 

 

 

  1 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

100    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
Global Opportunities
Equity Trust (BOE)
    BlackRock
Health Sciences
Trust (BME)
 
Increase (Decrease) in Net Assets:   

Six Months

Ended

April 30,

2013

(Unaudited)

   

Year Ended
October 31,

2012

   

Six Months
Ended

April 30,

2013
(Unaudited)

    Year Ended
October 31,
2012
 
        
Operations                                 

Net investment income

   $ 4,553,913      $ 14,057,419      $ 704,714 $        613,888   

Net realized gain (loss)

     32,055,467        (38,872,891     17,524,152        17,445,175   

Net change in unrealized appreciation/depreciation

     67,380,944        88,118,894        22,426,714        14,085,220   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     103,990,324        63,303,422        40,655,580        32,144,283   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders From                                 

Net investment income

     (43,308,854     (14,977,529 )1      (12,485,939     (624,091 )1 

Net realized gains

                          (18,501,614 )1 

Tax return of capital

            (121,035,759 )1          
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (43,308,854     (136,013,288     (12,485,939     (19,125,705
  

 

 

   

 

 

 
        
Capital Share Transactions                                 

Reinvestment of dividends

                   867,486        2,683,786   
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     60,681,470        (72,709,866     29,037,127        15,702,364   

Beginning of period

     1,041,210,008        1,113,919,874        218,376,994        202,674,630   
  

 

 

   

 

 

 

End of period

   $ 1,101,891,478      $ 1,041,210,008      $ 247,414,121      $ 218,376,994   
  

 

 

   

 

 

 

Distributions in excess of net investment income

   $ (39,526,588   $ (771,647)      $ (11,795,654)      $ (14,429
  

 

 

   

 

 

 

 

  1 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    101


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock
International Growth
and Income Trust (BGY)
    BlackRock
Real Asset
Equity Trust (BCF)
 
Increase (Decrease) in Net Assets:   

Six Months

Ended

April 30,

2013
(Unaudited)

   

Year Ended
October 31,

2012

   

Six Months
Ended

April 30,

2013
(Unaudited)

    Year Ended
October 31,
2012
 
        
Operations                                 

Net investment income

   $ 8,349,251      $ 17,861,406      $ 2,292,323      $ 7,068,267   

Net realized gain (loss)

     33,765,880        (84,518,379     (5,213,250     (5,184,927

Net change in unrealized appreciation/depreciation

     39,191,965        122,238,455        (20,168,733     (23,716,362
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     81,307,096        55,581,482        (23,089,660     (21,833,022
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders From                                 

Net investment income

     (36,923,400     (19,807,805 )1      (25,327,763     (7,129,605 )1 

Net realized gains

                          (31,346,558 )1 

Tax return of capital

            (84,445,531 )1             (20,806,811 )1 
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (36,923,400     (104,253,336     (25,327,763     (59,282,974
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     44,383,696        (48,671,854     (48,417,423     (81,115,996

Beginning of period

     910,480,683        959,152,537        630,801,418        711,917,414   
  

 

 

   

 

 

 

End of period

   $ 954,864,379      $ 910,480,683      $ 582,383,995      $ 630,801,418   
  

 

 

   

 

 

 

Distributions in excess of net investment income

   $ (29,297,601   $ (723,452   $ (26,229,760   $ (3,194,320
  

 

 

   

 

 

 

 

  1 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

102    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Changes in Net Assets (continued)     

 

     BlackRock Resources
& Commodities
Strategy Trust (BCX)1
    BlackRock S&P Quality Rankings
Global Equity Managed Trust
(BQY)
 
Increase (Decrease) in Net Assets:   

Six Months
Ended

April 30,

2013
(Unaudited)

    Year Ended
October 31,
2012
   

Six Months
Ended
April 30,

2013
(Unaudited)

    Year Ended
October 31,
2012
 
        
Operations                                 

Net investment income

   $ 4,100,033      $ 8,289,984      $ 1,016,990      $ 2,016,089   

Net realized gain (loss)

     (56,979,027     (68,386,990     3,142,815        1,328,916   

Net change in unrealized appreciation/depreciation

     8,462,705        59,526,289        3,497,587        3,407,312   
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     (44,416,289     (570,717     7,657,392        6,752,317   
  

 

 

   

 

 

 
        
Dividends and Distributions to Shareholders From                                 

Net investment income

     (27,013,680     (11,939,675 )2      (2,895,853     (4,064,398 )2 

Net realized gains

            (365,560 )2             (3,597,548 )2 

Tax return of capital

            (52,900,199 )2          
  

 

 

   

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (27,013,680     (65,205,434     (2,895,853     (7,661,946
  

 

 

   

 

 

 
        
Net Assets                                 

Total increase (decrease) in net assets

     (71,429,969     (65,776,151     4,761,539        (909,629

Beginning of period

     718,015,946        783,792,097        81,186,169        82,095,798   
  

 

 

   

 

 

 

End of period

   $ 646,585,977      $ 718,015,946      $ 85,947,708      $ 81,186,169   
  

 

 

   

 

 

 

Distributions in excess of net investment income

   $ (24,808,925   $ (1,895,278   $ (1,888,353   $ (9,490
  

 

 

   

 

 

 

 

  1 

Consolidated Statement of Changes in Net Assets.

  2 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    103


Table of Contents
Statements of Changes in Net Assets (concluded)     

 

     BlackRock Utility and
Infrastructure
Trust (BUI)
 
Increase (Decrease) in Net Assets:   

Six Months
Ended

April 30,

2013
(Unaudited)

   

Period
November 25, 20111
to

October 31, 2012

 
    
Operations                 

Net investment income

   $ 4,776,076      $ 8,992,956   

Net realized gain

     8,371,147        2,161,997   

Net change in unrealized appreciation/depreciation

     19,748,502        26,890,577   
  

 

 

 

Net increase in net assets resulting from operations

     32,895,725        38,045,530   
  

 

 

 
    
Dividends and Distributions to Shareholders From                 

Net investment income

     (12,257,549     (8,210,424 )2 

Net realized gains

            (6,968,606 )2 

Tax return of capital

            (3,207,293 )2 
  

 

 

 

Decrease in net assets resulting from dividends and distributions to shareholders

     (12,257,549     (18,386,323
  

 

 

 
    
Capital Share Transactions                 

Net proceeds from the issuance of shares

            295,596,012   

Net proceeds from the underwriters’ over allotment option exercised

            26,684,000   
  

 

 

 

Net increase in net assets derived from shares transactions

            322,280,012   
  

 

 

 
    
Net Assets                 

Total increase in net assets

     20,638,176        341,939,219   

Beginning of period

     341,939,219          
  

 

 

 

End of period

   $ 362,577,395      $ 341,939,219   
  

 

 

 

Undistributed (distributions in excess of) net investment income

   $ (6,383,429   $ 1,098,044   
  

 

 

 

 

  1 

Commencement of Operations.

  2 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.

 

104    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Cash Flows     

 

Six Months Ended April 30, 2013 (Unaudited)    BlackRock
EcoSolutions
Investment
Trust (BQR)
    BlackRock
Energy and
Resources
Trust (BGR)
    BlackRock
Enhanced
Capital and
Income
Fund, Inc. (CII)
   

BlackRock
Enhanced
Equity
Dividend

Trust (BDJ)

 
        
Cash Provided by Operating Activities                                 

Net increase in net assets resulting from operations

   $ 9,678,823      $ 85,947,878      $ 43,722,513      $ 120,293,687   

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

        

Decrease (increase) in dividends receivable — affiliated

     489        (1,417     1,169        2,427   

Decrease (increase) in dividends receivable

     (145,941     370,424        (545,534     224,533   

Decrease in securities lending income receivable — affiliated

     2,078        1,299               578   

Increase in other assets

     (47     (3,472     (6,687     (63,049

Decrease (increase) in cash pledged as collateral for options written

                   (900,000     400,000   

Increase (decrease) in investment advisory fees payable

     (124     45,043        (17,250     (3,181

Decrease in collateral on securities loaned at value

     (1,554,150     (13,656,821            (4,054,445

Increase (decrease) in officer’s and trustees’ fees payable

     (614     34,578        13,423        64,246   

Increase (decrease) in cash received as collateral for options written

            397,000        (510,420     (1,500,000

Increase (decrease) in other accrued expenses payable

     (32,874     14,471        39,905        (56,735

Net realized and unrealized (gain) loss on investments and options written

     (9,132,616     (84,952,004     (36,833,790     (102,911,938

Premiums received from options written

     3,809,272        27,649,930        28,217,529        54,033,226   

Premiums paid on closing options written

     (1,448,597     (5,261,942     (3,024,494     (3,512,444

Proceeds from sales of long-term investments

     59,564,935        552,267,428        795,449,447        1,555,276,891   

Purchases of long-term investments

     (58,729,516     (532,718,196     (793,349,334     (1,602,475,316

Net (purchases) sales of short-term securities

     2,742,700        (6,025,940     (8,735,076     40,442,456   
  

 

 

 

Cash provided by operating activities

     4,753,818        24,108,259        23,521,401        56,160,936   
  

 

 

 
        
Cash Used for Financing Activities                                 

Increase in bank overdraft

                   2,951,603          

Cash dividends paid to shareholders

     (4,504,358     (24,110,635     (26,472,840     (50,255,172
  

 

 

 

Cash used for financing activities

     (4,504,358     (24,110,635     (23,521,237     (50,255,172
  

 

 

 
        
Cash and Foreign Currency                                 

Net increase (decrease) in cash and foreign currency

     249,460        (2,376     164        5,905,764   

Cash and foreign currency at beginning of period

     1,696,836        2,400        5,940        117,627   
  

 

 

 

Cash and foreign currency at end of period

   $ 1,946,296      $ 24      $ 6,104      $ 6,023,391   
  

 

 

 

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    105


Table of Contents
Statements of Cash Flows (continued)     

 

Six Months Ended April 30, 2013 (Unaudited)   

BlackRock
Global
Opportunities
Equity

Trust (BOE)

    BlackRock
Health
Sciences
Trust (BME)
   

BlackRock
International
Growth and
Income

Trust (BGY)

   

BlackRock
Real Asset
Equity

Trust (BCF)

 
        
Cash Provided by Operating Activities                                 

Net increase (decrease) in net assets resulting from operations

   $ 103,990,324      $ 40,655,580      $ 81,307,096      $ (23,089,660

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

        

Decrease in dividends receivable — affiliated

     3,834        735        1,302        1,417   

Increase in dividends receivable

     (1,385,597     (144,196     (2,433,793     (314,342

Decrease in securities lending income receivable — affiliated

            1,463               10,847   

Increase in other assets

     (234,690     (6,222     (15,150     (80,208

Decrease (increase) in cash pledged as collateral for options written

     410,000        (1,174,951     2,804,000          

Increase (decrease) in investment advisory fees payable

     2,687        12,864        (4,568     (63,824

Decrease in collateral on securities loaned at value

            (4,185,923            (3,731,016

Increase in officer’s and trustees’ fees payable

     45,309        480        42,858        28,558   

Increase in cash received as collateral for options written

     900,000               50,000        828,711   

Decrease in other accrued expenses payable

     (10,265     (26,353     (34,922     (1,952

Net realized and unrealized (gain) loss on investments and options written

     (99,641,619     (39,951,974     (73,366,350     25,519,330   

Premiums received from options written

     50,912,711        6,824,503        46,137,490        19,388,227   

Premiums paid on closing options written

     (15,962,012     (2,379,893     (28,564,029     (5,623,642

Proceeds from sales of long-term investments

     1,434,875,918        265,363,936        1,409,923,428        234,213,039   

Purchases of long-term investments

     (1,468,936,942     (257,090,529     (1,394,924,233     (222,066,946

Net (purchases) sales of short-term securities

     34,926,526        3,766,887        (4,024,203     156,544   
  

 

 

 

Cash provided by operating activities

     39,896,184        11,666,407        36,898,926        25,175,083   
  

 

 

 
        
Cash Used for Financing Activities                                 

Cash dividends paid to shareholders

     (43,308,854     (11,618,453     (36,923,400     (25,327,763
  

 

 

 
        
Cash and Foreign Currency                                 

Net increase (decrease) in cash and foreign currency

     (3,412,670     47,954        (24,474     (152,680

Cash and foreign currency at beginning of period

     10,509,497        1,807        4,010,744        185,069   
  

 

 

 

Cash and foreign currency at end of period

   $ 7,096,827      $ 49,761      $ 3,986,270      $ 32,389   
  

 

 

 
        
Non-Cash Financing Activities                                 

Capital shares issued in reinvestment of dividends paid to shareholders

          $ 867,486                 
  

 

 

 

 

See Notes to Financial Statements.

 

106    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Statements of Cash Flows (concluded)     

 

Six Months Ended April 30, 2013 (Unaudited)    BlackRock
Resources &
Commodities
Strategy
Trust (BCX)1
    BlackRock
S&P Quality
Rankings
Global Equity
Managed
Trust (BQY)
    BlackRock
Utility and
Infrastructure
Trust (BUI)
 
      
Cash Provided by Operating Activities                         

Net increase (decrease) in net assets resulting from operations

   $ (44,416,289   $ 7,657,392      $ 32,895,725   

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

      

Decrease (increase) in dividends receivable — affiliated

     (2,116     60        666   

Decrease (increase) in dividends receivable

     481,638        (113,559     (164,059

Decrease in other assets

     (13,424     (2,754     (6,698

Increase in cash pledged as collateral for options written

     211,452                 

Increase (decrease) in investment advisory fees payable

     (90,232     (113     2,764   

Increase (decrease) in officer’s and trustees’ fees payable

     58        1,039        (154

Increase in cash received as collateral for options written

     448,000               30,000   

Increase (decrease) in other accrued expenses payable

     (44,871     (55,433     2,171   

Net realized and unrealized (gain) loss on investments and options written

     48,461,793        (6,624,327     (28,062,752

Premiums received from options written

     19,910,640        2,012,083        7,308,906   

Premiums paid on closing options written

     (3,517,724     (406,860     (2,655,209

Proceeds from sales of long-term investments

     689,442,102        50,504,608        242,109,905   

Purchases of long-term investments

     (649,781,273     (49,235,160     (233,695,028

Net purchases of short-term securities

     (27,313,902     (826,818     (5,089,339
  

 

 

 

Cash provided by operating activities

     33,775,852        2,910,158        12,676,898   
  

 

 

 
      
Cash Used for Financing Activities                         

Decrease in bank overdraft on foreign currency at value

     (18,412              

Cash dividends paid to shareholders

     (27,013,680     (2,895,853     (12,257,549
  

 

 

 

Cash used for financing activities

     (27,032,092     (2,895,853     (12,257,549
  

 

 

 
      
Cash and Foreign Currency                         

Net increase in cash and foreign currency

     6,743,760        14,305        419,349   

Cash and foreign currency at beginning of period

     770,959        38,448        52,564   
  

 

 

 

Cash and foreign currency at end of period

   $ 7,514,719      $ 52,753      $ 471,913   
  

 

 

 

 

  1

Consolidated Statement of Cash Flows.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    107


Table of Contents
Financial Highlights      BlackRock EcoSolutions Investment Trust (BQR)   

 

           Year Ended October 31,  
     Six Months
Ended
April 30,
2013
(Unaudited)
    2012     2011     2010     2009     2008  
            
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 9.14      $ 9.38      $ 10.65      $ 10.56      $ 10.23      $ 20.31   
  

 

 

 

Net investment income1

     0.04        0.08        0.10        0.05        0.06        0.03   

Net realized and unrealized gain (loss)

     0.73        0.56        (0.30     1.24        1.78        (8.51
  

 

 

 

Net increase (decrease) from investment operations

     0.77        0.64        (0.20     1.29        1.84        (8.48
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.36 )2      (0.07 )3      (0.11 )3      (0.05 )3      (0.07 )3      (0.02 )3 

Net realized gain

                                 (0.09 )3      (1.58 )3 

Tax return of capital

            (0.81 )3      (0.96 )3      (1.15 )3      (1.35 )3        
  

 

 

 

Total dividends and distributions

     (0.36     (0.88     (1.07     (1.20     (1.51     (1.60
  

 

 

 

Net asset value, end of period

   $ 9.55      $ 9.14      $ 9.38      $ 10.65      $ 10.56      $ 10.23   
  

 

 

 

Market price, end of period

   $ 8.90      $ 8.66      $ 8.58      $ 11.69      $ 10.23      $ 9.20   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     8.78 %5      7.77     (2.13 )%      13.04     19.64     (43.99 )% 
  

 

 

 

Based on market price

     6.99 %5      11.63     (18.45 )%      28.08     28.88     (48.20 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.47 %6      1.44     1.40     1.45     1.51     1.36
  

 

 

 

Total expenses after fees waived and paid indirectly

     1.47 %6      1.43     1.40     1.45     1.50     1.35
  

 

 

 

Net investment income

     0.93 %6      0.92     0.98     0.47     0.65     0.38
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 120,040      $ 114,866      $ 117,497      $ 131,002      $ 127,025      $ 120,282   
  

 

 

 

Portfolio turnover

     53     107     86     124     62     45
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

108    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Financial Highlights      BlackRock Energy and Resources Trust (BGR)   

 

    

Six Months
Ended
April 30, 2013

(Unaudited)

    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 25.95      $ 28.33      $ 25.87      $ 23.81      $ 20.71      $ 37.60   
  

 

 

 

Net investment income1

     0.03        0.13        0.06        0.26        0.41        1.18   

Net realized and unrealized gain (loss)

     2.86        (0.74     4.02        3.42        4.32        (14.63
  

 

 

 

Net increase (decrease) from investment operations

     2.89        (0.61     4.08        3.68        4.73        (13.45
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.81 )2      (0.03 )3      (0.24 )3      (0.17 )3      (0.47 )3      (0.96 )3 

Net realized gain

            (1.44 )3      (1.38 )3      (1.45 )3      (0.19 )3      (2.48 )3 

Tax return of capital

            (0.30 )3                    (0.97 )3        
  

 

 

 

Total dividends and distributions

     (0.81     (1.77     (1.62     (1.62     (1.63     (3.44
  

 

 

 

Net asset value, end of period

   $ 28.03      $ 25.95      $ 28.33      $ 25.87      $ 23.81      $ 20.71   
  

 

 

 

Market price, end of period

   $ 25.64      $ 24.28      $ 26.54      $ 25.36      $ 22.18      $ 17.99   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     11.56 %5      (1.76 )%      16.09     15.89     25.54     (38.15 )% 
  

 

 

 

Based on market price

     9.06 %5      (1.88 )%      10.95     21.95     34.63     (37.14 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.31 %6      1.28     1.26     1.27     1.30     1.27
  

 

 

 

Total expenses after fees waived

     1.29 %6      1.22     1.15     1.11     1.10     1.07
  

 

 

 

Net investment income

     0.26 %6      0.50     0.19     1.04     1.77     1.38
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 834,294      $ 772,457      $ 843,328      $ 769,976      $ 708,589      $ 616,479   
  

 

 

 

Portfolio turnover

     69     86     111     80     62     54
  

 

 

 

 

  1

Based on average shares outstanding.

 

  2

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5

Aggregate total investment return.

 

  6

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    109


Table of Contents
Financial Highlights      BlackRock Enhanced Capital and Income Fund, Inc. (CII)   

 

    

Six Months
Ended

April 30.
2013
(Unaudited)

    Year Ended October 31,    

Period
January 1,
2008 to

October 31,
2008

   

Year Ended

December 31,
2007

 
       2012     2011     2010     2009      
Per Share Operating Performance                                                         

Net asset value, beginning of period

   $ 14.11      $ 13.87      $ 14.53      $ 14.40      $ 13.78      $ 21.36      $ 22.91   
  

 

 

 

Net investment income1

     0.16        0.33        0.35        0.31        0.29        0.23        0.31   

Net realized and unrealized gain (loss)

     0.83        1.29        0.68        1.76        2.27        (6.36     0.58   
  

 

 

 

Net increase (decrease) from investment operations

     0.99        1.62        1.03        2.07        2.56        (6.13     0.89   
  

 

 

 

Dividends and distributions from:

              

Net investment income

     (0.60 )2      (0.53 )3      (0.58 )3      (0.31 )3      (0.29 )3      (0.23 )3      (0.34 )3 

Net realized gain

            (0.13 )3      (1.11 )3      (1.33 )3      (1.19 )3      (0.62 )3      (2.10 )3 

Tax return of capital

            (0.72 )3             (0.30 )3      (0.46 )3      (0.60 )3        
  

 

 

 

Total dividends and distributions

     (0.60     (1.38     (1.69     (1.94     (1.94     (1.45     (2.44
  

 

 

 

Net asset value, end of period

   $ 14.50      $ 14.11      $ 13.87      $ 14.53      $ 14.40      $ 13.78      $ 21.36   
  

 

 

 

Market price, end of period

   $ 13.09      $ 12.99      $ 12.39      $ 15.03      $ 13.76      $ 12.37      $ 20.06   
  

 

 

 
              
Total Investment Return4                                                         

Based on net asset value

     7.61 %5      12.94     7.56     15.22     22.01     (29.46 )%5      4.79
  

 

 

 

Based on market price

     5.52 %5      16.39     (7.11 )%      24.73     29.88     (32.58 )%5      10.47
  

 

 

 
              
Ratios to Average Net Assets                                                         

Total expenses

     0.93 %6      0.94     0.94     0.93     0.95     1.10 %6      1.96
  

 

 

 

Total expenses after fees waived

     0.93 %6      0.94     0.93     0.93     0.95     1.10 %6      1.96
  

 

 

 

Total expenses after fees waived and excluding interest expense

     0.93 %6      0.94     0.93     0.93     0.95     1.01 %6      1.19
  

 

 

 

Net investment income

     2.27 %6      2.34     2.40     2.14     2.16     1.46 %6      1.36
  

 

 

 
              
Supplemental Data                                                         

Net assets, end of period (000)

   $ 639,907      $ 622,657      $ 612,145      $ 635,849      $ 618,462      $ 167,996      $ 260,385   
  

 

 

 

Average borrowings outstanding during the period (000)

                                             $ 38,788   
  

 

 

 

Portfolio turnover

     131     205     190     210     138     45     63
  

 

 

 

 

  1

Based on average shares outstanding.

 

  2

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5

Aggregate total investment return.

 

  6

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    110


Table of Contents
Financial Highlights      BlackRock Enhanced Equity Dividend Trust (BDJ)   

 

    

Six Months
Ended
April 30,
2013

(Unaudited)

    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 8.30      $ 8.03      $ 8.32      $ 8.13      $ 9.59      $ 14.10   
  

 

 

 

Net investment income1

     0.10        0.18        0.16        0.17        0.25        0.34   

Net realized and unrealized gain (loss)

     0.57        0.77        0.38        1.00        (0.55     (3.73
  

 

 

 

Net increase (decrease) from investment operations

     0.67        0.95        0.54        1.17        (0.30     (3.39
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.28 )3      (0.40 )2      (0.51 )2      (0.17 )2      (0.25 )2      (0.52 )2 

Tax return of capital

            (0.28 )2      (0.32 )2      (0.81 )2      (0.91 )2      (0.60 )2 
  

 

 

 

Total dividends and distributions

     (0.28     (0.68     (0.83     (0.98     (1.16     (1.12
  

 

 

 

Net asset value, end of period

   $ 8.69      $ 8.30      $ 8.03      $ 8.32      $ 8.13      $ 9.59   
  

 

 

 

Market price, end of period

   $ 7.81      $ 7.41      $ 7.29      $ 8.99      $ 7.89      $ 8.47   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     8.61 %5      13.22     6.88     15.23     (1.63 )%      (24.35 )% 
  

 

 

 

Based on market price

     9.33 %5      11.34     (10.20 )%      28.30     8.08     (25.70 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     0.89 %6      0.95     1.15     1.16     1.20     1.18
  

 

 

 

Total expenses after fees waived

     0.89 %6      0.95     1.14     1.16     1.20     1.18
  

 

 

 

Net investment income

     2.34 %6      2.16     1.92     2.06     3.11     3.20
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 1,560,135      $ 1,490,096      $ 575,712      $ 592,328      $ 572,066      $ 668,969   
  

 

 

 

Portfolio turnover

     109     185     231     232     117     86
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  3 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  4 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    111


Table of Contents
Financial Highlights      BlackRock Global Opportunities Equity Trust (BOE)   

 

    

Six Months
Ended
April 30,
2013

(Unaudited)

    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 14.99      $ 16.03      $ 18.68      $ 18.64      $ 18.03      $ 31.09   
  

 

 

 

Net investment income1

     0.07        0.20        0.17        0.19        0.19        0.39   

Net realized and unrealized gain (loss)

     1.42        0.72        (0.54     2.13        2.70        (10.39
  

 

 

 

Net increase (decrease) from investment operations

     1.49        0.92        (0.37     2.32        2.89        (10.00
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.62 )2      (0.22 )3      (0.85 )3      (1.44 )3      (0.20 )3      (0.56 )3 

Net realized gain

                   (0.61 )3      (0.25 )3             (2.48 )3 

Tax return of capital

            (1.74 )3      (0.82 )3      (0.59 )3      (2.08 )3      (0.02 )3 
  

 

 

 

Total dividends and distributions

     (0.62     (1.96     (2.28     (2.28     (2.28     (3.06
  

 

 

 

Net asset value, end of period

   $ 15.86      $ 14.99      $ 16.03      $ 18.68      $ 18.64      $ 18.03   
  

 

 

 

Market price, end of period

   $ 14.12      $ 13.24      $ 14.95      $ 19.06      $ 18.40      $ 15.89   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     10.84 %5      7.36     (2.55 )%      13.76     20.50     (35.08 )% 
  

 

 

 

Based on market price

     11.72 %5      1.68     (10.93 )%      17.58     34.97     (38.15 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.11 %6      1.10     1.10     1.11     1.21     1.14
  

 

 

 

Total expenses after fees waived

     1.11 %6      1.10     1.09     1.10     1.20     1.14
  

 

 

 

Net investment income

     0.88 %6      1.34     0.96     1.03     1.05     1.60
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 1,101,891      $ 1,041,210      $ 1,113,920      $ 1,290,105      $ 1,278,170      $ 227,835   
  

 

 

 

Portfolio turnover

     139     298     253     264     300     120
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

112    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Financial Highlights      BlackRock Health Sciences Trust (BME)   

 

    

Six Months
Ended
April 30,
2013

(Unaudited)

    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 28.34      $ 26.65      $ 27.19      $ 25.37      $ 23.66      $ 30.33   
  

 

 

 

Net investment income (loss)1

     0.09        0.08        (0.01     0.02        0.10        0.10   

Net realized and unrealized gain (loss)

     5.17        4.11        1.71        3.34        3.32        (4.70
  

 

 

 

Net increase (decrease) from investment operations

     5.26        4.19        1.70        3.36        3.42        (4.60
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (1.62 )2      (0.09 )3             (0.02 )3      (0.13 )3      (0.09 )3 

Net realized gain

            (2.41 )3      (2.24 )3      (1.52 )3      (1.01 )3      (1.98 )3 

Tax return of capital

                                 (0.57 )3        
  

 

 

 

Total dividends and distributions

     (1.62     (2.50     (2.24     (1.54     (1.71     (2.07
  

 

 

 

Net asset value, end of period

   $ 31.98      $ 28.34      $ 26.65      $ 27.19      $ 25.37      $ 23.66   
  

 

 

 

Market price, end of period

   $ 31.22      $ 27.86      $ 25.81      $ 27.14      $ 22.61      $ 21.62   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     19.30 %5      16.42     6.43     13.69     16.31     (15.55 )% 
  

 

 

 

Based on market price

     18.47 %5      18.17     3.26     27.33     13.44     (13.47 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.17 %6      1.13     1.14     1.15     1.15     1.13
  

 

 

 

Total expenses after fees waived

     1.16 %6      1.13     1.13     1.15     1.15     1.13
  

 

 

 

Net investment income (loss)

     0.64 %6      0.29     (0.02 )%      0.09     0.37     0.20
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 247,414      $ 218,377      $ 202,675      $ 206,392      $ 192,602      $ 179,642   
  

 

 

 

Portfolio turnover

     115     209     226     239     167     121
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    113


Table of Contents
Financial Highlights      BlackRock International Growth and Income Trust (BGY)   

 

    

Six Months
Ended
April 30.
2013

(Unaudited)

    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 8.28      $ 8.72      $ 10.52      $ 10.92      $ 10.41      $ 20.12   
  

 

 

 

Net investment income1

     0.08        0.16        0.14        0.14        0.29        0.27   

Net realized and unrealized gain (loss)

     0.66        0.35        (0.58     1.05        2.04        (8.31
  

 

 

 

Net increase (decrease) from investment operations

     0.74        0.51        (0.44     1.19        2.33        (8.04
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.34 )2      (0.18 )3      (0.67 )3      (0.12 )3      (0.30 )3      (0.30 )3 

Net realized gain

                                        (0.88 )3 

Tax return of capital

            (0.77 )3      (0.69 )3      (1.47 )3      (1.52 )3      (0.49 )3 
  

 

 

 

Total dividends and distributions

     (0.34     (0.95     (1.36     (1.59     (1.82     (1.67
  

 

 

 

Net asset value, end of period

   $ 8.68      $ 8.28      $ 8.72      $ 10.52      $ 10.92      $ 10.41   
  

 

 

 

Market price, end of period

   $ 7.75      $ 7.41      $ 7.88      $ 10.56      $ 10.92      $ 9.09   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     9.50 %5      7.65     (4.55 )%      12.06     26.28     (41.76 )% 
  

 

 

 

Based on market price

     9.25 %5      6.61     (14.07 )%      12.49     44.62     (42.39 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.11 %6      1.11     1.10     1.13     1.12     1.11
  

 

 

 

Total expenses after fees waived

     1.11 %6      1.11     1.10     1.13     1.12     1.11
  

 

 

 

Net investment income

     1.82 %6      1.97     1.37     1.40     2.68     2.34
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 954,864      $ 910,481      $ 959,153      $ 1,156,583      $ 1,178,647      $ 1,106,516   
  

 

 

 

Portfolio turnover

     150     226     217     247     198     123
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

114    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Financial Highlights      BlackRock Real Asset Equity Trust (BCF)   

 

    

Six Months
Ended
April 30,
2013

(Unaudited)

    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 11.03      $ 12.45      $ 13.42      $ 11.73      $ 9.44      $ 20.79   
  

 

 

 

Net investment income1

     0.04        0.12        0.11        0.17        0.08        0.20   

Net realized and unrealized gain (loss)

     (0.44     (0.50     0.01        2.61        3.30        (10.16
  

 

 

 

Net increase (decrease) from investment operations

     (0.40     (0.38     0.12        2.78        3.38        (9.96
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.44 )2      (0.13 )3      (0.21 )3      (0.74 )3      (0.11 )3      (0.17 )3 

Net realized gain

            (0.55 )3      (0.50 )3                    (1.22 )3 

Tax return of capital

            (0.36 )3      (0.38 )3      (0.35 )3      (0.98 )3        
  

 

 

 

Total dividends and distributions

     (0.44     (1.04     (1.09     (1.09     (1.09     (1.39
  

 

 

 

Net asset value, end of period

   $ 10.19      $ 11.03      $ 12.45      $ 13.42      $ 11.73      $ 9.44   
  

 

 

 

Market price, end of period

   $ 9.88      $ 10.39      $ 11.84      $ 13.46      $ 11.45      $ 7.74   
  

 

 

 
            
Total Investment Return4                                                 

Based on net asset value

     (3.55 )%5      (2.79 )%      0.58     24.65     40.96     (50.14 )% 
  

 

 

 

Based on market price

     (0.72 )%5      (3.71 )%      (4.64 )%      28.08     67.81     (51.69 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.29 %6      1.29     1.29     1.28     1.32     1.29
  

 

 

 

Total expenses after fees waived and paid indirectly

     1.19 %6      1.14     1.09     1.08     1.12     1.09
  

 

 

 

Net investment income

     0.74 %6      1.08     0.77     1.37     0.68     1.14
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 582,384      $ 630,801      $ 711,917      $ 765,463      $ 664,928      $ 535,257   
  

 

 

 

Portfolio turnover

     37     72     79     71     58     29
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  3 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  4 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  5 

Aggregate total investment return.

 

  6 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    115


Table of Contents
Consolidated Financial Highlights      BlackRock Resources & Commodities Strategy Trust (BCX)   

 

     Six Months
Ended
April 30,
2013
(Unaudited)
    Year Ended
October 31,
2012
    Period
March 30, 20111
through
October 31,  2011
 
Per Share Operating Performance                         

Net asset value, beginning of period

   $ 15.42      $ 16.83      $ 19.10 2 
  

 

 

 

Net investment income3

     0.09        0.18        0.03   

Net realized and unrealized loss

     (1.05     (0.19     (1.57
  

 

 

 

Net decrease from investment operations

     (0.96     (0.01     (1.54
  

 

 

 

Dividends and distributions from:

      

Net investment income

     (0.58 )4      (0.26 )5        

Net realized gain

            (0.01 )5      (0.24 )5 

Tax return of capital

            (1.13 )5      (0.46 )5 
  

 

 

 

Total dividends and distributions

     (0.58     (1.40     (0.70
  

 

 

 

Capital charges with respect to the issuance of shares

                   (0.03
  

 

 

 

Net asset value, end of period

   $ 13.88      $ 15.42      $ 16.83   
  

 

 

 

Market price, end of period

   $ 12.60      $ 14.12      $ 14.95   
  

 

 

 
      
Total Investment Return6                         

Based on net asset value

     (5.94 )%7      0.90     (7.80 )%7 
  

 

 

 

Based on market price

     (6.76 )%7      4.02     (21.79 )%7 
  

 

 

 
      
Ratios to Average Net Assets                         

Total expenses

     1.25 %8      1.25     1.35 %8 
  

 

 

 

Total expenses after fees waived

     1.05 %8      1.05     1.13 %8 
  

 

 

 

Net investment income

     1.19 %8      1.14     0.27 %8 
  

 

 

 
      
Supplemental Data                         

Net assets, end of period (000)

   $ 646,586      $ 718,016      $ 783,792   
  

 

 

 

Portfolio turnover

     96     100     27
  

 

 

 

 

  1 

Commencement of investment operations. This information includes the initial investment by BlackRock HoldCo 2, Inc.

 

  2 

Net asset value, beginning of period, reflects a deduction of $0.8975 per share sales charge from the initial offering price of $20.00 per share.

 

  3 

Based on average shares outstanding.

 

  4 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  5 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  6 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

116    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Financial Highlights      BlackRock S&P Quality Rankings Global Equity Managed Trust (BQY)   

 

     Six Months
Ended
April 30,
2013
(Unaudited)
    Year Ended October 31,  
       2012     2011     2010     2009     2008  
Per Share Operating Performance                                                 

Net asset value, beginning of period

   $ 13.46      $ 13.61      $ 14.26      $ 13.38      $ 12.38      $ 21.00   
  

 

 

 

Net investment income1

     0.17        0.33        0.35        0.33        0.36        0.50   

Net realized and unrealized gain (loss)

     1.10        0.79        (0.00 )2      1.36        1.43        (8.22
  

 

 

 

Net increase (decrease) from investment operations

     1.27        1.12        0.35        1.69        1.79        (7.72
  

 

 

 

Dividends and distributions from:

            

Net investment income

     (0.48 )3      (0.67 )4      (0.22 )4      (0.11 )4      (0.39 )4      (0.52 )4 

Net realized gain

            (0.60 )4      (0.78 )4      (0.70 )4      (0.33 )4        

Tax return of capital

                                 (0.07 )4      (0.38 )4 
  

 

 

 

Total dividends and distributions

     (0.48     (1.27     (1.00     (0.81     (0.79     (0.90
  

 

 

 

Net asset value, end of period

   $ 14.25      $ 13.46      $ 13.61      $ 14.26      $ 13.38      $ 12.38   
  

 

 

 

Market price, end of period

   $ 13.06      $ 12.34      $ 12.43      $ 13.44      $ 11.54      $ 10.50   
  

 

 

 
            
Total Investment Return5                                                 

Based on net asset value

     10.06 %6      9.48     2.79     14.08     17.64     (37.53 )% 
  

 

 

 

Based on market price

     10.02 %6      9.90     (0.40 )%      24.67     19.63     (38.42 )% 
  

 

 

 
            
Ratios to Average Net Assets                                                 

Total expenses

     1.22 %7      1.18     1.19     1.23     1.17     0.96
  

 

 

 

Total expenses after fees waived

     1.22 %7      1.18     1.19     1.22     1.16     0.96
  

 

 

 

Net investment income

     2.54 %7      2.50     2.45     2.40     3.39     3.11
  

 

 

 
            
Supplemental Data                                                 

Net assets, end of period (000)

   $ 85,948      $ 81,186      $ 82,096      $ 86,047      $ 80,716      $ 74,716   
  

 

 

 

Portfolio turnover

     63     129     97     59     64     10
  

 

 

 

 

  1 

Based on average shares outstanding.

 

  2 

Amounted to less than $(0.01) per share outstanding.

 

  3 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  4 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  5 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  6 

Aggregate total investment return.

 

  7 

Annualized.

 

See Notes to Financial Statements.

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    117


Table of Contents
Financial Highlights (concluded)    BlackRock Utility and Infrastructure Trust (BUI)

 

     Six Months
Ended
April 30,
2013
(Unaudited)
    Period
November 25,
20111 through
October  31,
2012
 
Per Share Operating Performance                 

Net asset value, beginning of period

   $ 20.22      $ 19.10 2 
  

 

 

 

Net investment income3

     0.28        0.54   

Net realized and unrealized gain

     1.68        1.71   
  

 

 

 

Net increase from investment operations

     1.96        2.25   
  

 

 

 

Dividends and distributions from:

    

Net investment income

     (0.73 )4      (0.49 )5 

Net realized gain

            (0.41 )5 

Tax return of capital

            (0.19 )5 
  

 

 

 

Total dividends and distributions

     (0.73     (1.09
  

 

 

 

Capital charges with respect to the issuance of shares

            (0.04
  

 

 

 

Net asset value, end of period

   $ 21.45      $ 20.22   
  

 

 

 

Market price, end of period

   $ 19.80      $ 19.03   
  

 

 

 
    
Total Investment Return6                 

Based on net asset value

     10.23 %7      12.05 %7 
  

 

 

 

Based on market price

     8.12 %7      0.71 %7 
  

 

 

 
    
Ratios to Average Net Assets                 

Total expenses

     1.13 %8      1.12 %8 
  

 

 

 

Total expenses after fees waived

     1.13 %8      1.11 %8 
  

 

 

 

Total expenses after fees waived and excluding excise tax

     1.13 %8      1.10 %8 
  

 

 

 

Net investment income

     2.87 %8      2.94 %8 
  

 

 

 
    
Supplemental Data                 

Net assets, end of period (000)

   $ 362,577      $ 341,939   
  

 

 

 

Portfolio turnover

     70     90
  

 

 

 

 

  1 

Commencement of investment operations. This information includes the initial investment by BlackRock HoldCo 2, Inc.

 

  2 

Net asset value, beginning of period, reflects a deduction of $0.8975 per share sales charge from the initial offering price of $20.00 per share.

 

  3 

Based on average shares outstanding.

 

  4 

A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.

 

  5 

Dividends and distributions are determined in accordance with federal income tax regulations.

 

  6 

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

  7 

Aggregate total investment return.

 

  8 

Annualized.

 

See Notes to Financial Statements.

 

118    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Notes to Financial Statements     

 

1. Organization and Significant Accounting Policies:

BlackRock EcoSolutions Investment Trust (“BQR”), BlackRock Energy and Resources Trust (“BGR”), BlackRock Enhanced Capital and Income Fund, Inc. (“CII”), BlackRock Enhanced Equity Dividend Trust (“BDJ”), BlackRock Global Opportunities Equity Trust (“BOE”), BlackRock Health Sciences Trust (“BME”), BlackRock International Growth and Income Trust (“BGY”), BlackRock Real Asset Equity Trust (“BCF”), BlackRock Resources & Commodities Strategy Trust (“BCX”), BlackRock S&P Quality Rankings Global Equity Managed Trust (“BQY”) and BlackRock Utility and Infrastructure Trust (“BUI”) (each, a “Trust” and collectively, the “Trusts”) are organized as Delaware statutory trusts, except CII which is organized as a Maryland Corporation. CII, BDJ, BOE and BQY are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”). BQR, BGR, BME, BGY, BCF, BCX and BUI are registered as non-diversified, closed-end management investment companies under the 1940 Act. Prior to commencement of operations on November 25, 2011, BUI had no operations other than those relating to organizational matters and the sale of 6,964 Common Shares on August 25, 2011 to BlackRock HoldCo 2, Inc. for $100,012. Investment operations for BUI commenced on November 25, 2011. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Boards of Directors and Board of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board”, and the directors/ trustees thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine and make available for publication the NAVs of their shares on a daily basis.

Reorganizations: The Board and shareholders of BDJ and the Board of Trustees and shareholders of each of BlackRock Equity Dividend Trust (“BDV”) and BlackRock Strategic Equity Dividend Trust (“BDT”) (individually, a “Target Trust” and collectively the “Target Trusts”) approved the reorganizations of each Target Trust into BDJ pursuant to which BDJ acquired substantially all of the assets and substantially all of the liabilities of each Target Trust in exchange for an equal aggregate value of newly-issued BDJ shares.

Each shareholder of a Target Trust received shares of BDJ in an amount equal to the aggregate NAV of such shareholder’s Target Trust shares, as determined at the close of business on February 24, 2012.

The reorganizations were accomplished by a tax-free exchange of shares of BDJ in the following amounts and at the following conversion ratios:

 

Target Trusts   

Shares

Prior to
Reorganization

     Common Shares
Conversion
Ratio
     Shares of
BDJ
 

BDV

     54,638,903         1.27840257         69,850,515   

BDT

     26,908,028         1.41137167         37,977,229   

Each Target Trust’s net assets and composition of net assets on February 24, 2012, the date of the reorganization, were as follows:

 

Target
Trusts
   Net Assets      Paid-in
Capital
     Distributions in
Excess of Net
Investment
Income
   

Accumulated
Net

Realized
Loss

    Net
Unrealized
Appreciation
 

BDV

   $ 590,660,911       $ 647,693,876       $ (173,949   $ (92,018,281   $ 35,159,265   

BDT

   $ 321,139,863       $ 327,248,656       $ 316,616      $ (29,161,302   $ 22,735,893   

For financial reporting purposes, assets received and shares issued by BDJ were recorded at fair value. However, the cost basis of the investments received from the Target Trusts were carried forward to align ongoing reporting of BDJ’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of BDJ immediately after the acquisition amounted to $1,517,719,362. Each Target Trust’s fair value and cost of investments prior to the reorganization were as follows:

 

Target Trusts    Fair Value of
Investments
     Cost of
Investments
 

BDV

   $ 588,487,468       $ 553,328,182   

BDT

   $ 318,996,795       $ 296,260,902   

The purpose of these transactions was to combine three funds managed by the Manager, the investment advisor to BDJ, BDV and BDT with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. Each reorganization was a tax-free event and was effective on February 27, 2012.

Assuming the acquisitions had been completed on November 1, 2011, the beginning of the fiscal reporting period of BDJ, the pro forma results of operations for the year ended October 31, 2012, are as follows:

 

Ÿ  

Net investment income: $32,331,130

 

Ÿ  

Net realized and change in unrealized gain/loss on investments: $141,874,756

 

Ÿ  

Net increase in net assets resulting from operations: $174,205,886

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    119


Table of Contents
Notes to Financial Statements (continued)     

 

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of BDV and BDT that have been included in BDJ’s Statement of Operations since February 27, 2012.

Reorganization costs incurred by BDJ in connection with the reorganization were paid by BDJ.

The following is a summary of significant accounting policies followed by the Trusts:

Basis of Consolidation: The accompanying consolidated financial statements of BCX include the accounts of BlackRock Cayman Resources & Commodities Strategy Fund, Ltd. (the “Subsidiary”), a wholly owned subsidiary of BCX, which primarily invests in commodity-related instruments. The Subsidiary enables BCX to hold these commodity-related instruments and still satisfy Regulated Investment Company (“RIC”) tax requirements. BCX may invest up to 25% of its total assets in the Subsidiary. Intercompany accounts and transactions have been eliminated. The Subsidiary is subject to the same investment policies and restrictions that apply to BCX.

Valuation: US GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determines the fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Trusts for all financial instruments.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) 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 price. If no bid 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. Investments in open-end registered investment companies are valued at the NAV each business day. Financial futures contracts traded on exchanges are valued at their last sale price.

The Trusts value their investments in BlackRock Liquidity Series, LLC Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon each Trust’s pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments will follow the parameters of investments by a money

market fund that is subject to Rule 2a-7 under the 1940 Act. The Trusts may withdraw up to 25% of their investment daily, although the manager of the Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

Securities and other assets and liabilities denominated in foreign currencies are translated into US dollars using exchange rates determined as of the close of business on the New York Stock Exchange (“NYSE”). Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

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 the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options are valued by an independent pricing service using a mathematical model which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deem relevant consistent with the principles of fair value measurement which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for

 

 

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calibrating valuation approaches for investments where an active market does not exist including regular due diligence of the Trusts’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of each Trust’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to affect the value of such instruments materially, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the Global Valuation Committee using a pricing service and/or policies approved by the Board. Each business day, each Trust uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and OTC options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency: The Trusts’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Trusts’ investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Trusts do not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statements of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Trusts report realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust either delivers collateral or segregates assets in connection with certain investments (e.g., foreign currency exchange contracts or options written), each Trust will, consistent with SEC rules and/or certain interpretive letters issued by the SEC,

segregate collateral or designate on its books and records cash or 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, a Trust engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment 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 a Trust is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends and distributions paid by the Trusts are recorded on the ex-dividend dates. Subject to each Trust’s level distribution plan, each Trust intends to make quarterly cash dividends and/or distributions to shareholders, which may consist of net investment income, net options premium and net realized and unrealized gains on investments. The portion of distributions that exceeds a Trust’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Trust’s taxable income and net capital gains, but not in excess of a Trust’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do not reduce earnings and profits, even if such carried forward losses offset current year realized gains. The character of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from US GAAP.

Securities Lending: The Trusts may lend securities to approved borrowers, such as banks, brokers and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral. The initial collateral received by the Trusts have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter 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 Trusts and any additional required collateral is delivered to the Trust on the next business day. Securities lending income, as disclosed in the Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid

 

 

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to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Trusts earn dividends or interest income on the securities loaned but do not receive interest income on the securities received as collateral. 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 risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate this risk the Trusts benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities lent. The Trusts also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the six months ended April 30, 2013, any securities on loan were collateralized by cash.

Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, 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.

The Trusts file US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ US federal tax returns remains open for each of the four years ended October 31, 2012 with the exception of BCX and BUI. The statute of limitations on BCX’s US federal tax returns remains open for the year ended October 31, 2012 and the period ended October 31, 2011. The statute of limitations on BUI’s US federal tax returns remains open for the period ended October 31, 2012. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods

within those fiscal years. Management is evaluating the impact of this guidance on the Trusts’ financial statement disclosures.

Deferred Compensation: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, except CII, independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Prior to March 31, 2012, each Trust elected to invest in common shares of certain other BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations.

S&P Quality Rankings: BQY has been granted a license by Standard & Poor’s® (“S&P”) to use the S&P Quality Rankings and the S&P International Quality Rankings. If S&P terminates the license to use either the S&P Quality Rankings or the S&P International Quality Rankings, the Board may need to adopt a new investment strategy and/or new investment policies. There is no assurance that the BQY would pursue or achieve its investment objective during the period in which it implements these replacement investment policies or strategies. “Standard & Poor’s,” “S&P,” “Standard & Poor’s Earnings and Dividend Rankings,” “S&P Earnings and Dividend Rankings,” “Standard & Poor’s Quality Rankings,” “Standard & Poor’s International Quality Rankings,” “S&P International Quality Rankings” and “S&P Quality Rankings” are trademarks of S&P and have been licensed for use by the BQY. BQY is not sponsored, endorsed, managed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in BQY. BQY is required to pay a quarterly licensing fee, which is shown in the Statements of Operations as licensing.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Trusts and other shared expenses pro rated to the Trusts are allocated daily to each class based on its relative net assets or other appropriate methods.

The Trusts have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

 

 

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2. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to economically hedge, their exposure to certain risks such as equity risk or foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.

Foreign Currency Exchange Contracts: Certain Trusts enter into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by a Trust, help to manage the overall exposure to the currencies in which some of the investments held by a Trust are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Trust as an unrealized gain or loss. When the contract is closed, a Trust record 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 foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and the risk that the counterparty to the contract does not perform its obligations under the agreement.

Options: The Trusts purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike 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 instrument at the exercise or strike price at any time or at a specified time during the option period. When the Trusts purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument 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 instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts realize 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 premiums received or paid). When the Trusts write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Trusts bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an illiquid market. Exercise of an option written could result in the Trusts purchasing or selling a security at a price different from the current market value.

A derivative contract may suffer a mark to market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract. A Trust’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Trust. For OTC options purchased, each Trust bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by such Trust should the counterparty fail to perform under the contracts. Options written by the Trusts do not typically give rise to counterparty credit risk, as options written generally obligate the Trusts, and not, the counterparty to perform. With exchange traded purchased options, there is minimal counterparty credit risk to the Trusts since the exchange’s clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, US bankruptcy laws will typically allocate that shortfall on a pro rata basis across all the broker’s customers, potentially resulting in losses to the Trusts.

In order to better define its contractual rights and to secure rights that will help the Trusts mitigate its counterparty risk, the Trusts may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between each Trust and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Trust may, under certain circumstances, offset with the counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting) including the bankruptcy or insolvency of the counterparty. However, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearinghouse for exchange traded and centrally cleared derivatives. Brokers can ask for margining in excess of the minimum in certain circumstances.

 

 

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Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts, options and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by a Trust and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of a Trust and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by a Trust, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g. $500,000) before a transfer has to be made. To the extent amounts due to a Trust from its counterparties are not fully collateralized, contractually or otherwise, a Trust bears the risk of loss

from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. Each Trust attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Trust’s net assets decline by a stated percentage or a Trust fails to meet the terms of its ISDA Master Agreements, which would cause a Trust to accelerate payment of any net liability owed to the counterparty.

For financial reporting purposes, the Trusts do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

 

 

Derivative Financial Instruments Categorized by Risk Exposure:  
     Fair Values of Derivative Financial Instruments as of April 30, 2013              
    Asset Derivatives  
        BME     BGY  
     Statements of Assets and Liabilities Location              

Foreign currency exchange contracts

 

Unrealized appreciation on foreign currency

exchange contracts

  $ 16      $ 11,958   

 

     Liability Derivatives  
        BQR     BGR     CII     BDJ     BOE     BME  
     Statements of Assets and Liabilities Location                 Value                       

Foreign currency exchange contracts

  Unrealized depreciation on foreign currency exchange contracts                        $ (836   $ (94   $ (289

Equity contracts

  Options written — at value1   $ (1,473,747   $ (10,022,464   $ (11,057,747     (25,826,639     (18,959,736     (3,647,998

Total

      $ (1,473,747   $ (10,022,464   $ (11,057,747   $ (25,827,475   $ (18,959,830   $ (3,648,287

 

     Liability Derivatives  
        BGY     BCF     BCX     BQY     BUI  
     Statements of Assets and Liabilities Location                 Value                

Foreign currency exchange contracts

 

Unrealized depreciation on foreign currency

exchange contracts

  $ (87   $ (87   $ (12,753   $ (58   $ (4,821

Equity contracts

 

Options written — at value1

    (17,250,586     (4,422,630     (4,553,969     (1,012,745     (5,300,906

Total

      $ (17,250,586   $ (4,422,630   $ (4,553,969   $ (1,012,803   $ (5,305,727

 

  1 

Includes options purchased at value as reported in the Schedules of Investments.

 

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The Effect of Derivative Financial Instruments in the Statements of Operations

Six Months Ended April 30, 2013

 
     Net Realized Gain (Loss) From  
      BQR      BGR     CII     BDJ     BOE     BME  

Foreign currency exchange contracts:

             

Foreign currency transactions.

   $ 9,757       $ (23,725   $ (70,958   $ (13,162   $ (395,041   $ (1,285

Equity contracts:

             

Options2

     1,108,762         14,006,774        12,400,200        24,837,447        12,888,293        1,350,971   
  

 

 

 

Total

   $ 1,118,519       $ 13,983,049      $ 12,329,242      $ 24,824,285      $ 12,493,252      $ 1,349,686   

 

      Net Realized Gain (Loss) From  
      BGY     BCF      BCX     BQY      BUI  

Foreign currency exchange contracts:

            

Foreign currency transactions.

   $ (397,109   $ 33,220       $ (71,348   $ 12,041       $ 44,224   

Equity contracts:

            

Options2

     1,057,982        10,145,589         12,961,773        784,649         2,343,252   
  

 

 

 

Total

   $ 660,873      $ 10,178,809       $ 12,890,425      $ 796,690       $ 2,387,476   

 

  2 

Options purchased are included in the net realized gain (loss) from investments-unaffiliated and net change in unrealized appreciation/depreciation on investments.

 

      Net Change in Unrealized
Appreciation/Depreciation on
 
      BQR     BGR     CII     BDJ     BOE     BME  

Foreign currency exchange contracts:

            

Foreign currency translations

                        $ (669   $ 6,218      $ 789   

Equity contracts:

            

Options1

   $ (609,441   $ (7,464,153   $ (5,874,915     (14,644,889     (7,272,598     (1,416,507
  

 

 

 

Total

   $ (609,441   $ (7,464,153   $ (5,874,915   $ (14,645,558   $ (7,266,380   $ (1,415,718

 

      Net Change in Unrealized
Appreciation/Depreciation on
 
      BGY     BCF     BCX     BQY     BUI  

Foreign currency exchange contracts:

          

Foreign currency translations

   $ 11,871      $ (87   $ (12,753   $ (49   $ (4,804

Equity contracts:

          

Options1

     (3,388,215     (629,011     (196,596     (666,693     (2,899,696
  

 

 

 

Total

   $ (3,376,344   $ (629,098   $ (209,349   $ (666,742   $ (2,904,500

 

  1 

Options purchased are included in the net realized gain (loss) from investments-unaffiliated and net change in unrealized appreciation/depreciation on investments.

For the six months ended April 30, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows:

 

      BQR      BGR      CII      BDJ      BOE      BME  

Foreign currency exchange contracts:

                 

Average number of contracts - US dollars purchased.

     1                         1         3         1   

Average number of contracts - US dollars sold

     2                                 3         1   

Average US dollar amounts purchased.

   $ 151,468                       $ 117,952       $ 8,291,916       $ 26,323   

Average US dollar amounts sold

   $ 146,419                               $ 5,376,359       $ 3,102   

Options:

                 

Average number of options contracts purchased

     73         1,058         2,623         3,602         1,450         123   

Average number of options contracts written

     6,866,400         6,192,450         7,575,500         15,922,490         26,180,889         1,773,550   

Average notional value of options contracts purchased.

   $ 203,000       $ 8,164,000       $ 4,048,000       $ 13,737,900       $ 5,188,250       $ 493,750   

Average notional value of contracts written

   $ 46,046,605       $ 257,483,818       $ 334,132,609       $ 800,478,914       $ 545,952,256       $ 78,610,870   

 

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      BGY      BCF      BCX      BQY      BUI  

Foreign currency exchange contracts:

              

Average number of contracts - US dollars purchased

     4         2         2         2         3   

Average number of contracts - US dollars sold

     7         2         2         1         2   

Average US dollar amounts purchased

   $ 24,251,922       $ 792,344       $ 1,826,891       $ 19,606       $ 1,560,773   

Average US dollar amounts sold

   $ 20,620,678       $ 809,187       $ 712,242       $ 1,289       $ 535,267   

Options:

              

Average number of options contracts purchased

             680         80         101         522   

Average number of options contracts written

     31,973,687         10,572,750         10,927,578         1,005,619         7,976,800   

Average notional value of options contracts purchased

           $ 2,103,000       $ 313,750       $ 450,975       $ 2,250,350   

Average notional value of options contracts written

   $ 476,767,949       $ 203,439,462       $ 231,095,054       $ 32,092,220       $ 110,402,626   

 

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee at the following annual rates:

 

Average weekly value of each Trust’s net assets:

        

BGR

     1.20

BDJ

     0.81

BOE

     1.00

BME

     1.00

BCF

     1.20

BQY

     0.75

Average daily value of each Trust’s net assets:

  

BQR

     1.20

CII

     0.85

BGY

     1.00

BCX

     1.20

BUI

     1.00

The Manager has voluntarily agreed to waive a portion of the investment advisory fees on BGR and BCF as a percentage of their average weekly net assets as follows:

 

             Expiration Date       

BGR

     0.05   December 29, 2012

BCF

     0.10   September 29, 2013
       0.05   September 29, 2014

The Manager has voluntarily agreed to waive a portion of the investment advisory fees on BCX as a percentage of its average daily net assets as follows:

             Expiration Date  

BCX

     0.20   October 31, 2015
     0.15   October 31, 2016
     0.10   October 31, 2017
       0.05   October 31, 2018

The Manager provides investment management and other services to the Subsidiary. The Manager does not receive separate compensation from the Subsidiary for providing investment management or administrative services. However, BCX pays the Manager based on the Trust’s net assets which includes the assets of the Subsidiary.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended April 30, 2013, the amounts waived were as follows:

 

BQR

   $ 2,743   

BGR

   $ 9,434   

CII

   $ 9,260   

BDJ

   $ 30,300   

BOE

   $ 17,572   

BME

   $ 2,834   

BGY

   $ 4,062   

BCF

   $ 11,321   

BCX

   $ 5,819   

BQY

   $ 1,378   

BUI

   $ 4,075   

The Manager entered into separate sub-advisory agreements with BlackRock Financial Management, Inc. (“BFM”) for BGR, CII, BDJ, BQY and BUI, BlackRock Investment Management, LLC (“BIM”) for BQR, CII, BCF and BUI, BlackRock Capital Management, Inc. for BGY, BCF and BCX and BlackRock International Ltd. for BQR, BGR, BCF and BCX, each an affiliate of the Manager. The Manager pays each sub-advisor for services they provide, a monthly fee that is a percentage of the investment advisory fee paid by each Trust to the Manager.

 

 

126    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Notes to Financial Statements (continued)     

 

Certain Trusts received an exemptive order from the SEC permitting them, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BIM as the securities lending agent. BIM may, on behalf of the Trusts, invest cash collateral received by the Trusts for such loans in a private investment company managed by the Manager or in registered money market funds advised by the Manager or its affiliates. The market value of securities on loan and the value of the related collateral, if applicable, are shown in the Statements of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM, if any, is disclosed in the Schedules of Investments. Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of rebates paid to, or fees paid by, borrowers of securities. The Trusts retain 65% of securities lending income and pays a fee to BIM equal to 35% of such income. The Trusts benefit from a borrower default indemnity provided by BlackRock. As securities lending agent, BIM bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. BIM does not receive any fees for managing the cash collateral. The share of income earned by the Trusts is shown as securities lending–affiliated in the Statements of Operations. For the period ended April 30, 2013, BIM received $3,614 in securities lending agent fees related to securities lending activities for the Trusts.

Certain officers and/or trustees of the Trusts are officers and/or trustees of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in officer and diectors in the Statement of Operations.

4. Investments:

Purchases and sales of investment securities, excluding short-term securities, for the six months ended April 30, 2013, were as follows:

 

      Purchases      Sales  

BQR

   $ 58,536,693       $ 59,000,647   

BGR

   $ 541,612,128       $ 562,787,803   

CII

   $ 798,728,519       $ 817,530,110   

BDJ

   $ 1,630,214,219       $ 1,592,453,114   

BOE

   $ 1,471,966,616       $ 1,446,015,706   

BME

   $ 259,327,857       $ 269,183,869   

BGY

   $ 1,399,702,297       $ 1,416,661,067   

BCF

   $ 222,060,946       $ 239,838,106   

BCX

   $ 643,511,411       $ 682,586,861   

BQY

   $ 50,234,329       $ 51,848,796   

BUI

   $ 235,387,948       $ 252,315,935   

Transactions in options written for the six months ended April 30, 2013, were as follows:

      Calls     Puts  
     Contracts     Premiums
Received
    Contracts     Premiums
Received
 
BQR                         

Outstanding options at beginning of period

     6,889,548      $ 1,345,784                 

Options written

     21,188,171        3,809,272                 

Options expired

     (7,044,305     (1,469,636              

Options closed

     (8,371,554     (1,087,723              

Options exercised

     (6,171,697     (1,438,653              
  

 

 

   

 

 

 

Outstanding options at end of period

     6,490,163      $ 1,159,044                 
  

 

 

   

 

 

 

 

 
BGR                         

Outstanding options at beginning of period

     4,078,778      $ 10,334,101                 

Options written

     12,861,576        27,649,930                 

Options expired

     (5,063,818     (9,698,709              

Options closed

     (3,198,238     (9,570,007              

Options exercised

     (5,329,205     (11,702,106              
  

 

 

   

 

 

 

Outstanding options at end of period

     3,349,093      $ 7,013,209                 
  

 

 

   

 

 

 

 

 
CII                         

Outstanding options at beginning of period

     3,841,460      $ 7,667,197                 

Options written

     13,018,819        28,159,560        1,000      $ 57,969   

Options expired

     (2,762,236     (6,390,256     (1,000     (57,969

Options closed

     (3,683,276     (8,976,469              

Options exercised

     (7,139,930     (13,035,078              
  

 

 

   

 

 

 

Outstanding options at end of period

     3,274,837      $ 7,424,954                 
  

 

 

   

 

 

 

 

 
BDJ                         

Outstanding options at beginning of period

     8,035,194      $ 17,351,654        1,330,600      $ 2,341,232   

Options written

     27,412,245        54,033,226                 

Options expired

     (6,140,348     (13,128,595     (46,400     (65,424

Options closed

     (6,321,153     (15,155,872              

Options exercised

     (15,126,177     (28,100,567     (1,284,200     (2,275,808
  

 

 

   

 

 

 

Outstanding options at end of period

     7,859,761      $ 14,999,846                 
  

 

 

   

 

 

 

 

 
BOE                         

Outstanding options at beginning of period

     30,503,917      $ 14,301,483                 

Options written

     85,746,533        50,912,711                 

Options expired

     (16,926,951     (11,253,112              

Options closed

     (42,766,843     (17,597,193              

Options exercised

     (41,757,025     (21,994,318              
  

 

 

   

 

 

 

Outstanding options at end of period

     14,799,631      $ 14,369,571                 
  

 

 

   

 

 

 
 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    127


Table of Contents
Notes to Financial Statements (continued)     

 

      Calls            Puts         
     Contracts     Premiums
Received
    Contracts     Premiums
Received
 
BME                         

Outstanding options at beginning of period

     594,345      $ 2,542,259        224,570      $ 490,378   

Options written

     1,907,194        6,720,294        825        104,209   

Options expired

     (318,844     (1,258,941     (113,219     (79,824

Options closed

     (542,523     (2,322,187     (468     (69,914

Options exercised

     (995,198     (3,444,653     (111,400     (416,818
  

 

 

   

 

 

 

Outstanding options at end of period

     644,974      $ 2,236,772        308      $ 28,031   
  

 

 

   

 

 

 

 

 
BGY                         

Outstanding options at beginning of period

     37,264,801      $ 14,333,012                 

Options written

     113,633,925        46,137,490                 

Options expired

     (26,148,828     (10,478,337              

Options closed

     (59,551,135     (19,143,675              

Options exercised

     (35,674,333     (19,089,796              
  

 

 

   

 

 

 

Outstanding options at end of period

     29,524,430      $ 11,758,694                 
  

 

 

   

 

 

 

 

 
BCF                         

Outstanding options at beginning of period

     8,495,599      $ 7,376,099                 

Options written

     25,637,992        19,388,227                 

Options expired

     (14,332,913     (8,909,998              

Options closed

     (5,133,247     (6,859,233              

Options exercised

     (6,431,699     (5,380,682              
  

 

 

   

 

 

 

Outstanding options at end of period

     8,235,732      $ 5,614,413                 
  

 

 

   

 

 

 

 

 
BCX                         

Outstanding options at beginning of period

     6,266,417      $ 6,814,345                 

Options written

     25,706,638        19,910,640                 

Options expired

     (11,233,337     (9,221,885              

Options closed

     (7,685,296     (7,257,613              

Options exercised

     (2,813,065     (5,413,048              
  

 

 

   

 

 

 

Outstanding options at end of period

     10,241,357      $ 4,832,439                 
  

 

 

   

 

 

 
        
      Calls            Puts          
     Contracts     Premiums
Received
    Contracts      Premiums  
BQY                          

Outstanding options at beginning of period

     666,914      $ 680,823                  

Options written

     2,377,421        2,012,083                  

Options expired

     (1,020,478     (646,657               

Options closed

     (377,387     (544,851               

Options exercised

     (950,099     (920,669               
  

 

 

   

 

 

 

Outstanding options at end of period

     696,371      $ 580,729                  
  

 

 

   

 

 

 

 

 
BUI                          

Outstanding options at beginning of period

     7,021,200      $ 2,530,418                  

Options written

     23,637,786        7,308,906                  

Options expired

     (8,811,329     (2,527,900               

Options closed

     (5,329,411     (2,470,560               

Options exercised

     (9,627,126     (2,662,393               
  

 

 

   

 

 

 

Outstanding options at end of period

     6,891,120      $ 2,178,471                  
  

 

 

   

 

 

 

As of April 30, 2013, the value of portfolio securities subject to covered call options written was as follows:

 

      Value  

BQR

   $ 45,838,749   

BGR

   $ 248,341,607   

CII

   $ 326,984,802   

BDJ

   $ 808,949,699   

BOE

   $ 539,018,737   

BME

   $ 83,192,687   

BGY

   $ 470,731,562   

BCF

   $ 190,304,005   

BCX

   $ 205,958,388   

BQY

   $ 32,980,700   

BUI

   $ 113,734,674   

 

 

5. Income Tax Information:

As of October 31, 2012, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Expires October 31,    BQR      CII      BDJ      BOE      BGY  

2016

                   $ 71,173,003       $ 135,331,776           

2017

   $ 21,140,114       $ 2,664,939         117,162,162         38,148,041       $ 467,149,104   

2018

     9,080,494         70,040,876         8,526,748                 55,605,462   

2019

     1,795,201         2,615,197                           

No expiration date1

     3,461,740                         20,769,374         66,886,857   
  

 

 

 
Total    $35,477,549      $75,321,012      $196,861,913      $194,249,191      $589,641,423  

 

  1

Must be utilized prior to losses subject to expiration.

 

128    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Notes to Financial Statements (continued)     

 

As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

      BQR     BGR     CII     BDJ     BOE     BME  

Tax cost

   $ 139,586,253      $ 682,663,839      $ 678,342,068      $ 1,433,365,914      $ 1,023,796,177      $ 194,743,361   
  

 

 

 

Gross unrealized appreciation

   $ 18,966,734      $ 181,648,256      $ 59,897,011      $ 210,172,618      $ 132,092,893      $ 55,973,100   

Gross unrealized depreciation

     (39,354,939     (20,448,447     (102,406,182     (82,115,899     (50,281,832     (3,004,158
  

 

 

 

Net unrealized appreciation (depreciation)

   $ (20,388,205   $ 161,199,809      $ (42,509,171   $ 128,056,719      $ 81,811,061      $ 52,968,942   

 

      BGY     BCF     BCX     BQY     BUI  

Tax cost

   $ 885,568,399      $ 627,349,171      $ 722,432,467      $ 84,651,469      $ 310,070,204   
  

 

 

 

Gross unrealized appreciation

   $ 120,472,200      $ 103,907,032      $ 22,661,127      $ 7,805,593      $ 52,040,942   

Gross unrealized depreciation

     (43,702,708     (149,846,600     (103,746,837     (5,944,617     (3,983,759
  

 

 

 

Net unrealized appreciation (depreciation)

   $ 76,769,492      $ (45,939,568   $ (81,085,710   $ 1,860,976      $ 48,057,183   

6. Concentration, Market and Credit Risk:

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.

As of April 30, 2013, the Trusts listed below invested a significant portion of their assets in securities in the following sectors:

 

Utilities.

   BQR, BUI

Energy

   BGR, BCF, BCX

Health Care

   BME

Materials

   BCF, BCX

Changes in economic conditions affecting these sectors would have a greater impact on these Trusts and could affect the value, income and/or liquidity of positions in such securities.

BOE, BGY and BQY invest a substantial amount of their assets in issuers located in a single country or a limited number of countries.

When a Trust concentrates its investments in this manner, it assumes the

risk that economic, political and social conditions in those countries may have a significant impact on their investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the US. Foreign securities markets may also be less liquid, more volatile, and less subject to governmental supervision not typically associated with investing in United States securities. Please see the Schedules of Investments for concentrations in specific countries.

As of April 30, 2013, the Trusts listed below had the following industry classifications:

 

Industry    BOE     BGY     BQY  

Pharmaceuticals

     8     11     11

Food Products

     7        4        5   

Commercial Banks

     6        6        9   

Oil, Gas & Consumable Fuels

     5        3        11   

Capital Markets

     5        5        2   

Insurance

     4        7          

Beverages

     4        5          

Machinery

     1        5        1   

Multi-Utilities

     1                 

Tobacco

     1        2        5   

Diversified Telecommunications Services

     1        2        6   

Independent Power Producers & Energy Traders

     1        1          

Electric Utilities

                     

Transportation Infrastructure

                     

Water Utilities

                     

Other*

     56        49        50   

 

  * All other industries held were each less than 5%.

7. Capital Share Transactions:

There are an unlimited number of $0.001 par value common shares of beneficial interest authorized for each Trust, with the exception of CII. CII is authorized to issue 200 million shares of $0.10 par value shares, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    129


Table of Contents
Notes to Financial Statements (concluded)     

 

Transactions in common shares of beneficial interest during the six months ended April 30, 2013 and the year ended October 31, 2012 were as follows:

 

Trust    Commencement
of Investment
Operations
     Initial
Public
Offering
     Underwriters’
Exercising  the
Over-Allotment
Option
 

BUI

     November 25, 2011         15,506,964         1,400,000   

Upon commencement of operations, organization costs associated with the establishment of BUI were expensed by BUI. Offering costs incurred in connection with BUI’s offering of shares have been charged against the proceeds from the initial share offering in the amount of $676,000.

Shares issued and outstanding during the six months ended April 30, 2013 and the year ended October 31, 2012 increased by the following amounts as a result of dividend reinvestments:

 

      Six Months Ended
April 30, 2013
     Year Ended
October 31, 2012
 

BQR

             43,408   

BME

     31,115         100,332   

Shares issued and outstanding remained constant for BGR, CII, BDJ, BOE, BGY, BCF, BCX and BQY for the six months ended April 30, 2013 and the year ended October 31, 2012.

8. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Certain Trusts paid a net investment income dividend on May 31, 2013 to shareholders of record on May 15, 2013 as follows:

 

      Common
Dividend per
Share
 

BOE

   $ 0.31165   

BQY

   $ 0.23000   

BUI

   $ 0.36250   

Additionally, certain Trusts declared a net investment income dividend and special distribution in the following amounts per share on June 3, 2013 payable to shareholders of record on June 14, 2013 as follows:

 

      Common
Dividend per
Share
 

BQR

   $ 0.179250   

BGR

   $ 0.405000   

CII

   $ 0.300000   

BDJ

   $ 0.140000   

BME

   $ 0.384375   

BGY

   $ 0.167850   

BCF

   $ 0.221500   

BCX

   $ 0.290000   
 

 

130    SEMI-ANNUAL REPORT    APRIL 30, 2013     


Table of Contents
Officers and Trustees     

 

Richard E. Cavanagh, Chairman of the Board and Trustee

Karen P. Robards, Vice Chairperson of the Board,

    Chairperson of the Audit Committee and Trustee

Paul L. Audet, Trustee

Michael J. Castellano, Trustee and Member of the Audit Committee

Frank J. Fabozzi, Trustee and Member of the Audit Committee

Kathleen F. Feldstein, Trustee

James T. Flynn, Trustee and Member of the Audit Committee

Henry Gabbay, Trustee

Jerrold B. Harris, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee and Member of the Audit Committee

John M. Perlowski, President and Chief Executive Officer

Anne Ackerley, Vice President

Brendan Kyne, Vice President

Robert W. Crothers, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer and,

    Anti-Money Laundering Officer

Janey Ahn, Secretary

 

The Trusts are managed by a team of investment professionals.

 

Effective February 28, 2013, Erin Xie, PhD (Managing Director of BlackRock since 2006) and Ian Jamieson, CFA (Director of BlackRock since 2007) became co-portfolio managers of BOE. The other portfolio managers of BOE are Thomas Callan, Kyle McClements, Nigel Hart and Christopher Accettella.

 

Effective March 11, 2013, Poppy Allonby, CFA (Managing Director of BlackRock since 2012; Director of BlackRock from 2007 to 2011) and Robin Batchelor (Managing Director of BlackRock, Inc. since 2007, and Director of BlackRock, Inc. from 2006 to 2007) became co-portfolio managers of BGR and BCF. The other portfolio managers of BGR are Kyle McClements and Chris Accettella. The other portfolio managers of BCF are Richard Davis, Kyle McClements, Bob Shearer and Christopher Accettella.

 

Effective March 11, 2013, Richard Davis (Managing Director of BlackRock since 2008, and Director of BlackRock from 2006 to 2008), Joshua Freedman (Vice President of BlackRock since 2006), and Thomas Holl (Vice President of BlackRock since 2008) became co-portfolio managers of BCX. The other portfolio managers of BCX are Kyle McClements and Christopher Accettella.

 

Effective March 11, 2013, the portfolio managers of BUI are Kathleen Anderson, Kyle McClements, Bob Shearer and Christopher Accettella.

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisors

BlackRock Financial

Management, Inc.1

New York, NY 10022

BlackRock Capital

Management, Inc.2

Wilmington, DE 19809

BlackRock Investment

Management, LLC3

Princeton, NJ 08540

BlackRock International Ltd.4

Edinburgh, EH3 8JB

United Kingdom

Accounting Agent

The Bank of New York Mellon

Brooklyn, NY 11217

Custodians

The Bank of New York Mellon5

New York, NY 10286

Brown Brothers, Harriman & Co.6

Boston, MA 02109

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Philadelphia, PA 19103

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809

 

  1 

For BGR, CII, BDJ, BQY and BUI.

  2 

For BGY, BCF and BCX.

  3 

For BQR, CII, BCF, and BUI.

  4 

For BQR, BGR, BCF and BCX.

  5 

For all Trusts except CII.

  6 

For CII.

 

 

     SEMI-ANNUAL REPORT    APRIL 30, 2013    131


Table of Contents
Additional Information     

 

General Information

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

On June 4, 2013, the Board of BQY approved changes to certain non-fundamental investment policies of the Trust.

The Board of BQY approved changes to the Trust’s investment policy of investing, under normal market conditions, at least 80% of its assets in equity securities that are included in the Standard & Poor’s Earnings and Dividend Quality Ranking System (“S&P U.S. Quality Rankings”) or the Standard and Poor’s International Quality Rankings System (“S&P International Quality Rankings”) (together, “S&P Quality Rankings”) that are rated at least B+ by Standard & Poor’s®, a division of The McGraw-Hill Companies, Inc. at time of investment. This investment policy has been revised to allow BQY to invest, under normal market conditions, at least 80% of its total assets in dividend paying equity securities. Under BQY’s new investment policy, the Trust is particularly dependent on the analytical abilities of BlackRock.

In addition, the Board of BQY also approved the removal of the Trust’s investment policy of investing, under normal market conditions, at least 40% of its assets in equity securities of non-U.S. issuers. This investment policy has been removed to permit BQY to invest more broadly across both U.S. and non-U.S. issuers.

The Board of BQY has approved the foregoing changes to the investment policies as a consequence of the fundamental analysis-based investment process utilized by BQY’s portfolio managers, under which the application of either (i) the S&P Quality Rankings as an investable universe or (ii) a policy requiring a significant portion of total assets to be invested in non-U.S. equity securities is unduly restrictive in the current market environment. While the proposed changes will no longer reflect the use of a third party “quality-based” rankings system, the BQY’s portfolio management team emphasizes an evaluation of both franchise and management quality as inputs to their fundamental analysis-based investment process. The approved changes will not alter BQY’s investment objective.

BQY is required to provide shareholders 60 days’ notice of the change to the investment policies described above. Accordingly, a notice describing the changes discussed above were mailed to shareholders of record as of June 7, 2013. No action is required by shareholders of BQY in connection with this change. Upon the completion of the 60-day notice period, the changes to BQY’s investment policies will become effective and BQY’s name will be changed to reflect such changes in the investment policies. BQY will continue to trade on the NYSE MKT under its current ticker symbol even after the name change becomes effective.

During the period, other than the changes noted above, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. Other than as disclosed on page 131, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ electronic delivery program.

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.

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and 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 call the Trusts at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ 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, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

 

 

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Additional Information (continued)     

 

General Information (concluded)

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 882-0052; (2) at http://www. blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts’ voted proxies relating to securities held in the Trusts’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http:// www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

 

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

 

 

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a quarterly basis. In order to provide shareholders with a more stable level of dividend distributions, the dividends paid by the Trusts for any particular quarter may be more or less than the amount of net investment income earned by the Trusts during such quarter. The portion of dividend distributions that exceeds a Trust’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital.

Dividend distributions in excess of a Trust’s taxable income and net capital gains, but not in excess of a Trust’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a non-taxable return of capital. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 

 

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Additional Information (concluded)     

 

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.

 

 

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This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change.

 

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Item 2 –   Code of Ethics – Not Applicable to this semi-annual report
Item 3 –   Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –   Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –   Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
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 to this semi-annual report
Item 8 –   Portfolio Managers of Closed-End Management Investment Companies
  (a)Not Applicable to this semi-annual report
  (b)As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.
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 – There have been no material changes to these procedures.
Item 11 –   Controls and Procedures
  (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 13a-15(b) under the Securities Exchange Act of 1934, as amended.
  (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
  (a)(1) – Code of Ethics – Not Applicable to this semi-annual report
  (a)(2) – Certifications – Attached hereto
  (a)(3) – Not Applicable
  (b) – Certifications – Attached hereto

 

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12(c) –   Notices to the registrant’s common shareholders in accordance with the order under Section 6(c) of the 1940 Act granting an exemption from Section 19(b) of the 1940 Act and Rule 19b-1 under the 1940 Act, dated May 9, 20091

 

 

 

1 The Fund has received exemptive relief from the Securities and Exchange Commission permitting it to make periodic distributions of long-term capital gains with respect to its outstanding common stock as frequently as twelve times each year, and as frequently as distributions are specified by or in accordance with the terms of its outstanding preferred stock. This relief is conditioned, in part, on an undertaking by the Fund to make the disclosures to the holders of the Fund’s common shares, in addition to the information required by Section 19(a) of the 1940 Act and Rule 19a-1 thereunder. The Fund is likewise obligated to file with the SEC the information contained in any such notice to shareholders and, in that regard, has attached hereto copies of each such notice made during the period.

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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 Health Sciences Trust
By:         /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Health Sciences Trust
Date: July 2, 2013

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/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Health Sciences Trust
Date: July 2, 2013
By:     /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Health Sciences Trust
Date: July 2, 2013

 

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